Al di là del Fiume: La Crescita Economica Cinese e il Settore Privato

By any standard, China's economic performance over the last three decades has been impressive. The rise of private sector has played the key role in wealth creation and has changed China's economic structure dramatically, becoming the major source of economic growth and almost the sole source of new job creation. The emergence and robust growth of a private economy in China was, however, neither envisioned nor wished by Chinese leadership. The motivation for launching economic reforms was to address failures of centrally planned economy within the superstructure of socialist institutions. In the early years of reform, the policy environment for private non-agricultural business was basically hostile, and it changed very gradually, indulging to a successful and profitable private sector. Although the evidence highlights the much better performance of private enterprises relative to that of state-owned enterprises, the previous administration implemented some policies in order to reinforce the market power and the profitability of some national champions charged to bring technological innovation. Yet, the evidences show that these policies have not enjoyed the success promised and that resources have been misallocated in favour of companies which seem to be pampered kids rather than national champions. Empirically demonstrating the continuous growth of the private sector at the costs of the state sector, this study rejects the widespread theory of ¿The State Advances, The Private Retreats¿. Moreover, analysing the policies of the previous administration, this study offers an alternative view for the analysis of the political-economic behaviour of China's second-to-last leadership. In contrast with the common idea of an intentional return to a state economy, this study finds in the influence of vested interests the cause of the stagnation of market oriented reform. China can no longer depend on the gradualist way of reforms that has characterized Deng Xiaoping's ¿Crossing the River by Feeling each Stone¿ approach and needs comprehensive reforms to move beyond the river. The strong emphasis on responsibility for the implementation of renewed market oriented reforms of the current leadership can be seen through this lens. At the same time with this renewing reform commitment, important changes in policy-making have been launched, along with a merciless anti-corruption campaign in order to clean up the scene from potential roadblocks. How could China's miraculous transition from a socialist economy to a market economy happen? How could the Chinese Communist Party allow it? Will China finally succeed in Crossing the River?