The China Miracle : Development Strategy and Economic Reform

The China Miracle : Development Strategy and Economic Reform

by Fang Cai, Zhou Li
     
 

The tremendous success of China's economic reform, in contrast with the vast difficulties encountered by the former Soviet Union and Eastern European countries in their transition, has attracted worldwide attention. Using a historical, comparative and analytic approach grounded in mainstream economics, the authors develop a consistent and rational framework of

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Overview

The tremendous success of China's economic reform, in contrast with the vast difficulties encountered by the former Soviet Union and Eastern European countries in their transition, has attracted worldwide attention. Using a historical, comparative and analytic approach grounded in mainstream economics, the authors develop a consistent and rational framework of state-owned enterprises and individual agents to analyze the internal logic of the traditional Chinese planning system. They also explain why the Chinese economy grew slowly before the market-oriented reform in 1979 but became one of the fastest growing economies afterwards, and why the vigor/chaos cycle became part of China's reform process. The book also addresses the questions: Can China continue its trend of reform and development and become the largest economy in the world in the early twenty-first century? What are the general implications of China's experience of development and reform for other developing and transition economies? In this revised edition, the authors update the data and information in the book and include a new chapter on the impact of China's WTO accession on its reform.

The Chinese University Press

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Product Details

ISBN-13:
9789622019850
Publisher:
Chinese University Press, The
Publication date:
07/04/2003
Series:
Friedman Lecture Fund Monograph Ser.
Edition description:
REVISED
Pages:
432
Sales rank:
1,441,230
Product dimensions:
5.50(w) x 8.30(h) x 1.00(d)
Age Range:
18 Years

Table of Contents

Foreword to the First Edition
Foreword to the First Edition
Preface to the Revised Edition
Preface to the First Edition
The Authors
1.1Economic Development Since Reform, and Prospects for the 21st Century3
1.2Policy Barriers to Persistent Growth19
1.3Key Questions25
2.1Logical Starting Point: Heavy-industry as the Priority of Development30
2.2Basic Characteristics of Heavy Industries vs. China's Economic Reality37
2.3The Macro-policy Environment for the Heavy-industry-oriented Development Strategy39
2.4The Planned Resource-allocation System46
2.5Micro-management Institutions Characterized by Nationalization and the People's Commune System52
2.6The Trinity of the Traditional Economic System: An International Comparison59
3.1Economic Growth Before Reform70
3.2Distorted Structures Under the Traditional Economic Strategy74
3.3Lack of Incentives and Low Efficiency84
3.4Leap-forward Strategies: An International Comparison91
4.1Different Interpretations of the East Asian Miracle104
4.2An Alternative Development Strategy108
4.3Comparative Advantage and Upgrading the Factor-endowment Structure115
4.4The Government's Role in Economic Development120
4.5The Comparative-advantage-following Strategy and the Asian Financial Crisis127
5.1Differences between Pre-1978 and Post-1978 Reforms138
5.2Reform of the Micro-management Institution140
5.3Reform of the Planned Resource-allocation System156
5.4The Reform of the Macro-policy Environment171
5.5The Economic Logic of "Crossing the River by Groping the Stones" - China's Approach to Reform177
6.1Improvement of Incentives and Efficiency184
6.2Correction of the Industrial Structure190
6.3Exploitating Comparative Advantage197
7.1The Cyclic Nature of Reform and Development204
7.2Rent-seeking and Corruption210
7.3Difficulties in the Reform of State-owned Enterprises215
7.4Non-performing Loans and Malpractice in the Financial System221
7.5The Aggravation of Uneven Regional Development223
7.6The Potential of Grain Supply231
8.1Coordination of the State-owned Enterprise Reform and the Reform in Economic System237
8.2Further Reform and Prevention of Financial Crises252
8.3Exploiting Comparative Advantages to Realize Sustainable Economic Development254
9.1The Demand Side of Deflation258
9.2Serious Over-supply Is the Main Cause of Deflation265
9.3The Effects of Excess Capacity and Deflation271
9.4The New Village Movement and Solution to Deflation275
10.1WTO Accession and China's Agriculture285
10.2Accession's Potential Impacts on Financial Sector289
10.3WTO Accession and SOE Reform293
11.1The Starter and Propellers of Reform308
11.2The Approach and Characteristics of Economic Reform314
11.3General Implications of China's Reform Approach325
Bibliography347
Index375

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