Pub Date : 1999-07-01DOI: 10.2753/CES1097-1475320458
H. Ping
Inherent in our current discussion of public order is the notion that in China we are confronting a "lack of order." Strictly speaking, total lack of order (or disorder) is impossible, as it would bring about the complete collapse of any society. Thus, perhaps it is better to couch the current situation this way, namely, that there is a gap, as yet undetermined, between the existing and expected levels of public order in our society. Some forms of social order are considered less opportune, such as "consanguineous ties" (>i>xuetonglun>/i>), a former basis of social order that many would consider inappropriate in a market economy, but, nevertheless, it was a basis for a previous public order. My interest is in delineating some sense of just what kind of public order in China would form a relatively reasonable basis for our emerging market economy and how to establish it.
{"title":"The Construction of the Public Order and Its Limitations","authors":"H. Ping","doi":"10.2753/CES1097-1475320458","DOIUrl":"https://doi.org/10.2753/CES1097-1475320458","url":null,"abstract":"Inherent in our current discussion of public order is the notion that in China we are confronting a \"lack of order.\" Strictly speaking, total lack of order (or disorder) is impossible, as it would bring about the complete collapse of any society. Thus, perhaps it is better to couch the current situation this way, namely, that there is a gap, as yet undetermined, between the existing and expected levels of public order in our society. Some forms of social order are considered less opportune, such as \"consanguineous ties\" (>i>xuetonglun>/i>), a former basis of social order that many would consider inappropriate in a market economy, but, nevertheless, it was a basis for a previous public order. My interest is in delineating some sense of just what kind of public order in China would form a relatively reasonable basis for our emerging market economy and how to establish it.","PeriodicalId":45785,"journal":{"name":"CHINESE ECONOMY","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"1999-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2753/CES1097-1475320458","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"69417391","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-07-01DOI: 10.2753/CES1097-1475320413
Sheng Hong
The dismantling of the central planning system in China and the renaissance of a market economy have dramatically increased the overall reputation of economic liberalism in our country. And, yet, despite these developments on the ground, the theory of economic liberalism with its emphasis on individual economic choice and the central role of the market has been challenged on the issue of the state. To wit, the implication of economic liberalism and its core idea of >i>laissez-faire>/i> is to eliminate government policy-making altogether, thereby creating a kind of "anarchism." This has led some to abuse the concept of economic liberalism while others outright negate it. In practical terms, the former view has led people to ignore the proper functions of government and other institutional arrangements by subjecting each and every problem and social ill to the dictates of the private economy, even where market forces are obviously inappropriate. This has not only decreased the overall efficiency of the market economy, but it has also led many in our society to lose confidence in and cast doubt on the market itself. In the latter case, market haters in China have used this over-extension of the market to criticize and attack the fundamental theoretical construct of economic liberalism, hoping to negate entirely its practical value.
{"title":"Reflections on Economic Liberalism","authors":"Sheng Hong","doi":"10.2753/CES1097-1475320413","DOIUrl":"https://doi.org/10.2753/CES1097-1475320413","url":null,"abstract":"The dismantling of the central planning system in China and the renaissance of a market economy have dramatically increased the overall reputation of economic liberalism in our country. And, yet, despite these developments on the ground, the theory of economic liberalism with its emphasis on individual economic choice and the central role of the market has been challenged on the issue of the state. To wit, the implication of economic liberalism and its core idea of >i>laissez-faire>/i> is to eliminate government policy-making altogether, thereby creating a kind of \"anarchism.\" This has led some to abuse the concept of economic liberalism while others outright negate it. In practical terms, the former view has led people to ignore the proper functions of government and other institutional arrangements by subjecting each and every problem and social ill to the dictates of the private economy, even where market forces are obviously inappropriate. This has not only decreased the overall efficiency of the market economy, but it has also led many in our society to lose confidence in and cast doubt on the market itself. In the latter case, market haters in China have used this over-extension of the market to criticize and attack the fundamental theoretical construct of economic liberalism, hoping to negate entirely its practical value.","PeriodicalId":45785,"journal":{"name":"CHINESE ECONOMY","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"1999-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2753/CES1097-1475320413","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"69416695","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-07-01DOI: 10.2753/CES1097-1475320485
Zhang Yuyan
Economists are known to love to apply their omnipotent tools of economic analysis to just about every phenomena, including natural ones. Whether this basic "flaw" by economists will result in a general social crisis, or simply undermine their own academic credentials, I cannot say. But one thing is certain: the only hope they have of making a contribution to humanity is by the short-cut route offered by this "flaw." Such an effort is apparent in the topic I have chosen for my paper, namely, the economic significance of democracy. To understand my reasons for pursuing this issue, look no further than the recent article by the economist Mancur Olson (University of Maryland) entitled "Dictatorship, Democracy, and Development" (>i>American Political Science Review>/i> 87, no. 3, September 1993, pp. 567-76).
{"title":"The Economic Significance of Democracy","authors":"Zhang Yuyan","doi":"10.2753/CES1097-1475320485","DOIUrl":"https://doi.org/10.2753/CES1097-1475320485","url":null,"abstract":"Economists are known to love to apply their omnipotent tools of economic analysis to just about every phenomena, including natural ones. Whether this basic \"flaw\" by economists will result in a general social crisis, or simply undermine their own academic credentials, I cannot say. But one thing is certain: the only hope they have of making a contribution to humanity is by the short-cut route offered by this \"flaw.\" Such an effort is apparent in the topic I have chosen for my paper, namely, the economic significance of democracy. To understand my reasons for pursuing this issue, look no further than the recent article by the economist Mancur Olson (University of Maryland) entitled \"Dictatorship, Democracy, and Development\" (>i>American Political Science Review>/i> 87, no. 3, September 1993, pp. 567-76).","PeriodicalId":45785,"journal":{"name":"CHINESE ECONOMY","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"1999-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2753/CES1097-1475320485","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"69417507","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-07-01DOI: 10.2753/CES1097-1475320465
Wang Dingding
The contemporary study of economics originally derived from the moral vision of Adam Smith and was reformulated in two stages, first by Alfred Marshall [>i>Principles of Economics>/i>] and, second, by Paul Samuelson [>i>Economics>/i>]. Throughout this process, the fundamental premise of the "rational economic actor" has remained unchanged, despite the fact that currently the concept of rationalism is itself under critical assault in economics.
{"title":"The Three Basic Presuppositions of Economists","authors":"Wang Dingding","doi":"10.2753/CES1097-1475320465","DOIUrl":"https://doi.org/10.2753/CES1097-1475320465","url":null,"abstract":"The contemporary study of economics originally derived from the moral vision of Adam Smith and was reformulated in two stages, first by Alfred Marshall [>i>Principles of Economics>/i>] and, second, by Paul Samuelson [>i>Economics>/i>]. Throughout this process, the fundamental premise of the \"rational economic actor\" has remained unchanged, despite the fact that currently the concept of rationalism is itself under critical assault in economics.","PeriodicalId":45785,"journal":{"name":"CHINESE ECONOMY","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"1999-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2753/CES1097-1475320465","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"69417442","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-05-01DOI: 10.2753/CES1097-1475320356
Xiao Gongqin
As we come to the turn of the century, we find a China that has already stepped onto a new stage of history. The year 1997 is one of epochal significance in the political life of China. The death of Deng Xiaoping, along with the successive passing away of people such as Chen Yun, Wang Zhen, Li Xiannian, Peng Zhen, and so on, in the past few years signifies, at last, the termination of the historical era in which China's political life was fully led and dominated by the generation of the veterans and elders of the Chinese Revolution. The retrocession of Hong Kong indicated that China's leaders are capable today of discoveringâoutside the boundaries of existing ideological thinking and based instead on the common sharing of a nationalist sentiment that had suffered humiliation and suppression for the past hundred yearsâa new resource for maintaining the power of coalescence of the nation as well as for upholding the legitimacy of the sovereignty of the state. Since the Fifteenth National Congress of the Chinese Communist Party, Jiang Zemin's standing in the Party and within the highest levels of policy and decision making in the Party and in the government has been further stabilized and secured, and the "theory of the primary stage of socialism" as affirmed by the Fifteenth Congress provided a more solid ideological-theoretical foundation for the further and broader reform of the economy along the lines of marketization, so that those in control of the government are no longer as restrained as they had been by the dogmatic constraints of traditional ideologies, and thus may be able to move away from their chronic state of hesitation with regard to economic reform; in this way, flexibility on the part of the players in the chess game of economic reform has been further enhanced and greatly enlivened.
{"title":"The Political Attitudes of the Various Strata in China's Society and Their Prospects for the Future","authors":"Xiao Gongqin","doi":"10.2753/CES1097-1475320356","DOIUrl":"https://doi.org/10.2753/CES1097-1475320356","url":null,"abstract":"As we come to the turn of the century, we find a China that has already stepped onto a new stage of history. The year 1997 is one of epochal significance in the political life of China. The death of Deng Xiaoping, along with the successive passing away of people such as Chen Yun, Wang Zhen, Li Xiannian, Peng Zhen, and so on, in the past few years signifies, at last, the termination of the historical era in which China's political life was fully led and dominated by the generation of the veterans and elders of the Chinese Revolution. The retrocession of Hong Kong indicated that China's leaders are capable today of discoveringâoutside the boundaries of existing ideological thinking and based instead on the common sharing of a nationalist sentiment that had suffered humiliation and suppression for the past hundred yearsâa new resource for maintaining the power of coalescence of the nation as well as for upholding the legitimacy of the sovereignty of the state. Since the Fifteenth National Congress of the Chinese Communist Party, Jiang Zemin's standing in the Party and within the highest levels of policy and decision making in the Party and in the government has been further stabilized and secured, and the \"theory of the primary stage of socialism\" as affirmed by the Fifteenth Congress provided a more solid ideological-theoretical foundation for the further and broader reform of the economy along the lines of marketization, so that those in control of the government are no longer as restrained as they had been by the dogmatic constraints of traditional ideologies, and thus may be able to move away from their chronic state of hesitation with regard to economic reform; in this way, flexibility on the part of the players in the chess game of economic reform has been further enhanced and greatly enlivened.","PeriodicalId":45785,"journal":{"name":"CHINESE ECONOMY","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"1999-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2753/CES1097-1475320356","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"69417135","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-05-01DOI: 10.2753/CES1097-1475320379
S. Zhong
In recent days more and more articles discussing the reform of the political system have appeared in the nation's newspapers and popular magazines. Nevertheless, even though people may be discussing the same subject, with regard to what they really hope for they may be very strikingly at odds with one another. People's understanding of a society's politics and economy is often confined to the impressions they receive from recent history, and yet, under certain peculiar circumstances, recent history may not be a normal state of things. Precisely because recent history may be so far removed from a normal state of affairs, its impact on people is often particularly great, so much so that, as a result of concentrating on the impressions of recent history, people may not even be able to discern what is the normal state of things, or what ought to be "common knowledge." I believe that many Chinese scholars have a rather confused understanding of the concepts of a democratic system, of capitalism, of a formerly socialist state's political system, of egalitarianism, and so on. To gain a clearer understanding of all these concepts will, in my opinion, be beneficial to us, whether in terms of understanding our present, or opening our eyes to the possibilities of the future.
{"title":"The Mutual Restraint Between the Political Structure and the Economic Structure","authors":"S. Zhong","doi":"10.2753/CES1097-1475320379","DOIUrl":"https://doi.org/10.2753/CES1097-1475320379","url":null,"abstract":"In recent days more and more articles discussing the reform of the political system have appeared in the nation's newspapers and popular magazines. Nevertheless, even though people may be discussing the same subject, with regard to what they really hope for they may be very strikingly at odds with one another. People's understanding of a society's politics and economy is often confined to the impressions they receive from recent history, and yet, under certain peculiar circumstances, recent history may not be a normal state of things. Precisely because recent history may be so far removed from a normal state of affairs, its impact on people is often particularly great, so much so that, as a result of concentrating on the impressions of recent history, people may not even be able to discern what is the normal state of things, or what ought to be \"common knowledge.\" I believe that many Chinese scholars have a rather confused understanding of the concepts of a democratic system, of capitalism, of a formerly socialist state's political system, of egalitarianism, and so on. To gain a clearer understanding of all these concepts will, in my opinion, be beneficial to us, whether in terms of understanding our present, or opening our eyes to the possibilities of the future.","PeriodicalId":45785,"journal":{"name":"CHINESE ECONOMY","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"1999-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2753/CES1097-1475320379","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"69417145","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-03-01DOI: 10.2753/CES1097-1475320222
X. Mao
China's reform and opening up begins to enter its eighteenth year. Accompanying tremendous achievements in economic construction in these eighteen years, there have also been unprecedentedly complicated contradictions in society's economic life. Reform had its incubation in controversy, and although the principle of "not debating" (>i>bu zhenglun>/i>) has worked to camouflage a large part of the controversies, certain doubts and worries have nevertheless still managed to become reflected through tortuous and winding ways. Such things as the farfetched explanation that "even if we open our windows we can be sure that flies will not come in," the mood on the part of people who curse even as things are going well for them, the defense of the theory that we are climbing up the moral incline (>i>daode papo>/i>), the joke that has been made of "one hand firm and the other hand soft," the popularity of the "cat theory" of socialism, the "theory" of "[crossing the river] by groping one's way," and the notion that [socialism] "cannot be clarified," the fact that the "three conducives" have become a shield for certain cadres as they sidle up to business tycoons and go about divvying up state-owned property, and the existence of a batch of high-ranking cadresâtypified by [former Beijing Chinese Communist Party Secretary] Chen Xitongâwho are, "at any moment, prepared for" a "Great Escape" in case "anything goes wrong,"âall these things in reality reflect, in one way or another, the anxiety and worries that people have in their minds in regard to the socialist orientation of reform. All of the reforms in Eastern Europe and the Soviet Union went under the banner of socialism, but in reality all went in the direction of capitalism. China, too, in its reform, took lessons from the successful experiences of Yugoslavia and Hungary, and we, too, once sang the praises of Gorbachev. Let us not forget that, during the period of turmoil in 1989, Gorbachev just happened to be visiting China, and at the time, Zhao Ziyang, we are told, unburdened himself to Gorbachev, and one must assume that there was much sympathy between the two. As for whether Zhao shared his experience and lessons with Gorbachev in such a way as to have enabled the Soviet Union to complete its evolution smoothly, we will never be able to tell. Today, while it may be true that the evolution of the Soviet Union and Eastern Europe has already become history, does that imply that China itself has been able to successfully stem the tide of peaceful evolution, and can rest permanently on these laurels, without fear or anxiety?
{"title":"Reform and Economic Man","authors":"X. Mao","doi":"10.2753/CES1097-1475320222","DOIUrl":"https://doi.org/10.2753/CES1097-1475320222","url":null,"abstract":"China's reform and opening up begins to enter its eighteenth year. Accompanying tremendous achievements in economic construction in these eighteen years, there have also been unprecedentedly complicated contradictions in society's economic life. Reform had its incubation in controversy, and although the principle of \"not debating\" (>i>bu zhenglun>/i>) has worked to camouflage a large part of the controversies, certain doubts and worries have nevertheless still managed to become reflected through tortuous and winding ways. Such things as the farfetched explanation that \"even if we open our windows we can be sure that flies will not come in,\" the mood on the part of people who curse even as things are going well for them, the defense of the theory that we are climbing up the moral incline (>i>daode papo>/i>), the joke that has been made of \"one hand firm and the other hand soft,\" the popularity of the \"cat theory\" of socialism, the \"theory\" of \"[crossing the river] by groping one's way,\" and the notion that [socialism] \"cannot be clarified,\" the fact that the \"three conducives\" have become a shield for certain cadres as they sidle up to business tycoons and go about divvying up state-owned property, and the existence of a batch of high-ranking cadresâtypified by [former Beijing Chinese Communist Party Secretary] Chen Xitongâwho are, \"at any moment, prepared for\" a \"Great Escape\" in case \"anything goes wrong,\"âall these things in reality reflect, in one way or another, the anxiety and worries that people have in their minds in regard to the socialist orientation of reform. All of the reforms in Eastern Europe and the Soviet Union went under the banner of socialism, but in reality all went in the direction of capitalism. China, too, in its reform, took lessons from the successful experiences of Yugoslavia and Hungary, and we, too, once sang the praises of Gorbachev. Let us not forget that, during the period of turmoil in 1989, Gorbachev just happened to be visiting China, and at the time, Zhao Ziyang, we are told, unburdened himself to Gorbachev, and one must assume that there was much sympathy between the two. As for whether Zhao shared his experience and lessons with Gorbachev in such a way as to have enabled the Soviet Union to complete its evolution smoothly, we will never be able to tell. Today, while it may be true that the evolution of the Soviet Union and Eastern Europe has already become history, does that imply that China itself has been able to successfully stem the tide of peaceful evolution, and can rest permanently on these laurels, without fear or anxiety?","PeriodicalId":45785,"journal":{"name":"CHINESE ECONOMY","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"1999-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2753/CES1097-1475320222","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"69417092","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-03-01DOI: 10.2753/CES1097-1475320261
Li Youwei
In my most recent stint at the Central Party School, I conscientiously studied Marxist theory on the ownership system, and I also reflected on these theories on the basis of the practical experience of reform and opening up in Shenzhen. I have gained some new understanding, and I would like to write these ideas down and to present them to my teachers and comrades to ask for their instruction.
{"title":"Reflections on Certain Problems Regarding the Ownership System","authors":"Li Youwei","doi":"10.2753/CES1097-1475320261","DOIUrl":"https://doi.org/10.2753/CES1097-1475320261","url":null,"abstract":"In my most recent stint at the Central Party School, I conscientiously studied Marxist theory on the ownership system, and I also reflected on these theories on the basis of the practical experience of reform and opening up in Shenzhen. I have gained some new understanding, and I would like to write these ideas down and to present them to my teachers and comrades to ask for their instruction.","PeriodicalId":45785,"journal":{"name":"CHINESE ECONOMY","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"1999-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2753/CES1097-1475320261","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"69417129","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-01-01DOI: 10.2753/CES1097-1475320163
Yang Fan
The Thai financial crisis was touched off by the fact that Thailand became intoxicated with its achievements in economic growth, that it hoped to replace Hong Kong as an international center of finance, and opened up its capital market too quickly, with the result that international speculative capital entered in a big way and continuously impacted the fixed exchange rate system, forcing Thailand and other Southeast Asian currencies to devaluate by 30 percent. The same thing happened in Mexico a few years ago; its unfavorable trade balance was more than 10 percent of its GNP, its foreign debt was 50 percent higher than its gross domestic investment, and the proportion of speculative capital in its foreign funds reached 70 percent, thus providing the conditions for the outbreak of its financial crisis. In this sense, the fact that international speculative capital can hardly impact China is related to China's slow opening up to the outside, and especially to the fact that the capital market has not been opened up in an overall manner to foreign capital and that the renminbi has not been made entirely freely convertible. Moreover, 80 percent of the foreign funds brought into China consists of direct investment, the central monetary authorities control the appreciation of the renminbi, and a favorable trade balance has been maintained over the years. The reform of the foreign trade system and the contributions made by township enterprises to exports, the lowering of wage standards by the influx of peasant labor into the cities, and the reconfiguration and reorganization of state-owned enterprises have enabled China's products to maintain their international competitiveness. Foreign capital has not yet entered China's finance and insurance services to a significant extent. All these voluntary measures and objective circumstances with regard to opening up to the outsideâor, one could say, the fact that China's opening up to the outside has not yet been fully implementedâhave saved us from the full impact of the international financial crisis.
{"title":"How Is China to Avoid Financial Crisis","authors":"Yang Fan","doi":"10.2753/CES1097-1475320163","DOIUrl":"https://doi.org/10.2753/CES1097-1475320163","url":null,"abstract":"The Thai financial crisis was touched off by the fact that Thailand became intoxicated with its achievements in economic growth, that it hoped to replace Hong Kong as an international center of finance, and opened up its capital market too quickly, with the result that international speculative capital entered in a big way and continuously impacted the fixed exchange rate system, forcing Thailand and other Southeast Asian currencies to devaluate by 30 percent. The same thing happened in Mexico a few years ago; its unfavorable trade balance was more than 10 percent of its GNP, its foreign debt was 50 percent higher than its gross domestic investment, and the proportion of speculative capital in its foreign funds reached 70 percent, thus providing the conditions for the outbreak of its financial crisis. In this sense, the fact that international speculative capital can hardly impact China is related to China's slow opening up to the outside, and especially to the fact that the capital market has not been opened up in an overall manner to foreign capital and that the renminbi has not been made entirely freely convertible. Moreover, 80 percent of the foreign funds brought into China consists of direct investment, the central monetary authorities control the appreciation of the renminbi, and a favorable trade balance has been maintained over the years. The reform of the foreign trade system and the contributions made by township enterprises to exports, the lowering of wage standards by the influx of peasant labor into the cities, and the reconfiguration and reorganization of state-owned enterprises have enabled China's products to maintain their international competitiveness. Foreign capital has not yet entered China's finance and insurance services to a significant extent. All these voluntary measures and objective circumstances with regard to opening up to the outsideâor, one could say, the fact that China's opening up to the outside has not yet been fully implementedâhave saved us from the full impact of the international financial crisis.","PeriodicalId":45785,"journal":{"name":"CHINESE ECONOMY","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"1999-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2753/CES1097-1475320163","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"69417036","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1999-01-01DOI: 10.2753/CES1097-147532015
Chen Bingcai
While many explanations have been given for the Southeast Asian monetary crisis, none are adequate, and politicians and academic circles hold differing views. In my opinion, the Southeast Asian monetary crisis may be attributed to two basic causes. The first is speculation. There would have been no crisis if not for speculation. The second is excessive belief in the benefits of deregulation. Therefore, short-term capital frequently found its way into Thailand, and all capital of this nature seeks quick returns. The booming development of the Thai economy to a very large extent acquired impetus from investments of short-term capital. Such economic growth is unstable, and also does not constitute substantial economic growth.
{"title":"What China Has Seen from the Southeast Asian Monetary Crisis","authors":"Chen Bingcai","doi":"10.2753/CES1097-147532015","DOIUrl":"https://doi.org/10.2753/CES1097-147532015","url":null,"abstract":"While many explanations have been given for the Southeast Asian monetary crisis, none are adequate, and politicians and academic circles hold differing views. In my opinion, the Southeast Asian monetary crisis may be attributed to two basic causes. The first is speculation. There would have been no crisis if not for speculation. The second is excessive belief in the benefits of deregulation. Therefore, short-term capital frequently found its way into Thailand, and all capital of this nature seeks quick returns. The booming development of the Thai economy to a very large extent acquired impetus from investments of short-term capital. Such economic growth is unstable, and also does not constitute substantial economic growth.","PeriodicalId":45785,"journal":{"name":"CHINESE ECONOMY","volume":null,"pages":null},"PeriodicalIF":2.0,"publicationDate":"1999-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.2753/CES1097-147532015","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"69417023","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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