China's Economic Reform: An Experiment in Pragmatic Socialism

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Greenwood Publishing Group, 2000 - Business & Economics - 227 pages
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Both Mao Zedong and Deng Xiaoping drastically altered the course of contemporary China's economic development using opposing strategies. Mao froze China's economic system in a perennial state of consumer goods shortages and pervasive macro disequilibria. Deng, however, began thawing a rigidly structured system by introducing experimental reform measures. Mao's revolutionary rhetoric brought China's economy to the brink of bankruptcy. Deng's ideological pragmatism netted China glowing successes. Mao closed China to the outside world. Deng engineered China's reintegration into the world economy.

Dismantling a dysfunctional system and replacing it with a dynamic new one involving 1.2 billion people is risk-laden. Reform in China began in 1978. It was tentative and experimental, confining reform to organizational and administrative decentralization on farms. Successes on farms ushered in reform elsewhere in the economy. Over time, market-based coordinating mechanisms progressively began replacing the system's control devices. Results from decentralization internally reinforced those from liberalization externally. This consequently transformed China's stale, distorted system into a more competitive, bustling new one ready for developmental takeoff. Its meteoric rise among the world's leading markets in recent years has thrust China's economy to the forefront of growth and development. Controlled, phased reform is yielding dividends, not only for its own consumers but for international economic cooperation and growth as well.

 

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Contents

China under Mao
1
Prereform Economy
17
Reform MacroOverview
39
Agricultural Reform
57
Price Reform
75
Foreign Investment Reform
97
Foreign Trade Reform Redesigning the Engine of Growth
115
Enterprise Reform
135
Fiscal and Monetary Reform
167
An Afterword Entering the 21st Century
205
References
219
Index
225
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About the author (2000)

RAPHAEL SHEN is Professor of Economics at the University of Detroit./e He is the author of numerous books on economies in transition. His latest publications include Ukraine's Economic Reform (Praeger, 1996) and The Restructuring of Romania's Economy (Praeger, 1997).

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