Ambiguous Property Rights in China's Economic Transition

In: Business and Management

Submitted By emily1993
Words 3656
Pages 15
The evolving nature and implications of ambiguous property rights in the case of China and its non-state sector as a transitional economy; can they be efficient?

Index

Introduction I. Past to present People’s Republic of China, towards transition Property rights, defined

p. 3 p. 3-4

II. III.

p. 5-6

The Chinese Model p. 6-8 Evolution vs. Big Bang, and the employment of ambiguous property rights Current p. 8-11 China, mid-transition and the functionality of ambiguous property rights in transition Future China, post transition, and does one size fit all? p. 11-12

IV.

V.

Conclusion Bibliography

p. 13 p. 14-15

2

Introduction
China’s remarkable and unmatched growth of the past decades, regardless of it ambiguous property rights and a relatively weak legal framework, have puzzled governments and economists to date. The contrast between China’s transitional economy and those in Eastern Europe and the former Soviet Union could not be more striking. Whereas the transition of the latter two has been a struggle and have sparked recession, China’s transition has brought about an economic boom and its gradual reform path has challenged the belief that gradual reform and public ownership cannot work as a transitional strategy. This paper aims to analyse the Chinese Model of economic transition with a focus on the structure of property rights in the system, primarily in the rural sector. First, a brief historic background of China and its course towards transition is provided, after which property rights and the various approaches to them are examined. I will then explore what system China currently employs, whether or not this has been effective, if it is sustainable and if it is to set a precedent for other transitional economies.

I. Past to present: People’s Republic of China, towards transition
The aim of this chapter is…...

Similar Documents

China's Economic Reforms

...nation boasts very unique and varied forms of reforms throughout its practices which are quite different from whatever other countries have followed in the past. Being a country holding nearly 20% of the population, they could not have managed to be one of the fastest growing and healthily developing countries of the world. Having said that, it is easy to believe that the reforms that China has been implementing have been greatly useful in the development at every stage. The economy of China was based on a centrally planned system in the recent past. But with the reforms, China managed to move from an economy that was centrally planned to an economy that is driven by the market. Such a reform was distinctive because it transformed the economic eco-system from a government-centric economy to a more privatized economy. People started entering into the market competing among others, hence bringing about a great change in privatization. China also took up a reform which was completely focused in creating and generating a value that was surplus. The main reason for such a reform was that they could help in financing the transformation and modernization of China. China has also been immensely successful in not only making reform policies but also breaking them down in a way so that people and other institutions can adapt and follow it. Such an ease in their policy was brought about by trial system followed by the nation. The policies are first created, tried and tested by the......

Words: 686 - Pages: 3

Property Rights

...10 507 TV (24, 25) 501 PRS (20, 21) 11.10 TO 1.10 506 RE (17, 18) 2 TO 4 503 PSS (17, 18) 4.10 TO 6.10 506 SK (5, 6, 7) 506 SK (8, 9, 10) 08.12.13 SUN 506 RE (19, 20) 9.30 TO 11.30 503 PSS (19, 20) 11.40 TO 1.40 508 (4) MVSK 2.30 to 4.30 (22, 23) 503 PSS (19, 20) 9.30 TO 11.30 506 RE (19, 20) 11.14 TO 1.40 508 (4) MVSK 2.30 to 4.30 (22, 23) 506 SK (11, 12, 13, 14) 9.30 TO 1.30 508 (4) MVSK 2.30 to 4.30 (22, 23) SUNDAY SUNDAY MBA(IB) Code MBA(IBF) FACULTY PW LW TOT Code Subject Cre 2 2 3 3 2 3 3 FACULTY PW LW TOT Code Subject MBA(GLSCM) Cre 3 2 3 2 2 3 3 FACULTY PW LW TOT SUBJECT Cr. 2 2 2 2 501 International Business Strategy 502 Business Ethics 503 Intellectual Property Rights 504 International Commodity Management Prof. P R S Sarma Mr. Kripa Shanker Gupta (P. Sree Sudha) (Ketul Contractor) (Ms. Deepa More) (Prof. Ravi Eswarapu) Dr. T. Vasudha 12 20 8 0 0 8 13 9 0 12 20 0 12 12 21 20 20 20 0 20 25 501 502 503 504 505 506 507 Treasury Management Business Ethics Financial Services Marketing of Financial Services Environment & Disaster Management Investment Banking Management of Change & Innovation Dr. Lubza Nihar Mr. Kripa Shanker Gupta Prof. PES Vidyasagar Prof. PES Vidyasagar (Ms. Deepa More) Dr. Satish Kumar Dr. T. Vasudha 0 20 9 9 0 14 11 20 0 17 17 0 0 14 20 20 26 26 0 14 25 501 502 503 504 505 506 507 Global Operations & Logistics Business Ethics Global Sourcing......

Words: 2393 - Pages: 10

Intellectual Property Rights

...Competition Law and Intellectual Property Rights with Special Reference to the TRIPS Agreement Research Paper for the Competition Commission of India February-March 2010 Eashan Ghosh V Year, B.A. LL.B. (Hons.) National Law School of India University, Bangalore TABLE OF CONTENTS §1 THE IPR AND COMPETITION LAW INTERFACE_____2 §2 TYPES OF RESTRAINTS_____3 §3 COMPETITION LAW REGULATION OF IPRs ACROSS JURSIDICTIONS_____4 §3.1 Europe_____4 §3.2 US_____4 §3.3 Other Jurisdictions_____5 §4 THE TRIPS AGREEMENT_____5 §4.1 Article 7_____6 §4.2 Article 8.2 _____7 §4.3 Article 40_____7 §4.4 Article 6_____10 §4.5 Article 31_____11 §5 WHAT STANCE SHOULD DEVELOPING COUNTRIES TAKE?_____12 §6 ADDRESSING THE IPR AND COMPETITION LAW INTERFACE IN INDIA_____14 §6.1 Through Domestic Legislation_____14 §6.2 At International Fora_____15 §7 ENDNOTES_____17 BIBLIOGRAPHY_____29 Primary Sources_____29 Secondary Sources_____32 1 §1 THE IPR AND COMPETITION LAW INTERFACE The simple hallmark of competition law is the protection of those principles and practices which enable the efficient functioning of markets.1 A natural concomitant to this objective is making certain that incumbent enterprises do not engage in anticompetitive practices to the detriment of the market.2 However, the application of competition law standards—in terms of practices that should be banned outright, viewed as potentially anticompetitive or should be investigated further—varies widely across jurisdictions.3 The......

Words: 16676 - Pages: 67

Economic Transition of China

...apparent to many of China's leaders that Economic reform was necessary. By 1978 " Chinese leaders were searching for a solution to serious economic problems produced by Hua Guofeng, the man who had succeeded Mao Zedong as CCP leader after Mao's death" (Shirk 35). As Susan L. Shirk describes the situation in The Political Logic of Economic Reform in China, restoring the CCP's prestige required improving economic performance and raising living standards. After the communist take over the country, Mao contained his emphasis on moral force by demanding that Chinese citizens demonstrate what he referred as "correct consciousness". It is noteworthy that shirk feels that the Chinese communist party leaders saw economic reform as a way to regain their and their party moral virtue even after Mao's death thus, paradoxically, by demonstrating their expertise in a moral political area of competence, the leaders of CCP felt they could demonstrate how they were serving the people. To a great extent, the issue of economic reform became politicized as the issue was used as a means by Deng Xiaoping to attain the leadership of the Chinese Communist Party. "Reform policies became Deng's platform against Hua for post-Mao leadership" (Shirk 36). Given this history of economic reform, it is evident that "under the present system economic questions are necessarily political questions" (Dorn 43). China was "still a state in which the central government retain[ed] the dominant power in economic......

Words: 1081 - Pages: 5

Intellectual Property Rights News

...Intellectual Property Rights 2014 1.Intellectual property rights: US set to punish India The Indian embassy in Washington DC too scheduled a briefing by its economic and commerce wings soon after the expected US action.  TNN | Feb 10, 2014, 10.28PM IST WASHINGTON: It's not looking good between New Delhi and Washington. Tensions over the Khobragade episode are yet to fully dissipate, but the two sides are locking horns again over intellectual property rights. The Obama administration is scheduled to announce unspecified ''trade enforcement action'' against India on Monday evening (Tuesday am IST) Washington time.  United States trade representative (USTR) Michael Froman and general counsel Timothy Reif will hold a news conference to announce action related to India, the USTR said earlier in the day in a head's up to journalists.  The Indian embassy in Washington DC too scheduled a briefing by its economic and commerce wings soon after the expected US action. All this comes ahead of a re-scheduled visit to New Delhi of US energy secretary Ernesto Munoz, which was postponed from January because of the Khobragade row.  2.Hurdles in business growth forcing entrepreneurs to mass exodus Krithika Krishnamurthy, ET Bureau Mar 28, 2014, 04.30AM IST * (Starting up in India is easy…) Within the next six months, Bangalorebased technology entrepreneur Jay Krishnan will be heading east in search of a better place to locate his fast-growing......

Words: 5043 - Pages: 21

Intellectual Property Rights and Economic Growth

...Intellectual Property Rights and Economic growth “Imagination is more important than knowledge” – Albert Einstein Albert Einstein’s preference of imagination over knowledge speaks well to the potential capabilities of enterprises and businesses. If a creative idea is discovered, it can be transformed into innovative products. Innovation is instrumental among other things in creating new jobs, providing higher incomes, offering investment opportunities and curing disease. “There is wide agreement that innovation and entrepreneurial activity are the engines of long-run economic growth” (Hill 63). Intellectual property rights have become a significant factor in both creating and using ideas that are translated into knowledge and inventions to promote innovation and economic growth. Through this paper I will discuss the importance of protecting intellectual property and its impact on economic development. What is intellectual property and IPR’s? “Intellectual property refers to property that is the product of intellectual activity” (Hill 54). It might be a poem that you write, a computer software, a mother’s invention of saline Boogie Wipes for babies or a formula for a new drug. Creators can be given the right to prevent others from using their inventions, designs or other creations and to use the right to negotiate payment in return for others to use them. These are “Intellectual property rights”. They allow the creator or owner of a patent, trademark, or......

Words: 2393 - Pages: 10

Understanding China’s Economic Development

...Key Definitions Computable General Equilibrium (CGE): A model, which utilizes actual economic data to estimate the impact of external shocks (e.g. policies, technology) to an economy. Gross Domestic Product (GDP): The total monetary value of all officially recognized final goods and services produced within a country in a specific time period. It is used as a key measure of economic growth. Gini Coefficient: A statistical measure of the income distribution of a country’s residents. It helps to identify the gap between the rich and poor. Total Factor Productivity (TFP): A measure, which represents the amount of output not directly related to the amount of inputs (e.g. materials). Economic planners look at these factors to explain growth of a corporate or national economy. Main Facts Hofman & Kujis argue that economic growth in China is not only reflected by GDP growth but also its sustainability should be considered. China’s economic growth has been exceptional, as it has lifted millions out of poverty. Overall, the Chinese population has prospered greatly, however the Gini coefficient indicates that there is a significant income disparity. Furthermore, the Chinese economy is heavily dependent on the manufacturing industry, investments and external demand. These three cause multiple negative externalities for the nation, such as environmental pollution, dependency on foreign resources due to high-energy consumption and income inequalities that cause social...

Words: 724 - Pages: 3

Intellectual Property Rights

...Intellectual property rights provide the foundation for building and extending markets for new technology. Economists and policymakers are progressively realizing that to manage and encourage technological progress, there is a need of a framework of legal institutions that promotes its benefits but also limits its excess. The paramount difficulty of companies and individuals engaging in development of new technology of any kind is appropriating the fruits of their labor. In developed market economies, in spite of the presence of substantial intellectual property rights, the widespread imitation of intellectual property deems them imperfect and inadequate. Lax enforcement of domestic laws and regulations, and the absence of international treaties concerning the protection of international property rights further aggravate the problem. The framework and implementation of intellectual property rights shapes the success of major industries ranging from computer software, biotechnology to entertainment as it determines how they can market their products. Intellectual property is expensive to create but easy to reproduce. The fixed cost of producing intellectual property is high, but its marginal cost is low. For example, the research and development of a drug can cost billions of dollars, but its reproduction can easily be done at low costs. Lack of protection gives rise to free riding on the innovator’s production and kills the innovator’s incentive to produce more.......

Words: 1103 - Pages: 5

Property Rights

...Property Rights The rights to use, control, and obtain the benefits from a good or resource is known as Property Rights (Gwartney, 2015). The views on this have been the same for ages. If you own a property you have the right to do with it as you please within the context of the law. Property Rights are attained by purchasing, inheriting or receiving the right. Private Property Rights is when you are the sole person or group to that particular asset. It consists of three things; the right to exclusive use of the property, legal protection against invasion and finally the right to sell. Harold Demsets the write of, “Toward a Theory of Property Rights” describes it using different wording. He explains that when a transaction is concluded in a marketplace there are two exchanges that create a Property Right. Also a bundle of rights often attaches its self to a physical commodity or service, and it is actually the value of the right that gives it its trade value. Learning that there are also regulations on a Property Right is interesting. Our book gives a scenario on how you can’t use your property to destroy or hinder someone else’s property A living example of a Property Right is buying a car. When you buy a car there is a transfer between two individuals of a good which would be the car. Once you become the owner of this vehicle you are instantly a Private Property owner. This means that you are able to do with the vehicle as you please. As long as you aren’t harming......

Words: 441 - Pages: 2

Property Rights

...Property Rights and Our Rights The two videos describe the importance of Property rights and our rights as individuals. In the first it discusses the importance of property rights. Although individuals at times feel that property rights are only for the “rich.” Though what people do not know is that property rights actually help us live together in peace and prosperity. Property rights pervade our social world, encouraging productive labor and reduce waste. For instance if there is a house that is foreclosed and no one has a clear understanding of who owned it the house would be left to ruin and waste away. Property rights are natural, they are essential for individuals living in societies; they establish happiness, peace, and prosperity. Though property rights are important for everyday life and everyday waste, actual rights establish moral concepts that establish the conditions within which we interact. Our rights establish a moral and ethical “code” that we live by. Rights condone rules, for example, say you want to make a square into a circle you are reasonably wrong; though wanting to murder someone that is ethically wrong and in violation of our rights. We need to understand the way our right are formed and how we need to follow them correctly. II enjoyed these videos because they tie into the Northwood idea. Property rights establish a way to preserve waste; much like we as individuals try to find way to preserve ourselves as individuals to be the best person we can......

Words: 308 - Pages: 2

Property Rights

...Property rights are the ownership rights an entity or person has over something. It is exclusive authority as to how a resource will be used or sold. The owner of the property can also have “private property rights” “Private property rights are exclusively held by an owner and protected against invasion by others. Private property can be transferred, sold or mortgaged at the owner’s discretion.” (J.D Gwartney, R.L Stroup, R.S Sobel, D.A Macpherson 2015) A well-defined and enforced property rights are very important in shaping long run economic growth and prosperity. Property right gives protections against expropriation by government, in situations of high taxes, confiscation and price control. And from other institutions who facilitate private contracts between citizens. “In the developed world, the role of property as a foundation for economic growth is commonly taken for granted because it is omnipresent and generally secure. By contrast, the effects of the absence of property are acutely felt in many developing countries. These effects are typically manifested by a disproportionately large level of informal economic activity.” (J.D. Sullivan & K,E Bettcher n.d.) There are several areas in property rights. Some ownerships are tangible and other are non-tangible. The property may be real estate, or it may be intellectual property like a copyright or trademark. A person may purchase a home, and have all rights to live in it, change the color of the walls, add......

Words: 398 - Pages: 2

Research on Intellectual Property Right

...Research on Intellectual Property rightsBy Collins MerokaCollege | | Introduction Internet as seen in the present advancement in technology has brought myriad of achievements. It has further created a new world for online opportunities and challenges as well. In digital transmission of materials, protected work can be shared through the internet in one form or the other. These forms may include, but not limited to, music, still pictures, video clips and sound. With all these sharing, internet has become a common place to upload and download audio-visual materials like recorded films. Copyright is a common method used to protect ones production rights on a particular piece of material over the internet. In fact, the graph below shows that copyright infringement is the most common type of infringement; Figure 1: source; Canadian SME However, in peer-to-peer file sharing, most people infringe these rights and pass other people’s work as their own. In fact, IFPI states in their report that “the ease of access to music by means of illegal file sharing has damaged its perceived value to customers”. This has been a great challenge to music and film industry globally (Leyshon, A., 2003). For instance in the recent emergence of file swapping services that are based on the internet. These services include Napster that has allowed huge exploitation of recorded work without any little authorization of the users. Actually, this has been attributed to the slow rate of sales...

Words: 3326 - Pages: 14

The Role of Intellectual Property Rights in Technology Transfer and Economic Growth: Theory and Evidence

...working papers The Role of Intellectual Property Rights in Technology Transfer and Economic Growth: Theory and Evidence UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION The Role of Intellectual Property Rights in Technology Transfer and Economic Growth: Theory and Evidence By Rod Falvey Leverhulme Centre for Research on Globalisation and Economic Policy, School of Economics, The University of Nottingham and Neil Foster Department of Economics, University of Vienna In cooperation with Olga Memedovic UNIDO, Strategic Research and Economics Branch UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna, 2006 This publication was prepared by Olga Memedovic, UNIDO staff member from the Strategic Research and Economics Branch drawing on the background paper prepared for the UNIDO Research Project “Public Goods for Economic Development”, by Rod Falvey and Neil Foster. Rod Falvey is Professor of International Economics, Leverhulme Centre for Research on Globalisation and Economic Policy, School of Economics, The University of Nottingham. Neil Foster is Assistant Professor of economics at the Department of Economics, University of Vienna. The publication has benefited from the valuable comments provided by Professor David Greenaway during the finalization of this publication. UNIDO intern Robert Lambertus van Lavieren provided assistance during various stages of preparing this publication. The authors are grateful to Michael Bailey for proofreading the final...

Words: 40024 - Pages: 161

Intellectual Property Rights

... | | | |2 |Globsyn Management Journal |Expatriate managers and |2 |1 |July 2008 |Dr.V.Mahalakshmi | | | |corporate-level | | | | | | | |international strategy | | | | | |3 |Kalasalingam University |Overview of Consumer |1 |1 |December 08 |Dr.V.Mahalakshmi | | |Journal |rights, obligations | | |ISBN:9788-190667-128 | | | | | | | |Pg 13-16 | | |4 |SRM Digest |Embracement of New |7 | |April 2009 |Dr.V.Mahalakshmi | | | |technology in | | |ISSN 0973-6905 | | | | |manufacturing industry | | |Pg 16-21 | ...

Words: 3300 - Pages: 14

Intellecutual Property Rights

...Intellectual Property Rights Intellectual property rights have come to play an important role in developed economies, with arguments for and against these rights. While the focus of this paper will concern itself with the music industry as an example, it is important to first state the economic benefits and costs of intellectual property rights as a whole, as this will be the basis in which one will examine intellectual property rights in the music industry. The main arguments for intellectual property rights include: improved innovation, enhanced wealth and limited dispute over resources, and the promotion of competition and ideas. (Mackaay) The main arguments against Intellectual property rights include: net utility is not achieved, moral and ethical problems of intellectual property rights, higher costs and no evidence of wealth maximization. (Kinsella 1-53), (Perelman) In general, it was found that intellectual property rights can have a positive or negative effect on economic growth, depending on the environment and situation. (Maskus) Thus, it is important to realize that any discussion and evaluations related to the music industry are not relevant to intellectual property rights as a whole and should not be used as a comparative measure for other industries in general. Also, it is vital to analyze the political aspects of the music industry and its influence on intellectual property rights as it is a contributing factor in the forming the ......

Words: 3898 - Pages: 16