An equilibrium path for institutional change in China

Abstract

China's economic and political reforms since 1978 represent one of the biggest institutional changes in the last century. Because most research has focused on the economics of institutional change rather than the evolution of political institutions, a theoretical framework to explain China's rapid economic development is lacking. To understand the successes and failures of China's institutional change, we reviewed China's innovative political and economic practices during the past 30 years. We found that the country's political and economic institutions combine to form a dynamic equilibrium that can explain the impressive economic results. China's leaders dream of new institutions that will improve upon traditional Western capitalism, based on a combination of central planning with traditional capitalist approaches that increase the system's flexibility. If China's leaders can combine this approach with decreased social costs compared with previous socioeconomic systems, this will represent a new era and a model that other nations can follow.

Seeking the gravediggers of capitalism in China

“…During the same period, the urban population changed at a similarly rapid rate, increasing from 17.9% to 57.9% of the total population (Figures 1 and 2). The increased urban population has accompanied a gradual change in the nation’s core socioeconomic institution—a centrally controlled economy—towards a system in which central control coexists with a rapidly emerging market economy (Cao and Ren, 2016). The new social groups created by employment in the industrial and service sectors, and the higher economic efficiency of the emerging markets is providing opportunities for the government to learn from and adopt certain aspects of these new institutions.…”

“…During the same period, the urban population changed at a similarly rapid rate, increasing from 17.9% to 57.9% of the total population (Figures 1 and 2). The increased 1 9 8 2 1 9 8 6 1 9 9 0 1 9 9 4 1 9 9 8 2 0 0 2 2 0 0 6 2 0 1 0 2 0 1 4 1 9 7 8 1 9 8 2 1 9 8 6 1 9 9 0 1 9 9 4 1 9 9 8 2 0 0 2 2 0 0 6 2 0 1 0 2 0 1 4 Population (×10 urban population has accompanied a gradual change in the nation's core socioeconomic institution-a centrally controlled economy-towards a system in which central control coexists with a rapidly emerging market economy (Cao and Ren, 2016). The new social groups created by employment in the industrial and service sectors, and the higher economic efficiency of the emerging markets is providing opportunities for the government to learn from and adopt certain aspects of these new institutions.…”

From present to presentation: A philosophical critique of Hartmut Rosa’s “situational identity”

“…. As suggested by anonymous reviewer #1 I have consulted the following literature, which points out, in various ways, how the subject of this paper can be related to issues having to do with China(Cao, 2012a(Cao, , 2012b(Cao, , 2015(Cao, , 2016a(Cao, , 2016bCao and Ren, 2016). 2.…”