Privatization in China: Capitalism Confined
In 1993, two cities in China bravely chose to ignore doctrine, old laws, and 40 years of failed policies, in the hopes of developing a better approach to managing their economies. Their solution? They decided to privatize many of their companies, and subsequently began one of the Chinese state’s first attempts to change its relationship with its enterprises. In theory, making the state into a purely financial investor rather than an operating partner should be beneficial: entrepreneurs, not bureaucrats, run the business. However, privatization remains somewhat of a touchy subject to this day, and practice is rarely so neat…
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