Critical review of Yasheng Huang's "Rethingking the Bejing Consensus"

Abstract

The unprecedented economic growth enjoyed by the People's Republic of China over the last few decades has attracted the attention of academics and policy-makers all over the world. The developing countries are not an exception and, in fact, many in Asia, Africa and Latin America may see the China model as an example of new development formula more effective than free markets. However, MIT professor Yasheng Huang pointed out that these countries, as well as China itself, should reconsider their future decision. His paper examining the nature of China model with regards to the principles of the Beijing Consensus, though could be improved upon, is a very intuitive work that provides valuable foundation to understand the truth from the facts. His ultimate message is that the China's growth path was actually remarkably conventional: one based on private ownership and ideas of free-market finance.