The Interaction of the State and the Market In a Developing Transition Economy: The Experience of China

نویسنده

  • Chunlin Zhang
چکیده

This paper assesses how the particular form of interactions between the state and the market may have had its impact on China’s overall success in the past two decades in economic reform and development. In doing so, the question of development economics, i.e., the role of the state and the market in development, is discussed in a context of transition economics. Some key components of China’s reform experience are examined to illustrate the way the state interacts with market forces, including ownership transformation of people’s communes and state owned enterprises, regional decentralization, price reform, financial sector reform and capital market development, and bankruptcy regime. In interacting with market forces in some “transition institutions”, the state seemed to have played positive roles in ensuring political and social feasibility of reform measures, supporting the market to achieve initial improvement in efficiency, and maintaining the momentum of reform. 1 The author wishes to thank the organizers and participants of the workshops “Promoting growth and welfare: the role of institutions and structural change in Asia” held in Santiago and Rio de Janeiro in May 2002 for their valuable comments. The views expressed in this paper are entirely that of the author and should be in no way interpreted as the views of the World Bank.

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تاریخ انتشار 2002