[Music]
[Applause]
[Music]
good morning everybody today either gave
it a lecture on explanation of the sixth
crisis in China that is the 1980s and
they are trying to give more detailed
information about the economic system
reform most of these are people both
inside outside nose that kind of started
the economic reform seems the layton and
insanity the early 1980s a last time
they have against the background and
analysis to tell people that the
economic system ethical reform is
exactly caused by the crisis the first
crisis happened in late 1970s and the
early 1980s is that it's caused by large
amount of the foreign capital flow into
China in the incentives caused by
because at that time kind of reset up
the diplomatic relation based vices in
society with Western countries and now
this time they are trying to give a most
acceleration about their background why
that China since 1980s China can
accelerate the economic reform and also
to have a so-called high growth since
1980s
the first we must notice that the 1980s
is that it's a new phase of Euro in name
of neoliberalism if you have the picture
I mean - I mean we have the picture to
show that originally since the change
the 1960s closer by the access
industrial capital extends in 1930s but
most of the time most of these are
countries set up the independence of the
Second World War still be very poor so
when licensed society Western countries
they re industrialization of the Second
World War they can produce large amount
of industrial goods but there is no
market so from 1960s the most of the
third industrialized country falling
into the social chaos and a lot of
laxity movements encoded by Morrison in
Western society became very serious and
many thousand people join the social
movements and and queue 1980s you can
see that the it's very clear to show
that what is the historical difference
1960s every decade every year the food
is and Counting the production as a
model decline so this mass production is
the kind of technical foodism for being
the tradition for the industrial capital
expansion but from 1960 to 1970 s they
cannot create the capital accommodation
so boundary every year and to 1980s and
1980s is very important because that the
1970s
late 1970's and early 1980s when China
is the biggest country biggest of an
edge country and also the biggest market
country is a bacon market five started
to absorb these are lights and country's
surplus industry capital
it's a immediate clear into a new
phenomenon that is here you can see that
the new production hungry every year but
the overseas and overseas capital
returns increased since then the 80s
when in san jinan the 80s and before
1980s and most of these advanced
countries only transfer out their
manufacturing industries to so-called
four small dragon
and the four small Tigers but leaves our
country in the region of the Laney
I located at the peninsula or Island
so the is the geographical size is small
and the population size also small so
they cannot absorb too much surplus
energy or capitals so this all started
from least a small economy but one China
open this to bison countries one time
and recited the diplomatic realization
mates bison countries it's a very
important because China is a big
mainland country so that is why from
nineteen seventies early eighties as
very familiar it is this American
industrial capital can have a more
overseas interest from overseas
investments so we go back to this one
so that is also to show the
accommodation since 1980s increase very
fast and then most of these are overseas
investments create hit large number of
the overseas returns flow back to
Western countries has been a throwback
to the United States mainly flow into
the stock market
darkness speculations so from 1980s that
it's a new liberalism a type to
financial capital grow up so industrial
capital decline and then can Nestle have
the increased so decrease an increase to
make the rights and capital system
meisten coveted system has a very big
change a new you we said it's a global
financial ization started from 1980s
combining by the neo liberalism that is
a very important background to
understand what is the route in
developing countries grow up because
that the industrial capital not as a or
really not as as a path it's a very very
important though since I'm here it is
financial capital play and leading role
that is a we need to talk about the
fabric so first we must know that it's a
new year financial capital leading the
the Western society grew up of their
depth of the accommodation caused by the
transfer out their industrial capital to
13 countries in the end half a large
number of the overseas return in any
overseas return can be very strong force
into the stock market financial markets
so this financial light their economy
and transfer of their physical action
through
to the financial capital e ro that is a
very critical firewall and because of
that that time the is a big change in
bison countries
so most of these on bison countries
mainly taking the revenue taking the the
profit from the financial capital drop
and because of channel regain the the
traumatically jim is bison countries
lisa industrialized country is advanced
the one advanced the country proud
competition to to the drawing
competition of the china in that through
market meaningful transfer the
facilities for machines to china and
then it make the chance means that the
traditional Chinese industrial structure
got a chance to restructure but
restructured heavy industrial machinery
industry military industry still need to
pay intensive capital investments it
winds up the institutional cost do be
very high and also there is a very
important event that is a Japan you ill
in nineteen seventies one time China set
of them diplomatically determines Japan
China don't want Japan pay the penalty
of the Second World War so and depend to
to be the return and leads up to get the
official a loans and also the
technological facilities for facilities
China
industrial development and that is a the
the interest rate in nineteen seventies
and eighties in China mainly most of
these are loans it's a more than ten
percent of annual interest rates but
just hanging with China the interest
rate is just a less than three percent
and also that the return period can be
thirty years so means a long-term loan
very low interest rate it's a benefit
this are China a lot because at that
time cannot still be the country very
much shortage of the capital investments
so Tappan give China large amount of the
official investment from the government
that is a very positive event for 1980s
restructuring the national economy
restructuring the national industry
structure and but most of the frost is
revered to foster a for superior of
Japanese a China large amount of loans
many a fifty percent needs to buy
Japanese facilities that is a means that
Japan by government's give loans to
China Japan sell a lot of facilities
machines to China to occupy the Chinese
machinery market
and then there is another very important
event in 1980s because of this the
so-called second land reform taking
place in the beginning of 1980s most of
these are newer areas house holds the
patent households take back their arable
land and then there are many surface
labour force release from the crackhead
system or literally these are Chinese
rule labor organized by the collective
system mainly mice into the rid of our
irrigation system and also invested into
state fake infrastructure construction
but from the 80s the government's could
have need to optimize the labor force to
e mais into the national construction so
the labor force secreted to almost every
household immunity to show that the
rural labor is a big surplus and then it
is a big surplus you know that and if
you calculate of the whole of the arable
land kind of only need 100 meaning the
ruler is enough but from 1980s when you
reformed finish you'll find that there
is almost 200 meeting to 300 meeting
subtitle-able
in the countryside so this is a big
service labor because it speaks of us so
the labor price is very cheap they
started to run their own workshop and
the factories in the countryside so
concept invaded in the practice grew up
rule industrialization mainly by the
source of LeSabre
invest into their own labor force for
the rural industry so that is a very
important because of the local
interpretation many rely on the rural
investigation so the beginning of 1980s
rural industrialization is indeed local
industrial region so well
take this events into the conservation
we may know that my kind of contain the
high growth because large number of the
surplus rule labor running to the local
industry addition they've got very
little income and the last amount of the
day this is interest taken by the local
industry and then to be the
accommodation that is the toast of
several years the rural industry vision
became more and more important growth
faster so we we should know that close
to by the rule aber the labor intensive
overseas amongst manufacturing
industries grow up in the coastal China
but another fact it's also very critical
because of all the rural practice system
almost almost all of them dismissed so
the people come this means break it is
dismissed
so the the agricultural production take
taken by this of small households and
small hustles doesn't need agriculture
machine
so before
1980s China has set up almost three
sources County levels agricultural
machines factory every people's coming
China has set up five small factories as
people's coming
so these are two levels people coming on
changing into the toxic level and the
county level still the county
these are two levels agricultural
agricultural machinery system almost
bankrupted so means that from 1950s can
I invest it into the local industries
mainly for Pacific Heights agriculture
production after you reform after these
are households regain the land they
don't mean these are machine works in
agriculture so the county level and the
township levels machinery factory almost
bankrupted because the market and see
whether the industrial areas chained by
the county levels machinery factory
bankrupted certainly the upper level
like the having the trees my industries
and the solar so all have a very bad
impact so this is a a kind of negative
change in one the local factories and
replace and opera one in the image in a
series the the these are take industrial
factories also need to facing very
negative situation so Lisa is a the
events of the 1980s reform
and we have given explanation about
these things this one it means that the
Japanese a China the from from 1979 to
2012 Japan gave the official development
assistance Oda to China and it's almost
60 percent of that times overseas and
eight overseas assistance loans so most
of these loans these are Japanese loans
invest into the infrastructure
construction and the first for three
years many by Japanese machines and
companions facilities and later mainly
invites included infrastructure
construction and infrastructure
construction cannot have the return in
short term so so Japanese development
assistance loan became very important
because it's mainly invited into the
infrastructure construction and also
because of this loan mainly invest into
the infrastructure construction means
that Chinese government's need every
year to have such kind of assistance
loan and then to pay back to other
countries you know you when you take the
facilities from 19 countries you also
need to have a long term to have a
returns and not shorter so these are
means that every year Chinese
government's have a large amount of the
foreign debt and then foreign debt to
GDP especially the short term foreign
debt to the to DDG it's very high so if
you cannot have a kind of sustainable
foreign aid immediately Chinese comments
we are facing the challenge
of the budget deficit so that is why
making one page to shows that Japanese
official assistant loan official
document assistant loan as a as a can
play very important role in 1980s but
one thing is a somehow turn to the risk
because Oda mean the official
development assistance and give to China
calculated by dollar when panel paid in
the back it starting from 1970s China
paid it back starting from the new
century and they say that it must give
to the Japanese yen and Japanese yen is
a somehow the the expert converse will
read Japanese yen increase so means that
China pay back need to have a more cost
so that is a risk most of this Japanese
official assistance loan to China the
dine face many 80s Chinese imports for
construct construction
and the course of my visa for a and the
foreign investments close to by the
large amount of foreign capital flow
Indochina mainly taken by the central
government so the central still maintain
their traditional policy to use the
foreign capital to the for loans to
restructure the traditional industrial
structure means that since 1950s when
sweat Union gave the facilities China
that is a mini-game to military industry
under heavy industries so this is a
highly natural military industry I have
gave the explanation you need even
double cost to maintain nowadays Chinese
want to restructure the industrious
industrious industrial system and then
to develop more light industries and
textile industries and chemical
industries but until then use and use
this purpose never been carried out
because of the pure politics because of
the facing a lot of political challenge
until late seventies to release energy
early 80s so this time I mean Chinese
central governments still maintain their
policy to change the structure of
industries and in the to make the light
industry in the textile energy is grow
up that is a they need more capital
invest and then they can cut out their
cutters so for that one
they need to take the cost a big big
cost is that is it's a capital intensive
readjustment and also hosted by the
local observation mainly you might say
goodbye overseas Chinese company these
overseas Chinese company you might say
into the coastal area that they have the
facilities machines from overseas also
the markets in overseas so they don't
set up any relation with the inland
industries it means that inland
industrial especially national
industries have no market there's no
relation as a market between central
control national industry capital and
local comments overseas manufacturing
industries
I think that people need to pay
attention to this religion cathouse
originally the local industry only can
be pathetic highs by the central
industrial capital central control the
machinery industry control the heavy
industries in central can produce a lot
of machines to the local if any local
encoder of their local industries they
need to have the machines from Central
but nowadays since 1980s because China
especially the coastal area absorb a lot
of manufacturing industries from
overseas Chinese investments they move
the machines from overseas and also the
products sell to the overseas so means
that such kind of industries allocating
the coastal area has no relation with
the national industries inside of
mainland China
this is this one is extremely important
just like I mentioned that one
the agriculture separated by the
households they don't need agriculture
machine so these are national
agriculture machinery system by graphing
the similar regulation economic
regulation if the all of these
manufacturing industries they didn't
mean these facilities from the national
industries especially the national heavy
industries and the machinery industries
means that the national heavy industrial
machinery industry also have a no market
so they fall into the trap means the
more you absorb lease of foreign capital
in overseas from overseas allocating the
coastal area so the booming economy grew
up in the coastal area the more overseas
investments in the coastal area the less
market of the national industries or
Italy you paid very very high cost to
maintain the sweat you need invested
having natural military mystery finally
we found okay you have no market nowhere
near you produce the machines to deter
overseas market needs so that is a one
the central take a lot of foreign
capital trying to restructuring their
national their state in discover the
system finally they face high cost of
finally found there's no market that is
a central industrial the sense central
industries they're the track of central
industries and then local and the local
because of in the beginning of 1980s the
Chinese have a kind of very important
change or literally they they trying to
have a balance of the regional
so that's 1960 1970s the transfer large
industries from coastal area into the
inland into the vast asylum that is the
so called the filled frontier
construction pays almost 260 feeding
time soon
it's large payments for move the coastal
industries into the inland China and to
almost pay the 20 years at that time
they set up a new series for development
that is a floor document in step by step
we need to first the run developer is a
coastal area this opponent is in enmund
a big Ridge and then they can
precipitate the inland provinces
so they said allow some areas reach
before others that is a kind of new
strategy for 1980s development so
because of this strategy and the local
have a big difference that the regional
gap enlarge the coastal China have a lot
of foreign investments for manufacturing
industries for overseas export for
exports overseas means that they have a
strong relation with the overseas
markets but no strong relation based
inland market they only need cheap labor
and the raw materials sometimes or some
area they even doesn't need the
materials in local they can input the
materials from overseas and then sell
their products to the Ortiz so means
that the coastal area that is a became
more and more economically independent
strong relation is
overseas less religion is inland so that
means this is local Indonesian many
focus on the overseas markets but can I
have a traditional geographical line
from Columbian there is a counting in
name of Iowa and down to the south
Yunnan Province there is a counting name
of Tonkin so you can cut a line from
African country that is a the line of
East and the West in China so 70% of the
capital a located in the east 70% of the
natural resources are located in the
West
ok so the country in NZ in the coastal
area and then natural resources
advocating the best so that means that
these are coastal area they mean that
needs a part of China take the mine take
the coal and a lot of resources for the
coastal area development and also for
foreign market for overseas market means
that China is the ordinary a kind of
very sharp natural and southeast country
a very limited natural result is taken
by the coastal area for overseas markets
does it mean that means that the gap
between East and the last not only the
economic gap but also the natural
resources gap means that you cannot use
your unlimited demand for resources to
benefit the older people so these things
this phenomenon taking place in 1980s
because of you need to develop these our
coastal communities coastal by you set
up a new theory of the development
you step-by-step and these are young so
officially you can you can see that
China grew up in the 80s very faster but
if you do the deep end if you're giving
all your studies into the Chinese
development you can find there so many
contradictions in 1980s and also there
is a very very important event they need
to know that code so China at that time
its prominent is when they absorb the
foreign capital it's not played back by
themselves because China is a kind of
very very independent financial system
any penny of the foreign capital flow in
China immensely taken by the central
bank turn to the the army against two
armed beer so means that the training
central governments take the
responsibility of the foreign capital of
the foreign debt the foreign capital
investing into the any area in China
immediately turn to the responsibilities
taken by central governments so that is
on the local governments can have a
faster growth but the cost especially
the foreign investments as a cost taken
by central so most of these are people
they deserve this is a serious a coastal
area have a booming economy that's and
ok it's good but they never do the
studies to notice that the
responsibility the institutional cost
not taken by the local that is the mine
there are so many contradictions between
central and local happened since 1980s
it's also very important to know that
because of the overseas investments into
the coastal area so the local
governments in coastal area their policy
mainly pro foreign capital Pro foreign
capital policy in coastal area means
that they would wouldn't like to set up
pro-labor pro-environment
the policy cannot be your net is a
conviction if you set up your policy for
pro capital as well as Pearl foreign
capital means that you are not Pro local
capital you are not pro to local labor
Social Welfare
you cannot pro the local environment so
it means that the coastal areas moving
economy have a very big cost not taken
by the coastal area the financial
capital turn to the path taken by the
central and then they don't pay the
social welfare to Lisa o visa
these are migrant laborers so the social
welfare whatever the children in the
aging people whatever is that you need
to carry lot of visa
these are modernized population this
responsibility take advantage inland
local governments and also they don't
care about the environments so large
amount of the pollution happening in the
coastal area nowadays so that means even
they have a very fast growth but if you
do and you're doing your studies you may
find the result very complicated very
comprehensive institutional cost still
happen but not paid by coastal area this
is a sort of the regional gap not so
simple
not only the income gap they need to
notice the the the unbalance not only
the economic affairs but also the sofa
serious and the environmental fears and
an illusion and whatever so many things
it's not cannot be single positive so
local indoctrination also have a big
institutional cost so the thing about
these are two hands to tack of
indoctrination both have a very big
institutional cost so in 1980s when Lisa
institutional costs created finally
you'll turn to the crisis not only
economic crisis but also the political
parties to leave us the contradiction
between local with a local local local
between central and local between
different social groups between
different interest groups become more
than more serious so the 1980s a lot of
people think that is ideological you
shiver I said no it's because of the
economic growth in inside of economic
booming growth there are many
conversations narrabeen analysis by the
officials and scholars one when they
talk about Lisa these convictions we
have to say something that he said in
1980s Thailand also renamed by my study
ideology as a new liberalism and the
times leader in 1980s also renamed as
the leader of neoliberalism because that
is a trusted kind of trying to gather
bison countries move out their inner
trees their facilities there must be a
big one can be market can be the
container to absorb these are foreign
industrial capitals so that is a
so-called international market or in
international institutions so why people
move interested in
into the new liberalism that's because
neoliberalism not only takes place in
advance the country they bound to move
out there are physical productions
they'll turn their economy in put high
levels into high structure that is a
financial capital Europe but these are
phonetic of the euro they need to find a
container to contain the intensive
institutional cost
this is the children cost turn to the
China and China inside China begin
multiple contradiction including of
central local local local different
interest groups and whatever so as from
the 1980s when China take a large amount
of foreign capital for high growth that
is a lot of people think that's a very
positive experiences few people pay
attention to the negative
lessons so my analysis very much
emphasized you even you have your
economical growth you'll need to do some
studies inside of economic growth to
notice the institutional cost so that is
a test page they are trying to do the
acceleration okay so for central the
central government's almost carried out
their purpose because they want to be
structurally the economic the
restructure the the national industries
okay they gain the gain this a so look
at this one from the nagas 1985 it's a
close I mean by Anisa
from 78 started in the economic reform
and the last industries go up
and from 85 is almost close and prevent
he is a half half so heavy industrial
lacking upstream the structure became
close means originally is having not
replace what wouldn't a clear sense in
1950s modern sounding sense and 1970s
down to a sixty percent and then turned
1980s so 36 cents means that the
national industrial structure or Italy
is in violent as a more have a more
highly capital highly noxious now turn
to the half half so that is a very
important since 1980s a lot of people
salami goals can be satisfied by the
national industries this one is that I
mentioned this a line between I agree
and 10 to 70 percents of cargo
allocating by East and 77% of Natural
Resources natural result it's allocating
the rest and this one is talking about
the the coastal areas overseas
dimensions we have understood the Latin
countries transferred out their physical
industries their manufacturing options
first that Lisa from 96 to 97 to visa
Asian small economy economies like South
Korea like China Taiwan Hong Kong in
Malaysia and Philippine and in Thailand
and Singapore and this compelling is too
small and small labor force so less than
10 years almost all of these are
so-called
the price of productivity increase
increase very faster and means that is
in factoring industries in these small
economies you not very effective so they
gotta move and hunt and then when they
move and they lost their a production
the best place is Costa time because
that time I mentioned because Kota China
can absorb large amounts of cheap
Labor's from England China and means
that these are overseas Chinese
factories the rocket moves to the to the
coastal area but it's also very
important because that when they move to
the coastal area to only allocate it in
parallel area here also this is a Hong
Kong and Macau this one is Taiwan means
that the overseas Chinese investments
not part it to the whole coastal area
the only hassle in small area near Hong
Kong because the this be benefited by
cheap product in this price by the low
price of productivity and if they move
to some far further they go they go into
some inland even in Guangdong problems
if they go to the North condom or buy a
condo or they need to pay more cost of
the transportation so they only see
around Hong Kong means that they can be
easier to transfer out to export their
products to the overseas market so this
phenomenon shows that large percentage
of this support overseas investments
from Hong Kong
for this uh-huh so until now our
learning in 1980s more than 90 here 90
percents of the condom problems and
overseas investments from Hong Kong and
Macau nowadays still be 66 and not look
that is a 60s knowledge so our learning
environment is now still be more than 6
60s so this immense dosa can prove my
arguments just now I restart
to make people understand only take visa
overseas manufacturing investments
cannot have the ability to create your
capital your only give the profits to
little over CC masters you have a
limitless interest controlled by the
local so the local cannot have enough
ability by the new capital accumulation
for operate their economy that is a
nowadays in Guangdong problems or even
to a young and the Fujian visa
these are coastal provinces they have no
ability to upgrade their economic
structure and and even they want to
change these low levels manufacturing
industries but they have these are
manufacturing disease has very strong
relation with the local Eadie's it's a
local interest group
so after not even large number of the
foreign especially from Western
countries overseas investments would
like to immerse into China place many he
must into Shanghai or jang-soo of
Shandong or ISA ISA area not in
Guangdong
Oh for them it's because of the most of
this land have been occupied by low
levels manufacturing industries so you
cannot just kick them out so that is a
may talk about the the local industries
we need to know that there are so many
things we should go in for forward to
carry all the studies
and then they may have more experiences
and lessons to shows to the to other
developing country one meaning a little
it's a it's a big nicer if you only can
absorb listen these are manufacturing
industries for overseas market needs
means that you cannot have the local
ability for capital accommodation for
your set of your own national industries
also cannot set up any ability to
operate your economic structure so this
our lesson we taken with me they took
from coastal China especially the sauce
east coast of China but this it's made
may be applied to other developing
country but certainly that they want to
have a very fast money this are always
these overseas investments focus on the
manufacturing industries is faster and
the easier means in fact knowledge like
venom like a murmur of Bangladesh Sri
Lanka these countries they are now taken
a lot large number of the manufacturing
manufacturing industries from China
nodding that is because the labor price
and the environment price o goes high so
they moved move through these up more
poor countries the Lisa manufacturing
Dutch is only speaking the cheap labor
and chi'lan because there they have a
even know exactly interest they only can
take the revenues from this area that
the local Commons Pro foreign capital
not pro-labor not pro amendments so they
take another interest
these are manufacturing industries
mainly take the profits from the revenue
of social welfare of the environmental
protection means that even local
governments didn't set up the policies
to protect the labor welfare didn't pay
the extent of the social umbrella these
are funds not paid by dollars but shared
with the local governments and these are
investors these are foreign masters also
it is in in China it's a most of its
Labour's they have a generation by
gender not the old generation has been
back nobody gave them the pension farm
nobody gave them the social securities
their problems only can be solved in the
inland provinces so one may pay
attention to such kind of Dorfman's we
need to indicate this is a there is a
not benefits not benefited the local not
not benefiting local but it only
benefited some interest group some
localities this is not a kind of
inclusive increase in so exclusive so we
became some pictures some data's here
trying to show that it's a big lesson
and here we give you the number of the
so-called labor when China also started
the reform the labor force in China is
the highest in the world most of visa
labor force to the total population less
than fate events the China is a city
three point five percent because female
labor drawing the the work the highest
percent of the world most of these the
country's female have a lot of
difficulties to draw in the labor market
but in China because of the land reform
since 1949 and maybe in female labor
released and liberalized and so and to
not so the female labor drawing labor
markets China is the highest up to now
so it's caught by that line so Chinese
the labor force to the pros population
the highest in the world and seeing
about this manufacturing
they had a lot of young female labors so
that is a quite difference with other
East Asian consult South Asian countries
so when we just talk about the central
in the tradition local inverse relation
we find that the central local the
bodies is a change and in the 50 then he
cities because of the sweat you need
eight China that's mainly taken by
central so so the central bodies so 80
percent or less than 80% 70% something
and then because so as you need retreat
the central budget down to the 20% the
near in 1960s because of the three that
the Third Frontier construction central
concentrates some puppets power so it's
increase in the cost of I many selfies
large number of the recent investments
only taken by the central so the same
central parties also increased and then
here when we talk about the crisis the
later 1980s
the crisis happened and then central
must have paid a highly foreign debts so
the central body decrease until 1994
when the the tax division reform taking
place central budget and look about it
half to pass after not so you can see
less different time different pura
different policy to make the central and
the local the conversation between
Central Local we make we use as a
picture to show that the conversation
between sent Central Local I saw it son
indeed it's very critical and the
central always want to take more but
local always want to protect local
interests
so this is a big country have a
long-term confliction between central
local here when we talk about the late
1980s crisis taking place it's close to
by the so-called clean track system and
these are three prime system created
bureaucrats speculations and then turn
to the hydration they work the situation
because of these are two scenes Melissa
between price system are literally in
rural China the peasants seller family
products in free market that is a market
price but the government's want to take
the phasers for the government inductors
accommodation so governments gave a low
price to take a part of our products so
there is a trim price benissa farmers
market price another is government
purchase price so that is a dream price
system from 1950s and to not in our
current society is to be clean price
system but one the urban area want to
carry out the reform they gave the the
garments department special priority
instruments human Commons Department
that time lists are somehow not high
income there are measurements income
comes obvious in Constabulary law and
also cause divided the list sank in
early 1980s large number of the urban
use have no job including a Visa card
young children the colored children need
to have a kind of priority so means that
from the beginning of 1980s the central
government gave a special priority to
the the government departments our
government departments can set a company
this company created the interest
contribute to the department and then
department officials can shear such kind
of interest for the subsidies of their
daily life like even in the central
party committee they have a central
party department they are not very much
involved of the economic affairs so and
you know I still remember in 1980s the
the north most part of the canal high so
made us all see it's a Wordsworth
calculation and that the the north part
of this central yard along lead by right
of walk so the center of the china-north
heart belong to the City Council salt
Hospital central party committee
the salt spots the Cochran's these
officials some housing that they are
lower predation may in the North because
North is so state council they curl up a
lot of economic department means they
control these economic affairs and then
they have a lot of benefits from the
from different levels economic affairs
but the assault they are in charge of
the party affairs not very much involved
of the economic affairs so they have a
no such heinous benefit so the sauce
some sometimes especially low levels
card or not high levels they they can
satisfy their predation and they also
can have another predation when they
became major age even elder so they may
take some position in Economics
Department and but these young colors
the campaign we are very poor yes an
inland Haiti's as at that time I was a
young fellow in the central party
committees office for rural work and for
rural policies may have known any
benefits so even there's no dining hall
in the in the in the inner in the
department they got to go to the street
to have a lunch or dinner we are very
cautious to save money and because the
our time is they are there exactly cool
so and by you allow these are
departments even our departments as a
kind of office inside of party committee
central leadership we also have the
priority to open a taxi company
and others anyway you have your you have
a special right to open a company and
then you will take the benefits from the
company when they have the kind of
special rights and these are these are
government departments when they control
the purchase price they can move a part
of these are low price materials all
commercial goods to their their company
and then to take more benefits from the
market and then to subsidize their
officers this is this is a started and
when they started by such kind of bad
behavior and then you need to return to
the corruptions and because that the
more you take from the your purchase
price the subscreen price system means
the more you can have the benefits from
market so that is a lot of adaption a
shortage of the law matures like Aaron
and steel materials elect semental
materials and I glasses and so even that
the fund means that they give a part of
their their control their by the
planning control they still have a lot
of power so they use their power to
change into the money
this is 1980s and then who did it their
children so their children we think at
that time that even older people have a
very bad comment to such kind of
craptions
they're from the near 80s and then the
people talk about quando quando means uh
the cross bureaucrats
business so even you are official you
have your business your business is just
a take user these are low price
materials into the markets
and then set a set they don't directly
newsletter put has price matures into
the markets no it just gave the
documents how much you can have and then
these documents can be transferred one
by another even ten times transferring
prin large amount of the profits but
make the market price increased more
faster than before even to make very bad
inflation so the the more shortage the
more high abrasion many caused not by
so-called the market hydrogen mainly
close to by the bill cross business
these are things I suppose I deserve I
lost a lot of social complain because
finally this heart nation became the
Institute or cost taken by the society
by the common people so this is a also
no matter whatever you want to Carlos as
a reform all turn to negative things
room because the ISA these are even Lisa
these are these are businessmen they
don't believe that you have a good
policy because the every day defeating
the the challenge of the Prussians so by
such kind of tween price system created
large number of the bureau cross
speculation and the corruptions allotted
a lot of social campaign and then turn
to the hydration
so we can see it here as according to
some scholars study in the year 1988
that is like high inflation taken place
the total amount of the price takers so
three hundred fifty point nine billion
times GM it's almost thirty percent of
the total income of the whole national
income and there is also bigger than the
total savings in the bank system means
that large number of that the the
profits lost by such kind of system
and then not only for these are a new
suspect later
these are birkhoff's corruptions they
take large benefits but also make the
high evasion
it has seen us here is a hydration
season the reform there are two times
hydration Mondays of 1988 to 1989 and
then legend and his tongue to the bottom
and then second time is the 1993-1994
so let's oh these are two crises close
very close
on this one I said the hydration many
cause divided the bill crass speculation
and also we need to give another event
and then to help you to do the analysis
locally not relation also need large
amount of the raw materials rule in
authorization have never been calculated
by the planning system so the local is
not religion some of of them are located
in the coastal area they can input raw
materials and then export manufactured
products they can at least make some
balance but it's a rule in the tradition
under the county level developed very
fast but never being calculated by the
planning system only one way they're
trying to take the raw materials and the
bank loans the funds by some matters
I remember in 1980s and and some local
people trying to send the case to
Beijing to some calm departments in
Beijing the streets is very complicated
and traffic also bad so they will know
how to drive into Vania so at that time
in that Hades help them to be a pallet
to give them the lake how to find the
government departments also at that time
there's not so concentrate I mean the
the whole of the officials all of the
employees in the common departments they
can share saving the benefits given your
Minister you only have some maybe a
blanket of the acts because local
acceleration these are rural factories
they sent a lot of fresh agriculture
products also the local products they
may send you some some clothes and some
some curtains or some talk of some acts
is a big track drive to the comm
Department yard and you can share
equally but just a summary flavor they
change they don't need to drive the
track into Beijing it's too much highway
they just go to sent to the kickers send
it to the key presence in the end the
corruptions concentrate to some small
group that is a late 1980s
so the order the regulation let's go
change a decent very bad impact the
official system and so that is up but
most of them you can you can just take
the requisition is it just imagine if
you are then but you are trying to do as
a change they descent okay we can do
something yes they did the data is what
is that the so called the price reform
to market eyes oh the price but is
immediately when they just have a
discussion in the prodigal euro trying
to to issue a new reform means
marketized
oder price immediately turn to the
social chaos in 1988 in in May of 1988
Shango how to say that
jungle
No
we in the math people hustle in the
store to buy my hair they can buy
because they all worry about the
inflation and they suffer a lot about
such kind of speculation turning to the
invasion so if the store gave some some
commercial groups there in Italy hassles
to take it so make Lisa these stores
cannot open at all they're just open
little and then to whatever you want to
buy a gave me money and then Gabriel the
commercial goods so this is this less
pictures to shows that people hassled in
the counter in the Seoul to try to buy
even they don't need to buy another
things store in the home and many
decades is still be there and like the
the clothes all the the auto Xena
Cezanne she even powder of the washing
machine all that but anyway we buy a lot
of daily life used commercial goods and
this is one that the central just begin
to discuss they said okay we can make a
market has older older bla matures and
undergoes and whatever means that
mechanisation when they want to adopt
the refund policy towards mechanisation
if you can computer inside uni other
East European countries no matter where
or what been relative error error when
they try to exactly to move the
magnetization to Institute's
institutions
to their country almost all of them are
lost take a lot of trouble even the big
chaos pine I did earlier so in late
1980s not only time but also East
European countries and so as you need
old beliefs marketization all believe
free market system so when they started
a lot of social chaos happen here is
also in the end when they are
dissatisfied they go to scrap this under
contain here is a tongue down with
bureaucrats business and also this Sir
Thomas bureaucrats is even this young
tastes
I think assimilates of pupils in it in
the in the school they go to sweet
because they also suffer of hydration so
and then finally turn to the 89
political movement in Tiananmen Square
here also anti-corruption in name of
ceremony of oil bomb this is a money
lands flag have a to slogan this one is
us in name of 12 on because Robin at
that time is somehow not corruption and
another side is a untied your cross
group and also untied the corruptions so
these are put these are pictures
together you can find this even the
priests map as it I got time shows their
their agreement to the to the social
campaign that is a
protesting to untie the corruption and
tighter the high inflation so the
hydration make the people I mean the
common people very much cautious of
their daily lives so they drawing the
the mass buying things but the mass
hassled in the store one by another time
so several times happening but here the
the mainstream officials feel insists on
such kind of market addition there is a
policy so not only in May they started
for discussion they make decision a law
specifically on an L in later in the in
the in the tool and in the July and
August insist such kind of policy and
then to make more people to make
nationwide mass not fighting the mass by
people hustled to the store to buy an
error and because of people go go to the
store to buy the commercial goods and
then the price increase more faster than
before and also these are gross business
they to take this chance because its
historical chance its market price much
much higher and then these are tortures
price but not low so if they are they
are the building's name they must take
this benefits so means that the more
evasion the more that the bill class
business do the speculations let's link
the late 1988 30 1989 the social chaos
everywhere so not only the chairman
Square but also a lot of people drawing
them the local campaign so they when
they have such changes example crisis we
must know that
does the mainstream policy designer made
this they take faith need a date gift to
have a measures but mangers make the
folder more crisis because it is the
first because of the hydration and the
people go to the bank to take the phase
to by the commercial groups and then the
bank will be bankrupted if you have a
too much people take the savings out of
the bank and then thank you we have a
will happen no money to give it along to
the industries and the commercial things
event so that is that is a that the
leader first give up the price reform or
literally they have a very strong mind
to market has the older price but from
the lace always the leader refused
I mean came up as a reform and then the
the same time they take a kind of
special policy for maintainer savings
interest the saving interest not only
the bank gave the public to publish the
saving interest but also according to
the inflation how much invasion and the
government subsidized that the bank
subsidized your savings interest and
because that time and the inflation
increase to more than fifteen percent so
if you savings is that maybe five
percent as a interest rate but you can
meanwhile have another fifty percent
means that you're singing roots can be
20% 20% singing Reese how much is the
loan the bank rate if you gave loan
you'll pay the same receiving interest
20% you need at least five percents as
well ask a sub bank cost so means that
if you increase the fig Nerys you must
increase the laundries the garments only
increased saving areas not increase the
batteries and then you can that's what
happened the first bank they have the
chance to do the teaching rents means
rent seeking because there is a big gap
between savings and the lawns means our
loans need to have a you know everybody
must have a loan you need to pay at
least 25 but because you've only paid
maybe 70 the seven or eight hours early
because that is that that the cigarette
is only five and then low and grace is
only silent so it's a figurative sense
as a bank cost and but nowadays the
saving rates increase to the 20% but the
laundries still remain 7% means that
these are this employees in the bank
they have negotiate you pay more than
seven maybe fifteen you still have a
large profit
but another one so some people
calculated these are magnets interest
rates every year annually maybe more
than 300 be a bank itself have no such
chemistry hundred billion these are
large amount has the benefits lost that
is the first problems means that you
have a minor interest rate because
you'll pay more to disappearance they
pretty let you you got less from the
loans so then that is the first but
officially immediately turn to the
second very negative events that is all
bank have a large deficit the banks and
deficits Bank belong to the common sense
at high in late 80s and early 90s and
Punk all the bank there's no private
money so the bank is a common sense so
the government's immediately take older
Bank deficit into the body deficit so
the late 1980s December the gums parted
deficit increase more faster than before
so means that also means that the
government's have no ability to invest
into the in dissociation it also means a
large number of the employees have no
doubt so in the 1989 close by the
hydration and also caused by the
colonizers in 1989 in is a turn to the
social conflicts it's a very popular
regulation any Asian any institution if
you're facing the challenge of the
hydration you need to take some measures
most of these are gone
writers made negative impact that is
unemployment increase so in 89 because
of the governments have a very big
deficit short of the investments ability
so in 89 started of unemployment problem
and also because of the the garments got
to increase the bank rate for the loans
so in 1989 a lot of business in reality
they don't take the bank loan like these
are is a stores these are stores these
are business they need to take the bank
loan and then to buy the products from
the factory and then sell these products
from the factory they sell the product
in and pay back to the bank that is a
cycle but these are source
these are shopping centers decided to
the to the upstream to these are
factories then okay I can sell your
products but I cannot pay on money
because money is too much high price so
I have no fun you can deal you know you
can give me your products and I sell for
you Indian means that these are this a
shopping center
need oh Lisa factories but they need to
pay the salaries to their employees so
they never reduce any fees the cost to
be there so the whole of the economic
system became chaos and then the these
are the answer for that means that that
that the task became a contains then
because the factory produces of products
needs to pay the the machines to the
upper screen factory they have no money
so they decide okay I owe you make the
whole of the induction chains became of
handles testing let me see 1989 and I'm
219 Angie so that means that that the
whole of the industrial student cannot
run the whole of these effects psycho
stock cause the finest financial capital
problem so these are the real economic
crisis taking place close to by that
leaders trying to follow the
neoliberalism to market higher the whole
of the economy and then they facing the
challenge they have no applied matters
for preparation the only thing that okay
they going on with that the the path of
the market ISM that is a the only right
way the Monday's trying to adopt these
measures they immediately facing a lot
of big problems and then also turn to
the social chaos and then at that time
because I think that the most abuse of
senior senior leader they have know
exactly the knowledge of
Mazda economic crisis and they also have
knowledge to know that the economic
crisis must turn to the social problems
so they think that is ideological issue
so these made some political measures to
try to price the so-called copies a
month illusion they give a lot of new
concept to describe such kind of social
problems they said is because of you are
in impacts by the coverage ideology oh
they may think that you are trying to do
some passings to involve of the
stability so they are they have been
some measures so that is by it's a turn
to the can protocol events and then
price by the comments so this is a the
the 1980s it's a very clear picture
after we can tell you that what is the
ordinary happens in the instant of step
turn to the economic contradiction
between a central local in the local
local and then this conviction and
cannot be solved and because unbalance
the gap is arrested at the local trouble
and also because of this a local
industrialization grew up faster to make
shot of the law matures come normative
supply and then durometer supply needs
to control by the government's and the
government's allow some part of that raw
materials out of the purchase price
became market price that is between
price system to entire system turn to
Lisa der cross business to be the
speculations prayer and then they make
more hydration and then high invasion
turn into the social campaign social
protest and then social products in name
of some some positions some money
and you mean Nyssa this is because these
are not applies to the so-called
political cracks at that time so this is
a many complicated situation we can just
clean up from the economic development
and then finally we found out that is
the total regulation economic receipts
trend to the social complex so in the 19
late 1980s my China have such kind of
chairman square movements and the price
/ comments and then immediately got the
American reaction so the American
reaction is just that one day later so
cruel force there's a common price that
camera movements current leaves the
American president stopped the military
collaboration and then American followed
their measures of by retirement and blog
China economically and also announced
under asked other American control is a
national organization an organization
like World Bank I'm at staffs
Emax in China and I remember that in
late 1980s I was a member of the Chinese
group to facilitate World Bank
transition law help China to translate
translate from the pregnancy from into a
market system and that's what can
maintain because it's for transition
ideologically others any international
organization in rights in China first
element oh stop so this stop means that
the China in late 1989 early 1990s god
to facing the new challenge of shortage
of foreign character or in early you
have a large amount of foreign capital
flowing into China and then you can rear
the taxi on national industries is it
really reactor riad adjustment you can
do a lot of things by these are foreign
capital flow in and it even makes the
balance between life induction higher
industry whatever you can do at this
time when they stop the similar sub and
stress Union stock the investments into
China as a kind of comment assistant so
that is a immediately make China to have
the economic crisis in the year 1960 but
this time in 1990 in disease china's
falling into the depression because of
bison country stops gives the foreign
capital in china this exact time the
total capital intensive goals no matter
you know these are local industries all
no matter you we addressed your national
industries
you all need the followed the capital
investments so that it was capital
intensive growth but one bison capital
stock and then
domestic capital also that you I just
mentioned that domestic tanks as I can
all have a very big deficit so the last
banks cannot work well and overseas
capital stock so make China
happen
the fraction that is in late 1989 and
1990 so this time there's one China
trying to set up the reading King
relationship-based western countries
since 1972 negatives can have almost 20
years less time to from all in 1960
dealing 11 years or 12 years past from
1971 and Italy to China started reading
with the Bison capital investment with
the bison tech technical aid whatever
and then when you have the Bison
facilities you need to use the vast
management system that itself started
the economic reform and then more open
to any hands of the Bison investments
that is from the beginning of then he
later than him serving early 1980s means
that mall started trading and then fully
linking any hand of foreign investments
compeletly settled in China so the fact
we are linking with international system
mr. maleeni became a very popular event
in 1970s and 1980s and not along two
decades from 72 started to import the
foreign facilities and Q 88-89 means
that China has 16 year to 70 years we
linking to west
it is extremely important not only to
China how to remember the historical
lessons but also to any other different
countries if you do laundry linking you
need to take the Chinese lessons SEO
comes into the confirmation you cannot
only take a look to notice that China
have a high-growth kind of fulfilled the
in desolation you also need to know how
try not pay the cost how many times
crises happen in time when kind of
restarted with linking with the Western
capital since 70 to 80 s
so this time when we talk about up it
goes would say that and and one American
this time try to block Heine so not so
long you notice from 1950 because of the
Korean War American lead other Western
countries like China and Q 70 to 71 so
this is a 24 25 years less time from 89
to 93
emergent gave up but because most of ISA
Western countries they have their
interest in this biggest market this is
a time so they cannot follow America and
even that time somehow visa bison
countries keep invest in China so that
is a American cannot stop they just have
suggests also they can control this
international organization but they
cannot stop other countries keep us in
kind the even is small but is still be
there so not not keep longer for some
four years of three and half year it's
changed so but when we see that our
curves we can see that it's a very
smoothly but here you can see that high
growth is 84 85 and then just Hungary
from 88 to 89 this 88 this 89 decrease
to only 4% annually is a more than 10%
and then tantum later that may not - a
less than 4% this one so
so these are two years the crisis
happened very serious and you also can
see that because of the this is a condo
that shortened to the normal GDP because
of 1989 the foreign capital stopped
flowing in China so these are short-term
axilla deaths also decreased to the GDP
so many things happened in the later
1980s and we got to give the fendall a
conclusion about this one they saw that
that is a to calculate into the whole of
the ten times ten crisis this time the
later 1980s is the six the six Christ is
the first stock patient crisis caused by
the first time by mechanisation
means that first time mechanisation in
China in 1980s and encountered the
starvation and that is the stagnation
it's a kind of economic crisis tack you
have me easier to learn from maximum the
in China few people talk about
starvation because they don't think that
is the kind of economic crisis but C&D
we said positive Exorcist is that that
the country the state
past from the 1960s 1970s and 1980s the
past three decades
finally they gained the purpose to make
the balance between highway industry and
Lac industries so from late 80s to early
90s kinda have a very rich lightened up
your text industrial products the
people's livelihoods much improved but
not not only created by 1980s started by
nineteen sixties and seventies sixteen
zambese they have played very high cost
until 80s they have realized the purpose
for the balance of the industrial
structure heavy right make balance that
is a one country want to make your
industries sustainability indulge your
sustainability need to have the market
the heavy industry contributed
facilities the machines to lack industry
let industry contribute the commercial
goods to the market family china realize
such kind of sustainable industries
asian but a paid very much high cost and
to 1990s china's do pay the high cost i
will get such kind of explanation in
later when we talk about the seventh and
the eighth crisis will give more detail
it's because in world of forty-five mean
state-owned enterprises employees they
are
the biggest cost in the world and but
let me talk about the crisis we must see
that this crisis the reason that the
reason of the crisis many come from the
external issues because of reading first
a visa cannot utilize the foreign
capital reform is structure of the
national industries I have mentioned
several times before this explanation
about six crises aside any penny of the
four investments into the Dogon country
immediately turn to the foreign dance if
you have money pay back if you have
money you do mean time a foreign capital
investment because of most of use of the
working countries mantra set of the
modern region by indecision in
globalization both of this industry
additional organization all have
Kathleen has it as a mechanism inside so
if you are short of the capital you must
take the capital from our overseas and
then overseas capital flow into your
country train to the dance in the end
dance make the deficit and that is make
the crisis so means that external issues
still be very important events to
understand what happened in 1980s and
then the local local governments
savage local interpretation mainly from
the 1980s local industrialization got
the ruthless investments from overseas
Chinese as I mentioned in Guangdong
paladar ha area more than 90% of the
overseas investments come from Hong Kong
and Macau many come from Hong Kong so
these are ruthless investments only
seeking the social revenue and the
environmental Rahmani cannot create
large amount of the interest no interest
means that no ability for the local
capital accommodation and then means
that local have a very important
shortage for re-added ask the local
economic structure that is a from the
1980s to knowledge ease almost a full
years in coastal China the local
governments still feel very difficult to
readjust the local economic structure
they cannot have a high tech industries
they cannot have a heavy industries they
cannot have a machinery nurseries
knowledge still be your kind of
manufacturing industry explain important
go so that is my 1 meter manufacturing
industries move out where none to
Bangladesh there is a candid local worry
especially the comments because that
these are Labour's will have a new job
and those who when they have to destroy
the local environment if they move out
you having no tax to contact your
environment problems to solve the
problems so that is a very important
negative impact another one is that when
they input the facilities means that the
upstream industry
national industries cannot supply the
machines to lease the coastal area
manufacturing industries instantly cut
down the macro division so make the
national industries become more and more
falling into the trap finally they got
to be bankrupted so when we talk about
such kind of problems we need to know
that is the national capital national
industry capitals are in building is a
their products extorted we have a
shortage economics but after 1980s few
manufacturing economy for overseas
demand need the national industrials to
produce machines to fidella ties the
manufacturing industries in coastal area
so this one I said is also very
important even the short terms to create
some tax all can happen this a foreign
reserve hmm
they have a the trade surplus knowledge
Hanna beacon the treats of that country
mainly by the coast area but that is the
return the result all you also need to
to sing about the cost so here is the
cost
and though the excellent issues also
including a visa these are American
black China
that's from 1989 it because of Union
rely on foreign investments so while you
have the conflicts with the United
States and political conflicts they
stopped for investments into China and
then you immediately fall into the trap
of the exit means are reserved exit and
the video gave you more explanation
about next crisis when we talk about the
silence crisis will tell you how much
it's a foreign reserve desk and how its
impact
the Chinese economic growth and then
they can turn to the internal issues the
internal issues the first is because of
the 1949 the urban economy started to
use the twin price system or really this
system only applies to the rural China
not apply to urban China but when they
try to take this one as this positive
experience into the urban reform they
found us
it's a apply to these bureaucrats
business these blue cross business the
big benefits more than three hundred
billion annually and we in 1988 1988 is
the worst year of the bureaucrat
business because they put too much and
make the highest inflation after now is
we the data has been reassessed
originally in 1980s the government's
commits committed the high inflation is
a 18.6%
and now is a real jump down to the 15
percent a 15 is also very high because
nowadays a lot of countries back by
China only have a 3% or less than 3%
inflation at that time 18% 18.6 this
high very high inflation and in this
year because of the hydration happened
and then the government's main stream of
officials and scholars they have to have
design okayness reform plan or reform
projects I said it's similar in most of
its East European countries including of
sweat Union in China is a when they
utilize such handles reform projects
Monday try to utilize they just make the
the pre decision because all the
decision needs to be made in particular
Europe and then gave such kind of
decision as a suggestion to the State
Council these are very complicated this
is the system not exactly talked by the
easily so State Council's economic
departments no frustrates us you know
that Bureau but there are so many
information channels so when they just
gave such kind of decision in May a lot
of people have an information so there
is a kind of social problems happen
among the the finally the debate is good
conference the pinnacle is not formal
but it's a kind of informal solutions
one is a senior
Oh agree with such kind of suggestion
may they have a suggestion and they in
others dry and August when Lisa senior
provisions settled in beta s or enjoy
their so-called location and they can
have a many different coastal medium
then they get discussed like Lobby
something and then they make decision
this this support this reform and when
they just gave such kind of information
in easily the social problem aroused
again so these are things I mean you
have to inactive but you also kind as a
positive because that these are things
to make the central politician these are
senior persons seeing that it's a too
much negative things happening so they
immediately make decision stop
so the service of April Anana of August
the City Council make decision
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soft touch kind of reform but the the
bad impact has been expand to anywhere
so in nationwide fighting for buying
things of fighting going to countries to
buying commercial goals has been you
cannot stop so this is a so this is a
tool to anything China stopped the
magnetization and leave this chance to
use the European countries in the select
Union I said in 1988 almost all of these
countries sponsored by world egg all
have the similar projects turn their
planning system into the market system
or China stopped in the summer of 1988
others no they aren't there may be the
their people is somehow more pride or
more cultural colleges from some high
whatever but they have no such kind of
trying to buy commercial goods is a
social clout they don't have and it
means that they still keep going and
then the these countries all bankrupted
so I said that the Hammond black China
by a crisis to give enough license to
post-up leaders and lower societies
to prevent China from a crop ssin from a
cast so even from that time from 89
almost all the Bison media ideology Oh
enough China will be class maybe
tomorrow maybe next week maybe next
man's but from that time cannot still be
there not class I said this big lesson
late 80s caused by the first time kind
of trying to market lies gave the big
lesson make China stop and then be
cautious to going forward step by step
even by the sixth crisis and not still
not still not be enough lesson so China
need to have another one definitely
selling this license maybe to make timer
aware this is not exactly the right way
we need to take more cautious we need to
be more cautious to going forward so
notice that my may talk about this one
then we have to think about but it's
lesson China take and then money talk
about the measures dealing with the
crisis respondent is the first to make
the state bank system fall into the big
trap that is up big data is the first
financial crisis but not be happened but
be controlled that is also very
important issue when you need to take
the into the conservation so sing about
at that time I mean in the year 1988 old
times bank needs to be bankrupted
because all have a very bad deficit as I
know because that time and I was a
policy researcher in central as I know
the December by the statistic the holder
Bank system hacked more than five a 59
beating 15l 58 58 or 59 beating as a as
a deficit
so the total ceilings are 300 feet and
also at that time and there's no battle
commitment time enough follow the bottle
commitment for anyway seeing about the
total savings 300 building the total
deficit as modern as net next near night
to be 50 billion it means that 1/6 of
the bank SS has been gone so it's much
much bigger than the bass al-abbas l
gave you as a present so at that time
people need to see what why Chinese bank
system didn't Bank on it
because a lot of time the bank system
and the buddy system close together is
the one garments two hands mean someone
garments has very serious deficit in the
bank system gums can put these a bank
that's it into the bar identity because
there's more Socrates no separation
so together for this only this country
can have such kind of mechanism to solve
the bank systems problem immediately to
solve by the budget systems so the
government's fiscal takes the whole of
this own Bank
that's it into the budget and then to
make the budget that's it increase to 50
billion the visa the December of 1988
how Chinese Commons solder big bank
that's it
it's a market system or not and I leave
this question to all the audience you
can think about that how you maintain
the key sectors of your economic
department system a cig sector is
financial sector in the 1980s when the
whole vison countries in name of
neoliberalism to reduce any barrel to
animate the barrel to make the financial
capital flow free in and out these I
find that there is a country like China
still control the fiscal system and the
financial system put them not separation
learn together and then and that time is
a very critical problem but very easy to
solve to solve by the Sun one body two
hands and not separation so they can
pull these two hand together in in for
the macro readjustment then but the bank
system can handle and the problems but
in the hiatus cannot close by the
interest rate of the loan increased in
1989 immediately turn to the TAS thing
as I mentioned that's not a dance team
make almost all of evil real production
the industry's fallen into the big
crisis and end the whole economy fall
into the depression such as we know
or if we if we see that comes measures
something maybe you can sing Lisa
positive but something you can seem that
it's a negative so we just are very
objective to do our analysis to to know
that what indeed happened in 1980s and
then we may have basic understanding of
so-called Chinese reform so-called
so-called emerging market countries like
China okay I finish this lecture hope
you have a more deep and different motif
discussion about 1980s in China the
crisis in time thank you
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