China to abandon the One child policy- a big mistake?

It may be a mistake for China to abandon the One child policy. There may be increasing number of millionaires but the Average quality of life has not really moved to a good level. China ranks 67 in the 2015 Human Capital Index rankings as can be seen here: http://www3.weforum.org/docs/WEF_Human_Capital_Report_2015.pdf

The Human Capital Index is compiled by : 'The World Economic Forum' (WEF) which is a Swiss nonprofit foundation, based in Cologny, Geneva. It defines itself an independent international organization committed to improving the state of the world by engaging business, political, academic developmental activities.

China's ruling Communist Party will abandon the one-child policy introduced in the late 1970s to defuse a demographic time bomb that threatens to choke growth in the world's second biggest economy.

The party's decision-making Central Committee approved plans to allow all couples in China to have two children, the official Xinhua News Agency said Thursday at the end of a four-day party gathering in Beijing. The move, which had been expected, comes after a previous effort to relax the policy fell well short of the goal of boosting births by 2 million a year.

"It shows the party wants to take action as soon as possible, and shows there is no time to delay for China to modify its population policy," said Wang Yukai, a governance professor at the Beijing-based Chinese Academy of Governance. "They couldn't wait for the legislation to pass next year. The leaders want the new policy now."

The "one-child" policy, which limited most couples to one or two children depending on ethnic background and where they live, was a cornerstone of late leader Deng Xiaoping's efforts to overhaul the economy. When the policy was adopted 36 years ago, the thinking was that the birth rate of almost 3 children per woman was a drag on growth.

The cap has since been relaxed and calls to lift it completely have gained traction as the fertility rate plunged and eroded the labor pool. The country's working-age population shrank for the first time in at least two decades last year as growth slowed, echoing Japan's downturn in the late 1990s.

Ref;
http://www.bloomberg.com/news/articles/2015-10-29/china-abandons-three-decade-old-one-child-policy-to-lift-growth

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