By Susan L. Shirk

Long ago decade, China was once capable of perform fiscal reform with out political reform, whereas the Soviet Union tried the other procedure. How did China be successful at monetary marketplace reform with out altering communist rule? Susan Shirk exhibits that chinese language communist political associations are extra versatile and not more centralized than their Soviet opposite numbers were.Shirk pioneers a rational selection institutional method of learn policy-making in a non-democratic authoritarian state and to provide an explanation for the historical past of chinese language industry reforms from 1979 to the current. Drawing on broad interviews with high-level chinese language officers, she items jointly particular histories of financial reform coverage judgements and indicates how the political good judgment of chinese language communist associations formed these decisions.Combining theoretical ambition with the flavour of on-the-ground policy-making in Beijing, this booklet is an immense contribution to the learn of reform in China and different communist international locations.

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Extra info for The Political Logic of Economic Reform in China (California Series on Social Choice and Political Economy)

Example text

Face-to-face evaluation in work groups for bonuses and wage raises was so divisive that workers often preferred distribution by equal shares, seniority, or rotation (Shirk 1981). To overcome egalitarian peer group pressures, some managers and work group leaders took over employee evaluation and bonus distribution after 198384 (Walder, personal communication).

The early success of the agricultural reforms generated tremendous momentum for industrial reform: more abundant supplies of commodities such as cotton, tobacco, and sugar for industrial processing; more, and more varied, food for urban employees to buy with their bonuses; a surge of rural demand for manufactured farm and consumer goods; increased rural savings available for bank loans to industry; and valuable foreign exchange earnings from farm exports. 23 Henceforth, CCP leaders had to make economic arguments for the policies they advocated.

The evolution of policies governing the finance and management of enterprises vividly illustrates the institutional dynamics of reform policy-making. Chapter 10 describes the political success of enterprise profit retention experiments from 1978 to 1981. Chapter 11 reveals the close link between elite competition and economic policy-making in the decision to replace enterprise profit retention with a system based on tax payment in 198283. Chapter 12 focuses on the bureaucratic bar- < previous page page_21 next page > < previous page page_22 next page > Page 22 gaining over the tax reform policy in 198384.

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The Political Logic of Economic Reform in China (California by Susan L. Shirk
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