Week 5-2 Urban Reform (1)

Week 5-2 Urban Reform (1) - Enterprises under the Planned...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
POLC 3020: Week 5 (2) Urban Reform (Industry) Sept. 22, 2010
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Questions During the 1990s, the overall size of the state sector shrunk dramatically. Is this a sign that the SOE reform was successful? Answer this question focusing on the following three areas: A. Changes brought about by the government to both decentralize and diversify economic activity in the country B. The role of SOEs, TVEs, and other forms of firms in financing and management C. The relationship between the state and individual liberties within this industrial system (Do you think the CCP should embrace “privatization” to complete its economic revolution?)
Background image of page 2
The Pre-Reform Era Key Features of the Chinese Industrial System Nationalization of Basic Industries About 75% of state revenues came from the earnings of SOEs Heavy Industries-centered Strategy
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Pre-Reform Era
Background image of page 4
Background image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Enterprises under the Planned Economy Function Enterprises as work unit ( danwei ), which was a constituent part of an enormous bureaucracy powered by the CCP at the local level Enterprises bore many burdens, including welfare, health, housing, and political indoctrination. Little flexibility, low rewards, little accountability and risk The Pre-Reform Era Enterprises under the Planned Economy Hard Budget Constraint HBC exists when a company has to cover all of its expenditures in a given period from its own income. Soft Budget Constraint SBC exists when a loss-making company continues to receive financing. Therefore, SBC refers to a situation that a firm can consistently lose money for a prolonged period and continued to receive financing or make a new investment without bearing any risk of failture...
View Full Document

This note was uploaded on 03/10/2011 for the course POLC 3020 taught by Professor Kim during the Fall '10 term at Tulane.

Page1 / 5

Week 5-2 Urban Reform (1) - Enterprises under the Planned...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online