China's transition from a planned economy to a market economy has succeeded in producing more than a decade of phenomenal growth. Whilst similar reforms in countries of Central and Eastern Europe and the former Soviet Union have seen an initial downturn in production, usually with a significant rise in unemployment, the success of the approach taken by China has been remarkable. However, China embarked upon the process, without a well-designed blueprint at the outset. The resulting piecemeal, partial, incremental, and often experimental approach has proved complicated to implement - requiring a complex melding of politics and economics, internal and foreign affairs, government and market. How the difficult task of balancing the diverse array of often competing concerns has been achieved is the subject of this book, which examines the dismantling of the centrally planned system and the mechanism of institutional change in Chinese transition.
Contents: Foreword; Introduction; Part I: Political Economy of Transition in China: Comparing the Mao Zedong System and the Deng Xiaoping System: The logic of the Mao Zedong Development System and its institutional inefficiency; Transition towards Deng Xiaoping Development System: the wisdom of 'creative destruction'; Advantages and disadvantages of state-owned enterprise reform: relations with systemic reforms of finance, administration and social security. Part II: Political Economy of Development in China: Relations between central and local government under the tax sharing system: towards a constitutional local autonomy system; Political economy of the Chinese development model: the fact-following mechanism of institutional change in Chinese society; Political economy of the East Asian authoritarian development system: lessons towards shared growth; Concluding remarks: gradual way of transition in China; Selected bibliography; Index.