CAS IR 365 Chapter Notes - Chapter 4: Zhu Rongji, Big Bang, World Trade Organization
14 Sep 2017
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The chinese economy, barry naughton - chapter 4. The chinese approach to transition: china"s leaders viewed china, quite correctly, as a low-income developing country, and the imperative of economic development was constantly on their minds. It was always assumed that system transformation would have to take place concurrently with economic development, and indeed that the process of economic development would drive market transition forward and guarantee its eventual success. Initially, reformers literally did not know where they were going: they were reforming. Big bang strategy: elimination of distortions and privileges and the resulting rent-seeking opportunities as possible, and starting all over from the bottom up. Increase in grain output: the number of workers in township and village enterprises (tves) localy run factories increased rapidly, and output from this sector surged as well. In order to make the dual-track system work, planners signed individual contracts with every state-owned enterprise.
