theroleofplanninginchinasmarketeconomy.docVIP

The Role of Planning in China’s Market Economy (Presented before the International Conference on China’s Planning System Reform on March 24 and 25, 2004 in Beijing, sponsored by China’s State Development and Reform Commission, State Law Office and the Asian Development Bank) Gregory C Chow, Princeton University It is my great pleasure and honor to speak before this international conference on China’s Planning System Reform. This conference continues the tradition that the Chinese government adopted since the early 1980s to invite international experts to contribute ideas to China’s economic reform and development. As far as I know no other national government has been so willing and open-minded in considering the ideas from outside for possible adoption in China. In these international conferences, the foreign participants have learned as much, if not more, from the Chinese hosts as they have contributed. This conference will not be an exception. In this tradition of exchange of ideas with international participants the conference organizers sent out a paper “The Background of China’s Planning Institutional Reform” (to be referred to as the Background paper below). Based on the questions raised in this Background paper I have chosen my topic “The Role of Planning in China’s Market Economy” in order to present my perspectives on the subject. I will discuss four topics in four sections: (1) the scope of planning, (2) the administration of the planning system that includes the assignment of responsibilities for plan formulation and plan implementation, (3) methods of planning, and (4) the coordination of planning with market activities. My discussion will touch upon all the five topics listed in section V at the end of the Background paper. Section 5 of this paper presents my conclusions and summarizes my views on the seven problems stated in section III of the Background paper. By presenting my perspectiv