Explaining China's Development and Reforms
China's remarkable economic performance over the last 30 years resulted from reforms that met the specific conditions of China at any point in time. Starting with a heavily distorted and extremely poor economy, China gradually reformed by impr...
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/763341468025224944/Explaining-Chinas-development-and-reforms http://hdl.handle.net/10986/27938 |
| Summary: | China's remarkable economic
performance over the last 30 years resulted from reforms
that met the specific conditions of China at any point in
time. Starting with a heavily distorted and extremely poor
economy, China gradually reformed by improving incentives in
agriculture, phasing out the planned economy and allowing
non-state enterprise entry, opening up to the outside world,
reforming state enterprises and the financial sector, and
ultimately by starting to establish the modern tools of
macroeconomic management. The way China went about its
reforms was marked by gradualism, experimentation, and
decentralization, which allowed the most appropriate
institutions to emerge that delivered high growth that by
and large benefited all. Strong incentives for local
governments to deliver growth, competition among
jurisdictions, and strong control of corruption limited rent
seeking in the semi reformed system, whereas investment in
human capital and the organizations that were to design
reforms continued to provide impetus for the reform process.
Learning from other countries' experience was
important, but more important was China's adaptation of
that experience to its own particular circumstances and needs. |
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