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Political Economic Systems in Transition

In: How the Chinese Economy Works

Author

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  • Guo Rongxing

Abstract

In traditional socialist countries, economic development is realized mainly through a plan worked out by the central planning authorities. The plan, however, is a mental construct which may or may not correctly reflect the objective requirements of economic development. If the plan is correct, economic development is smooth; if it is incorrect, not only is it of no help — it may even lead to stagnation and decline. Obviously this has been proven in China’s economic sphere, especially during the pre-reform period.

Suggested Citation

  • Guo Rongxing, 2009. "Political Economic Systems in Transition," Palgrave Macmillan Books, in: How the Chinese Economy Works, edition 0, chapter 4, pages 66-98, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-24568-6_4
    DOI: 10.1057/9780230245686_4
    as

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