Modernizing China's Growth Paradigm

March 1, 2006

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Format: Chicago

Eswar S Prasad, and Raghuram Rajan. Modernizing China's Growth Paradigm, (USA: International Monetary Fund, 2006) accessed September 18, 2024

Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Balance of payments, Capital account liberalization, Capital controls, Commercial banks, Exchange rate flexibility, Financial institutions, Financial regulation and supervision, Financial sector reform, Foreign exchange

Keywords: A number of reform, Banking system, Banking system's reform effort, Capital account liberalization, Capital controls, Commercial banks, Eastern Europe, Economy, Exchange rate, Exchange rate flexibility, Export-led growth, Financial sector reform, Global, Market economy, Market-oriented economy, PDP, Policy complementarities, Policy reform, Policy reforms, Reform, Reform agenda, Reform of the state enterprises, Reform process, Reform strategy, State enterprise, State-owned enterprise reform, Trade and financial integration, Transition economy

Publication Details

Pages:

16
Volume:

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DOI:

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Issue:

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Series:

Policy Discussion Paper No. 2006/003
Stock No:

PPIEA2006003
ISBN:

9781451946147
ISSN:

1564-5193

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