The Transformation of the Communist Economies Against the Mainstream

The mainstream view of the way in which best to transform the communist economies was that there should be a rapid transition to a free market economy and political democracy. The articles in this book challenge this view. They do so from the standpoint o

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Also by Ha-Joon Chang

THE POLITICAL ECONOMY OF INDUSTRIAL POLICY Also by Peter Nolan

CHINA'S ECONOMIC REFORMS IN THE 1980s: The Costs and Benefits ofIncrementalism (editor with Fan Qimiao) GROWTH PROCESSES AND DISTRIBUTIONAL CHANGE IN A SOUTH CHINESE PROVINCE: The Case of Guangdong INEQUALITY: India and China Compared, 1950-1970 MARKET FORCES IN CHINA: Competition and Small Business the Wenzhou Debate (editor with Dong Fureng) STATEAND MARKET IN THE CHINESE ECONOMY: Essays on Controversial Issues THE CHINESE ECONOMY AND ITS FUTURE (editor with Dong Fureng) THE POLITICAL ECONOMY OF COLLECTIVE FARMS: An Analysis of China's Post-Mao Rural Economic Reforms

The Transformation of the Communist Economies Against the Mainstream Edited by

Ha-Joon Chang Assistant Director ofDevelopment Studies University of Cambridge

and

Peter Nolan Director of Studies in Economics Jesus College. Cambridge

M

St. Martin's Press

© Ha-JoonChang and Peter Nolan 1995 Softcover reprint of the hardcover 1st edition 1995 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London WIP 9HE. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published in Great Britain 1995 by MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world A catalogue record for this book is available from the British Library. ISBN 978-1-349-23918-4 DOI 10.1007/978-1-349-23916-

10 9 8 7 6 5 04 03 02 01 00 99

ISBN 978-1-349-23916-0 (eBook) -

432 98 97 96

I 95

First published in the United States of America 1995 by Scholarly and Reference Division, ST. MARTIN'S PRESS, INC., 175 Fifth Avenue, New York, N.Y. 10010 ISBN 978-0-312-12323-9

Library of Congress Cataloging-in-Publication Data The transformation of the communist economies: against themainstream / edited by Ha-Joon Chang and Peter Nolan. p. ern, Papers presented at a conference held at Sidney Sussex College, Cambridge, in July 1992. Includes bibliographical references and index. ISBN 978-0-312-12323-9 1. Communist countries-Economic conditions--Congresses. 2. Europe, Eastern-Economic policy-1989-Congresses. 3. Former Soviet republics-Economic policy-Congresses. 4. China-Economic policy-l 976-Congresses. 5. Privatization-Europe, Eastern-Congresses. 6. Privatization-Fonner Soviet republics-Congresses. 7. Economic stabilization-Europe, Eastern-Congresses. 8. Economic stabilization-Former Soviet republics-Congresses. 9. Economic stabilization-China-Congresses. I. Chang, Ha-Joon. II. Nolan, Peter. HC704.TI23 1995 338.947-dc20 94-60590 CIP

.C ontents Preface

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Notes on