Odd Lots Isabella Weber on China’s Vision for Making Markets Work
Sep 30, 2021
In this engaging discussion, Isabella Weber, an assistant professor of economics at UMass Amherst and author of "How China Escaped Shock Therapy," dives into China's intricate approach to market reforms. She examines the recent crackdowns in sectors like tech and real estate, questioning their impact on capitalism under central planning. The conversation also sheds light on how China balances state control with market forces, alongside the challenges of financial repression and class dynamics, highlighting strategies to overcome economic obstacles.
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China's Reform Path
- China's approach to marketization wasn't predetermined.
- The idea of shock therapy, where the state withdraws to create markets, was considered.
Socialism and Market Reforms
- China's 1980s reforms aimed to build a material base for future socialism by learning from capitalism.
- This reoriented their understanding of communism to prioritize economic development.
Two Views of China's Market
- Two views exist on China's market economy: one sees it converging with Western models, the other as a tool for its own transformation.
- The latter view, where marketization isn't the end goal, shaped China's early reforms.
