Economic Transformation of China


This is a written assignment for an Economic Transformation of China Course. It is a very narrow paper based on the required readings. It is analysis/critical synthesis (not a summary) of required readings (3-4 pages on answering the five questions listed below). It is also an argumentative paper (1-2 pages critique). Please note that you do not need to answer all of these questions directly or in the same level of detail. The paper should NOT be a set of five answers to the bullet points. At least 12 footnotes/quotes are required from all four readings. BACKGROUND INFO: Naughton provides a more pessimistic characterization of the second phase of economic reforms after 1992 dubbing them as “reforms with losers.” Rawski and Jefferson conclude their analysis of the first phase of enterprise reforms in China with an optimistic statement concerning China’s ability to harness its potential for further gains without creating intolerable political tensions or social costs. Based on the experiences in the second phase of reforms, Lin and Qian come to a more pessimistic view of the reform of the industrial sector. QUESTIONS TO CONSIDER: 1. On what do Rawski and Jefferson base their optimistic assessment of industrial sector reform? 2. Characterize, in your own words, Lin’s notion of “enterprise viability” and relate it to CAF and CAD development strategies. 3. Why does Qian consider large state-owned enterprise reform to be a failure rather than a transitional institution? 4. Explain thoroughly why Qian and Lin do not find the earlier optimism of Rawski and Jefferson born out. 5. Would Qian and Lin agree with Naughton’s assessment of the second phase of reforms? Why or why not? Readings/required sources (at least 3 footnote per each reading) : 1. Jefferson, Gary and Rawski, Thomas, “Enterprise Reform in Chinese Industry,” Journal of Economic Perspectives, 8:2, (Spring) 1994, pp. 47 – 70. 2. Barry Naughton, “The Chinese Economy: Transitions and Growth”, MIT Press: Chapters 7, 8, 9, 13, 14 to p.333 & 15 Note: you should have already read: Chapter 1, 2, 3, 4, 5, 6, 10, 12 3. Lin, Justin Yifu, “Demystifying the Chinese Economy”, Cambridge University Press: Chapters 5, 8 & 9 Note: you should have already read: 1, 2, 3, 4, 6, 7 4. Qian, Yingyi “How Reform Worked in China” Chapter 11 in In Search of Prosperity: Analytic Narratives on Economic Growth, Dani Rodrik (ed.): p.314 to end Note: you should have already read up to page 314. Reminder: Your position paper should be a coherent well-structured essay that covers sufficiently the points in the prompts. However, it should NOT be a set of five answers to the bullet points. Rather, the prompts should be used to construct a well-argued essay synthesizing the readings on the topic with evidence and information (data if appropriate) supporting your position. Your position should be identified clearly in the introduction and used as an integrative theme to organize the development of the arguments in the paper. Please go to this Google Drive Folder to access the 4 required readings (in Folder named required readings), additional notes, previous paper’s comments, and an example paper:

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