China's development strategy: A game of chess that countered orthodox development advice

Implications of China's Open-Door Policy for Families

“…The average 2003 income for a rural family was 3,582.42 yuan (US$28,659.36) and 9,061.22 yuan (US$72,489.76) for an urban family (Angang et al, 2005), although some estimates of family income are lower (see Shane & Gale, 2004). Data suggest rural families make a substantial amount less than urban families, and the difference between the two groups is growing larger (Angang et al, 2005;Angresano, 2005;Fan, Fang, & Zhang, 2001).…”

“…In addition, nonagricultural-based industries began forming in rural areas as individuals and corporations built stores and factories to take advantage of the available labor force. The number of people employed in these enterprises rose from 28.27 million in 1978 to 130.86 million in 2001, accounting for 26.7% of the total rural workforce and an increase from the original ratio of 9.2% (Angang et al, 2003(Angang et al, , 2005Angresano, 2005).…”

“…Families living in the urban sectors of China have traditionally been less affected by poverty, because urban residents generally received the majority of government subsidies and assistance (Angresano, 2005). Employment opportunities were oftentimes given to urban residents, families could purchase food and other necessities at subsidized prices, and housing and health care were either free or provided at a reduced cost (Angresano, 2005;Liang, 2006). Given these advantages, the poverty level for urban families has always been much lower than those of rural families (Angresano, 2005).…”

“…Employment opportunities were oftentimes given to urban residents, families could purchase food and other necessities at subsidized prices, and housing and health care were either free or provided at a reduced cost (Angresano, 2005;Liang, 2006). Given these advantages, the poverty level for urban families has always been much lower than those of rural families (Angresano, 2005). A few studies have looked at how poverty has affected urban households in China (Fan, Zhang, & Zhang, 2004;Y.…”

Institutional Constraints and Multiple Equilibria in Decentralization

“…Other issues of interest are: inter-regional disparity (convergence issue) as a result of decentralization; seeSerra et al (2006) for the case of Latin America, andZhang (2006) for the case of China; for local fiscal discipline following decentralization, see DeMello (2000).5 To the extent that regional growth is often in tandem with national growth,Noland (1995) andAngresano (2005) pointed out that China's post 1978 performance was more successful than Russia's post-1990 performance because China developed a new, pragmatic development strategy, while Russia's strategy continued to retain elements of the orthodox economic tenets that the International Monetary Fund and World Bank (OIWB) have advocated Fogel (2006). also referred to the fact that China's progress in addressing fundamental constraints that might limit rapid economic growth and the promotion of increasing local autonomy in economic matters augur well for the success of its economic goals.6 Poorer regions also generally experience greater volatility of growth.…”