EC292 - Economic Transition in China
Professor Philip H. Brown
http://www.colby.edu/economics/faculty/phbrown/ec292/index.html

Meeting Times:
Tuesday and Thursday, 2:30-3:45 (see also below)

Classroom:
Miller 08

Office: Miller 238
Hours: Monday and Wednesday 10:00-12:00
Open door policy at other times.

Course Description
Since economic reforms were introduced in 1978, China has become the world's fastest growing economy and a dominant player in the global economy. This course presents a survey of China's dramatic transition from central planning to this dynamic, market-based economy.

The course has three primary goals. First, it aims to foster an informed perspective of China and its economy. In order to do so, we will study how political ideologies, public policies, and economic and social institutions have evolved and how each of these impacted the Chinese economy. Second, we will analyze the Chinese experience to think critically about the process of economic and social change more generally; China's experiment with socialism and its subsequent efforts to promote the market system make it a compelling case study for understanding how institutions and institutional change affect socioeconomic development. Finally, we will evaluate the implications of China's economic emergence for the future of China and for the global economy.

To achieve these goals, we will study a broad range of topics, including Mao Zedong thought, economic reform, poverty and inequality, globalization, and trade. Readings will be drawn from economics, sociology, political science, and anthropology. While recognizing the importance of an interdisciplinary approach, we will emphasize the application of economic theories pertaining to markets, incentives, institutions, and economic development.

Required Readings
All of the readings for this course are available online or through the electronic reserves in the library. Refer to the electronic version of this syllabus for links to the appropriate content.

You are also responsible for following current political, social, and economic events in China. I particularly recommend The Economist for in-depth coverage of the Chinese economy. Subscription forms will be available on the first day of class. The China Daily and The New York Times also offer in-depth coverage.

Please note that some of the assigned readings include topics and methods that are quite advanced. When you encounter particularly dense or difficult passages in the reading, please read for the main ideas. Clarify outstanding questions and issues prior to class.

Prerequisites
All of the books and articles we will discuss in this class assume familiarity with economic concepts and skills taught in Principles of Economics and Introductory Statistics. If you have difficulty remembering definitions or ideas from these courses, please see me during office hours.

Evaluation
Your grade will be a weighted average of scores received on two examinations, two short papers, one geography test, one in-class debate, and an undisclosed number of New Learning Quizzes (NLQs). Participation in class discussion is also expected; in cases where a student is on the margin between two final grades, consistent and constructive class participation may make a positive contribution toward his or her final grade.

• Examinations
  There will be two 120-minute examinations. Each exam will consist of several short answer questions, true/false/uncertain questions, identifications, and/or several short essay questions. The examinations will draw heavily from both lecture materials and the assigned reading. The mid-term is scheduled to run from 2:30 until 4:30. Please plan accordingly. The main topics for each exam are described below:
  
  
  • First Examination: Tuesday, March 21 (20%)
    main topics: China's industrialization in comparative perspective; central planning; collectivization and the Great Leap Forward; the Mao's political economy; economic reform under Deng; state-owned enterprises; special economic zones; and decentralization.
    
    
  • Second Examination: TBA (20%)
    main topics: economic growth; poverty; migration; labor rights; environment and development; China's accession to the World Trade Organization; intellectual property rights; banking reforms; foreign direct investment; trade; and currency exchange rates.

• Geography Test: Tuesday, February 14 (10%)
  This test will assess your knowledge of basic Chinese geography. You will be responsible for labeling a map with the names of provinces, autonomous regions, and municipalities. You are also required to know the capital of each province and autonomous region, as well as the geographic background presented in the first class. You will be provided with several maps for your reference, but you may wish to use other sources as well.
  

• Short Papers
  You are responsible for writing two short papers. Papers are due at the beginning of class. Each paper should be no longer than 3 double-spaced pages in length (12-point Times New Roman font, 1-inch margins). You must include a bibliography of all works cited (not included in the page count); a separate title page is optional. I will not grade beyond the third page of any paper, nor will I will read any paper that fails to meet these formatting guidelines.
  
  • Paper #1: due Thursday, March 2 (15%), beginning of class
    What aspects of the Mao legacy presented the largest hurdles to lifting China out of poverty? Identify the two most important issues and discuss how they weakened the economy.
    
  • Paper #2: due Thursday, May 11 (15%), beginning of class
    How fast will China grow over the next 10 years? Cite evidence to substantiate your claim.

• In-Class Debate: Tuesday, April 25 (10%)
  We will debate intellectual property rights in the context of China's economic development. Students will be randomly assigned to small teams consisting of 2-3 students each approximately 2 weeks prior to the debate. Each debate will last one hour. Information about the format of the debate will follow.

Topic: When in conflict, economic development should be prioritized over intellectual property rights.

• New Learning Quizzes, a.k.a. NLQs (10% total)
  NLQs are short, unannounced quizzes that ask you to respond to the assigned reading. NLQs have several purposes:
  
  1. to provide incentive for you to stay on top of the assigned reading;
  2. to enable you to demonstrate that you have internalized the reading and can think deeply about economic issues; and
  3. to give you a sense of what to expect in your examinations.

  There will be at least one but no more than five NLQs held during class. Each will count equally toward your final grade.

Summary of Assignments

Missed/Late Assignments
A missed NLQ, examination, geography test, or debate will result in grade of zero for the assignment unless authorized by the Dean of Students or the health center. For excused absences, the remaining assignments will be re-weighted appropriately. Papers up to 48 hours late will be penalized by 2*sqrt(# of hours late); no paper will be accepted after 48 hours.

Additional Required Meeting Times
2/23: 2:30-4:30pm (film)
3/21: 2:30-4:30pm (exam)
4/12: 7:00-8:30pm (lecture)
4/17: 7:00-9:00pm (film)

Academic Honesty
You are expected to adhere to Colby's policies on academic honesty. In accordance with these policies, students who plagiarize or cheat will be dismissed from the class with an F. Any such incidents will be reported to the Dean of Students and may result in suspension or expulsion.

Contact Information
E-mail is the most reliable way of contacting me, and I will do my best to respond to all e-mail within 24 hours. In the days leading up to exams, I will check and respond to e-mail much more frequently. In your e-mail, please include your telephone number so I may call if a conversation is more conducive to answering questions. If you need immediate attention, you may also call my home phone (872-2599). Barring an emergency, please don't call before 8:00am or after 10:00pm.

Other Notes
The majority of the readings use pinyin Romanization for Chinese words, and you will be expected to do the same in your written work unless the alternative Romanization is well-known, e.g., Peking and Yangtze, in which case you may use either. If you encounter words written in alternative systems, e.g. the Wade-Giles system, and would like to know the pinyin spelling, please refer to this guide.

Reading Assignments
Please complete the assigned reading before the date shown. Also, please note that this schedule is subject to revision; revisions will be announced in class and posted on the course web site.

* You are also responsible for other readings distributed in class.

References

readings:

Brandt, L., Hsieh, C., and Zhu, X. (2005)."Growth and Structural Transformation in China." Woodrow Wilson International Center for Scholars Special Report, (129): 48-54.

Diamond, J. Collapse: How Societies Choose to Fail or Succeed. New York: Viking Adult.

Friedman, Milton. (1970). "The Social Responsibility of Business is to Increase its Profits." New York Times Magazine. September 13.

Ge, W. (1999)."Special Economic Zones and the Opening of the Chinese Economy: Some Lessons for Economic Liberalization." World Development. 27(7): 1267-1285.

Hilton, I. (2005)."Made in China." Granta. (89): 14-54.

Huang. H. and Wang, S. (2004)."Exchange Rate Regimes: China's Experience and Choices." China Economic Review. 15: 336-342.

Huang, Y. (2003)."One Country: Two Systems: Foreign-Invested Enterprises and Domestic Firms in China." China Economic Review. 14: 404-416.

Hughes, N.C. (2005)."A Trade War with China?" New York Times. August 2.

Lardy, NR (2002). Integrating China into the Global Economy. Washington: Brookings Institution Press.

Lardy, N. (2005)."Exchange Rate and Monetary Policy in China." Cato Journal. 25(1): 41-47.

Lin, J. (1990)."Collectivization and China's Agricultural Crisis in 1959-1961." Journal of Political Economy. 98(6): 1228-1252.

Mao, Z. (1956)."On the Ten Great Relationships." April 25.

Naughton, B. (1991)."The Pattern and Legitimacy of Economic Growth in the Mao Era." In Lieberthal, K, et al., eds., Perspectives on Modern China: Four Anniversaries. Armonk, NY: M.E. Sharpe, Inc., 226-254.

Naughton, B. (1995). Growing Out of the Plan: Chinese Economic Reform, 1978-1993. Cambridge: Cambridge University Press.

Naughton, B. (2006). The Chinese Economy (unpublished manuscript).

Perkins, D. (1994)."Completing China's Move to the Market." Journal of Economic Perspectives. 8(2): 23-46.

Pomeranz, K. (2001). The Great Divergence: China, Europe, and the Making of the Modern World Economy. Princeton: Princeton University Press.

Rawski, T. (2001)."What is Happening to China's GDP Statistics?" China Economic Review. 12(4): 347-354.

Ravallion, M. and Chen, S. (2004)."China's (Uneven) Progress Against Poverty." World Bank Policy Research Working Paper 3408. September.

Riskin, C. (1987). China's Political Economy: The Quest for Development Since 1949. Oxford: Oxford University Press.

Schultz, Paul. (2004)."Human Resources in China: The Birth Quota, Returns to Schooling, and Migration." Pacific Economic Review. 9(3): 245-267.

Steinfeld, E.S. (1998). Forging Reform in China: The Fate of State-Owned Industry. Cambridge: Cambridge University Press.

Weisert, D. (2001)."Coca-Cola in China." China Business Review.

Young, A. (2000)."The Razor's Edge: Distortions and Economic Reform in the People's Republic of China." Quarterly Journal of Economics. 115(4): 1091-1135.

films:

China in Revolution: The Mao Years: 1949-1976. (1997). Williams, S. and Deitz, K., prod. Williams, S., dir. WinStar Home Entertainment. 120 min. Videocassette.

China in the Red. (2003). Williams, S., prod and dir. 118 min. PBS Video. Videocassette.

Da Gong Mei (Working Sister). (1998). Stevens, J. and Chu, E., prod. Stevens, J., dir. 28 min. University of California Extension Center for Media and Independent Learning. Videocassette.