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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.
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.
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
Observers often note the glaring contrast between China's stunning economic progress and stalled political reforms. Although sustained growth in GNP has not brought democratization at the national level, this does not mean that the Chinese political system has remained unchanged. At the grassroots level, a number of important reforms have been implemented in the last two decades. This volume, written by scholars who have undertaken substantial fieldwork in China, explores a range of grassroots efforts--initiated by the state and society alike--intended to restrain arbitrary and corrupt official behavior and enhance the accountability of local authorities. Topics include village and township elections, fiscal reforms, legal aid, media supervision, informal associations, and popular protests. While the authors offer varying assessments of the larger significance of these developments, their case studies point to a more dynamic Chinese political system than is often acknowledged. When placed in historical context--as in the Introduction--we see that reforms in local governance are hardly a new feature of Chinese political statecraft and that the future of these experiments is anything but certain.
Revisions of papers presented at a conference at Hong Kong University of Science and Technology, 1996.
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.
This book aims to explain the secret to China’s rapid growth over the last 40 years from the viewpoint of a firsthand witness. Zheng Xinli was enrolled as a graduate student of economics 40 years ago, at a time when very few Chinese people could enroll in higher-level education, let alone graduate school. Since 1978, he has been engaged in the study of macroeconomic theory and economic policy. He has worked with the economic group of the Research Section of the Secretariat of the Central Committee of the Communist Party of China, the State Information Center, and the Policy Research Office of the State Planning Commission, as well as other organizations. His work serves to help Chinese leaders in making economic decisions. In 2013, Zheng Xinli appeared on the list of China’s Top Ten Economists. With the addition of several up-to-date articles, this book is mainly a condensed version of a 16-volume collection of essays selected from among the more-than-500 articles published by Zheng between 1981 and 2016. Addressing some of the major issues in China, namely, Reform and Development, Development Patterns, Macro Regulation, Balanced Urban and Rural Development, Innovation, and Industry Revitalization, the book, as Zheng himself puts it, visualizes the birth process of different policies and measures which have catered to the different stages of reform. As an insider, and also partly as a designer and architect, Zheng Xinli provides readers with a view of China’s reform from the top.
Transformative market reforms in China since the late 1970s have improved living standards dramatically, but have also led to unprecedented economic inequality. During this period, China’s educational system was restructured to support economic development, with educational reforms occurring at a startling pace. Today, the educational system has diversified in structure, finance, and content; it has become more market-oriented; and it is serving an increasingly diverse student population. These changes carry significant consequences for China’s social mobility and inequality, and future economic prospects. In Education and Reform in China, leading scholars in the fields of education, sociology, demography, and economics investigate the evolution of educational access and attainment, educational quality, and the economic consequences of being educated. Education and Reform in China shows that economic advancement is increasingly tied to education in China, even as educational services are increasingly marketized. The volume investigates the varying impact of change for different social, ethnic, economic and geographic groups. Offering interdisciplinary views on the changing role of education in Chinese society, and on China’s educational achievements and policy challenges, this book will be an important resource for those interested in education, public policy, and development issues in China.
Writings by Wu Jinglian map not only China's path to economic reform but also the intellectual evolution of China's most influential economist. For more than thirty years, Wu Jinglian has been widely regarded as China's most celebrated and influential economist. In the late 1970s, Wu (b. 1930) was one of a small group of economic thinkers who broke with Marxist concepts and learned the principles of a market economy. Since then he has been at the center of economic reform in China, moving seamlessly as an “insider outsider” between academic and policy roles. In recent years, Wu has emerged as a prominent public intellectual fighting not just for market reform but also for a democratic society backed by the rule of law. This book presents many of Wu's most important writings, a number of them appearing in English for the first time. Each section offers an informative introductory essay by Barry Naughton, the volume's editor and an expert on China's economy. The book begins with Wu's most recent articles, which make clear his belief that gradual marketization combined with institutional development will make Chinese society fairer and less corrupt. Biographical writings follow, accompanied by a richly insightful text by Naughton on Wu's life and career. Writings from the 1980s and 1990s, written originally for a small audience of policy makers, demonstrate how Wu shaped China's early reform path; essays and articles from the late 1990s and early 2000s reflect Wu's new role as an advocate for broader reforms. Taken together, these texts map not only China's path to economic reform but also Wu's own intellectual evolution.
" In 1978, China launched economic reforms that have resulted in one of history’s most dramatic national transformations. The reforms removed bureaucratic obstacles to economic growth and tapped China’s immense reserves of labor and entrepreneurial talent to unleash unparalleled economic growth in the country. In the four decades since, China has become the world’s second-largest economy after the United States, and a leading force in international trade and investment. As the contributors to this volume show, China also faces daunting challenges in sustaining growth, continuing its economic ransformation, addressing the adverse consequences of economic success, and dealing with mounting suspicion from the United States and other trade and investment partners. China also confronts risks stemming from the project to expand its influence across the globe through infrastructure investments and other projects under the Belt and Road Initiative. At the same time, China’s current leader, Xi Jinping, appears determined to make his own lasting mark on the country and on China’s use of its economic clout to shape the world around it. "