web ch. - 1 copyright mcgraw-hill/irwin, 2002 ideology and institutions planning goals and...
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Web Ch. - 1Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
RUSSIA & CHINA
Transition Economies:Transition Economies:
WebC H A P T E R
Web Ch. - 2Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
Marxian Ideology•Labor theory of value•Surplus Value
State OwnershipCentral Economic Planning
IDEOLOGY & INSTITUTIONS
Web Ch. - 3Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
PLANNING GOALS & TECHNIQUES
Industrialization
(Rural Development in China)
Overcommitment of Resources
Mobilization of Resources
Allocation by Directives
Government Price Setting
Self-Sufficiency
Passive Macroeconomic Policies
Web Ch. - 4Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
Problems with
Central Planning•The Coordination Problem
•The Incentive Problem
PLANNING GOALS & TECHNIQUES
Web Ch. - 5Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
COLLAPSE OF THESOVIET ECONOMY
Declining GrowthPoor Product QualityFew Consumer GoodsLarge Military BurdenAgricultural Drag
Web Ch. - 6Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
RUSSIAN TRANSITIONTO A MARKET SYSTEMPrivatizationPrice ReformPromotion of CompetitionMaking Ruble Fully
ConvertiblePrice-Level StabilizationOther Major ProblemsFuture Prospects
Web Ch. - 7Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
CENTRALLY PLANNEDPRICE EFFECTS
D
S’S
Pri
ce p
er u
nit
Quantity demanded and supplied0
Pf
FIXED LOW PRICECEILING BY
GOVERNMENTLEADS TO…
SHORTAGE
Web Ch. - 8Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
D
S’S
Pri
ce p
er u
nit
Quantity demanded and supplied0
Pa
Pf
SHORTAGE
Withoutprivatizationprices rise to
Pa
CENTRALLY PLANNEDPRICE EFFECTS
Web Ch. - 9Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
D
S’S
Pri
ce p
er u
nit
Quantity demanded and supplied0
Pa
Pe
Pf
SHORTAGE
Withprivatizationprices rise to
Pe
CENTRALLY PLANNEDPRICE EFFECTS
Web Ch. - 10Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
MARKET REFORMS IN CHINAAgricultural & Rural ReformTownship & Village EnterprisesReform of Urban IndustriesState Owned Enterprises (SOE)Urban CollectivesSpecial Economic Zones (SEZs)Development of Supporting
InstitutionsTransformation of the SOEs
Web Ch. - 11Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
OUTCOMES & PROSPECTSPositive Outcomes of Reform
Problems• Incomplete Property Rights• Macroeconomic Instability• Integration into the Global
Economy• Geographically Uneven
Development
Web Ch. - 12Copyright McGraw-Hill/Irwin, 2002
Ideology and Institutions
Planning Goals and Techniques
Collapse of the Soviet Economy
Russian Transition to a Market Economy
Centrally Planned Price Effects
Market Reforms in China
Outcomes and Prospects
Key Terms
PreviousSlide
NextSlide
EndShow
OUTCOMES & PROSPECTSPositive Outcomes of Reform
Problems• Incomplete Property Rights• Macroeconomic Instability• Integration into the Global
Economy• Geographically Uneven
Development
ChapterConclusions
labor theory of valuesurplus valuestate ownershipcentral economic planningcoordination problemincentive problemtown & village enterprisesstate-owned enterprises (SOEs)urban collectivesspecial economic zones (SEZs)
ENDBACKCopyright McGraw-Hill/Irwin 2002
labor theory of valuesurplus valuestate ownershipcentral economic planningcoordination problemincentive problemtown & village enterprisesstate-owned enterprisesurban collectivesspecial economic zones
ENDBACKCopyright McGraw-Hill/Irwin 2002