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A Comparative Study of the Rural Development between Mainland China and Philippines: A Focus on Township and Village Enterprises (TVEs) and Small and Medium Enterprises (SMEs)

This thesis evaluates the comparison between China¡¦s Township and Village
Enterprises (TVEs) and Philippines¡¦ Small and Medium Enterprises (SMEs). TVEs and
SMEs are considered ¡§economic equity¡¨ programs of the two countries that serve both as
a fiscalizer of the adverse effects of rapid urbanization and as poverty alleviation industry,
more specifically in the rural areas. Both economic equities play an important role in
Gross Domestic Product (GDP) contribution and employment rate. Although the two
countries differ in some aspects, the author compared two regions from each country,
namely Guangxi Zhuang Autonomous Region in China and SOCSKSARGEN Region in
the Philippines, to situate the shared commonalities and differences that may affect their
economic performance. From the data gathered, the research proceeded to evaluate the
reasons for the slow growth of SMEs in the Philippines as compared with the TVEs in
Mainland China. The rural industrialization was viewed from the perspective of three
important factors: societal, economic, and government policy support. After examining
these three factors, China¡¦s TVEs proved to be successful because all the three factors
have been favorable to them. On the Philippines¡¦ side, despite all the government
support and economic opportunities attendant to it such as its richness in natural
resources and good trade access to major foreign markets, there seemed to be sluggish
economic growth brought about by societal factors like massive poverty in the rural areas,
lack of skills and entrepreneurial capabilities, and other factors such as the prevalence of
armed conflicts between the government and the various threat groups in some regions.
Furthermore, this paper has driven home the point as exhaustively shown in the
discussions in Chapter 4 that - ¡§the more successful China¡¦s TVEs and Philippines¡¦
SMEs are, the better for the rural development of the country¡¨. China has proven this
after the 1978 reforms when in 1990 TVEs dramatically rose 13 times more from its 1979
level - that is from 1.4 million to 18.5million. This included other factors of growth like
output value, employment and taxes remitted. While the features of the 1978 reforms -
open door policy, decollectivization and decentralization, among others, were macro
policies which fertiled the soil for rural industrialization in China, its TVEs growth was
in a SULNAM (Spontaneous, Unorganized, Leaderless, Non-ideological, Apolitical
Movement) phenomenon. Thus, it was more of societal and economic factors with the
local government providing the policy support. Undeniably, it is one of the strong pillars
of China¡¦s economic growth and social-equity considering that 800 million of the 1.3
billion population of China is in the countryside.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0808108-141952
Date08 August 2008
CreatorsGrace, Helen
ContributorsSusan Chao, Chyun-Yang Wang, Teh-Chang Lin
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageEnglish
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0808108-141952
Rightsunrestricted, Copyright information available at source archive

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