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MDLIAN 6910 ì
FREED. THE GOVERNMENT MAY TACKLE THE PROBLEM OF ENTERPRISE LOSS-MAKING MORE DETERMINEDLY. WHILE LARGE-SCALE ENTERPRISE CLOSURES AND UNEMPLOYMENT MAY NOT BE POSSIBLE FOR SOCIAL AND POLITICAL REASONS, THE SHORT-TERM EXPEDIENT OF MERGING LOSS-MAKERS WITH PROFITABLE ENTERPRISES MAY BE PUSHED AHEAD. THE DEVELOPMENT OF STOCKMARKETS AND SHARE ISSUING SHOULD ALSO BE ACCELERATED.
9. THE REAL ECONOMIC SIGNIFICANCE OF THE NPC MAY HAVE BEEN TO GIVE THE GO-AHEAD TO THE REGIONS TO EMBARK UPON A RANGE OF NEW
INITIATIVES AND ACCELERATE GROWTH RATES. PROVINCIAL AND MUNICIPAL LEADERS HAVE TAKEN THE OPPORTUNITY DURING THE NPC TO PUBLISH THEIR ECONOMIC PLANS, WITHOUT THE CONSTRAINTS IMPOSED BY A MORE CONSERVATIVE CENTRAL GOVERNMENT. IN THE PAST, THE PROVINCES, PARTICULARLY THE SOUTHERN AND EASTERN COASTAL PROVINCES, HAVE BEEN THE ENGINES OF GROWTH. SUCH A DEVELOPMENT WOULD ACCELERATE GROWTH BUT IT WOULD ALSO RAISE MORE QUESTIONS ABOUT THE RELATIONSHIP BETWEEN THE CENTRAL GOVERNMENT AND THE REGIONS AND BETWEEN THE
COASTAL AND INLAND PROVINCES.
10. ANOTHER KEY QUESTION LIES IN THE CAPACITY OF THE CHINESE ECONOMY TO EMBARK ON ANOTHER PERIOD OF ACCELERATED GROWTH WITHOUT OVERHEATING. THE CAUTIONARY NOTES STRUCK BY LI PENG AND BY ZOU JIHUA, THE PLANNING MINISTER, AND WANG BINGQIAN, THE MINISTER OF FINANCE, SEEM TO HAVE BEEN LEFT BEHIND IN THE WAKE OF POLITICALLY-INSPIRED ENTHUSIASM FOR FAST GROWTH. THE 13TH PARTY
CONGRESS IN 1987 GAVE A STRONG POLITICAL IMPETUS TO ACCELERATING THE RATE OF GROWTH AND THE FLOOD GATES OPENED. WITHIN A YEAR, INFLATION, A BIG FOREIGN TRADE DEFICIT AND SEVERE SUPPLY BOTTLE-NECKS MADE ECONOMIC RECTIFICATION MEASURES UNAVOIDABLE. ADVOCATES OF ACCELERATED GROWTH ARGUE THAT THE SITUATION IS NOW DIFFERENT: THERE IS AN OVERALL SURPLUS OF SUPPLY AND FINANCIAL METHODS OF CONTROLLING THE ECONOMY HAVE BEEN IMPROVED. BUT THE SUPPLY SITUATION MAY CONCEAL SHORTAGES IN KEY INDUSTRIAL INPUTS AND IT IS BY NO MEANS CERTAIN THAT NEW AND BASICALLY UNTRIED FINANCIAL INSTRUMENTS WOULD PROVE EFFECTIVE. ANOTHER TWIST IN THE STOP-GO CYCLE OF CHINA'S ECONOMIC DEVELOPMENT MAY BE DIFFICULT TO AVOID. IF THIS DOES HAPPEN, THE MEMBERS OF THE 'CHEN YUN SCHOOL' OF BALANCED ECONOMIC DEVELOPMENT WILL BE QUICK TO ACCUSE THE DENGISTS, AS THEY DID DURING THE 1980S, OF DEPARTING FROM ECONOMIC PRINCIPLES FOR POLITICAL REASONS AND UNLEASHING ANOTHER 'GREAT LEAP FORWARD.'
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