ECONOMIC ORGANIZATION AND DEVELOPMENT OF CHINA
Department of Economics
Readings for this course are taken from a variety of sources in the absence of a single good, up-to-date guide to China's contemporary development. Riskin, China's Political Economy (Oxford, 1987), which will be used earlier in the semester, is out of print but a photocopy will be available for purchase at the CU Bookstore. Several books will provide readings, all in the latter part of the course: Barry Naughton's Growing out of the Plan: Chinese Economic Reform, 1978-1993 (Cambridge, 1995); Nicholas Lardy's China's Unfinished Economic Revolution (Brookings, 1998) and Integrating China Into Global Economy (Brookings, 2002);The China Human Development Report (Oxford for the United Nations Development Programme, 1999); A. R. Khan and C. Riskin, Inequality and Poverty in China in the Age of Globalization (Oxford, 2001);. These have been ordered at the CU Bookstore. They are recommended – not required – for purchase and will also be on reserve at Starr East Asian Library.
Additional readings are available on the course website at Courseworks.
There are essentially two: a term paper and a final examination. Details to come.
1. INTRODUCTION TO COURSE, CHARACTERISTICS OF MODERN CHINESE ECONOMIC HISTORY
- Economic geography
- Early development: the "high-level equilibrium trap"
- The question of imperialism
- China's Political Economy (CPE), pp. 11-19
- D.H. Perkins, "Introduction: The Persistence of the Past," in D.H.Perkins, ed., China's Modern Economy in Historical Perspective.
- Justin Yifu Lin, "The Needham Puzzle: Why the industrial revolution did not originate in China," Economic Development & Cultural Change, 1995.
- K. Pomerantz, “Beyond the East-West Binary: Resituating Development Paths in the Eighteenth-Century World, JAS, 61, 2, May 2002.
- R. Dernberger, "The Role of the Foreigner in China's Economic Development," in Perkins, China's Modern Economy.
- *Mark Elvin, The Pattern of the Chinese Past, Ch. 17.
- *C. Riskin, "Surplus and Stagnation in Modern China," in Perkins, China's Modern Economy.
- *A. Nathan, "Imperialism's Effects on China," Bulletin of Concerned Asian Scholars, 4, Dec. 1972.
- *J. Esherick, "Harvard on China: The Apologetics of Imperialism," also in above issue of BCAS.
2. PRE‑REVOLUTION ECONOMIC DEVELOPMENT
- 20th century industrialization
- The Republican period
- The rural economy of the 30s
- On the eve of Communist victory
- CPE, pp. 19-34
- T. Rawski, Economic Growth in Pre-War China, Ch. 1
- J.L. Buck, Land Utilization in China, pp. vii-xvi, 1-23, 171-203, 267-88, 358-472.
3. THE "STALINIST" PERIOD: 1950-1957
- New Democracy
- Land Reform
- The First Five-Year Plan
- CPE, Chs. 3-5.
- Mark Selden, The People’s Republic of China: A Documentary History…, Monthly Review Press, 1979, the following sections:
Mao Zedong, "The Present Situation and Our Tasks"(reading I,A.1)
"The People's Democratic Dictatorship," (reading I,A.2)
Report to the 2nd Plenum. . . (reading I,A.3)
"The Agrarian Reform Law of 1950" (reading I,B.6.B)
Mao, "On Agricultural Cooperation" (reading II,B.3)
Mao, "On the Ten Major Relationships" (reading II,A.6)
- Kenneth Walker, Food Grain Procurement and Consumption in China, Chs. 2, 4.
- Selden, "Cooperation and Conflict," in Selden & Lippit, eds., The Transition to Socialism in China.
- *The First Five-Year Plan of the PRC, Beijing, Foreign Lang. Press.
- *C. Howe, Wage Patterns and Wage Policy in Modern China.
- *K. Walker, "Collectivization in Retrospect: The 'Socialist Hightide' of Autumn 1955‑Spring 1956," China Quarterly, 26, April‑June 1966.
- *N. Lardy, ed., Chinese Economic Planning.
4. GREAT LEAP FORWARD, FAMINE AND RECOVERY, 1958-62
- Characteristics and institutions
- Production, consumption and mortality statistics
- Evaluation of GLF
- Economic debates of the early 60s
- CPE, Ch. 6
- Mao, Speech at Supreme State Conference, Talks at Chengdu, and On Uninterrupted Revolution, from Selden, III.
- K. Walker, Food Grain Procurement and Consumption in China, Ch. 5.
- Riskin, "Seven Questions about the Chinese Famine of 1959-61" (China Econ Review, 1999).
- *Mao, speech at Chengchow, Selden, IV, A.1.
- *Mao and Peng Teh‑huai (Peng Dehuai), exchange at Lushan, Selden, IV.
- *B. Ashton, K. Hill, A. Piazza and R. Zeitz, "Famine in China, 1958‑61," Population and Development Review, 10, 4, December 1984, 613-45.
- *Cyril Lin, "The Reinstatement of Economics in China Today," China Quarterly, 85, March 1981.
5. THE "CULTURAL REVOLUTION DECADE" AND THE ECONOMICS OF LATE MAOISM
- Immediate issues
- Coordination and allocation
- Income distribution
- CPE, Chs. 8-10.
- Mao, Critique of Soviet Economics, in Selden IV.A.
- N. Lardy, Economic Growth and Distribution in China, Cambridge, 1978, Ch. 5
- *Riskin, "Maoism and Motivation: Work Incentives in China," in Nee & Peck, eds., China's Uninterrupted Revolution.
- *Tenth Plenum Resolution and Sixty Articles on Communes, Selden, IV, B3A‑B.
- *Sixteen Points on the Cultural Revolution, Selden, V, A.4.
- *Selden, VI, 1.A through E (debate: "revolution" vs. "modernization").
6. ASSESSMENT AND REASSESSMENT OF THE MAOIST PERIOD
- Indictment of the inherited economy
- Causes: Planning failures vs. system failures
- Welfare: unheralded accomplishments and newly publicized failures
- CPE, Ch. 11.
- Naughton, Growing Out of the Plan, Ch. 1: "The command economy and the China difference"
- *M.K. Whyte, "Inequality and Stratification in China," China Quarterly, 64, December 1975.
- *Wm. Parish, "Egalitarianism," Problems of Communism, Jan‑Feb 1981.
7. REFORM: RURAL
- Initial goals of reform
- Township and village enterprises
- Reform and rural economic performance
- CPE, Ch. 12.
- E. Perry and C. Wong, "Introduction" to their Political Economy of Reform in Post‑Mao China.
- Naughton, Growing out of the Plan , Ch. 4, "Growth of the non-state sector"
- Alan de Brauw, Jikun Huang, Scott Rozelle, Linxiu Zhang, Yigang Zhang, “The Evolution of China’s Rural Labor Markets during the Reforms” (on Courseworks website).
- *W. A. Byrd and Lin Qinsong, China's Rural Industry: Structure, Development and Reform, Chs. 1, 7, 9.
- *M. Weitzman and Xu Changgan, "Chinese Township Village Enterprises as Vaguely Defined Cooperatives" (photocopy)
- *L. Putterman, "The Restoration of the Peasant Household as Farm Production Unit in China: Some Incentive Theoretic Analysis," in Perry & Wong.
- *T. Sicular, "Rural Marketing and Exchange in the Wake of Recent Reforms," in Perry & Wong.
8. REFORM OF INDUSTRY AND PUBLIC FINANCE
- Methods: plan or market?
- Financial decentralization
- CPE, Ch. 14.
- Growing out of the Plan, Ch.3 ("State sector reforms, 1979‑1983") ; Ch. 5 ("Reformulation and debate: The turning point of 1984"); Ch. 6 ("The second phase of reform, 1984-1988")
- Shahid Yusuf et al., Privatizing China’s State-owned Enterprises (World Bank and Stanford U. Press, 2006), Chapter 2, “Reform in China, 1978–97.”
- Lisa Keister and Jin Lu, “The Transformation Continues: The Status of Chinese State-Owned Enterprises at the Start of the Millennium,” National Bureau of Asian Research, posted on Courseworks website.
- World Bank, China: National Development and Sub-National Finance, World Bank Report No. 22951-CHA, Chs. 1, 2, 8, and as much as 3-5 as you have time for.
- *Gary Jefferson et al., “Ownership, Performance, and Innovation in China’s Large and Medium-size Industrial Enterprise Sector,” posted on Courseworks website.
- *Hongbin Li and Scott Rozelle, “Rural China: Insider Privatization, Innovative Contracts, and the Performance of Township Enterprises”
9. REFORM OF CHINA'S FOREIGN ECONOMIC POLICY
- Objectives of the "Open Door"
- Foreign investment: hopes and results
- The impact of WTO accession
- J. Chai, "The Open Door Policy, II" in course packet.
- N. Lardy, Integrating China into the Global Economy, Chs. 1-4.
- D. Bhattasali et al, “Impact and Policy Implications of WTO Accession,” World Bank, posted on Courseworks web site.
- He Qinglian on effects of China’s entry into WTO, posted on Courseworks web site.
- W. B. Abnett and R. B. Cassidy, “China’s WTO Accession: The Road to Implementation,” NBR report, posted on Courseworks web site.
- UNDP, Macroeconomics of Poverty Reduction: The Case of China, Ch. 5 (“External Sector Policy Dimensions”)
- *D. Lampton et al., The Emergence of 'Greater China': Implications for the United States, National Committee on U.S.‑China Policy, 1992.
10. ASSESSMENT OF REFORM, I: ECONOMIC PROBLEMS AND PROSPECTS
- Big Bang vs. gradualism
- Financial and banking problems
- Economic outlook under WTO
- Growing out of the Plan, Ch. 7 ("Rapid growth and macroeconomic imbalance"); Ch. 8 ("The post-Tiananmen cycle of retrenchment & reform"); Ch. 9 (Conclusion: Lessons and limitations of Chinese reform")
- Alan de Brauw, Jikun Huang, and Scott Rozelle, “Sequencing and the Success of Gradualism: Empirical Evidence from China’s Agricultural Reform,” on Courseworks website.
- Lardy, China's Unfinished Economic Revolution, Chs. 1, 2, and 5.
- Brad Setser, “The Chinese Conundrum: External financial strength, Domestic financial weakness”
- Yusuf, et al., Privatizing China’s SOEs, Chs. 1,6.
- World Bank, Quarterly Update on Chinese Economy, August 2005.
- *Ajit Singh, "The Stock Market in a Socialist Economy," in Nolan and Dong, The Future of the Chinese Economy.
11. ASSESMENT OF REFORM, II: REFORM AND SOCIAL DEVELOPMENT
- Income distribution
- Poverty and the safety net
- Unemployment and the floating population
- Education and health
- ADB, Country Econ Review: The PRC, pp. 18-22 on social security reform.
- World Bank, China, Promoting Growth with Equity (2003)
- Khan, “Growth, Inequality and Poverty in China,” ILO, 2004.
- World Bank, China: National Development and Sub-National Finance, World Bank Report No. 22951-CHA, Chs. 6 (education) and 7 (health services).
- Yuanli Liu, “Reforming Urban Health Care,” posted on Courseworks web site.
- C. Riskin, “Has China Reached the Top of the Kuznets Curve””
- C. Wong, “Can the Retreat from Equality be Reversed?”
- *UNDP, The China Human Development Report, Oxford Univ. Press, 1999.
- *Riskin, Zhao and Li, “Equality in Retreat: Highlights of the Findings”, Introduction to China's Retreat from Equality, ed. C. Riskin, Zhao Renwei & Li Shi (M.E. Sharpe, 2001).
- *World Bank, Old Age Security: Pension Reform in China, monograph in support of China 2020, Washington, D.C., World Bank, 1997. (Also available on Courseworks web site.)