Options for Market Reforms in China

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Most of the former planned economies are in the midst of major economic transitions. In these economies the questions being addressed no longer deal with whether or not they should reform--their very economic survival and future development rest on how to proceed with reform. In the former Soviet Union and eastern Europe, the questions are down to nuts and bolts: how to privatize and encourage market behavior quickly before chaos clouds the situation further. In China, the leadership is attempting to improve efficiency via small scale private ownership and markets while improving the state sector.