| The most striking characteristic in the initial stage of the founding of The People's Republic of China is a rapid economic recovery,within which,especially for the first three years,the Chinese people,led by the Communist Party of China,concentrated their efforts on healing the wounds of war and quickly restored and developed the national economy,and hence laid a good foundation for the transformation from new democracy to socialism. At the same time,with a good environment for economic development,the Chinese Communist Party has launched the movement of "three major reform"in 1956 and established the basic system of socialism in an all-round way.As one of the regions which have made a significant contribution to the Chinese Revolution during war times,against this historical background of New China Institutional Changes,the Shanxi Old Liberated Areas have experienced the reign of Yan Xishan,the period of Anti-Japanese War,the period of the liberation War,along with which the internal systems of Shanxi have been changed tremendously,including but not limited economy,land,property rights,political system etc.The Theory of Institutional Change provides a new theoretical perspective to understand the economic growth resulted from the system changes in Shanxi Old Liberated Area,even in the whole New China. The new institutional economics believes that the'system'is a series of rules,compliance procedures,moral and ethical norms of behavior etc.There is a certain amount of incentive mechanism in the 'system' and the entire'system'plays a key role in promotion of exploration,experiment and innovation between the social and the economy. Moreover, System can be divided into the formal system and informal system.The former one is put into practice under the state's or the government's power of enforcement, like laws,regulations,and contracts.In the other hands,the latter one is actualized by means of public opinions,social members self-disciplined etc,including values opinions,ethical orders and other non-powerful forces.Institution change is a process of system alternativity and institutional conversion.Land Reform is an economic revolution.It is the first step to accelerating the technology revolution by means of economic system modification's well as laying a new tract for the subsequent system innovation and transition in the rural areas.In view of the economic performance did not have a dramatic turn for the better during the land reform period,the system innovation inevitable showed the characteristic of artificial force,and thus it's difficult to coordinate with the existing system resources.Moreover,the clear train of thought of Land Reform is trying to make the peasantry access to the land and engaged in agricultural production,and further reached the goals of "land to the tiller". The other trend had been displayed is the transformation from the competitive land property to the substitutivity land property.Land Reform is the initial battle of the national Institutional Changes,by which the government accessed the economy sphere.The peasantry had been conferred land property,by which the government achieved the peasantry's reorganization,and making the following Institutional Changes full of logically.Accordingly, Land Reform can only be carried by national enforcement.Cooperative society is an economic organization which the laborers work in line with the national law,follow the cooperative principle of joint labor and combined capital,improve the labors'economic situation by operating the concentrated capital,division of responsibilities, adopting the distribution system combined distribution according to one performance with distribution according to capital.Whereas,the opinion that confines the cooperative society in the field of joint labor is totally misunderstood,it made the cooperative society equal to one of the major departments of social production,rather than relative independent economic organizations which have their own internal economical interests.The progress of production that no matter what form it is,demands two basic elements combination,namely laborers and the means of production under every socio-economic system.The Joint labor certain claims the foundation of joint of means of production.After collectivization of agriculture,the ownership of properties turned to the public,the distribution system went equalization,which made the public-owned property Cooperative society went inefficiently and finally get abolished.The economy development during the initial period of the founding of The People's Republic of China went along with system revolutions. The system revolutions in Shanxi Old Liberated Areas are part of New China Institutional Changes to some extent,which showed a significant role of the nation and the government.Nevertheless,the economy development in Shanxi Old Liberated Areas has its own particularity.On the one hand,in the process of Institutional Changes,from the mutual aid teams,elementary cooperative society to the advanced cooperative society,the enforcement of country went weaker and weaker.On the other hand,Institutional Changes depend on the national industry goal and the orthodox ideologicalism,rather than the benefit's achievement and enhancement by the elementary social actors.In the meanwhile,a new informal institution takes the place of the old informal system and further makes the innovation fit in with the new system but not the old informal one.Moreover,comparing the Institutional Changes progress between Shanxi Old Liberated Areas, Shanxi New Liberated Areas and other Institutional Changes progress under different economical systems,then the Performance Analysis based on these comparisons can be obtained. Institutional change is a complex alternative process with an essential characteristic of complementarity owning to higher cost of simply Institutional Changes.The entire Institutional Changes cost much more than the complementary Institutional Changes.In the cooperative period,the formal institution arrangement and the informal institution arrangement were in the complementary changes,although the informal one could but down the cost,the economy performance of Institutional Changes had been inevitably affected.In the end,by means of reviewing the economy development of Shanxi Old Liberated Areas with the theory of Institutional Changes,the lessons of economical development of Shanxi Old Liberated Areas can be drawn within the initial period of founding of The People's Republic of China,by which use for reference.In the integral point of view,Institutional Changes in Shanxi old liberated areas between 1949 and 1956 were mandatory Institutional Changes,all of which were contributed to the decision maker,the state. On the one hand,the policies which made by the state had accelerated the nature of the cooperation society became public in order to implement industrialized strategy and establish planned economic system;on the other hand,in the countryside, properties of the peasants were deprived by the state.Meanwhile,traditional thoughts,habits and customs were replaced by the dominant ideology at that time.The features of cooperation society differed from the function of equity and efficiency gradually and its innovative mechanisms were dying as well. Institutional changes of Shanxi old liberated areas displayed that institutional changes should not be limited in the agricultural area.In order to achieve the potential benefit of the primary behavior actors,that is to increase rent income and to maximize output,it is necessary to change the inferior status of the agriculture,join the market competition and accelerate the speed of circulation,achieve the average profit of the division through establishing industry in the countryside areas and in agricultural industry. All of these above requires extending the production chain,achieving integration of commerce,industry and agricultural,production and distribution.Broaden the horizontal scale,change the inferior position,increase revenue by exchange,establish market institution and implement comparative strategy,these factors are not only proved by Institutional Changes of Shanxi Old Liberated Areas, but also the urgent need in the present.
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