Problems Of Economic Transition And Transition Costs

Twenty-five years has passed ever since the Chinese Economic Reformation (CER) beginning. This reformation of our experiencing aims to establish the market economy system. We can judge from the angles of both economy and politics that the CER has been the important attacking stage.We mention the stage of the reformation just because of its gradual improving characteristic. The process of Chinese Economic Transformation is gradual and governed by the government. Proved by practice, the planned economy doesn't fit for the need of Chinese economy developing. China should establish the modern market economy system so as to increase the efficiency of the installed resource. The process of the Chinese Economic Transformation is also the change of Chinese economy system. Under the circumstance that the target mode has been established, China needs to probe a new path of stability and low cost on how to make the Chinese Economic Transformation successful.Seen from the practice, economic transformation in the globe can be primarily divided into two kinds of mode: One is the sudden change type of economic transformation that Russia was the representative, the other is the gradual mode, which China is representing. They both face the different problems. The Chinese gradual mode has passed by the early period and already been the deep-water area. Touching the rocks across the river will bring more and more severe risk of failure to the Chinese economy. The CER needs a kind of reasonable guide to lead.Not only the system economists from abroad but also the domestic researchers on transitional economics have made their efforts on the investigations to the cost of the process of the Chinese Economic Transformation. Their widespread common viewpoint on this matter is that the process of economic transformation breaks the original system and sets up the new one. The society should pay the bill for the economic transformation. To make the process of reformation efficient, the cost of the reform must be lower than the performance. But what has been said abovecannot give any instructive meaning to the practice of the Chinese Economic Transformation or be operated, either. The cost problem of economic transformation can't be neglected during the course of it. Understanding and handling to the cost of economic transformation will influence the stability of the process and decide the success or failure of it, especially to the important attacking stage. The gradual mode of economic transformation has gained certain acquisition during the previous period and left the most tough and difficult problem staying till now. All these problems almost involve in the handling of the cost of economic transformation, such as the problems on bad property of state-owned commercial banks, the reshuffling and workers settlement of state-owned enterprises, etc. With the rational attitude and complete viewpoints, this thesis studies the course of economic transformation and analyses the cost of economic transformation based on it. The author tries to find out the theory and strategy for the stable economic transformation.The target of this thesis is-to make the cost of economic transformation clear on the ground of knowing about the process of economic transformation and brings up the related theoretical principles and strategies which can be carried out in the practice. This thesis is totally divided into five parts which contains seven chapters:The first part is chapter 1 mat introduces theories of the economic transformation and its related problems. Analyzes the meaning and the cause of the economic transformation. Also gives deep analysis of the meaning and the characteristics of the modern market economy. And gives further discussion on the change of system during the course of economic transformation. And analyze concept, the reason and the conditions of take placing, the pushing corpus, the type and mode of the economic transformation. Draw a conclusion to the system of Chinese economic transformation. Finally brings up the...