"latin American" Crisis Warning On China's Economic Development

Most of Latin American countries entered into a period of modernization in the middle of the 19^th century and they have been regarded as forerunners in developing countries. In mid 1970's, these countries reached per capita GDP 1000 USD. But 20 years later, they fell behind South Korea and Malaysia which reached per capita GDP 1000 USD at the same time. After researching the economy development of Latin American countries, we could find they have suffered setbacks, and that is why people use a word of "Latin-Americanization" worldwide. China has a lot of similarities and entered the period of per capita 1000 USD. We will might enter a period of " Golden Development Period", but also face the risk of " Latin-Americanization". This thesis summarizes estimations of China's risk of " Latin-Americanization" by a lot of scholars, explores development characteristics of China and Latin American countries, if China has risk of " Latin-Americanization" and relative counter-measures.This article researches the present situation and development trend of China's economy, has a full view of economic development potentiality and analyzes the problems remain to be solved. Compared the economy development law of Latin American countries with that of China, we came to a conclusion that China's economy really involves risks of " Latin-Americanization." For example, in the situation of globalization, technology reform especially information technology develops fast and influences deeply the economy and society. But China's industry has an extensive way of increase, irrational employment structure, and low productivity. It is facing severe challenge and need new development; Agriculture modernization needs to be promoted. For a long period of lack of investment and technology innovation, the agricultural productivity became low and industrial and agricultural development lost balance; Productions " made in China" have got challenges, change technology by market restrict the ability of innovation. " World's Factory" is the approval of strong productivity, but low cost only get low profit; With the open of China's financial market, more and more foreign capitals control industrial capitals, take part in wealth distribution and take hold of lifelines of national economy. China's financial market is facing the dangerous of generally losing credit, rules and right of price making, therefore the government urgently need to enhance the control of financial openness; The price of real estate is on high position and break away from normal track. Real estate is an important industry in economic development, if the foam is broken, people's benefit and China's development will be greatly influenced; Now China's distribution is irrational. The problems between urban and rural areas, high income and low income and city's development and farmer laborers are severe. If these problems could not be solved, they could probably cause social, economic and political crisis.After making an in-depth research and analysis about above- mention problems, the article put forward relative counter-measures of macro control and micro policies according to China's risks to be " Latin-Americanization." For example, provide good political environment for economy development; treat smoothly the relationship of economic and social development; grasp the leading factor of reform and opening up; raise the research ability of national enterprises; treat relationship of industry and agriculture; avoid depending on so much foreign capital and improve social security system.