China’s Transition to a Market Economy: How Far Across the River?

  • Wu Jinglian
Chapter

Abstract

We view China’s reform as an evolutionary process in two stages. The first stage spans about fifteen years from 1978 to 1993, and the second begins in 1994. There is a clear division between the two. The watershed is the historic November 1993 “Decision on Issues Concerning the Establishment of a Socialist Market Economic Structure” adopted by the Third Plenum of the Fourteenth Congress of the Communist Party of China (CPC). The review in Section 2.2 below of the nature of the first-stage reform will allow better understanding of the significance of the decision. First, the reform started step by step to expand the market incentives for resource allocation, while keeping the basic institutional framework of central planning almost intact. It achieved a great success outside the state sector and dramatically improved people’s living standards, eliminating the shortages common to all planned economies.

Keywords

Corporate Governance Central Bank Market Economy Private Enterprise Nonperforming Loan 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in to check access.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. A Statistical Survey of China. Various years. A Statistical Survey of China, various issues. [In Chinese.] Beijing: China Statistical Publishing House.Google Scholar
  2. Cao, Yuanzheng, Yingyi Qian, and Barry R. Weingast. 1999. “From Federalism, Chinese Style to Privatization, Chinese Style.” Economics of Transition 7(1): 103–131.CrossRefGoogle Scholar
  3. China Daily. Various years. Various issues.Google Scholar
  4. China Statistical Yearbook. Various years. China Statistical Yearbook, various issues. [In Chinese.] Beijing: China Statistical Publishing House.Google Scholar
  5. Deng, Xiaoping. 1993. “Dang he guojia lindaozhidu de gaige” [Toward the Reform of the Leading System of the Party and the State]. In Selected Works of Deng Xiaoping, Volume 2. [In Chinese.] Beijing: The People’s Press: 322–323.Google Scholar
  6. Dong, Fureng. 1979. “Guanyu wo guo shehuizhuyi suoyouzhi xingshi wenti” [On the Form of Our Country’s Socialist Ownership]. Jingji yanjiu [Economic Research Journal] 1.Google Scholar
  7. Dong, Fureng. 1997. Jingji Fazhan Yanjiu [Studies on Economic Development]. [In Chinese.] Beijing: Jingjikexue Chubansh [Economic Science Publishing House].Google Scholar
  8. Kornai, János. 1986. “The Hungarian Reform Process: Visions, Hopes, and Reality.” Journal of Economic Literature 24(4): 1687–1737.Google Scholar
  9. Kornai, János. 1990. The Road to a Free Economy. New York: Norton.Google Scholar
  10. Kornai, János. 1992. The Socialist System: The Political Economy of Communism. Princeton: Princeton University Press.CrossRefGoogle Scholar
  11. Lardy, Nicholas. 1998. China’s Unfinished Economic Revolution. Washington, DC: Brookings Institution.Google Scholar
  12. Lou, Jiwei (ed.). 1997. “Macroeconomic Reform in China: Laying the Foundation for a Socialist Market Economy,” World Bank Discussion Paper No. 374. Translated from Hongguan Jingji Gaige: 1992–1994 Beijing, Shexiang, Fangan, Sanzuo. Beijing: Enterprise Management Publishing House, 1995.Google Scholar
  13. Naughton, Barry. 1995. Growing Out of the Plan: Chinese Economic Reform, 1978–1993. New York: Cambridge University Press.CrossRefGoogle Scholar
  14. North, Douglass C. 1981. Structure and Change in Economic History. New York: Norton.Google Scholar
  15. People’s Daily. Various years. Various issues.Google Scholar
  16. Perkins, Dwight. 1994. “Completing China’s Move to the Market.” Journal of Economic Perspectives 8(2): 23–46.CrossRefGoogle Scholar
  17. Qian, Yingyi. 1996. “Enterprise Reform in China: Agency Problems and Political Control.” Economics of Transition 4(2): 427–447.CrossRefGoogle Scholar
  18. Qian, Yingyi. 2000. “The Institutional Foundations of China’s Market Transition.” In Proceedings of the World Bank’s Annual Conference on Development Economics 1999, Boris Pleskovic and Joseph Stiglitz (eds.). New York: World Bank.Google Scholar
  19. Qian, Yingyi, and Cheng-Gang Xu. 1993. “Why China’s Economic Reform Differ: The M-form Hierarchy and Entry/Expansion of the Non-state Sector.” Economics of Transition 1(2): 135–170.CrossRefGoogle Scholar
  20. Rosenberg, Nathan, and L. E. Birdzell, Jr. 1986. How the West Grew Rich: The Economic Transformation of the Industrial World. New York: Basic BoGoogle Scholar
  21. Wall Street Journal. Mar. 25, 1999Google Scholar
  22. Wu, Jinglian. 1992. Tongxiang shichang Jingji Zhi Lu [The Road Toward a Market Economy]. [In Chinese.] Beijing: Publishing House of Beijing Industrial University.Google Scholar
  23. Wu, Jinglian. 1999. Dangdai Zhongguo Jingji Gaige: Zhanlue Yu Shishi [The Contemporary Chinese Economic Reform: Strategy and Implementation]. [In Chinese.] Shanghai: Shanghai Far East Publishing House.Google Scholar
  24. Wu, Jinglian and Renwei Zhao. 1987. “The Dual Pricing System in China’s Industry.” Journal of Comparative Economics 11: 309–318.CrossRefGoogle Scholar
  25. Wu, Jinglian, Zhou Xiaochuan, Lou Jiwei, and others. 1988. Zhongguo Jingji Gaige de Zhengti Sheji [The Integrated Design of China’s Economic Reform]. [In Chinese.] Beijing: China Outlook Publishing House.Google Scholar
  26. Wu, Jinglian, Zhou Xiaochuan, Rong Jingben, and others. 1996. Jianshe Shichang Jingji de Zongti Gouxiang Yu Fangan Sheji [The Road to a Market Economy: Comprehensive Framework and Working Proposals]. [In Chinese.] Beijing: Central Compilation and Translation Press.Google Scholar
  27. Xie, Ping. 1996. Zhongguo Jinrong Tizhi de Xuanze [The Choice of China’s Financial System]. [In Chinese.] Shanghai: Far East Publishing House.Google Scholar
  28. Zhejiang Online. Various years.Google Scholar

Copyright information

© Jinglian Wu 2009

Authors and Affiliations

  • Wu Jinglian

There are no affiliations available

Personalised recommendations