Reform start – initial b.t. in countrysideReform policies contribution to econ growth > transitionReform practice: indi pieces of land to farm householdsTVEs: rural reform: Free to allocate labor Farmers - involvement in manu. bus. – no. workers in TVE productivity – release labor 1980s: diploma w/ western export clothes/shoes – low $ labor Rural income Urban reform: no high pressure for food/labor unemp solve problem ask SOEs marketize sell in open market dual track system (old/marketized) Farmer land contract – 1. Built invested interest. 2. Provided powerful new incentivesto farmers. 3. Extend this approach to industrial & commercial reforms (1978-1993)Elements of 1stphase reform (1978-1992)Dual track system: single commodity had planned price & market price; operated within state sector & industrial economy; factories introduced to marketParticularistic contracts: SOEs controlled by gvmt: NO TAX; want to marketize all; want to adopt DTS.
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