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 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.

Bibliographic Details

Main Authors:	Hofman, Bert, Wu, Jinglian
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2009
Subjects:	ACCOUNTING, AGRICULTURAL BANK, AGRICULTURAL PRODUCTS, AGRICULTURE, ASSET MANAGEMENT, BALANCE OF PAYMENT, BALANCE OF PAYMENTS, BANK LOANS, BANK OFFICE, BANK POLICY, BANKING INDUSTRY, BANKING LAW, BANKING SECTOR, BANKING SECTOR REFORMS, BANKING SERVICES, BANKING SUPERVISION, BANKING SYSTEM, BANKRUPTCY, BANKRUPTCY LAW, BONDS, BUDGET DEFICITS, CAPITAL ACCOUNT, CAPITAL ACCUMULATION, CAPITAL SHARE, CAPITAL STOCK, CENTRAL BANK, CENTRAL BANK BILLS, CENTRAL PLANNING, CENTRALLY PLANNED ECONOMY, CLAIMANT, CLOSED ECONOMY, COMMAND ECONOMY, COMMERCIAL BANK, COMMERCIAL BANK BRANCHES, COMMERCIAL BANKING, COMMERCIAL BANKS, COMPANY LAW, CONSUMER GOODS, COOPERATIVE BANKS, CORRUPTION, CREDIBILITY, CREDIT COOPERATIVES, CREDITORS, CURRENT ACCOUNT, CURRENT ACCOUNT TRANSACTIONS, DEBT, DEBT BURDENS, DECENTRALIZATION, DEMOGRAPHIC FACTORS, DEPOSIT, DEPOSIT INTEREST, DEPOSITS, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DEVELOPMENT ECONOMICS, DEVELOPMENT STRATEGIES, DEVELOPMENT STRATEGY, DIVERSIFIED OWNERSHIP, DOMESTIC BANKS, DOMESTIC LIQUIDITY, EARNINGS, ECONOMIC COOPERATION, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC OUTLOOK, ECONOMIC PERFORMANCE, ECONOMIC REFORM, ECONOMIC REFORMS, ECONOMIC RESEARCH, ECONOMIC STATISTICS, ECONOMIC SYSTEM, EMERGING MARKET, EMERGING MARKET ECONOMY, ENTREPRENEURS, EXCHANGE RATE, EXPORT PERFORMANCE, EXPORTERS, EXPORTS, FACE VALUE, FARMER, FINANCIAL ASSETS, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL REFORMS, FINANCIAL SECTOR, FINANCIAL SYSTEM, FISCAL DECENTRALIZATION, FISCAL POLICIES, FISCAL POLICY, FISCAL REFORMS, FISCAL RESOURCES, FIXED ASSET, FIXED CAPITAL, FIXED EXCHANGE RATE, FIXED INVESTMENT, FLEXIBLE EXCHANGE RATE, FOOD SHORTAGES, FOREIGN BANKS, FOREIGN CURRENCY, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN INVESTMENT, FOREIGN INVESTORS, GDP, GDP PER CAPITA, GINI COEFFICIENT, GOVERNMENT BOND, GOVERNMENT BOND MARKET, GOVERNMENT BONDS, GOVERNMENT REVENUES, GREEN REVOLUTION, GROSS FIXED CAPITAL FORMATION, GROWTH RATE, HOLDING, HOUSEHOLDS, HUMAN CAPITAL, INCOME INEQUALITY, INCOME SECURITY, INCOME TAX, INDIVIDUAL LOANS, INDUSTRIALIZATION, INEFFICIENCY, INEQUALITIES, INFLATION, INITIAL PUBLIC OFFERINGS, INSTRUMENT, INSURANCE, INTELLECTUAL PROPERTY, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INVESTING, INVESTMENT BANK, INVESTMENT CORPORATION, INVESTMENT FINANCING, INVESTMENT POLICIES, INVESTMENT RATE, ISSUANCE, JOB CREATIONS, LABOR FORCE PARTICIPATION, LABOR MOBILITY, LEGAL FRAMEWORK, LEGAL SYSTEM, LIQUIDITY, LIVING STANDARDS, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, MACROECONOMIC CONDITIONS, MACROECONOMIC CONTROL, MACROECONOMIC MANAGEMENT, MACROECONOMIC POLICY, MACROECONOMIC STABILITY, MACROECONOMICS, MARKET COMPETITION, MARKET ECONOMY, MARKET PRICE, MARKET PRICES, MARKET SHARE, MONETARY FUND, MONETARY POLICY, MONOPOLY, NATURAL RESOURCES, NONPERFORMING LOANS, NPL, OPEN COUNTRIES, ORGANIZATIONAL STRUCTURES, OWNERSHIP STRUCTURES, PENSION, PENSION SYSTEM, PENSIONS, PEOPLES, PER CAPITA INCOME, PLANNED ECONOMIES, PLANNED ECONOMY, PORTFOLIO, PORTFOLIO FLOWS, POSITIVE EFFECTS, PRIVATE ENTERPRISES, PRIVATE INVESTMENT, PRIVATE PROPERTY, PRODUCTIVITY, PRODUCTIVITY INCREASES, PROPERTY LAW, PROPERTY RIGHTS, PROTECTIONISM, PURCHASING POWER, PURCHASING POWER PARITY, REAL EXCHANGE RATES, REGISTRATION SYSTEM, RENT SEEKING, RESERVE, RESERVE REQUIREMENTS, RESERVES, RETURN, RETURNS, RURAL COOPERATIVE BANKS, RURAL CREDIT, RURAL FINANCE, SAVINGS, SETTLEMENT, SHAREHOLDERS, SOFT BUDGET CONSTRAINT, STATE BANKS, STATE BONDS, STATE GUARANTEE, STOCK EXCHANGE, STRUCTURAL CHANGE, SWAP, SWAP MARKET, TAX, TAX EXEMPTIONS, TAX RATES, TAX REVENUES, TAX SYSTEM, TOTAL FACTOR PRODUCTIVITY, TRADE LIBERALIZATION, TRADE REFORMS, TRANSITION COUNTRIES, UNEMPLOYMENT, UNION, VILLAGE, WAGES, WOMAN, WORKING CAPITAL, WTO,
Online Access:	http://documents.worldbank.org/curated/en/763341468025224944/Explaining-Chinas-development-and-reforms https://hdl.handle.net/10986/27938
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