Synopses & Reviews
In this volume, distinguished Chinese and Western scholars provide a detailed examination of the problems associated with China's transition to a market-oriented system. A variety of reform proposals, aimed at resolving the contradictions inherent in piecemeal reform, are discussed along with the chances for future liberalization.
These clearly written and insightful essays address the roots of China's crisis. The authors focus on institutional changes necessary for a spontaneous market order and point to the close relation between economic reform and political-constitutional reform. Topics include the speed and degree of the transition, whether ownership reform must precede price reform, how inflation can be avoided, steps to depoliticize economic life, how to create an environment conducive to foreign trade and investment, and how to institute basic constitutional change and open China to the outside world.
The revolutionary changes now shaking the foundations of socialism and central planning in the Soviet Union and Eastern and Central Europe are sure to have an impact on China's future. Despite their seriousness, the events of Tiananmen Square may constitute only a temporary detour on the road toward a private market order. The essays in this volume help lay a rational framework for understanding China's present problems and for discussing the prospects for future reform.
Table of Contents
Foreword
Crisis and Opportunity in China
Edward H. Crane
Editors' Preface
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Part 1 - China in Transition: Setting a Framework for Reform
1. Using the Market for Social Development
Milton Friedman
Comment: Planning and the Market
Pu Shan
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2. Privatization vs. Special Interests: The Experience of China's Economic Reforms
Steven N. S. Cheung
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Comment: Establishing a New Order of the Socialist Commodity Economy
Xu Pengfei
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3. Pricing and Property: The Chinese Puzzle
James A. Dorn
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4. Economic Chaos or Spontaneous Order? Implications for Political Economy of the New View of Science
Don Lavoie
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Comment: The Impact and Influence of the New View of Science onand#160;China's Reform
He Weiling
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Part II - Decentralization and Development in China
5. The Importance of Reorganizing Money, Credit, and Banking When Decentralizing Economic Decisionmaking
Peter Bernholz
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Comment: Financial Reform: A Prerequisite for Development
Liu Funian
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Comment: On the Importance of Decentralizing Money
George A. Selgin
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6. Recent Developments in China's Financial Sector: Financial Instruments and Markets
Christine I. Wallich
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7. Institutional Reforms in Chinese Agriculture: Retrospect and Prospect
Justin Yifu Lin
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8. Property in Chinese Development: Some Historical Comparisons
John P. Powelson
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Comment: Property Rights and Development: The Moral Dimension
Jo Ann Kwong
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Comment: Reforming China's Property System
Chen Weishu
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9. Private Provision of Government Services
Gabriel Roth
Comment: The "Socialization" of Public Services
Zhou Mingwei
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10. Economic Growth and Reform in China's Provinces, Municipalities, and Regions
Thomas R. Dye
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Comment: The Problem of Decentralization in China
Wang Xi
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Part III - Economic Reform and Foreign Relations
11. The Impact of China's Reform and Development on the Outside World
Xu Zhiming
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12. The China-Hong Kong Connection
Yun-Wing Sung
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Comment: The Role of Hong Kong in China's Reform
He Gaosheng
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Comment: The Integration of Hong Kong and China
John G. Greenwood
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13. East Asian Economic Success: Implications for Chinese and U.S. Foreign Policy
Edward A. Olsen
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Comment: China's Market, U.S. Competitiveness, and Socialism
Chen Qida
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14. The United States, China, and the Soviet Union: Managing a Complex Triangular Relationship
David M. Lampton
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Comment: Challenges Facing Sino-American-Soviet Relations
Lu Yimin
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15. China and America in a Changing World Order
Ted Galen Carpenter
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Part IV - The Road to China's Future
16. The Roots of China's Crisis
Nien Cheng
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17. A Free-Market Constitution for Hong Kong: A Blueprint for China
Alvin Rabushka
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Comment: Freedom and Reform in Asian-Pacific Economies
Richard Y. C. Wong
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Comment: China and the Growth-Oriented Policies of the Pacific Basin
George Shen
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18. Economic Deregulation in the United States: Lessons for America, Lessons for China
William A. Niskanen
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19. Let a Billion Flowers Bloom
George Gilder
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Index