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Lecture#5-The Role of State in China's Economic Development

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Political Science
Lynette Ong

Ernie Tam20120209Lecture 5The Role of State in Chinas Economic DevelopmentIndependent Regulatory state vs Developmental State Jobs were supposed to be on a level playing field There is a high degree of transparency It is clear what the rules are and what are the things that the state will or will not provide This is a prototype of what the International Bank would advocate forIn their mind this is an efficient state In other ways states have an arms length relationship with businesses Few countries have its independent regulatory state It is closer to the Anglo American independent regulatory state than an East Asian developmental state Features of Developmental State State Intervention in economic development In how the economy works 1 It formulates industrial policies meaning the policies that favor ones industry over another Industries that are seen of strategic importance to the state2 These firms have close ties to the state They may or may not be state owned but it does not matter
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