Reform and Paternalism in China: Some Theoretical Concerns

The Chinese reforms are assessed on the basis of theoretical considerations and East European experience. The probable characteristics of a successful comprehensive reform are presented. The Chinese reform does not appear any closer to this ideal type than previous socialist reforms. In essence, no reform can work if it is not concerned with fundamental resource allocation and interrelation between economic activities and the political sphere. Without such a comprehensive approach, the reformed sectors are incompatible with other sectors which can limit the success of the reforms and may lead to the emergence of new problems.