Read e-book online An outline of political economy: Political economy and PDF

By Iosif Abramovich. Ostrovitdi8anov, Konstantin Vasil'evich, Lapidus

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Weakness in the economy, which pre-dates the Asian crisis of 1997/98 runs much deeper than China’s leaders appear to believe. The difficulties are structural rather than cyclical. Short-term pump-priming exacerbates structural problems and undercuts long-term reform objectives. Nicholas Lardy (1998a), while not offering an explanation for the slowdown, also deemed China’s reflation program to be a mistake: China’s leadership has made its short-term growth objective its highest priority. Longer-term structural reform of state-owned banks and enterprises is being postponed.

FDI inflows and exports stimulate GDP growth, which in turn provides a solid basis for attracting more FDI and export push. Such interactions formed a virtual circle of openness, growth, more openness and more growth. China’s open policy was successful in the past, and will continue to help China achieve sustainable growth in the future. During the process of reforms and economic growth, various social issues have emerged. The remaining two chapters of this part aim to address two of these issues: the care of the ageing population and the alleviation of poverty.

To reduce the social costs, the government needs to provide better labour market information, training schemes for rural migrants, a monitoring system to ensure safety and good living conditions. While addressing different aspects of China’s economic development process, the theme of most chapters in this volume is clearly the sustainable growth of the Chinese economy. Theoretical discussions and empirical studies are provided, followed by various policy suggestions for sustaining economic growth.

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An outline of political economy: Political economy and Soviet economics by Iosif Abramovich. Ostrovitdi8anov, Konstantin Vasil'evich, Lapidus


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