How Reform Worked in China

How Reform Worked in China
Author: Yingyi Qian
Publisher: MIT Press
Total Pages: 414
Release: 2017-11-24
Genre: Business & Economics
ISBN: 026253424X

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A noted Chinese economist examines the mechanisms behind China's economic reforms, arguing that universal principles and specific implementations are equally important. As China has transformed itself from a centrally planned economy to a market economy, economists have tried to understand and interpret the success of Chinese reform. As the Chinese economist Yingyi Qian explains, there are two schools of thought on Chinese reform: the “School of Universal Principles,” which ascribes China's successful reform to the workings of the free market, and the “School of Chinese Characteristics,” which holds that China's reform is successful precisely because it did not follow the economics of the market but instead relied on the government. In this book, Qian offers a third perspective, taking certain elements from each school of thought but emphasizing not why reform worked but how it did. Economics is a science, but economic reform is applied science and engineering. To a practitioner, it is more useful to find a feasible reform path than the theoretically best way. The key to understanding how reform has worked in China, Qian argues, is to consider the way reform designs respond to initial historical conditions and contemporary constraints. Qian examines the role of “transitional institutions”—not “best practice institutions” but “incentive-compatible institutions”—in Chinese reform; the dual-track approach to market liberalization; the ownership of firms, viewed both theoretically and empirically; government decentralization, offering and testing hypotheses about its link to local economic development; and the specific historical conditions of China's regional-based central planning.

The Political Logic of Economic Reform in China

The Political Logic of Economic Reform in China
Author: Susan L. Shirk
Publisher: Univ of California Press
Total Pages: 416
Release: 2023-04-28
Genre: History
ISBN: 9780520912212

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In the past decade, China was able to carry out economic reform without political reform, while the Soviet Union attempted the opposite strategy. How did China succeed at economic market reform without changing communist rule? Susan Shirk shows that Chinese communist political institutions are more flexible and less centralized than their Soviet counterparts were. Shirk pioneers a rational choice institutional approach to analyze policy-making in a non-democratic authoritarian country and to explain the history of Chinese market reforms from 1979 to the present. Drawing on extensive interviews with high-level Chinese officials, she pieces together detailed histories of economic reform policy decisions and shows how the political logic of Chinese communist institutions shaped those decisions. Combining theoretical ambition with the flavor of on-the-ground policy-making in Beijing, this book is a major contribution to the study of reform in China and other communist countries. This title is part of UC Press's Voices Revived program, which commemorates University of California Press's mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1994. In the past decade, China was able to carry out economic reform without political reform, while the Soviet Union attempted the opposite strategy. How did China succeed at economic market reform without changing communist rule? Susan Shirk shows that Chine

How China Escaped Shock Therapy

How China Escaped Shock Therapy
Author: Isabella M. Weber
Publisher: Routledge
Total Pages: 256
Release: 2021-05-26
Genre: Business & Economics
ISBN: 042995395X

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China has become deeply integrated into the world economy. Yet, gradual marketization has facilitated the country’s rise without leading to its wholesale assimilation to global neoliberalism. This book uncovers the fierce contest about economic reforms that shaped China’s path. In the first post-Mao decade, China’s reformers were sharply divided. They agreed that China had to reform its economic system and move toward more marketization—but struggled over how to go about it. Should China destroy the core of the socialist system through shock therapy, or should it use the institutions of the planned economy as market creators? With hindsight, the historical record proves the high stakes behind the question: China embarked on an economic expansion commonly described as unprecedented in scope and pace, whereas Russia’s economy collapsed under shock therapy. Based on extensive research, including interviews with key Chinese and international participants and World Bank officials as well as insights gleaned from unpublished documents, the book charts the debate that ultimately enabled China to follow a path to gradual reindustrialization. Beyond shedding light on the crossroads of the 1980s, it reveals the intellectual foundations of state-market relations in reform-era China through a longue durée lens. Overall, the book delivers an original perspective on China’s economic model and its continuing contestations from within and from without.

The State Strikes Back

The State Strikes Back
Author: Nicholas R. Lardy
Publisher: Peterson Institute for International Economics
Total Pages: 258
Release: 2019-01-01
Genre: Business & Economics
ISBN: 0881327387

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China's extraordinarily rapid economic growth since 1978, driven by market-oriented reforms, has set world records and continued unabated, despite predictions of an inevitable slowdown. In The State Strikes Back: The End of Economic Reform in China?, renowned China scholar Nicholas R. Lardy argues that China's future growth prospects could be equally bright but are shadowed by the specter of resurgent state dominance, which has begun to diminish the vital role of the market and private firms in China's economy. Lardy's book arrives in timely fashion as a sequel to his pathbreaking Markets over Mao: The Rise of Private Business in China, published by PIIE in 2014. This book mobilizes new data to trace how President Xi Jinping has consistently championed state-owned or controlled enterprises, encouraging local political leaders and financial institutions to prop up ailing, underperforming companies that are a drag on China's potential. As with his previous book, Lardy's perspective departs from conventional wisdom, especially in its contention that China could achieve a high growth rate for the next two decades—if it reverses course and returns to the path of market-oriented reforms.

State, Market, and Bureau-contracting in Reform China

State, Market, and Bureau-contracting in Reform China
Author: Yuen Yuen Ang
Publisher: Stanford University
Total Pages: 177
Release: 2009
Genre:
ISBN:

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Why and how has China succeeded as a developmental state despite a seemingly rents-ridden bureaucracy? Following conventional wisdom, "Weberian" bureaucracies are an institutional precondition for development, especially in interventionist states like China. However, my research finds that China's fast-growing economy has not been governed by a purely salaried civil service. Instead, Chinese bureaucracies still remain partially prebendal; at every level of government, each office systematically appropriates authority to generate income for itself. My study unravels the paradox of "developmentalism without Weberianness" by illuminating China's unique path of bureaucratic adaptation in the reform era -- labeled as bureau-contracting -- where contracting takes place within the state bureaucracy. In a bureau-contracting structure, the state at each level contracts the tasks of governance to its own bureaucracies, assigning them revenue-making privileges and property rights over income earned in exchange for services rendered. Contrasting previous emphases on the prevalence of illicit corruption in China, my study shows how and why bureaucracies in this context are actually authorized by the state to profit from public office. Specifically, I identify two factors that constrain arbitrary and excessively predatory behavior among Chinese bureaucracies: first, mechanisms of rents management, and second, the mediation of narrow departmental interests by local developmental incentives. In short, I argue that it is the combination of an incentive-compatible fiscal design and increasingly sophisticated instruments of oversight that have sustained an otherwise unorthodox structure of governance in China. In a phrase, bureau-contracting presents a high-powered but opportunistic alternative to the Weberian ideal-type. The Chinese experience suggests that "market-compatible" bureaucratic institutions need not necessarily conform to -- and may even diverge significantly -- from standard Western models, at least at early stages of development. My research draws on interviews with 165 cadres across different regions and governmental sectors, as well as statistical analysis of previously unavailable budget data.

Whither China?

Whither China?
Author: Wu Jinglian
Publisher: Oxford University Press
Total Pages: 353
Release: 2016-03-30
Genre: Business & Economics
ISBN: 0190223170

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How has China been able to maintain high-speed economic growth during the last thirty-plus years and successfully transform itself from a poor, backward, and developing country to become the world's second-largest economy? What are the challenges that China faces today and how will she deal with them in order to continue moving toward a truly prosperous and modern society? Standing at a crossroads today, what future direction should China choose: a free market economy or state capitalism? In a series of penetrating dialogues, Wu Jinglian, China's most celebrated and influential economist, and Ma Guochuan, chief commentator of Caijing Magazine, attempt to address the following question: "Where is China going?" This volume offers critical insights into the historical evolution of China's ongoing economic and social transformation. Strongly reflecting Professor Wu's views on the future prospects of the economic reforms, the book provides readers with a deep and lucid understanding of the social and economic issues now confronting China, analyzes their underlying causes, and examines the serious challenges to implementing further reforms. Professor Wu argues that the only way to escape the various social ills in China today is to restart the economic and political reforms, which began thirty years ago but have slowed down during the recent decade, and to move China in the direction of a market economy, the rule of law, and democracy.

Policy Reform and Chinese Markets

Policy Reform and Chinese Markets
Author: Belton M. Fleisher
Publisher: Edward Elgar Publishing
Total Pages: 358
Release: 2008-03-31
Genre: Business & Economics
ISBN: 9781782543565

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The diverse contributors to this book provide a unique set of essays that evaluate legal, regulatory, and economic aspects of China¿s transition from planned to market economy.

The Chinese State in the Era of Economic Reform

The Chinese State in the Era of Economic Reform
Author: Gordon White
Publisher:
Total Pages: 368
Release: 1991
Genre: China
ISBN:

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An assessment of the impact of the post-Mao market-orientated reforms in China on the Chinese state and its relations with economy and society. It investigates the political and social consequences of an economic strategy which aims to introduce markets into a centrally-planned socialist economy.

China in the New Millennium

China in the New Millennium
Author: James A. Dorn
Publisher: Cato Institute
Total Pages: 438
Release: 1998
Genre: Business & Economics
ISBN: 9781882577613

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China is expected to become the world's largest economy in less than two decades. Whether it does so will depend on continued growth of the non-state sector and how well China adapts to global market forces. The essays in this volume consider the state of China's economic reforms, the institutional changes necessary for China to become a global economic power, and the interplay between market reforms and social development in China.

Economic Transition and Labor Market Reform in China

Economic Transition and Labor Market Reform in China
Author: Xinxin Ma
Publisher: Springer
Total Pages: 303
Release: 2018-12-30
Genre: Business & Economics
ISBN: 9811319871

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This book empirically investigates the changes in labor market structure accompanying the labor market reform in China by focusing on the labor market segmentation problems from the 1980s to 2013. The book also aims to examine the effect of labor policy reforms on individual, household and enterprise behavior, including the causes and consequences of labor market reform in China, particularly the influences of labor policy reforms on labor market performance. Offering valuable insights into the changing structure of the Chinese economy, this book will be of interest to scholars, activists, and economists.