China's Rural Leap Forward Case Solution
Although they originated in the policies and associations of the Maoist era, TVEs flourished just after the economic reforms of Deng Xiaoping redistributed taxing powers, property rights, and obligation for the supply of public goods. These reforms gave party cadres strong motivators to encourage economic growth and made local governments dependent on their TVEs for tax revenues. TVEs were regularly helped by local officials under their authority to access capital, technologies, and creation licenses. Instead of quickly privatizing its state-owned enterprises (SOEs), China slowly liberalized facets of its economy in a restricted fashion, frequently establishing a "marketplace path" alongside its planned system. As the SOEs' share of employment and output decreased, that of the TVEs drastically improved. However, party officials questioned whether the TVEs were a feasible type of organization for an economy with ever-bigger companies, more sophisticated products and production procedures, and the need for proficient and more capital supervisors.
This is just an excerpt. This case is about GLOBAL BUSINESS
PUBLICATION DATE: November 22, 2002
Related Case Solutions & Analyses:
McDonald’s India
Otis Elevator
KFC China: Still “Finger Lickin’ Good?”
6 Items for the Top of Every Board’s Agenda
Buchanan Renewables: Bringing Power to Liberia
The Upside of Messiness: Clumsy Solutions for Wicked Problems
eBay’s “Connected Technologies”: Innovating Customer Engagement in the Retail Industry
Haier in India: Building Presence in a Mass Market Beyond China
Nonmarket Action and the International Counter-Money Laundering Act (H.R. 3886
The Paris Opera Hotel
