184135 (Redesigning the Dragon Financial Reform in the Peoples Republic of China), страница 3

4) Improve governance, diversify ownership and lower subsidies for SOEs.

In the short term this would include implementing an accounting system and independent audits, give autonomy to the managers, getting rid of unviable businesses and restructuring those SOEs that can be.

1. Transfer social services to the government.

This would reduce the burden on newly restructured enterprises. Over time this would allow for a national system to be implemented.

Conclusions

In comparison with other countries undergoing transition from centrally-planned economic systems, China had the luxury of initiating its reforms at a time when it faced no macroeconomic or serious political crisis. It was able to adopt a two-track approach to economic reform: China continued state control of existing enterprises while loosening economic controls enough to permit growth of a new, nonstate sector. This was possible in part because the inefficient state sector was a small share of the economy, compared to most socialist nations.

China’s reform experience thus far has been one of “enabling” reform, allowing “marketization” instead of forcing “privatization,” getting government to “step out of the way” of the flows of commerce. The results have been good to excellent in the productive sectors, but the reform has not yet succeeded in the fiscal and monetary sectors, which are the domains of government. Here the government can’t step out of the way; it must build the proper tools and structures to manage these sectors.³⁹ It is in these areas, and in the efforts to reduce administration, dismantle SOEs, and provide an adequate social insurance system for displaced workers and affected citizens that China faces its true reform challenges.

To further evaluate how far China has come down the path of economic transition, we look to a definition of transition used by the World Bank, which describes these three components:

• Liberalization: freeing prices, trade and entry to markets from state controls, while stabilizing the economy. Stabilization is an essential component to liberalization.

• Clarifying property rights and privatizing them where necessary. Requires re-creating the institutions that support market exchange and shape ownership, and especially the rule of law.

• Reshaping social services and the social safety net to ease the pain of transition while propelling the reform process forward.

Examination of the Chinese experience shows that liberalization has taken place to some degree, though much reform of prices, trade and markets is still to be done. However, privatization and the assignment of property rights are still very undeveloped, and the most difficult parts of transition ahead are dependent on a still-unachieved transfer of the social safety net from enterprise-based to government control.⁴⁰

Were China to continue to grow at the rates of the last two decades, it would surpass the United States as the world’s largest economy in less than twenty years. Though some tapering off in the growth rate is expected, China, with its sheer size and dynamism, is emerging as one of the world’s economic powers. The reform policy choices it makes during this period of transition thus have not only domestic but international significance, as China’s domestic economic and social stability will be felt internationally. The rest of the world has ample reason for assisting China in seeing these reforms through peacefully. Opening of economic activity within China and with the rest of the world will assist the process of political liberalization within the country, and will provide enhanced regional and global security.

Table 3. The Fiscal Situation in the Reform Period

Source: Wong, Christine P.W., Christopher Heady, and Wing T. Woo. Fiscal Management and Economic Reform in the People’s Republic of China. Oxford University Press. Hong Kong: 1995, p.24.

Table 5. Government Budgetary Expenditures

Source: Wong, Christine P.W., Christopher Heady, and Wing T. Woo. Fiscal Management and Economic Reform in the People’s Republic of China. Oxford University Press. Hong Kong: 1995, p.24.

Table 6. Composition of Tax Revenues

Source: Wong, Christine P.W., Christopher Heady, and Wing T. Woo. Fiscal Management and Economic Reform in the People’s Republic of China. Oxford University Press. Hong Kong: 1995, p.24.

Table 7. Changing Role of the State

Source: Harrold, Peter. China’s Reform Experience to Date. World Bank Discussion Papers #180. The World Bank:Washington, DC. 1992.

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1 Spence, Jonathan The Search for Modern China. London: W.W. Norton and Co., 1990.

2 Harrold, Peter “China’s Reform Experience to Date”, World Bank Discussion Paper #180, 1992.

3 Broadman, Harry “Meeting the Challenge of the Chinese Enterprise Reform”, World Bank Discussion Paper #283, 1995.

4 Lele and Ofori-Yeboah, Unraveling the Asian Miracle. Brookfield: Dartmouth Press, 1996.

5 World Bank Web Page , November 1996 (http://www.worldbank.org/html/extdr/offrep/eap/china.htm)

6 Lele and Ofori-Yeboah Unraveling the Asian Miracle. Brookfield: Dartmouth Press, 1996.

7 Gao, Shangquan China’s Economic Reform. Macmillan Press Ltd: London, 1996.

88 Wong, Christine P.W., Christopher Heady, and Wing T. Woo. Fiscal Management and Economic Reform in the People’s Republic of China. Oxford University Press. Hong Kong: 1995.

9 “China Budget Hurt By Tax Arrears.” Reuters Financial Service, 14 August 95.

10 “Reform of China’s State-Owned Enterprises: A Progress Report of Oxford Analytica.” World Bank Web Page, November 16, 1996 (http://www.worldbank.org/html/prddr/trans/dec95/china.htm).

11 Ibid.

12 Hodder, Rupert. The Creation of Wealth in China: Domestic Trade and Material Progress in a Communist State. Belhaven Press. London: 1993, p. 80.

13 Wong, Christine. “China’s Economy: The Limits of Gradualist Reform.” in China Briefing, 1994, ed. by William A. Joseph. Westview Press. Boulder, CO: 1994

14 Stevenson-Yang, Anne. “New Reforms and Taxes for ‘94,” in The China Business Review. U.S.-China Business Council. Washington, D.C.: January-February 1994.

15 Peck, Joyce, Peter Kung, and Khoon-Ming Ho. “Enter the VAT,” in The China Business Review. U.S.-China Business Council. Washington, D.C.: March-April 1994.

16 “China: Tax Policy Changes May Not Be Welcome to Companies, But Are Good for China,” in Global Economic Forum. Morgan Stanley & Co. Inc. 1995.

17 Wong, Christine P.W., Christopher Heady, and Wing T. Woo. Fiscal Management and Economic Reform in the People’s Republic of China. Oxford University Press. Hong Kong: 1995.

18 IWR Daily Update. Vol. 2, No. 104, 25 April 1995.

19 Harrold, Peter “China’s Reform Experience to Date” World Bank Discussion Paper #180, 1992.

20 Mehran and Quintyn, “Financial Sector Reform in China” Finance and Development, March 1996.

21 Ibid.

22 Tseng, W et al. “Economic reform in China: A New Phase” , IMF Occasional Paper #114, November 1994.

The Chinese Economy: Fighting Inflation, Deepening Reforms World Bank Country Study Washington, DC, May 1996.

23 Ibid

24 Xu, Dianqing “China: Contradictory Measures Frustrate Bank Reform” Center for International Private Enterprise, Washington DC, 1995.

25 Mehran and Quintyn, “Financial Sector Reforms in China” Finance and Development, March 1996.

26 Ibid.

27 Xu, Dianqing “China: Contradictory Measures Frustrate Bank Reform” Center for International Private Enterprise, 1995.

28 Forney and Sender “Ever So Careful: China cautiously extends the renminbi’s convertibility” Far Eastern Economic Review, July 4, 1996.

29 Ibid.

30 “Passing the Buck” Far Eastern Economic Review, October 10, 1996.

31 Ibid.

32 The Chinese Economy: Fighting Inflation, Deepening Reforms. A World Bank Country Study May, 1996.

33 Forney, Matt “Trials by Fire” Far Eastern Economic Review, September 12, 1996.

34 “Reform of China’s State-Owned Enterprises: A Progress Report of Oxford Analytica.” World Bank Web Page, November 16, 1996 (http://www.worldbank.org/html/prddr/trans/dec95/china.htm)

35 Macartney, Jane. “Focus - China Unveils 5-Year Plan Low on Initiative.” Reuters Financial Service. March 5, 1996. Available through Lexis/Nexis ASIAPC library, China file.

36 Ibid.

37 Ibid.

38 The Chinese Economy: Fighting Inflation, Deepening Reforms. A World Bank Country Study, May 1996.

39 Wong, Christine. “China’s Economy: The Limits of Gradualist Reform.” in China Briefing, 1994, ed. by William A. Joseph. Westview Press. Boulder, CO: 1994, p. 51.

40 “World Development Report Stresses Benefits of Sustained, Continued Reforms.” World Bank News, Vol. XV, No. 25. June 27, 1996.

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