China's Last Steps Across The River: Enterprise And Banking Reforms

Huang (Salomon Smith Barney and Citibank) analyzes the changes in the state-owned enterprise (SOE) and state-operated commercial bank (SOCB) structures in China and makes policy recommendations for encouraging further reform towards a market economy. He argues that the SOEs' productivity growth has not been significant in the reform period and that rising real wages has resulted in a loss of profitability. The major factor for productivity growth is said to be exposure to market competition. In the SOCBs, Huang argues that both excessive intervention and lack of discipline exist and are mutually reinforcing. Here, he also recommends exposure to market competition. Distributed by ISBS. Annotation c. Book News, Inc., Portland, OR (booknews.com)