Economic Growth University of Mississippi密西西比大学经济增长.pptVIP

Economic Reforms (1978 - ) People’s Republic of China 1949-10-01, PRC, Beijing Chairman: Mao Zedong 5-Star Red Flag Republic of China government retreated to Taiwan Mao’s Legacies Industrial development in 1950s Modeled after the Soviet Union Produced enlarged proletariat Workers overwhelmingly concentrated in cities Promotion of rural industrialization Employees in rural factories not strictly ``workers” Industrialization in 1950s Mao Zedong Died in 1976 Turning point in China’s postwar era The 3rd Plenum of the 11th CCP Central Committee in 1978 Deng Xiaoping’s ascendancy economic modernization became focus US-PRC established diplomatic relationship in 1979 Incentives for High Growth International strategic vision at the top links China’s security and global influence to its economy growth must proceed at least at the overall speed of that of the East Asian neighbors Maoist Growth Unsustainable Central control over resource allocation Prevented flow of information factors of production Prevented market-determined prices and competition Prevented China from utilizing cheap labor in the international economy Strategic Vision Short-term growth Utilization of relatively cheap labor force Long-term growth Technological change and dynamism Structural Imperative Decentralization of economic decision making incentive of local officials Demographic pressure and employment problems net population growth (108 from 1978-1985) massive migration into cities aging population Transition Strategy From central planning to indicative planning From indicative planning to market allocation of goods and services ``Grow out of the plan” instead of ``shock therapy” Transition and growth at the same time Economic Reform Measures Sequence agricultural production (late 1970s - ) international trade and investment (1979 - ) state-owned enterprises (early 1980s - ) “socialist market economy” (1993 - ) fiscal reforms (1994 - ) privatization and private sector (1997 - ) accession into