China’s Rural Leap Forward Harvard Case Solution & Analysis

China's Rural Leap Forward  Case Solution

Although they originated in the policies and associations of the Maoist era, TVEs flourished just after the economic reforms of Deng Xiaoping redistributed taxing powers, property rights, and obligation for the supply of public goods. These reforms gave party cadres strong motivators to encourage economic growth and made local governments dependent on their TVEs for tax revenues. TVEs were regularly helped by local officials under their authority to access capital, technologies, and creation licenses. Instead of quickly privatizing its state-owned enterprises (SOEs), China slowly liberalized facets of its economy in a restricted fashion, frequently establishing a "marketplace path" alongside its planned system. As the SOEs' share of employment and output decreased, that of the TVEs drastically improved. However, party officials questioned whether the TVEs were a feasible type of organization for an economy with ever-bigger companies, more sophisticated products and production procedures, and the need for proficient and more capital supervisors.

This is just an excerpt. This case is about  GLOBAL BUSINESS

PUBLICATION DATE: November 22, 2002

 

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