The State, the Market, Economic Growth and Poverty in China

• Main Author: DONALDSON, John A.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2007
• Subjects: economic development; poverty; liberalization; Asian Studies; Economic Policy; Growth and Development
• Online Access: https://ink.library.smu.edu.sg/soss_research/373; https://doi.org/10.1111/j.1747-1346.2007.00088.x
• Institution: Singapore Management University

The reform of agriculture in China is cited by scholars advocating economic growth through market reform. Such scholars argue that this aspect of reform has been characterized by the liberalization of markets for agricultural commodities, which spurred production, increased rural incomes, and reduced poverty. This view exaggerates the roles played by open markets and economic growth in that reform. This article argues that the role of the state in redistributing public assets, establishing institutions that supported markets, and designing and implementing poverty reduction policies also reduced poverty in China. I conclude that scholars, not just in China's case but also more generally, should examine the economic and political effects of various possible relationships between state and market. I offer this as one way forward in deepening our understanding of the role of politics and policy in promoting development and reducing poverty