History: Fiction or Science? (Chronology, No. 1)

Book Description

Recorded history is a finely-woven magic fabric of intricate lies about events predating the sixteenth century. There is not a single piece of evidence that can be reliably and independently traced back earlier than the eleventh century. This book details events that are substantiated by hard facts and logic, and validated by new astronomical research and statistical analysis of ancient sources.

Customer Reviews:

Calculations are only as good as your numbers.......2007-08-03

Yes, we can all agree that mainstream history is nearly 100% BS due to politics, economics, ego, problems with dating techniques, and various conspiracies. Agreed. But, I've been researching the distinct possibility that human history (in terms of civilizations) are much more ancient than we've been told, so coming across this book was very interesting to me. I wondered how Fomenko could be wrong (if at all) because he is very persuasive in his presentations. Then it dawned on me. If at previous times in prehistory, due to the various catastrophies that are well documented (comets, asteroids, planetary disruptions, plasma discharge, pole reversals, etc) the Earth was in a different position in relation to the sun, different tilt on its axis, different orbit, different rotation (in terms of velocity and DIRECTION), and the continents were in different positions, then would this not cause the ancients to see the sky (constellations) differently? In other words, is Fomenko making erronious assumptions about the physics of the Earth in pre-history, which then corrupt his data with regards to dating the relevant astrology? The last event to seriously disrupt our planet occured roughly 3500 years ago, according to other good researchers, so is it possible Fomenko has been confused by this? The vastly different physics of our planet in the not so distant past may explain this confusion, which is not to say the "mainstream" version of history is correct; on the contrary. I am not an expert in these fields, but wanted to see if this idea could spark discussion.

Pants on fire?.......2007-07-19

Will people ever read before spamming? Yes, Jesuits could not rewrite world history alone, they had help. Anyway, Dr Prof Acad A.Fomenko does not point to jesuits as the driving force of world wide history manipulation in published volumes 1,2,3;, actually he barely mentions the poor devils. Check it with 'Search inside' feature, please. China is rarely mentioned either, in fact, Dr Fomenko is completely eurocentric. Right, his theory contradicts all mainstream schools of history, because in their actual state they are all built on blatantly erroneus chronology. You don't need a mysterious cabal (conspiracy) to falsify history, the falsification is its modus operandi. It is inherent to history(ians) to falsify (distort) events, as it is inherent to humans to boast as it is inherent to power (authority) to legimize itself by referrring to glorious past made to its own order. Dr Prof Fomenko and team have identified scores of instances of such manipulation in Russian, European, etc.. history, and delivered valid statistical proof thereof. His own 'reconstruction' is completely another story. Forget c14 as a valid method of dating. W.Libby has initially discovered a brilliant method of INDEPENDENT dating. Too bad, c14 method has become a joke after a forced marrige with dendrochronology with consensual chronological scale inbuilt. Radiocarbon method can't stand blind tests, but is so very productive as a rubberstamp.

Accepted History & Chronology Must Be Changed. .......2007-04-09

There is no doubt that history as most know it is a sham, & institution's version of History both University & Church is fradulent & inaccurate. Everything was established with an agenda, The real "Dark Ages" are now when we have access to incredible amounts of information past authorities & more important 'common folk' didn't have but our institutions & educators are slow to evolve because of what has ignorantly & arrogantly been taught for too long. This is on many subjects not just Chronology.

For anyone to question "Why would a Mathematician have anything credible to say of History?" The answer is from Dr. Fomenko's preface in the book: "It would be worthwhile to remind the reader that in the XVI-XVII century Chronology was considered to be a subdivision of Mathematics." These volumes could possibly be some of the most important works to date & should be read by everyone with an interest in History, especially professors & educators who have a duty to the public. I have read both books & must say that 'Chronology 1' has some very eye opening & revolutionary information. Even if these volumes are part true the implications are profound & opens the doors to further investigations & questions which must be done. I speak several different lanquages & must say the logic Dr. Fomenko uses with "inflection" of words & words being read from left to right in one region & right to left in another then written backwards, the removal of vowels & get down to basics of words, or different cities & locations having the same name etc. is correct. Vowel usage has always been optional & varied, actually complicating linquistics & study. The first thing one has to understand is that words never had a fixed spelling in history like we do now, the spelling of words was mutable & regional, as well as names & titles of people were vast, varied & changed, NOTHING WAS FIXED or understood linear. Matters of Life & Death as well as financial profiteering yesterday & today were & are made with ignorant, illogical & conspiratorial views of history & reality, it's time people get closer to the Truth & society collectively grow up.

Very Interesting.......2007-03-07

It is a good proposal and I believe it will mature into something even better in the future. I think it deserves to be read.

History as Science Fiction.......2007-01-10

Anatoly Fomenko has written a very intriguing book, full of pictures, charts, and computer 'proof' of his thesis: backwards of AD900 we don't really know what happened or when. Between AD900 and AD1600 there is more certainty, but there is still a lot of fuzzy ground, and things don't get reliable until we get past the 1600's where the printing press made it very difficult for the perpetrators of this timeline manipulation to change anything that had been committed to print. The Dark Ages did not happen. Books were burned for a reason. One organization has doubled the actual length of its existence by expanding the real chronology. Read why.

I had always wondered why Christ died about AD33 and yet men waited until the 11th century to form the Knights Templar, the Cathars, etc and go after the Holy Land by force. Why the 1000 year gap? Turns out there wasn't more than a 10-12 year gap and he proves it using astronomy. This also implies that the planet is not as old as we have been told, and current Christian and other creationist scientists are already championing that idea without being aware of Fomenko's book. The two groups, creationist scientists and the Russian mathematical analysts corroborate each other. Fascinating.

Of course, all this flies in the face of what we have been told traditionally is the 'proper' chronology of western civilization, and most readers will experience 'cognitive dissonance' in reading this book. It means that our history going backwards from AD1600 becomes progressively more incorrect and unreliable until it cannot be trusted at all... in the space of 700-800 years.

Naturally, the curious, open-minded reader will want to know WHO did this, WHY, and did any of the events we think of as really ancient ever happen?
Dr. Fomenko is a respected scientist/mathematician at Moscow State University who has already answered these questions to the satisfaction of his initially skeptical colleagues. Most of them are now believers, a few still refuse to believe (the usual diehards), and of course the western press has ignored Fomenko's work -- for obvious reasons when you read the book. The ones who perpetrated this chronology ruse have a lot to answer for. They are still with us. That's why this book is a well-kept secret.

I gave the book a 4-star rating because I was unable to check out some of his claims; those I checked were as he said. But if even 1/3 of his claims are true, this punches a big hole in what we think is our history, the meaning of western civilization, our educational process (for repeating the ruse as gospel), and the trustworthiness of the organization that perpetrated this ruse, well-intentioned or not.

This book relates to current research into a Young Earth paradigm, to John Keel's discoveries about our planet, and Fr Malachi Martin's insights (in his now out-of-print books). We are indeed sheep who are manipulated and kept ignorant -- for a reason. While knowing what these men have to say may be the "booby prize" (as in: 'what can you do with this knowledge?'), it will provide interesting reading. Didn't someone say: "...and the Truth will set you free."?? For you to judge if this book contains the truth.

The Chinese Economy: Transitions and Growth

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Corner Stone
A masterpiece in the field

The Chinese Economy: Transitions and Growth
Barry Naughton
Manufacturer: The MIT Press
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Binding: Paperback

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ASIN: 0262640643

Book Description

This comprehensive overview of the modern Chinese economy by a noted expert on China's economic development offers a quality and breadth of coverage not found in any other English-language text. In The Chinese Economy, Barry Naughton provides both an engaging, broadly focused introduction to China's economy since 1949 and original insights based on his own extensive research. The book will be an essential resource for students, teachers, scholars, business people, and policymakers. It is suitable for classroom use for undergraduate or graduate courses.

After presenting background material on the pre-1949 economy and the industrialization, reform, and market transition that have taken place since, the book examines different aspects of the modern Chinese economy. It analyzes patterns of growth and development, including population growth and the one-child family policy; the rural economy, including agriculture and rural industrialization; industrial and technological development in urban areas; international trade and foreign investment; macroeconomic trends and cycles and the financial system; and the largely unaddressed problems of environmental quality and the sustainability of growth.

The text is notable also for placing China's economy in interesting comparative contexts, discussing it in relation to other transitional or developing economies and to such advanced industrial countries as the United States and Japan. It provides both a broad historical and macro perspective as well as a focused examination of the actual workings of China's complex and dynamic economic development. Interest in the Chinese economy will only grow as China becomes an increasingly important player on the world's stage. This book will be the standard reference for understanding and teaching about the next economic superpower.

Customer Reviews:

Corner Stone.......2007-05-12

A superb guide to the intricacies of the Chinese economy. I highly recommend it to students, professionals, policy makers, and academics looking to better understand the underlying themes and trends of the world's fastest growing economy.

Erik Lundh,
Washington, DC

A masterpiece in the field.......2007-04-10

Barry Naughton has written a masterful book. It is comprehensive, accessible and rigorous. Researchers, upper-level undergraduate and graduate students, who want to understand the key economic issues faced by China, will all appreciate this volumn. I am using it in my Master courses!

Jiin-ming Fahn, National Sun Yat-sen University, Taiwan

China's Trapped Transition: The Limits of Developmental Autocracy

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highly intelligent in-depth analysis
An Unscholarly Book
A Great Resource
Academic's trapped mentality: The limits of linear ideology

China's Trapped Transition: The Limits of Developmental Autocracy
Minxin Pei
Manufacturer: Harvard University Press
ProductGroup: Book
Binding: Hardcover

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ASIN: 0674021959

Book Description

The rise of China as a great power is one of the most important developments in the twenty-first century. But despite dramatic economic progress, China's prospects remain uncertain. In a book sure to provoke debate, Minxin Pei examines the sustainability of the Chinese Communist Party's reform strategy--pursuing pro-market economic policies under one-party rule.

Pei casts doubt on three central explanations for why China's strategy works: sustained economic development will lead to political liberalization and democratization; gradualist economic transition is a strategy superior to the "shock therapy" prescribed for the former Soviet Union; and a neo-authoritarian developmental state is essential to economic take-off. Pei argues that because the Communist Party must retain significant economic control to ensure its political survival, gradualism will ultimately fail.

The lack of democratic reforms in China has led to pervasive corruption and a breakdown in political accountability. What has emerged is a decentralized predatory state in which local party bosses have effectively privatized the state's authority. Collusive corruption is widespread and governance is deteriorating. Instead of evolving toward a full market economy, China is trapped in partial economic and political reforms.

Combining powerful insights with empirical research, China's Trapped Transition offers a provocative assessment of China's future as a great power.

Customer Reviews:

highly intelligent in-depth analysis.......2007-09-04

I am not a political scientist, economist or expert on China, and I found this book quite clear and understandable. It is a highly intelligent, in-depth and convincing analysis of China as a dysfunctional, 'predatory' state. It is highly unlikely it will evolve in positive directions of increasing democracy. While it may collapse, the future may instead be that of a corrupt, stagnating failed state which exports its problems to the rest of the world - failure to control drugs, arms sales to dangerous regimes, aids, illegal immigration, etc etc. An important antidote to all the self-serving business propaganda on China's economic miracle.

An Unscholarly Book.......2007-07-06

While the writing in this book is quite smooth, it by no means is a scholarly work (though in the guise of scholarship). The author picks and uses data and evidence that only fits his/her own political/ideological (rather than theoretical) framework, and ignores those that have been well researched and documented. In addition, most works--theoretical or empirical--cited this book is quite obsolete (except those from the internet, which tended to be superficial), even though more up-to-date and important scholarly works were already available in the body of the literature. For example, well before the book was published, there were already new, major findings about Chinese people's support for the government and democratization, and their political participation in both rural and urban settings. But the author totally ignored these new findings, probably because these findings were not very convenient to his/her political/ideological framework. More disappointingly, the book is full of the ideology/emotion-charged, groundless, and arbitrary statements (or beliefs) that you should never see in scholarly works. In short, this book has decisively departed from scholarly or scientific inquiry.

A Great Resource.......2006-12-07

Pei is well known is his field for writing about the political divide between the CCP and the Chinese people. This book does an excellent job in covering the realities of the economic and political situations within China. The vast majority of the book is actually quite an easy read, but the beginning of the book can be challenging for those that aren't use to conceptual models (hence 4 stars).

I highly recommend that those interested in China read this book. While I do not agree with specific points, Pei's general ideas are sound and provide lots to think about. China's government (read the CCP) must withdraw from the market if the economic reforms laid down by Deng Xiaoping are to continue and be successful. However, as Pei points out, by withdrawing from the markets, the CCP will lose a lot of its hard power.

Academic's trapped mentality: The limits of linear ideology.......2006-07-06

Reading this book is almost like reading "China's democratic future" all over again. It is all too familiar how normative idealism ruins positive analysis in these two books. The difference is: this one is disguised by more theoretical tools, the other one was an outright shout for a democratic China.

Democracy is a beautiful linear process that can be attributed to "growth determinism". Once the per capita income reaches $1000, then just "smile, you are on candid camera". The development theory is summarized by Pei as all about how growth determines democratization, and the evidence of growth not causing democracy is easily dismissed by seeing it as a short term phenomenon (rising prosperity makes political monopoly more valueable). If this logic is valid, one can also argue that the state's decentralized corrupted "grabbing hand" can also be a short term phenomenon for the long term reform. It's all about your starting point of analysis.

The pre-determined linear ideology of Pei leads to another glaring flaw: he fails to analyze the cause of democracy, as if what appears to be a correlation between growth and democracy is the causation. Douglass North is frequently quoted in this book, yet the major feat of North is: he starts with the cause of economic growth, not a linear ideology from the "prison of one culture". Given this, the discussion of gradual reform and shock therapy is a "fake issue" and a major distraction. More important, "trapped transition" is more a normative tautology than a useful analytical concept. When Pei wears a pair of dark glasses with an idealistic picture in mind, what else can he see except problems? What else can readers experience except his troubled mentality in dealing with China's achievements and problems (the whole book simply boils down to an ad hoc pattern of "on the one hand...on the other hand...")? As for the critical question on "why China is doing great if everything is really so dark?" Pei brushed aside the challenge with only a few paragraphs of guessing work. If one uses John Rawls' "justice principles" for the reality in the US, he can also argue what we see is a "trapped democracy" which is "for the few people, from the few people, and by the few people". And he can also get a reviewer to hail "trapped democracy" as a new concept for the satisfaction of self-congratulation.

Put it simply, when the target of analysis is totally Chinese, Pei is still obsessed with "Leninism" and the cold war ideology. As a Chinese, he didn't even talk about Chinese culture; as a US educated, he failed to start from the realistic perspective of "public choice" (rather than use it selectively to support his normative conclusion). If social scientists are all moral scientists, you think all research can still be fun?

It is really sad to see another serious Chinese scholar again fell into the one culture linear ideological trap. Assuming this book starts with the cause and reason of democracy, with the employment of available theories and a peaceful mind of multi-culturalism, we might see more fruitful results. One quick example is to analyze how each reform approach is actually structured by the contextual reality and how the state evolves and functions as a grabbing hand or a helping hand (instead of asserting gradual reform leads to a predatory state, which is nothing more than an ad hoc analysis); Other questions can be asked include: Are those "copy and paste" democracy (Taiwan, Mexico, the Philippines, India) and "plug and play" democracy (Iraq) actually doing well in economic growth and government cleanness? What is really beyond the simple installation of democracy? Will culture fail in "making democracy work"? What is behind the actual enforcement of democratic institutions?

The development of cognitive science and cultural psychology may be helpful for being self-conscious of the intellectual thinking trap, but the reality of research sociology may not be really in accord with a more sensible research direction. I wish I am wrong on this.

Forging Democracy from Below: Insurgent Transitions in South Africa and El Salvador (Cambridge Studies in Comparative Politics)

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Forging Democracy from Below: Insurgent Transitions in South Africa and El Salvador (Cambridge Studies in Comparative Politics)
Elisabeth Jean Wood
Manufacturer: Cambridge University Press
ProductGroup: Book
Binding: Paperback

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ASIN: 0521788870

Book Description

The recent replacement of authoritarian rule by democracy in both South Africa and El Salvador poses a puzzle: why did the powerful, anti-democratic elites of these countries abandon death squads, apartheid, and the other tools of political repression and take a chance on democracy? Forging Democracy From Below shows how popular mobilization--in El Salvador an effective guerilla army supported by peasant collaboration and in South Africa a powerful alliance of labor unions and poor urban dwellers--forced the elite to the bargaining table, and why a durable settlement and democratic government were the result.

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Political Corruption in Transition: A Sceptic's Handbook

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Political Corruption in Transition: A Sceptic's Handbook

Manufacturer: Central European University Press
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Binding: Hardcover

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The Illicit Global Economy and State Power

ASIN: 9639241466

Book Description

This book, a wide-ranging comparative review of corruption during the transition from communism, is a strong statement against corruption. It is labelled, however, a skeptic`s handbook because its treatment is entirely different from the usual preaching and excommunications. The real strength of the seventeen essays lies in their shared skepticism about superficial approach, including about external pressures on transitions states, like the much cited CPI (corruption perception index) of Transparency International.

Business Strategies in Transition Economies (International Business series)

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Business Strategies in Transition Economies (International Business series)
Michael W. Peng
Manufacturer: Sage Publications, Inc
ProductGroup: Book
Binding: Hardcover

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ASIN: 0761916008

Book Description

“This is the first book to comprehensively summarize and extend cutting strategy research with a focus on transition economies. It provides a readable and refreshing overview for seasoned scholars and executives working in this field, as well as valuable insights for newcomers. The book combines theoretical rigor with up-to-date evidence on a highly relevant topic. Mike Peng is already one of the world’s leading strategy and management scholars working on transition and emerging economies, and this book adds significantly to his standing.” —John Child, Guiness Professor of Management Studies, University of Cambridge, England and Visiting Professor of International Management, Tel-Aviv University, Israel “The widespread shift from centrally planned to market-based economies has been the most profound change in the world economy since World War II. While a great deal of work has examined the broad economic implications of this transition, far less work has examined its implications for firms and managers. In this seminal work, Professor Peng draws on his extensive experience in transition economics, together with his knowledge of strategic management, to describe how firms in these economies can seize opportunities for growth and success.” —Jay Barney, Bank One Professor of Corporate Strategy, Ohio State University “A welcome contribution towards our understanding of firm – level issues in transition economies. A particular strength is the chapter-by-chapter consideration of how strategies vary depending on whether one is a state-owned enterprise, a privatized firm, an entrepreneurial start-up, or a foreign investor.” —Paul Beamish, Royal Bank Professor of International Business,University of Western Ontario, Canada A comprehensive account of transition economies from a firm strategy perspective. Thoroughly researched and thought provoking, this book is a most valuable tool for both academics and business executives seeking to operate in this promising yet uncertain territory. —Oded Shenkar, Ford Motor Professor of Global Management, Ohio State University and Professor of International Management and Tel-Aviv University, Israel Business Strategies in Transition Economies probes into the workings of business strategies in former socialist countries in East Asia, Central and Eastern Europe, and the newly independent states of the former Soviet Union, which are collectively called “transition economies.” It provides a rich and in-depth understanding of fundamental strategic issues confronted by domestic and foreign firms competing in these newly opened markets. Written by one of the leading scholars in the field, this timely book is comparative, interdisciplinary, and relevant. Focusing on firm-level issues confronting top executives acting as organizational strategists in transition economies, this book covers business strategies of 1.) state-owned enterprises, 2.) privatized and reformed firms, 3.) entrepreneurial start-ups, and 4.) foreign companies. Since transition economies, taken together, promise to be the world’s largest emerging markets in the 21st century, this book will be an invaluable resource for students, scholars, and managers seeking a better understanding of business challenges and opportunities in these markets.

Transition and Economics: Politics, Markets, and Firms (Comparative Institutional Analysis)

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Transition as It Is

Transition and Economics: Politics, Markets, and Firms (Comparative Institutional Analysis)
Gérard Roland
Manufacturer: The MIT Press
ProductGroup: Book
Binding: Hardcover

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ASIN: 0262182033

Book Description

The transition from socialism to capitalism in former socialist economies is one of the main economic events of the twentieth century. Not only does it affect the lives of approximately 1.65 billion people, but it is contributing to a shift in emphasis in economics from standard price and monetary theory to contracting and its institutional environment. Economic research in transition shows not only that institutions matter but also how their evolution toward higher efficiency depends on initial conditions and on sustained political support.

Unlike early policy literature on transition economics, which focused on the so-called Washington consensus, this book provides an overview of current research, analyzing issues raised by transition for which economic theorists and policy makers had no ready answers. It shows how research on transition contributes to our understanding of capitalism as an economic system and of the dynamics of large-scale institutional change.

The book is divided into three parts. The first part looks at how large-scale reforms are decided dynamically through the political process. The second part looks at the general equilibrium and macroeconomic effects of liberalization in economies without preexisting markets. The third part looks at the economic behavior of firms in the transition from state to private ownership and compares the effects of privatization, restructuring, and financial reform. Although focused on transition economics, the discussions are relevant to topics in political economics, development, public economics, corporate finance, and micro- and macroeconomics.

Customer Reviews:

Transition as It Is.......2000-11-07

I would recommend this book for everybody who wants to know what and why the great new Transition Revolution has happened in USSR and East Europe.I use this book for teaching in the Moscow State University as the main textbook ,and students like it for its explanations of a lot complicated problems of Transition economical systems and policy making.

Welfare States in Transition : National Adaptations in Global Economies

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More Esping-Andersonesque Insight

Welfare States in Transition : National Adaptations in Global Economies

Manufacturer: Sage Publications Ltd
ProductGroup: Book
Binding: Paperback

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ASIN: 0761950486

Book Description

Published in Association with UNRISD, United Nations Research Institute for Social Development This wide-ranging comparative analysis of contemporary and future changes in welfare states examines the different trajectories of the welfare states of Europe, North America, the Antipodes, and the emerging scenarios in Latin America, East Asia, and central and eastern Europe. Leading experts from these regions explore the current structures of social protection, consider the causes of the current welfare state crisis, and highlight evolving trends for welfare policy. The emerging picture is one of varied policy choices in each region. Contributors argue that anxieties about population aging as a cause of welfare decline are exaggerated and that the key issue for welfare states is enabling women to work and form families simultaneously. They suggest that the neoliberal strategy of deregulation and heightened inequality is no real solution because its negative side effects. The authors conclude that a viable positive-sum solution would involve social investment strategies, offering guarantees against entrapment in poverty or low-paying jobs. Professionals and researchers in comparative social policy, sociology, economics and political science will find Welfare States in Transition an invaluable resource.

Customer Reviews:

More Esping-Andersonesque Insight.......1999-02-09

While perhaps not as ambitious as "Three Worlds of Welfare Capitalism", this volume is also less concerned to push a theory. Instead it takes a broad global view of Welfare States, not only in the rich western countries, but also in East Asia, Eastern Europe and Latin America. This collection of essays again shows Esping-Anderson's (and his groupies') enviably clear understanding of why Welfare States behave the way they do. The prose is wonderfully clear through-and-through.

Remaking the Chinese Leviathan: Market Transition and the Politics of Governance in China

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Remaking the Chinese Leviathan: Market Transition and the Politics of Governance in China
Dali Yang
Manufacturer: Stanford University Press
ProductGroup: Book
Binding: Paperback

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ASIN: 0804754934
Release Date: 2004-07-28

Book Description

In this provocative, important study, Dali L. Yang examines a wide range of governance reforms in the People’s Republic of China, including administrative rationalization, divestiture of businesses operated by the military, and the building of anticorruption mechanisms. The author also analyzes how China’s leaders have reformed existing institutions and constructed new ones to cope with unruly markets, curb corrupt practices, and bring about a regulated economic order.

Though still a work in progress, Yang arugues, taken together these reforms have improved the institutional environment for economic development and altered the landscape for China’s ongoing struggle against rampant corruption. These measures are also likely to have important implications for the exercise of governmental authority and for China’s future political development. As China’s role on the world stage expands, the way the State conducts itself assumes increasing importance not just for those concerned about the welfare of the Chinese people but also for those interested in China’s role in regional and world affairs.

Designing Financial Systems in Transition Economies: Strategies for Reform in Central and Eastern Europe

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Designing Financial Systems in Transition Economies: Strategies for Reform in Central and Eastern Europe

Manufacturer: The MIT Press
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Binding: Hardcover

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Emerging Financial Markets

ASIN: 0262133911

Book Description

This collection examines the design of financial systems for central and eastern European countries engaged in the transition to market-based economies. It highlights the need for better approaches to measuring performance and providing incentives in banking and for financial mechanisms to encourage private-sector growth. Written by leading European and North American scholars, the essays apply modern finance theory and empirical data to the development of new financial sectors.

Two broad themes emerge. The first is the critical relationship between reforms in the financial sector and in the real economy. Lending policies, which have a significant impact on business performance, need to discourage bad firm performance without prematurely liquidating potentially profitable enterprises. Conversely, the quality of firms influences the financial sector. If banks cannot find good credit risks, they cannot improve the quality of their portfolios. Until a critical mass of viable firms is built, equity markets will not develop sufficiently. The second theme is that the lack of fully developed markets and institutions may distort the policy outcomes predicted under models based on fully developed economies. Reliance on these models may therefore be inappropriate for transition economies.

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