Evading middle income trap: international experience and China’s solution
【Abstract】Many factors can plunge an economy into the middle income trap, such as technology, industry, income, the limit to growth, regression toward the mean and social conflicts. The history of Latin American countries shows that the following problems must be avoided: opening up the economy without appropriate policies, misplacement of urbanization and industrialization, and fluctuations caused by populism. China’s reform has improved efficiency in many aspects. To further improve efficiency and competitiveness, China should reallocate existing social assets. First, China should reform the complex administrative departments and public institutions to release production resources and reduce fiscal pressures. Second, China should reform the state-owned sectors and promote mixed-ownership to promote fairness in terms of resource allocation, reduce monopolistic power over capital and technology, and utilize social resources more effectively.
【Keywords】 middle income trap; limit to growth; reallocation of existing social assets; state-owned-enterprise reform;
(Translated by LING feixia)