Through Chinese experience, the purpose of this paper is to underpin the hypothesis of institutional change as cultural change.
Abstract
Purpose
Through Chinese experience, the purpose of this paper is to underpin the hypothesis of institutional change as cultural change.
Design/methodology/approach
The paper compares Chinese postsocialist transformation to a chemical change reaction. So, the paper discerns initial conditions, factors which triggered the reaction, catalysts, and elements of synthesis. Chinese institutional change per se derived from a cultural shock induced by the economic, political, and cultural opening which acted as trigger. Then, it deals with the other elements of the process.
Findings
The paper reveals that Chinese postsocialist transformation is based on change in values and mentalities particularly in the Chinese Communist Party. In this perspective, institutional change is not only an economic or a political process but also it is fundamentally cultural.
Originality/value
This paper shows the process of postsocialist transformation in a different light. Whereas, economists often only focus on political considerations or conflicts of interests, it insists on the cultural dimension of the process.
Details
Keywords
Sébastien Charles and Ilyess El Karouni
This paper attempts to show that Chinese post‐socialist transformation has involved a deep change in growth regime.
Abstract
Purpose
This paper attempts to show that Chinese post‐socialist transformation has involved a deep change in growth regime.
Design/methodology/approach
The authors begin by detailing the institutional background of the study: the Chinese post‐socialist transformation. They compare growth regimes both in Maoist and post Maoist eras. Therefore, by using official data, the paper deals with the difficulties and challenges of the current growth regime.
Findings
The new growth regime could be particularly difficult to manage regarding China's dependence on external demand in a context of low domestic demand. In particular, the main difficulty to which this growth regime could be confronted with concerns the occurrence of an external contraction in the US. The authors then try to assess why such an event may appear by providing a list of external risks to emphasize the economic vulnerability of China.
Practical implications
This paper is essentially intended for Chinese policy‐makers who wish to adopt a more balanced growth strategy in the long‐run.
Originality/value
The paper develops an alternative view on the macroeconomic situation of China. In particular, it insists on its vulnerability through external demand.