...First of all I will discuss China’s historical background and its need for reform and also how economic reform started out in 1978. Then I will go on to cover the four major economic institutions that needed to be reformed in order for China to become a market economy. These four major economic institutions will then be discussed in detail. This paper will then go briefly into China joining the WTO and will conclude with China’s economic situation at present. Chinese economic policies and institution have undergone a number of extreme changes since the establishment of the Communist regime in 1949. After the Communist Party took national power in 1949, the disorder caused by the imperialist invasions and domestic wars were put to an end and China began to strive for development by following Russia’s example in pursuing Leninist and Marxist doctrine. By following this doctrine they would replace free market and private ownership with socialist planning and public ownership. In order for this to become a reality China had to pursue radical revolutionary domestic and foreign policies to overcome the resistance to the Chinese Communist movements. After closing its doors to western concepts of capitalism and free market economy it seemed like China was doing well but it was soon evident that the rigid planning and the command market economy was becoming inefficient. In contrast to the western economies China was indeed falling behind. Even China’s neighbors such as Taiwan, Singapore...
Words: 2342 - Pages: 10
...001 Economic Liberalization, the Changing Role of the State and ‘‘Wagner’s Law’’: China’s Development Experience since 1978 DAMIAN TOBIN * CeFiMS, SOAS, University of London, UK Summary. — The paper applies Wagner’s Law of increasing state activity to illustrate the changing function of the state in China as a consequence of economic liberalization. Wagner’s Law describes the association between increasing national wealth in progressive states and the rise in state activity and expenditure. This indicates that the causes of bureaucratic expansion are to be sought, not just in terms of political pressures, but the interplay between political considerations and the economic necessities, resulting from the emergence of new property rights. A simple illustrative model is developed to measure the effects of increasing national wealth and the growth of the public sector. This suggests that the patterns of economic development observed by Wagner in 19th century Europe are not unlike those observed in China today. Ó 2005 Elsevier Ltd. All rights reserved. Key words — Asia, China, economic growth, public sector 1. INTRODUCTION The relationship between economic growth and the size of the state sector has long been a topic of interest for public policy practitioners and academics alike. Throughout history, the role of the state has been critical in determining particular economic outcomes. Research in this area has in general focused on how economic policies impact upon economic growth...
Words: 10633 - Pages: 43
...China is one of the most ancient civilizations in the world that recorded about 3,000 years old. It has only in recent historical times become part of the “known world”- that is known to the West. More books had been published in Chinese than in all of the other world’s languages combined in recent time. Yet, even today Chinese literature remains unknown in the West except to specialists. The West was long ignorant of China, and the Chinese state was not inclined to initiate contacts with the West. The isolation and self-contained character of Chinese culture is epitomized by the Great Wall erected by the Chin dynasty, which made China more mysterious and attractive for other countries. Today’s China differed from old China greatly. Today’s...
Words: 2145 - Pages: 9
...Deng Xiaoping and the Transformation of China Ezra F. Vogel REFERENCES American Rural Small-Scale Industry Delegation. Rural Small-Scale Industry in the People’s Republic of China. Berkeley: University of California Press, 1977. Atkinson, Richard C. “Recollection of Events Leading to the First Exchange of Students, Scholars, and Scientists between the United States and the People’s Republic of China,” 4 pp. Bachman, David. “Differing Visions of China’s Post-Mao Economy: The Ideas of Chen Yun, Deng Xiaoping, and Zhao Ziyang,” Asian Survey, 26, no. 3 (March 1986), 293-321. Bachman, David. “The Fourteenth Congress of the Chinese Communist Party.” New York: Asia Society, 1992. Bachman, David. “Implementing Chinese Tax Policy.” In Lampton, ed., Policy Implementation in Post-Mao China, pp. 119-153. Backhouse, E. and J.O.P. Bland. Annals & Memoirs of the Court of Peking. Boston: Houghton Mifflin, 1914. Bainian chao (百年潮) (Hundred Year Tide). Monthly. Beijing: Zhongguo zhonggong dangshi xuehui, 1997 -- . Barfield, Thomas J. Perilous Frontier: Nomadic Empires and China. Cambridge: Basil Blackwell, 1989. Barman, Geneviève Barman and Nicole Dulioust. “Les années Françaises de Deng Xiaoping,” Vingtième Siècle: Revue d’histoire, no. 20 (October-December 1988), 17-34. Barman, Geneviève and Nicole Dulioust. “The Communists in the Work and Study Movement in France,” Republican China, 13, no. 2 (April 1988), 24-39. Barnett, A. Doak, with a contribution...
Words: 14725 - Pages: 59
...of ambiguous property rights in the case of China and its non-state sector as a transitional economy; can they be efficient? Index Introduction I. Past to present People’s Republic of China, towards transition Property rights, defined p. 3 p. 3-4 II. III. p. 5-6 The Chinese Model p. 6-8 Evolution vs. Big Bang, and the employment of ambiguous property rights Current p. 8-11 China, mid-transition and the functionality of ambiguous property rights in transition Future China, post transition, and does one size fit all? p. 11-12 IV. V. Conclusion Bibliography p. 13 p. 14-15 2 Introduction China’s remarkable and unmatched growth of the past decades, regardless of it ambiguous property rights and a relatively weak legal framework, have puzzled governments and economists to date. The contrast between China’s transitional economy and those in Eastern Europe and the former Soviet Union could not be more striking. Whereas the transition of the latter two has been a struggle and have sparked recession, China’s transition has brought about an economic boom and its gradual reform path has challenged the belief that gradual reform and public ownership cannot work as a transitional strategy. This paper aims to analyse the Chinese Model of economic transition with a focus on the structure of property rights in the system, primarily in the rural sector. First, a brief historic background of China and its course towards transition is provided...
Words: 3656 - Pages: 15
...Education System in the Eras of Mao and Post-Mao The education policy in China has been lasted for a long period of time; it can be trace to the imperial examination. In the early of the 20th century, the modern education system is being established and finalize. However, things change once the People's Republic of China founded. The Communist Party chairman, Mao Zedong, puts forward his own educational ideological and system in China, but his ideological had been fail at last because of the Cultural Revolution. Therefore, in the post-Mao period (1978 to present), the educational system has been reform again. The post-Mao education system has abrogated the old system and set up a new one that match the development of China. Since different chairmen will have different ideology, the educational systems between Mao and Post-Mao periods also have many differences. After the founding of the People's Republic of China (1949), the Chinese Communists are started reforming the political in the areas of politics, economics, military and religion, especially on the educational system. To be the leader of PRC at that time and was graduated from the Teachers’ College, Mao Zedong had put forward education ideological system for the people in China. At first, the new education system was based on the Soviet model, the government move the whole Soviet Union education system into China to replace the old education in China, therefore, the Chinese education and culture had become under the...
Words: 1592 - Pages: 7
...NBER WORKING PAPER SERIES ACCOUNTING FOR GROWTH: COMPARING CHINA AND INDIA Barry Bosworth Susan M. Collins Working Paper 12943 http://www.nber.org/papers/w12943 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 February 2007 We are very indebted to Anthony Liu and Gabriel Chodorow-Reich for extensive assistance in understanding the data and constructing the growth accounts. This paper was presented at the annual conference of the Tokyo Club Foundation for Global Studies, December 6-7, 2006. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. © 2007 by Barry Bosworth and Susan M. Collins. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Accounting for Growth: Comparing China and India Barry Bosworth and Susan M. Collins NBER Working Paper No. 12943 February 2007 JEL No. F43,O1,O4 ABSTRACT We compare the recent economic performances of China and India using a simple growth accounting framework that produces estimates of the contribution of labor, capital, education, and total factor productivity for the three sectors of agriculture, industry, and services as well as for the aggregate economy. Our analysis incorporates recent data revisions in both countries and includes extensive discussion of the underlying data...
Words: 9427 - Pages: 38
...Economic Reforms in Asia: The Indian Case Study The Asian economy has seen a rapid rise over the past decade with countries such as China, India and South Korea making major headways. China, being the leader of the group, has been largely tipped by many economists to overtake the US as the world’s superpower by 2025. Asian GDP Performance (1997-2005) Source: http://www.treasury.gov.au The success of these nations came on the back of major economic reforms which transformed these sleeping giants into what it is today. China went through a major economic reform in 1979 and soon thereafter success followed. India, followed the same path, but much later than China, and it was not until the turn on the 1990s that India went on the path of economic liberalisation. This paper will focus on the economic reforms that took place in India and its impact on the country in terms of trade and macroeconomics growth and the birth of new economy. A section of this paper will also be comparing the growth of India in comparison to its Chinese counterparts as well as discuss reasoning behind critics who believe liberalisation was not the main contributor to the growth India is achieving today. Pre-Reform Period Post independence, India saw the need to move from an agrarian economy to an industrial one and as such building its competency in crucial sectors of the economy was important. The role of government therefore included economic management...
Words: 2383 - Pages: 10
...Journal of Economic Literature 2011, 49:4, 1076–1151 http:www.aeaweb.org/articles.php?doi=10.1257/jel.49.4.1076 The Fundamental Institutions of China’s Reforms and Development Chenggang Xu* China’s economic reforms have resulted in spectacular growth and poverty reduction. However, China’s institutions look ill-suited to achieve such a result, and they indeed suffer from serious shortcomings. To solve the “China puzzle,” this paper analyzes China’s institution—a regionally decentralized authoritarian system. The central government has control over personnel, whereas subnational governments run the bulk of the economy; and they initiate, negotiate, implement, divert, and resist reforms, policies, rules, and laws. China’s reform trajectories have been shaped by regional decentralization. Spectacular performance on the one hand and grave problems on the other hand are all determined by this governance structure. ( JEL O17, O18, O43, P21, P25, P26) 1. Introduction hinese economic reforms, which have been in flux for three decades, have more than doubled China’s economic growth, from an average of 4.4 percent annually before 1978 to an average of 9.5 percent after 1978. * University of Hong Kong and WCU–SNU. The first draft of this paper was written at Hong Kong University of Science and Technology (HKUST) when I was visiting there. The hospitality and generous support of HKUST are greatly appreciated. Comments from participants in conferences and seminars at the China Europe...
Words: 46258 - Pages: 186
...CMNS 445- CHINA Marta Gallegos: marta.gallegos90@gmail.com 778 875 8564 Contents WEEK 1- Introduction 2 Themes in the Course 2 Week 2- Theoretical Approaches to Media, Culture and Chinese Society 3 Outline of Class 3 State and Market Framework 4 Negotiable State market Framework 4 Political Economy Approach 5 Presentation 5 WEEK 3- Media Systems and the Party State (Mao-Reform Era) 6 Anti-capitalistic and anti-imperialistic revolution (1921-1949) 6 Legitimacy 7 Maoist Socialist Practice (1949-1976) 7 Deng (1978-1992) 8 Jiang Zemin’s era- 1992-2002 10 Market Economy and Scientific Outlook on Development (2002-2012) 11 The 5th Generation 2012-2022 11 WEEK 4 11 The Shifting Role of the media: Between the party line and the bottom line 11 Focus on the Bottom line 12 State Control 12 “Popular Culture” in the context of China in post-Mao market reform era 13 The Chinese state (The Party-state) 14 The media-government/state relationship 14 The Media System and Media-State Relationship 15 Maoism/Mao Zedong Thoughts 16 Week 4- Commercial Media and Reconfigured Power Relations 16 The Party/State Structures 16 Different Party Committees 17 Ministries (under the state council) 17 Media System: 18 Central Media Outlets 18 Provincial Media Outlets 18 Universal Values: Two views 18 Week 5- Popular Culture and Cultural Industry 19 Mass Media and Popular Culture in Mao Era 19 Popular Culture 20 Popular Culture in the Mao...
Words: 10371 - Pages: 42
...subjectivism, as opposed to reason. Two examples of native non-western cultures that have been impacted by globalization are South Korea and China. Circumstances Before and After Event Prior to globalization South Korea has a GDP per captita of about one-third of nearby developed Asian economies such as Singapore, Hong Kong, and Japan. South Korea is a historical recipient of official development assistance (ODA) from organization for economic co-operation and development (OECD). After globalization the country’s GDP has increased from $88 billion to $1,460 billion. South Korea has advanced into a developed economy. The GDP per capita of South Korea is now almost thirteen times what it was thirty years ago. Now, South Korea has become the first major recipient of ODA to have ascended to the status of a major donor of ODA. (Wikipedia website, n.d.) China used to be the world’s most important opponent of globalization. China believed that global disorder was a good thing. They tried socialism, capitalism, empire, republic, warlords, religious fundamentalism, but all failed. Alienation was so severe, that much of the country accepted that the world economic and political order, and the Chinese economic and political order, were so stacked against them that any path to success had to start with destruction of the existing order. Now, China sends missions throughout the world seeking the best practice. It adapts foreign technology and foreign corporate management techniques...
Words: 987 - Pages: 4
...of China's leaders that Economic reform was necessary. By 1978 " Chinese leaders were searching for a solution to serious economic problems produced by Hua Guofeng, the man who had succeeded Mao Zedong as CCP leader after Mao's death" (Shirk 35). As Susan L. Shirk describes the situation in The Political Logic of Economic Reform in China, restoring the CCP's prestige required improving economic performance and raising living standards. After the communist take over the country, Mao contained his emphasis on moral force by demanding that Chinese citizens demonstrate what he referred as "correct consciousness". It is noteworthy that shirk feels that the Chinese communist party leaders saw economic reform as a way to regain their and their party moral virtue even after Mao's death thus, paradoxically, by demonstrating their expertise in a moral political area of competence, the leaders of CCP felt they could demonstrate how they were serving the people. To a great extent, the issue of economic reform became politicized as the issue was used as a means by Deng Xiaoping to attain the leadership of the Chinese Communist Party. "Reform policies became Deng's platform against Hua for post-Mao leadership" (Shirk 36). Given this history of economic reform, it is evident that "under the present system economic questions are necessarily political questions" (Dorn 43). China was "still a state in which the central government retain[ed] the dominant power in economic resource allocation and...
Words: 1081 - Pages: 5
...China’s Economic Growth 1978-2025: What We Know Today about China’s Economic Growth Tomorrow Views of the future China vary widely. While some believe that the collapse of China is inevitable, others see the emergence of a new economic superpower that increasingly poses a threat to the U.S. This paper examines the economic growth prospects of China over the next two decades. Extrapolating past real GDP growth rates into the future, the size of the Chinese economy surpasses that of the U.S. in purchasing power terms around 2010. Such extrapolations can be supported by standard growth patterns identified in economic development and trade theories (structural change, catching up, and factor price equalization). They can also be supported by an explanation of China’s past GDP growth through growth of various labor variables, with a subsequent derivation of future GDP growth based on reliable information about future labor quantity and quality. China’s demographic changes and economic growth have a number of implications for China and the world. JEL codes: O1 (O10, O11), O4 (O40, O47), O53, J11, O3, I21 Keywords: economic growth, growth accounting, growth forecasts, development theories, human capital formation, education (all: China) Carsten A. Holz Social Science Division Hong Kong University of Science & Technology Clear Water Bay Kowloon Hong Kong E-mail: socholz@ust.hk Tel/Fax: +852 2719-8557 26 December 2006 (Incorporates minor revisions of the 3 July 2005 and 2 November...
Words: 22245 - Pages: 89
...ECON3007 Economic Policy Analysis Topic: Institutions and Economic Reforms Wendy Carlin This topic focuses on the role of institutions in economic growth and the implications of this for the design of economic reforms. We examine why some large-scale economic reforms have been surprisingly successful and others have been disappointing. It will be argued that the consistency between existing institutions in the economy and the reforms is an important factor in determining reform success. We look at property rights and contracting institutions, at the experience of transition economies – both in the former Soviet bloc and China and at reform policies including privatization. The empirical techniques that we study include cross-sectional and panel regressions using aggregate (i.e. country-level) data and micro-economic data. Key readings: Institutions and growth: Acemoglu, D., Johnson, S. and Robinson, J. A. (2001) (AJR) “The Colonial Origins of Comparative Development: An Empirical Investigation”. The American Economic Review, Volume 91, Number 5. Use the UCL Economic Journals page and choose the Atypon link. Acemoglu, D., Johnson, S. (2005) (AJ) “Unbundling Institutions” Journal of Political Economy Volume 113, Number 5, 949-995. Use the UCL Economic Journals page. Deaton, A. (2009) ‘Instruments of Development: Randomization in the Tropics and the Search for the Elusive Keys to Economic Development’. NBER Working Paper 14690. Use google. Transition: China and Russia ...
Words: 1359 - Pages: 6
...Economic growth is measured in terms of an increase in the size of a nation's economy. A broad measure of an economy's size is its output. The most widely-used measure of economic output is the Gross Domestic Product (abbreviated GDP). GDP generally is defined as the market value of the goods and services produced by a country. One way to calculate a nation's GDP is to sum all expenditures in the country. This method is known as the expenditure approach and is described below. Alternative Approaches to Calculating GDP There are three approaches to calculating GDP: * Expenditure approach - described above; calculates the final spending on goods and services. * Product approach - calculates the market value of goods and services produced. * Income approach - sums the income received by all producers in the country. Expenditure Approach to Calculating GDP The expenditure approach calculates GDP by summing the four possible types of expenditures as follows: GDP | = | Consumption | | + | Investment | | + | Government Purchases | | + | Net Exports | Consumption is the largest component of the GDP. In the U.S., the largest and most stable component of consumption is services. Consumption is calculated by adding durable and non-durable goods and services expenditures. It is unaffected by the estimated value of imported goods. Investment includes investment in fixed assets and increases in inventory. Government purchases are equal to the government expenditures...
Words: 1697 - Pages: 7
