Exchange and Reform in the Economy of Shanghai Municipality: Socialist Geography under Reform

Abstract

Abstract This paper outlines changes in the exchange system that have occurred in Shanghai Municipality since the economic reforms of 1978. These reforms profoundly affect the balance and interaction between the two major forms of exchange: trade, and state procurement and distribution. The objective of the Reforms of 1978 was to effect national commercial integration within the existing political and administrative framework. It was hoped that by allowing a distinction to emerge between state administrative organs and formal or informal economic organizations, and by permitting relatively free inter-course among organizations irrespective of their administrative affiliation, a mechanism would be created through which commercial integration could result. The discussion assesses the extent to which these objectives were attained. I argue that political imperatives continue to hamper the development of trade, without which China is unlikely to achieve successful national commercial integration.