Reforms are good. In China, at least, they recall the policies of reform and opening up that began in the late 1970s, laying the foundation for three decades of unprecedented growth and economic development.
China did not have much to lose in 1978, the first year of reform policies. But 15 years into the new millennium, and $10 trillion in annual GDP later, it stands to lose a lot. And serious reform is the only way to prevent losses and move on to the next level of economic development.
The stock market crash at the beginning of this year, the gradual decline in currency, and concurrent massive capital outflows, are the direct results of Beijing’s reluctance, or incapacity, to push through real reforms when times were good.
Growth will continue to slow sharply over the next few years.
, Peking University
