From: jzhang@sdcc3.ucsd.edu
Newsgroups: soc.culture.china
Subject: Re: China's Education Expenditure
Summary: government role in a market economy
Keywords: statistics
Date: 14 Apr 92 06:10:30 GMT
Organization: University of California, San Diego

In my opinion, having a low ratio of central government expenditure/GNP
isn't necessarily good for a functioning market economy. The ratio
for China is about 19% in 1988, even lower than the 25% for U.S..
This figure indicates that China does not yet have a well-developed
taxation system, which would help finance the government for social
welfare and long-term investment in the nation's infrastructure. 

Enclosed is a related CND news about the potential of further
development of "Communist China"'s non-State sector.

Zhenqin Li
jzhang@sdcc3.ucsd.edu
 
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2. Non-State Sector to Dominate Chinese Economy ....................... 29
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From:    A CND Reader
Source:  REUTER, 04/11/92
 
MANILA -- Communist China's buoyant non-state sector could account for
three-quarters of its fast-growing economy by the end of the century, the
Asian Development Bank (ADB) said in a report on Saturday.
 
The Manila-based bank said the non-state sector could contribute 75-80 per
cent of China's gross national product (GNP) by the year 2000. The bank's
annual economic outlook said China's economic reforms had resulted in the
rapid expansion of the non-state sector over the past decade.
 
It accounted for 64 per cent of GNP by 1990, against 49 per cent in 1978
when the reforms began. The world's largest nation has just embarked on a
new phase of reforms. "The buoyant growth of the non-state economy is
expected to continue over the remainder of the current decade, under which
circumstances its contribution to GNP could reach 75 to 80 per cent by the
year 2000," the 52-member bank said.
 
The ADB report said the non-state sector included collective and private
enterprises, as well as foreign and domestic joint ventures. It said non-
state enterprises were quick to reap the benefits of the dismantling of
rigid central planning controls.
 
By 1990, about 464 million people or 82 per cent of the total labour force
were employed by the non-state economy, the ADB report said. The non-state
sector accounted for 95 per cent of agricultural output and 46%  of gross
industrial output in 1990.
 
It said collective ventures, of which the township and village industrial
enterprises were the most important, maintained the largest share of
output. But foreign-funded enterprises were becoming an increasingly
important part.
 
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