ebooks Unlikely Partners: Chinese Reformers; Western Economists; and the Making of Global China by Julian Gewirtz in History

Review

6 of 6 people found the following review helpful. Powerful Yet NuancedBy VictoryJulian Gewirtz has written a powerful yet nuanced account of the complex relationship between Chinese and foreign economists as China in the Deng era sought to escape from Mao’s dysfunctional; moribund economy. In this fascinating history; Gewirtz explains the evolution of China’s paradoxical “socialist market economy” by focusing on the dialectic among the a breathtaking array of intellectuals and officials on the tensions between “government” and “market” and between “Chinese” and “foreign.” With remarkable clarity; he explicates the subtle and unlikely “partnership” through which Western ideas were adapted; not adopted wholesale; in the breathtaking transformation of China. And he describes not just what actually happened but how the demands of China’s complex political culture dictated changing perceptions and accounts of the vital interactions; leading today to submersion of this narrative by a Xi regime ostensibly bent on defending China against “Western influence.” A remarkable work of Chinese economic history on the cross-currents of openness and parochialism with signal importance for understanding not just the China of yesterday; but also of today and tomorrow.Ben W. Heineman; Jr.; Senior Fellow at Harvard's Schools of Law and Government.3 of 3 people found the following review helpful. 'There Is Much At Stake for Our Generation to Develop a Deeper Understanding of China' - Author GewirtzBy Loyd EskildsonChina is now the world's largest economy by purchasing power parity and is expected to overtake the U.S. as the largest GDP economy by 2025. Mao's communist ideology regarding the economy has been replaced by a 'socialist market economy.' Gewirtz' book is how that transformation occurred between 1976 and 1993.When Mao died; China was mired in poverty and isolated from the outside world. It had been ravaged by the Great Leap Forward (1958 - 1961) and the Cultural Revolution (1966 - 1976); with a per capita GDP of only $175 in 1978. Within two years; 4'11" Deng replaced Mao' designated successor; Hua Guofeng; declaring his intention to find a form of socialism that did not 'boil down to shared poverty.' The method - 'crossing the river by feeling for the stones;' or 'pragmatic experimentation;' guided by learning from abroad.Intellectual exchanges had all be ceased under Mao. Thinkers and writers during the Cultural Revolution were often viewed as threats who needed to be 'reeducated.' (Tens of thousands of intellectuals and officials were purged as 'rightists' and died.) In 1978; Deng told a vice premier before a trip to Western Europe 'We ought to study the successful experiences of capitalist countries and bring them back to China.' This brought tremendous receptivity; though never unconditional; to incorporating market elements ('useful capitalist methods') into China's socialist system - despite a recent history of thought-policing and maintenance of the Party line that could be a matter of life and death. Western economists were crucial; unlikely partners in that reform process. The U.S. was not the sole source of new ideas. Vice Premier Gu Mu's stay in Western Europe; sponsored by Hua Guofeng; brought awareness of special export-processing zones that became the special economic zones in Shenzhen and elsewhere.Within several weeks of Mao's funeral; Hua and his CCP elder allies (including Marshal Ye - a distinguished former military leader who had participated in the Long March of 1934-35) decided that the 'Gang of Four' (Mao's wife; plus three others who had gathered power during the Cultural Revolution) was endangering their leadership. The Gang was arrested; along with thirty of their closest allies in Beijing.Hua saw a need to raise living standards and supported national conferences on economic issues. Meanwhile; a sense grew that Deng should be brought back from his banishment to a tractor factory. In 1962; Deng praised policies creating economic incentives for peasant households to produce more crops - anathema to Mao; and had first promulgated the 'It doesn't matter if the cat is black or yellow; as long as it can catch mice; it is a good cat.' These views; along with his decades-long association with Zhou and deep ties to the military help explain his 1976 rehabilitation.'If we ourselves don't know about advanced methods of management; we should learn from those who do; either at home or abroad' - Deng. The Chinese were most receptive to economists who came from planned economies and understood their flaws; but also knew that sudden changes were impractical. Ota Sik; from Czechoslovakia; inspired a phased-in pricing strategy in the early 1980s; whereby China gave enterprises ever more control over setting prices. The biggest start was Janos Kornai; a Hungarian who identified shortages as the chronic problem of socialism. The World Bank became China's largest source of foreign capital and provided reams of useful policy advice.Milton Friedman received a mixed reception in China. In his first visit (1980); Friedman strongly emphasized the importance of free markets; pointing to Hong Kong as a model to be followed - this was seen as becoming capitalist. That was not received enthusiastically. They sought his advice again in 1988; when worried by double-digit inflation which they knew undercut the Nationalists before 1949. Friedman showed that inflation is a problem of 'too much money chasing too few good;' and that application of price controls and rationing would only worsen the situation. This time his advice was taken.In 1985 a cruise down the Yangtze River brought Chinese economists together to learn from the rest of the world - American; German; Hungarian; Polish; and Scottish economists. Jeffrey Tobin and Janos Kornai were among the foreign stars present.0 of 3 people found the following review helpful. Highly recommend.By EveIncredibly approachable and informative. Highly recommend.