Promotions - Choice's Outstanding Academic Titles 2014 -

A popular view in the West is that China achieved unprecedented economic growth in the past few decades through state capitalism.  This viewpoint frustrated many academicians and politicians, who assumed free markets were no longer applicable to China.  In this eye-opening book, Lardy (Peterson Institute), who has written extensively on China, argues that market capitalism was the driver of Chinese growth all along.  The author painstakingly combs through statistical data and provides convincing evidence to support his arguments.  He shows that China achieved phenomenal growth primarily because of market forces that allocated resources more efficiently; he finds little evidence to support the popular claim that the Hu-Wen leadership (200313) significantly increased the role of state-owned firms.  Lardy further argues that future growth will be market-driven instead of state-driven.  Private firms have displaced state-owned firms since economic reform started decades ago, and they will continue to do so.  That alone was and will be the source of economic growth in China, contrary to the conventional wisdom that the Chinese miracle was the victory of state capitalism.  Not intended as a textbook, the book is accessible to readers at all levels, and it is valuable for anyone interested in China.Summing Up: Highly recommended. All readers.