China’s reform

Many oversimply China’s reform as a change of central planning to market oriented. The fact is market, rather than a bundle of demand and supply curves, requires the backup of necessary institutions. At the end of the day, a pro-market institutional arrangement involves property rights, legislative & legal infrastructures etc, which is far more complicated than many Market anarchists realize. The enforcement of contracts is definitely one of the corner stones and I expect Professor Cheung to cover that later.

Wallace S.T. Chan

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