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From Mao to Market: Rent Seeking, Local Protectionism, and Marketization in China


From Mao to Market: Rent Seeking, Local Protectionism, and Marketization in China

Paperback by Wedeman, Andrew H. (University of Nebraska, Lincoln)

From Mao to Market: Rent Seeking, Local Protectionism, and Marketization in China

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ISBN:
9780521100151
Publication Date:
18 Jan 2009
Language:
English
Publisher:
Cambridge University Press
Pages:
300 pages
Format:
Paperback
For delivery:
Estimated despatch 24 - 29 May 2024
From Mao to Market: Rent Seeking, Local Protectionism, and Marketization in China

Description

Andrew Wedemen argues that China succeeded in moving from a Maoist command economy to a market economy because the central government failed to prevent local governments from forcing prices to market levels. Having partially decontrolled the economy in the early 1980s, economic reformers baulked at price reform, opting instead for a hybrid system wherein commodities had two prices, one fixed and one floating. Depressed fixed prices led to 'resource wars', as localities battled each other for control over undervalued commodities while inflated consumer goods prices fuelled a headlong investment boom that saturated markets and led to the erection of import barriers. Although local rent seeking and protectionism appeared to carve up the economy, in reality they had not only pushed prices to market levels and cleared the way for sweeping reforms in the 1980s, they had also pushed China past the 'pitfalls' of reform that entrapped other socialist economies.

Contents

1. The pitfalls of reform; 2. Policy and institutional change; 3. Rent seeking and local protectionism; 4. Export protectionism; 5. Import protectionism; 6. Marketisation; 7. Escaping from the pitfalls.

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