| Abstract: | China has realised excellent rapid economic growth for the last 27 years following Taiwan and Korea, which maintained rapid growth for nearly 40 years. This has mainly been achieved by extraordinary high fixed assets investment, especially investment in real assets, as well as export expansion. However, new structural contradictions have emerged. They include workers laid off through downsizing of state-owned corporations, non-privileged farmers who have migrated into cities, and landless peasants. China is now at a turning point for the central government to drastically transform existing fiscal institutions in order to redistribute the dividends of high economic growth to the poor and poor areas, against the trinity of local bureaucracy, real estate developers, and state-owned banks. |
