Thursday, September 18, 2008

Special supplement: Book offers insight on China's economic approach

A book by Li Ruogu, chairman and president of the Export-Import Bank of China, has been published by the People's Publishing House.

Titled Institutional Appropriateness and Economic Development - Development Economics Based on Chinese Practices, it draws on Li's years of work in macro and micro economic management.

With particularly rich experience in the financial sector, the author looks into the drivers behind China's success over the past 30 years of reform and opening-up, and identifies "institutional appropriateness" as the key to China's unique development path.

The book notes that China has chosen an appropriate institutional system compatible with the country's characteristics, development level, historical and cultural background and international environment.

As well, such an institutional system is able to adapt itself to the changing environment and conditions through reforms, innovations and re-adjustments to balance institutional appropriateness and changing situations.

The author argues that taking into account varying situations and conditions of different countries, there is no such thing as a one-size-fits-all system that can be applied universally, but rather each has appropriate systems that meet its needs.

In the end, the author points out that there is not only one institutional system on the road of development - the only single truth is the theme of development.

China's 30-year experience in opening up and reform has revealed that the most valuable core concept is "institutional appropriateness", Li writes. The concept can also be used as a reference for other developing countries.

Focusing on the theme of "institutional appropriateness", the book presents a substantial framework of development economics based on Chinese practices.

Through in-depth research that combines China's development with that of the entire Third World, the author studies both the singularity and universality of China's experience in the context of the modernization of all developing countries.

Putting forward the new theory of "institutional appropriateness", the author expects to invite more research interest in the topic.

Zhang Yansheng is director of the International Economic Research Institute of National Development and Reform Commission

Source: China Daily

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