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Political Economy and the Reform of Stalinism: The Chinese Puzzle

In: The Transformation of the Communist Economies

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  • Peter Nolan

Abstract

China’s approach towards post-Stalinist reform contrasts markedly with that of most other former centrally planned economies (CPEs). Eastern Europe and Russia tried to move rapidly towards a market economy (‘one cut of the knife’), whereas after Mao’s death in 1976 China adopted an incremental reform path (‘touching stones to cross the river’). Many observers considered China’s programme to be poorly designed. It seemed to have led to an unsatisfactory ‘half-way house’ which was neither capitalism nor socialism, an institutional framework which perpetuated bureaucratic interference in the economy and ought, therefore, to have produced poor results. Moreover, China experienced the terrible upheaval of the Tiananmen massacre in 1989. The demonstrations which led to that event were connected closely with the tensions of economic reform. It was widely felt that this signalled the end of reform, and that China would lapse into low-growth authoritarianism.

Suggested Citation

  • Peter Nolan, 1995. "Political Economy and the Reform of Stalinism: The Chinese Puzzle," Palgrave Macmillan Books, in: Ha-Joon Chang & Peter Nolan (ed.), The Transformation of the Communist Economies, chapter 14, pages 400-417, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-23916-0_14
    DOI: 10.1007/978-1-349-23916-0_14
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    Cited by:

    1. Yifu, Justin & Wang, Yan, 2009. "China's Integration with the World: Development as a Process of Learning and Industrial Upgrading," Policy Research Working Paper Series 4799, The World Bank.

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