JPA331Y1 Lecture Notes - Rust Belt, Discovery Digital Networks, State-Owned Assets Supervision And Administration Commission Of The State Council
Document Summary
Reforms implemented in early 70"s late 80"s. Political institution that extends party"s influence to grass roots level. It"s also a production unit and economy producer profits handed to the state. Provides social welfare (housing, health care, pensions) This impedes labour mobility, as life time employment hinges on the system. State owned enterprises have quotas to fulfill, and after fulfilling soe"s (state owned enterprises) can sell the excess at market prices. As a result, decline in proportion of goods. 1987 govt introduced variety of contracts under contract responsibility system (equivalent is household responsibility system: agricultural reform individual households are responsible for the inputs and outputs unlike collectivization. Fiscal system decentralized in 80"s central govt decentralized to various local govts (previous lecture) Before 80"s, central gov"t would provide direct fiscal subsidies to soe"s. But after fiscal decent, fiscal capacity of central government diminished and so couldn"t afford this anymore. As a result banks (state owned) popped up at this time.
