1. 40
C H A P T E R
WEB
Transition Economies:
RUSSIA & CHINA

2. Labor theory of value Surplus Value Marxian Ideology State Ownership
IDEOLOGY & INSTITUTIONS
Marxian Ideology
Labor theory of value
Surplus Value
State Ownership
Central Economic Planning

3. PLANNING GOALS & TECHNIQUES
Industrialization
(Rural Development in China)
Overcommitment of Resources
Mobilization of Resources
Allocation by Directives
Government Price Setting
Self-Sufficiency
Passive Macroeconomic Policies

4. PLANNING GOALS & TECHNIQUES
Problems with Central Planning
The Coordination Problem
The Incentive Problem

5. Declining Growth Poor Product Quality Few Consumer Goods
COLLAPSE OF THE
SOVIET ECONOMY
Declining Growth
Poor Product Quality
Few Consumer Goods
Large Military Burden
Agricultural Drag

6. RUSSIAN TRANSITION TO A MARKET SYSTEM
Privatization
Price Reform
Promotion of Competition
Making Ruble Fully Convertible
Price-Level Stabilization
Other Major Problems
Recent Revival

7. CENTRALLY PLANNED PRICE EFFECTS
FIXED LOW PRICE
CEILING BY GOVERNMENT
LEADS TO…
Price per unit Pf D
SHORTAGE
Quantity demanded and supplied

8. CENTRALLY PLANNED PRICE EFFECTS
Without
privatization
prices rise to Pa Pa
Price per unit Pf D
SHORTAGE
Quantity demanded and supplied

9. CENTRALLY PLANNED PRICE EFFECTS
With
privatization
prices rise to Pe Pa
Price per unit Pe Pf D
SHORTAGE
Quantity demanded and supplied

10. MARKET REFORMS IN CHINA
Agricultural & Rural Reform
Township & Village Enterprises
Reform of Urban Industries
State Owned Enterprises (SOE)
Urban Collectives
Special Economic Zones (SEZs)
Development of Supporting Institutions
Transformation of the SOEs

11. OUTCOMES & PROSPECTS
Positive Outcomes of Reform Problems
Incomplete Property Rights
Macroeconomic Difficulties
Integration into the Global Economy
Geographically Uneven Development

12. KEY TERMS labor theory of value surplus value state ownership
central economic planning
coordination problem
incentive problem
township & village enterprises
state-owned enterprises (SOEs)
urban collectives
special economic zones (SEZs)
Copyright McGraw-Hill/Irwin, 2005
BACK
END