Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Policies

    Useful Chinese lessons for the world's economists

    By David Blair | China Daily | Updated: 2019-09-30 09:51
    Share
    Share - WeChat

    I started economics graduate school at UCLA in the fall of 1977, almost exactly one year before the famous Third Plenum in December 1978 officially kicked off China's reform and opening-up.

    I must admit that neither I nor almost any other Western economists paid much attention to China at the time. No one predicted the 40-plus years of persistent and rapid growth that were to follow.

    To me, long-term rapid growth in the real wages of average people is the most amazing factor. From 1995 to 2015, median wages grew at 11 percent per year - significantly faster than the growth rate of GDP. This means that an increasing portion of the national product went to workers.

    In contrast, average American workers had not seen an increase in real wages since the late 1970s until the slight increases of the past three years.

    The history of Chinese development has shown many things that I, and almost all other economists, believed in the 1980s were just wrong.

    We should be re-writing all the textbooks. Many of these mistaken theories and the policies that followed from them have done serious damage to the US economy. Many of today's problems flow from these mistakes.

    What have we learned from China's 40-plus years of reform and opening-up?

    When I was in graduate school, most economists believed that a laissez-faire financial system would lead to the best allocation of resources. This meant that the banking and investment system should aim to get the highest returns for the owners of capital.

    However, China's financial system was based on government-owned banks. Chinese individuals were led to save large portions of their incomes and the primary place they could put their money was in the banks, which paid low rates of interest. Most economists of 40 years ago would have predicted that this would lead to disaster.

    It turns out that China's model solved the key problem of developing countries - it mobilized the capital needed for development and at the same time ensured that most of this capital went to productive uses.

    Many industrial policies around the world have been abject failures. They created bloated, inefficient, crony-capitalist companies. What distinguishes China along with Japan and South Korea is that they were able to keep enough international or domestic competition in the system to discipline the recipients of capital.

    Perhaps surprisingly, China has focused a lot less on highly directed "picking of winners" but has focused on making capital abundant. In South Korea, especially under president Park Chunghee, the government directly decided which investments would be made. Similarly, Japan's Ministry of International Trade and Industry directed investments.

    The brilliance of China's model is that it combined a banking system that rapidly accumulated capital with highly competitive internal and external markets. That is, Chinese companies could get funding relatively easily, but they had to compete to make profits.

    1 2 Next   >>|
    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    亚洲中文字幕久久精品无码喷水| 日韩av无码久久精品免费| 亚洲爆乳精品无码一区二区三区 | 7国产欧美日韩综合天堂中文久久久久| 无码专区狠狠躁躁天天躁| 中文字幕在线观看日本| 人妻少妇无码视频在线 | 西西午夜无码大胆啪啪国模 | 亚洲国产精品无码专区在线观看 | 人妻中文字幕乱人伦在线| 国产a级理论片无码老男人| 亚洲自偷自偷偷色无码中文| 久久精品中文闷骚内射| 中文在线最新版天堂bt| 国产午夜无码专区喷水| 久久久久久国产精品无码超碰| 日韩人妻无码一区二区三区 | 最近中文字幕在线| 人妻丝袜中文无码av影音先锋专区| a最新无码国产在线视频| 日韩国产精品无码一区二区三区 | 无码人妻精品一区二区三区99仓本 | 精品人妻无码区二区三区| 最近最新中文字幕完整版| 色综合久久中文字幕无码| 久久人妻AV中文字幕| 亚洲人成无码网站久久99热国产| 18禁无遮拦无码国产在线播放| 日韩精品无码一本二本三本| 无码精品人妻一区二区三区免费看| 亚洲精品无码久久久久| 亚洲中文久久精品无码| 亚洲中文字幕无码不卡电影| 在线天堂中文WWW官网| 久久精品aⅴ无码中文字字幕不卡| 中文亚洲欧美日韩无线码| 国色天香中文字幕在线视频| 日本公妇在线观看中文版 | 久热中文字幕无码视频 | 最近2019中文字幕| 中文字幕欧美在线|