Sara Hsu

 Began their growth processes intentionally, through guided and targeted economic policies  Began with different initial conditions  Different histories of economic repression  Began at different times  Different global political economies  Selective liberalization

 Different geographies  Different levels of human capital and population  Different levels of initial success in reform-China and India began industrialization sooner but failed

 Began its growth trajectory during the Meiji era,  Eliminated feudal institutions  Uniformity of money  Machinery  Agriculture  Heavy industry

 Post World War One  Zaibatsu  Post World War Two  Devastation and occupation  Increase in exports  Advanced economy

 Led by ideology under Deng Xiaoping  Deng Xiaoping Theory  Dual Track System  Household Responsibility System  State Owned Enterprise Incentivization  Price reform  Special Economic Zones

 “Reform with Losers”  Privatization  Elimination of Dual Track economy  Joining WTO

 Attempted to reform after Independence  Focus on agriculture  Eighties deregulation  “License Raj”  Crisis in 1991

 Reforms accelerated after 1991  New Industrial Policy  Reduction in licenses  Reform of banking industry  Special Economic Zones

 Japan: reform occurred after the Tokugawa Shogun was defeated and Emperor’s power restored;  China: reform occurred after Mao died and Deng Xiaoping took power-his policies were supported;  India: crisis speeded up the reform process.

 Prize for best reform process goes to?  Role of growth in reform  Social services

 China, India and Japan began reforms under different initial conditions;  Had different approaches to reform;  Faced different political economies of reform.

 China, Japan and India are counterexamples to other countries that have attempted reform and have been far less successful.  These include countries in eastern Europe and the former Soviet Union, and countries that faced crisis after liberalization including Southeast Asia and much of Latin America.

 Questions?