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> The most recent example is China turning to free markets, and the resulting vast improvement in their economy. China hasn't turned to anything like textbook

> The most recent example is China turning to free markets, and the resulting vast improvement in their economy. China hasn't turned to anything like textbook Anglosphere free markets. Yeah they loosened up and turned away from classical central planning, but state-owned firms still control 30% of assets and their government does quite a to set economic policy and direction. They didn't privatize everything and let the free market run amok. [1] http://blogs.worldbank.org/eastasiapacific/state-owned-enterprises-in-china-how-big-are-they http://blogs.worldbank.org/eastasiapacific/state-owned-enter...: With all these evidences in hand, we can now answer the question raised before: How big are Chinese SOEs? Even though their share in the economy continued to decline in the past decade, SOEs still make up a substantial part of the national economy – roughly controlling 30 percent of the total secondary and tertiary assets, or over 50 percent of total industrial assets.

WalterBright 7y ago
70% market oriented is a far cry from 0%. Fortunately, a free market doesn't have to be 100% in order to be effective.
barry-cotter 7y ago
The SOEs are not behind China’s economic growth. The export sector is. https://scholars-stage.blogspot.com/2014/08/passages-i-highlighted-in-my-copy-of.html?m=1 https://scholars-stage.blogspot.com/2014/08/passages-i-highl... > Westerners often describe China's explosive economic growth as a product of its export sector. This sector, however, is not "in the system": “The private export oriented sector suffered massive losses in jobs, earnings, and the closure of small companies in 2008 and 2009. But China’s banks were not exposed in any material way to this sector. It is simple fact that China’s financial system and its stock, bond, and loan markets cater only to the state sector, of which the “National Champions” represent the reddest of the Red. These corporations, the heart of China’s state owned economy, are “inside the system.” The private economy, no matter how vibrant is “outside the system,” and in fact serves the will of the system.” (p. x)

WalterBright 7y ago

70% market oriented is a far cry from 0%. Fortunately, a free market doesn't have to be 100% in order to be effective.

barry-cotter 7y ago

The SOEs are not behind China’s economic growth. The export sector is. https://scholars-stage.blogspot.com/2014/08/passages-i-highlighted-in-my-copy-of.html?m=1 https://scholars-stage.blogspot.com/2014/08/passages-i-highl... > Westerners often describe China's explosive economic growth as a product of its export sector. This sector, however, is not "in the system": “The private export oriented sector suffered massive losses in jobs, earnings, and the closure of small companies in 2008 and 2009. But China’s banks were not exposed in any material way to this sector. It is simple fact that China’s financial system and its stock, bond, and loan markets cater only to the state sector, of which the “National Champions” represent the reddest of the Red. These corporations, the heart of China’s state owned economy, are “inside the system.” The private economy, no matter how vibrant is “outside the system,” and in fact serves the will of the system.” (p. x)