Such a consensus has contributed to the mutually re-enforcement of reform, development and social stability. Despite the outstanding achievements mentioned above, we should remain clear about the fact that China is still a developing country with large population. Though large in absolute size, China’s GDP measured by per capita is still very low, with the 2003 figure just exceeding USD1000.
Control over bank credit extension requires not only a restriction on the amount of liquidity available in the banking sector, but also the acceptance of realistic interest rates. Despite the maintenance of relatively high interest rates in South Africa, and a series of increases in interest rates since November 1995, the demand for bank credit remained relatively strong.