China: Economic Reforms, Development
Policy and Political System
Contrary to many Eastern European countries
whose economies contracted significantly having embarked on the transformation
path after the year 1989, for the last twenty seven years China has been rapidly
developing. It has multiplied its GDP, and has become an important member of the
global economy and of the international political scene. What is the secret of
a dynamic socio-economic development in the post-socialist transitional period?
What did China do that other countries did not? The lecture tries to answer the
There are undoubtedly many factors which influenced China's
results. However, there seem to be some major mechanisms, which I believe should
be considered to have a decisive impact on the current situation, which are consequently
Accepting the fact that systemic reforms and development policy
are two different processes and therefore two different sets of instruments should
be utilitised in their implementation, seems to be the first step towards smoother
transition. One needs however proper co-ordination between these two processes
and the very act of co-ordination in all probability matters more than the two
processes separately. Consequently certain instruments need to be implemented
in order to navigate the development policy aimed at increasing the speed of the
fair socio-economic development, and the systemic reforms being the processes
which transform the centrally planned economy into a free market economy.
co-ordination between systemic reforms and development policy does not suffice.
In order to realise and implement instruments which propel a smooth transition
and allow dynamic socio-economic development, one must have an adequate political
environment created by both: the political system (legal and administrative frames)
and the political power centre which will be able to implement the socio-economic
changes and enable the system to operate.