This chapter aims to set out what would be regarded in Washington as constituting a desirable set of economic policy reforms. It identifies and discusses ten policy instruments about whose proper deployment Washington can muster a reasonable degree of consensus. The policy instruments include fiscal deficits, public expenditure priorities, tax reform, interest rates, exchange rates, trade policy, foreign direct investment, privatization, deregulation, and property rights. When a fiscal deficit needs to be cut, there are three major expenditure categories on which views are strongly held: subsidies, education and health, and public investment. There is very broad agreement in Washington that large and sustained fiscal deficits are a primary source of macroeconomic dislocation in the forms of inflation, payments deficits, and capital flight. The economic policies that Washington urges on the rest of the world may be summarized as prudent macroeconomic policies, outward orientation, and free-market capitalism.

What Washington Means by Policy Reform

Presents a story of two Chinas – an entrepreneurial rural China and a state-controlled urban China. In the 1980s, rural China gained the upper hand. In the 1990s, urban China triumphed. In the 1990s, the Chinese state reversed many of its rural experiments, with long-lasting damage to the economy and society. A weak financial sector, income disparity, rising illiteracy, productivity slowdowns, and reduced personal income growth are the product of the capitalism with Chinese characteristics of the 1990s and beyond. While GDP grew quickly in both decades, the welfare implications of growth differed substantially. The book uses the emerging Indian miracle to debunk the widespread notion that democracy is automatically anti-growth. As the country marked its 30th anniversary of reforms in 2008, China faces some of its toughest economic challenges and substantial vulnerabilities that require fundamental institutional reforms.

Capitalism with Chinese Characteristics: Entrepreneurship and the State

Transition economies are often characterized by underdeveloped formal institutions, often resulting in an unstable environment and creating a void usually filled by informal ones. Entrepreneurs in ...

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Entrepreneurship in Russia and China: The Impact of Formal Institutional Voids:

The City in Late Imperial China.

It has become a truism that continued economic reform in China will contribute to political change. Policy makers as well as many scholars expect that formation of a private sector will lead, directly or indirectly through the emergence of a civil society, to political change and ultimately democratization. The rapidly growing numbers of private entrepreneurs, the formation of business associations, and the cooperative relationships between entrepreneurs and local officials are seen as initial indicators of a transition from China's still nominally communist political system. This book, first published in 2003, focuses on two related issues: whether the Chinese Communist Party is willing and able to adapt to the economic environment its reforms are bringing about, and whether China's 'red capitalists', private entrepreneurs who also belong to the communist party, are likely to be agents of political change.

Red Capitalists in China: The Party, Private Entrepreneurs, and Prospects for Political Change

China has, since 1976, been enmeshed in an extraordinary program of renewal and reform. The obvious changes the T-shirts, blue jeans, makeup and jewelry worn by Chinese youth; the disco music blaring from radios and loudspeakers on Chinese streets; the television antennas mushrooming from both urban apartment complexes and suburban peasant housing; the bustling free markets selling meat, vegetables and clothing in China's major cities reflect a fundamental shift in the government's policy toward the economy and political life.Although doubts about the long-term commitment to reform arose after the student protests in December 1986 and the dismissal of Party General Secretary Hu Yaobang in January 1987, the scope of reform has been so broad and the pace of change so rapid, that the post-Mao era fully warrants Den Xiaoping's description of it as the ""second revolution"" undertaken by the Chinese Communist Party.

China's Second Revolution: Reform after Mao

China has, since 1976, been enmeshed in an extraordinary program of renewal and reform. The obvious changesthe T-shirts, blue jeans, makeup and jewelry worn by Chinese youth; the disco music blaring from radios and loudspeakers on Chinese streets; the television antennas mushrooming from both urban apartment complexes and suburban peasant housing; the bustling free markets selling meat, vegetables and clothing in China's major citiesreflect a fundamental shift in the government's policy toward the economy and political life.Although doubts about the long-term commitment to reform arose after the student protests in December 1986 and the dismissal of Party General Secretary Hu Yaobang in January 1987, the scope of reform has been so broad and the pace of change so rapid, that the post-Mao era fully warrants Den Xiaoping's description of it as the \"second revolution\" undertaken by the Chinese Communist Party.\

The world is suddenly talking about the emergence of “Greater China.” The term has appeared in the headlines of major newspapers and magazines, has been the topic of conferences sponsored by prominent think-tanks, and is now the theme of a special issue of the world's leading journal of Chinese affairs. It thus joins other phrases – “the new world order,” “the end of history,” “the Pacific Century” and the “clash of civilizations” – as part of the trendiest vocabulary used in discussions of contemporary global affairs.

The Concept of “Greater China”: Themes, Variations and Reservations

President Nixon's historic trip to China in February 1972 marked the beginning of a new era in Sino-American relations. For the first time since 1949, the two countries established high-level official contacts and transformed their relationship from confrontation to collaboration. Over the subsequent twenty years, however, U.S.-China relations have experienced repeated cycles of progress, stalemate, and crisis, with the events in Tiananmen Square in June 1989 the most recent and disruptive example. Paradoxically, although relations between the two countries are vastly more extensive today than they were twenty years ago, they remain highly fragile. In this eagerly awaited book, China expert Harry Harding offers the first comprehensive look at Sino-American relations from 1972 to the present. He traces the evolution of U.S.-China relations, and assesses American policy toward Peking in the post- Tiananmen era. Harding analyzes the changing contexts for the Sino-American relationship, particularly the rapidly evolving international environment, changes in American economic and political life, and the dramatic domestic developments in both China and Taiwan. He discusses the principal substantive issues in U.S.-China relations, including the way in which the two countries have addressed their differences over Taiwan and human rights, and how they have approached the blend of common and competitive interests in their economic and strategic relationships. He also addresses the shifting political base for Sino-American relations within each country, including the development of each society's perceptions of the other, and the emergence and dissolution of rival political coalitions supporting and opposing the relationship. Harding concludes that a return to the Sino-American strategic alignment of the 1970s, or even to the economic partnership of the 1980s, is less likely in the 1990s than continued tension or even confrontation over such issues as trade, human rights, and the proliferation of advanced weapons. But he also explains the importance of maintaining normal working relations with China in order to promote security in East Asia, protect the global environment, and encourage an open, more realistic and stable relationship with China. Selected by Choice as an Outstanding Book of 1992 Award winner for excellence in publishing from the Association of American Publishers

A Fragile Relationship: The United States and China since 1972

1. The politics of bureaucracy in contemporary China 2. Organization building and consolidation, 1949-1953 3. Organizational rationalization, 1952-1955 4. The origins of the first crisis, 1955-1956 5. The first crisis: the hundred flowers, 1956-1957 6. The great leap forward and its aftermath, 1957-1962 7. The origins of the second crisis, 1962-1966 8. The second crisis: the cultural revolution, 1966-1968 9. Attempts at organizational revitalization, 1967-1969 10. Bureaucracy and the struggle for succession, 1969-1976 11. Conclusion Notes Glossary Bibliography Index.

Harry Harding

Papers

China's Second Revolution: Reform after Mao

China's Second Revolution: Reform after Mao

The Concept of “Greater China”: Themes, Variations and Reservations

A Fragile Relationship: The United States and China since 1972

Organizing China: The Problem of Bureaucracy, 1949-1976