Modernizing China's Growth Paradigm

Eswar Prasad and Raghuram Rajan

No 2006/003, IMF Policy Discussion Papers from International Monetary Fund

Abstract: China has achieved tremendous economic progress in the last three decades, but there is much work to be done to make the economy resilient to large shocks, ensure the sustainability of its growth, and translate this growth into corresponding improvements in the economic welfare of its citizens. We discuss the complex challenges that Chinese policymakers face in striking the right balance in terms of speed and coordination of reforms. We argue that China's current stage of development, along with its rising market orientation and increasing integration with the world economy, may make the incremental and piecemeal approaches to reforms increasingly untenable and, in some cases, could even generate risks of their own. The present favorable domestic and external circumstances provide an excellent window of opportunity for bolder reforms and for tackling some deep-rooted problems without causing much economic disruption.

Keywords: PDP; exchange rate; reform; economy; banking system; state enterprise; Policy reforms; market-oriented economy; trade and financial integration; policy complementarities; reform strategy; banking system's reform effort; state-owned enterprise reform; reform process; reform agenda; a number of reform; market economy; reform of the state enterprises; transition economy; export-led growth; policy reform; Exchange rate flexibility; Commercial banks; Capital account liberalization; Capital controls; Financial sector reform; Global; Eastern Europe (search for similar items in EconPapers)
Pages: 16
Date: 2006-03-01
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=18848 (application/pdf)

Related works:
Journal Article: Modernizing China's Growth Paradigm (2006)
Working Paper: Modernizing China's Growth Paradigm (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfpdp:2006/003

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Policy Discussion Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().