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Gradualism versus Big Bang: Speed and Sustainability of Reforms

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Author Info
Shang-Jin Wei

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Abstract

A beneficial reform may be blocked by a majority if it is implemented by a big bang but the same reform may succeed with an optimally designed gradualist approach. A gradualist approach can sometimes split opposition force and is, in this sense, more politically sustainable. On the other hand, if both approaches are politically preferred to no reform, a big bang is often preferred to gradualism in terms of both political support as well as economic efficiency.

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File URL: http://links.jstor.org/sici?sici=0008-4085%28199711%2930%3A4b%3C1234%3AGVBBSA%3E2.0.CO%3B2-W
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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 30 (1997)
Issue (Month): 4 (November)
Pages: 1234-47
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Handle: RePEc:cje:issued:v:30:y:1997:i:4:p:1234-47

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  4. Justin Yifu Lin & Fang Cai & Zhou Li, 1994. "China's economic reforms : pointers for other economies in transition?," Policy Research Working Paper Series 1310, The World Bank. [Downloadable!]
  5. Joshua Aizenman & Sang-Seung Yi, 1997. "Controlled Openness and Foreign Direct Investment," NBER Working Papers 6123, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Cesar Martinelli, 2001. "Essays on Political Economy of Political Reform," Levine's Working Paper Archive 625018000000000135, David K. Levine. [Downloadable!]
  7. Qian, Yingyi, 2002. "How Reform Worked in China," CEPR Discussion Papers 3447, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  8. Cesar Martinelli & Mariano Tommasi, 1993. "Sequencing of Economic Reforms in the Presence of Political Constraints," UCLA Economics Working Papers 701, UCLA Department of Economics. [Downloadable!]
  9. Yingyi Qian, 1999. "The Institutional Foundations of China's Market Transition," Working Papers 99011, Stanford University, Department of Economics. [Downloadable!]
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