Capitalism with Chinese Characteristics: Entrepreneurship and the State

Capitalism with Chinese Characteristics: Entrepreneurship and the State

Yasheng Huang

Language: English

Pages: 366

ISBN: 0521898102

Format: PDF / Kindle (mobi) / ePub

An Economist Book of the Year, 2008
This book presents a story of two Chinas - an entrepreneurial rural China and a state-controlled urban China. In the 1980s, rural China gained the upper hand, and the result was rapid as well as broad-based growth. In the 1990s, urban China triumphed. In the 1990s, the Chinese state reversed many of its productive rural experiments, with long-lasting damage to the economy and society. A weak financial sector, income disparity, rising illiteracy, productivity slowdowns, and reduced personal income growth are the product of the capitalism with Chinese characteristics of the 1990s and beyond. While GDP grew quickly in both decades, the welfare implications of growth differed substantially. The book uses the emerging Indian miracle to debunk the widespread notion that democracy is automatically anti-growth. The single biggest obstacle to sustainable growth and financial stability in China today is its poor political governance. As the country marks its 30th anniversary of reforms in 2008, China faces some of its toughest economic challenges and substantial vulnerabilities that require fundamental institutional reforms.

Chinese Foreign Policy: An Introduction

China in the Global Economy Governance in China

The Rape Of Nanking: The Forgotten Holocaust Of World War II

Mao's Great Famine: The History of China's Most Devastating Catastrophe, 1958-1962

Dream of Ding Village

















has. The lawsuit also shows that a number of state-owned telecommunication firms in Shenzhen were granted shares by Huawei, although, again, there is no information about the amount of the shares. It is possible that Huawei has some state share capital on its balance sheet, but we can safely rule out 12 Capitalism with Chinese Characteristics the possibility that Huawei is a state-owned firm. One telling clue is that its general manager, Ren Zhenfei, has been in his position since the

fixed-asset investment data.) Because this measure directly tracks government policy preferences and practices, it is superior to the output measure. It does not involve the kind of confounding problems of distinguishing between the effect of policy and the effect of firm-level efficiency differentials that cloud the output measures of private-sector development. Table 1.2 presents a number of private-sector development indicators based on fixed-asset investments. The reform era is broken down

for example, how many TVEs there were. Brandt, Li, and Roberts (2005, p. 524) remark that by the early 1990s, “there were more than 1.25 million of these local governmentowned and run enterprises, employing 135.1 million individuals. . . . ” The data the three economists refer to are for 1996. In that year, there were actually 23.4 million TVEs, of which 1.5 million were collective. (The 1.25 million figure cited by the three economists apparently refers to collective TVEs at the village level

with Chinese Characteristics the reformist leaders, Hu Yaobang, Zhao Ziyang, and Wan Li, vetoed the idea. Hu Yaobang, as quoted by Deng Liqun, said, “If you convene this conference, it is a signal to the people lower down that the policy will change.”54 3.3 Security of Proprietors vis-`a-vis Security of Property To be sure, none of the policy measures described previously amounted to a genuine institutional guarantee of private property rights. The CCP never allowed itself to be subject to any

disagree with the inappropriate exaggeration by Comrade Zhao Ziyang on the role of TVEs and with his policy of introducing some unhealthy TVE practices into the large and medium SOEs. But we do not deny the importance of the TVEs. The main challenge facing the TVEs is how to utilize raw materials and inputs in their local rural areas. The markets for the TVEs, except for a few TVEs aimed at the cities, should be primarily in the rural areas, providing for agricultural production and the daily

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