Economic Reform in China, India, and Japan

Economic Reform in China, India, and Japan

Economic Reform in China, India, and Japan Sara Hsu Initial Conditions

Began their growth processes intentionally, through guided and targeted economic policies Began with different initial conditions Different histories of economic repression Began at different times Different global political economies Selective liberalization Initial Conditions

Different geographies Different levels of human capital and population Different levels of initial success in reform-China and India began industrialization sooner but failed Japan through WWI

Began its growth trajectory during the Meiji era, 1868-1885 Eliminated feudal institutions Uniformity of money Machinery Agriculture Heavy industry Japan after WWI

Post World War One Zaibatsu Post World War Two Devastation and occupation Increase in exports Advanced economy

China before Nineties Led by ideology under Deng Xiaoping Deng Xiaoping Theory Dual Track System Household Responsibility System

State Owned Enterprise Incentivization Price reform Special Economic Zones China after Nineties Reform with Losers Privatization Elimination of Dual Track economy

Joining WTO India before 1991 Attempted to reform after Independence Focus on agriculture Eighties deregulation

License Raj Crisis in 1991 India after 1991 Reforms accelerated after 1991 New Industrial Policy Reduction in licenses Reform of banking industry

Special Economic Zones The Political Economy of Reform Japan: reform occurred after the Tokugawa Shogun was defeated and Emperors power restored; China: reform occurred after Mao died and Deng Xiaoping took powerhis policies were supported;

India: crisis speeded up the reform process. Effects of Reform Prize for best reform process goes to? Role of growth in reform Social services Bottom Line

China, India and Japan began reforms under different initial conditions; Had different approaches to reform; Faced different political economies of reform.

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