Potential Economic Pitfalls Call for Removal of Institutional Drawbacks——An Interview with Mr. FAN Gang (樊纲), Ph.D. of Economics, Doctoral Advisor, Director of National Research Institute of Economics

The continuous rise of consumer price index (CPI) has increased concern over China's macroeconomic situation. Will inflation have a disastrous impact on the Chinese economy? What risks are brewing behind the booming real estate and stock markets? Have bubbles already occurred in the Chinese economy? From his office in Guohong Building, Beijing, Dr. Fan Gang gave his views on these questions in an exclusive interview with China Economist.

The Dilemma Between the Heterodox-the Orthodox Economics and Its Ideology

Economic movements have close relation with historical transformations. Historical and social transformations have seriously determined economic views, so, economic movements have been the indicators of economic wars of social classes. But no concept can describe sharp contrast in economics better than the two opponent concepts in economics： ＂orthodox＂ and ＂heterodox＂ economics. In this article, the reason why neo-classic economics, also called as orthodox economics, has a serious place in economic literature while the opponent＇s economic movements, named heterodox economics, do not defend only one ＂truth＂ and are not as important as orthodox economics will be examined. While doing this examination, Louis Althusser＇s ＂ideology＂ and Antonio Gramsci＇s ＂hegemony＂ will help us as these two concepts are quite instructive in understanding the irreplaceable significance of orthodox economics. As a result, by discussing alternative point of views about economics, positive emphasis of multivocality in economics literature will be revealed. On the other hand, every heterodox economics cannot criticize orthodox economics in the same way. In this study, institutional economics, which is accepted to be part of heterodox economics, will be discussed thoroughly. Institutional economics had a serious attitude against orthodox economics. In this study, generally the points in orthodox economics that institutional economics opposes will be emphasized, and although both economics approaches＇ ideological attitude will be attempted to be discussed generally, it will become easy to discuss the reason why heterodox economics developed an opposing ideology against the ideology of orthodox economics.

Can Lithium Energize Sustainable Development in Bolivia？ Institutional and Policy Challenges

A new extractive boom looms over Bolivia, home to roughly a third of the world＇s lithium reserves. Since previous mining booms have not put the country on a sustainable development path, this paper briefly outlines the initial results of a research on policy options to break away with the past. The paper first assesses the relationship between resource dependence and sustainable development by looking at the evolution of genuine savings in Bolivia and neighbouring, resource-rich countries. It then discusses Bolivia＇s potential position on the world＇s lithium market and examines the institutional variables that shape perceptions, expectations and policy options at national and local levels. Notwithstanding major technological challenges, the paper concludes that further research should shed light on how inclusive processes can be nurtured in rentier states, and how far specific institutional reforms can contribute to turning the looming lithium boom into sustainable outcomes in the Bolivian case.

Corporate Social and Environmental Reporting Institutionalized

External Corporate Social and Environmental Reporting （CSER） finds its raison d＇etre in corporations＇ search for both a license to operate and accountability towards society. This suggests a relationship between corporations and society. In this study, that relationship is analyzed, specifically the relationship between levels of CSER and economic institutions. A strong link with institutions is an outcome of institutionalization. The economic institutions applied are economic freedom and legal origin as a proxy for national corporate governance systems. The results of this descriptive study show associations between CSER levels and economic freedom. CSER is also related to national corporate governance systems through legal origin. CSER appears to be institutionalized, or in any case, corporations seem to be aware of the economic institutionalization of CSER.

Is China a Weibo Democracy？

According to North, Wallis and Weingast＇s （NWW, 2009） conceptual framework, China＇s transition to the market economy can be analyzed as a mature natural state evolving towards an open access order. The paper briefly sums up the general concepts of this theory and their adaptation to the historical conditions of the Chinese ＂Socialist Market Economy＂. It then shows that while the doorstep conditions to such an opening are put together, the route followed by the creation of market and the access to property of a 1.3 billion population is highly specific. In particular, the urbanization policy granting the ownership of housing to several hundred million of individual citizens creates unprecedented institutional needs. In this context, we suggest that rather than introducing formal political competition within the State, the monitoring of the policy through the digital social networks, and notably through the information exchanged by the 500 million of Weibo users, can provide useful and efficient guidance. In others words, that in a country with little rule of law tradition, Weibo sustains the emergence of an active civil society creating a new path to an open access order.

Different Situations, Different Economic Institutions ---A Historical Perspective on China and India＇s Approaches to Development

Both being two developing countries with a vast territory, dense population, and centuries-old ancient civilization, China and India have many in common in natural resources, population size, historical condition, current economic issues, etc. except for regime. The competition between China and India is a typical one between economic institutions. This paper, by making a diachronic analysis on their courses of development, tries to justify the importance of adopting an economic institution suitable to the situation of a country.

The Failure of Cooperative Farming Development Policies in Tōhoku,Japan

In the context of agricultural globalization, many national governments have instituted policies, such as cooperative farming, to help farmers improve their profitability, competitiveness, and the sustainability of their agricultural practices. This study focused on the Multi-Product Management Stabilization Plan developed in Japan in 2006, which aimed to adapt the agricultural practices in the country to globalization by focusing on cooperative farming, and assessed its effectiveness for developing and incorporating cooperative farming in the TShoku region in the 2000s. The results suggest that regional and prefectural agents experienced significant difficulties when attempting to develop cooperative farming. Although New Institutional Economics＇ theories suggest that these policies reflect the norms for developing agriculture more profitably and competitively, Japanese farmers did not regard the policies as relevant, practical, or sustainable, and they obstructed them.

A Study of Sustainable Development of China’s State-Level Economic and Technological Development Zones

State-level economic and technological development zones (ETDZs) are products of China’sreform and opening-up policies and a new engine of growth for the Chinese economy. Theyhave made tremendous contributions to the development of the Chinese economy. However,some problems have emerged in the course of this progress and new challenges are stilllying ahead. Sustainable development is possible only when the strategy and objectives ofdevelopment are adjusted, when the integrated investment environment is optimized, whenindustries are upgraded, when technical innovations are made, when independent innovationcapabilities are lifted, when the mode of economic growth is changed, and when innovationsare made in government management.

End of the “American Century”

At the start of the post WWII era,the United States led the world to establish a political and economic order for freer trade,military cooperation,and economic development in low income countries.The program was far from perfect,but it gave the world decades of growth,expansion,and increased freedom and opportunity.More people in more countries raised their living standards more significantly than in any other period of human history.Freer trade and avoidance of major wars benefited people everywhere.The U.S.leadership is nevertheless much weaker now.Countries cannot agree on trade treaties to remove further barriers,and the growing size and importance of several countries with diverse interests make agreements harder to reach.Terrorism in parts of the world restricts the spread of markets.A likely outcome will be slower growth of the world economy in the future.

Contemporary Russia's Economic Transition and Development and China-Russia Economic and Trade Cooperation

The year 2021 marks the 30th anniversary of the dissolution of the Soviet Union and Russia’s transition from a planned to a market economy.It is also the 25th anniversary of the announcement of a strategic partnership of cooperation between China and Russia and the 20th anniversary of the signing of the China-Russia Treaty of Good Neighborliness and Friendly Cooperation.Therefore,2021 is especially important both in terms of the development of contemporary Russia and the evolution of China-Russia relations.As the transitional economy of a great power,the Russian economy has distinctive characteristics;analysis of its economic transition and development over the past thirty years since the collapse of the Soviet Union,and especially in the period since Putin took office,is of immediate significance for observing the development of the Russian economy.At present,the profound changes the world is undergoing and alterations in the external environment present increasing uncertainties and obstacles to China-Russia economic and trade cooperation.This paper introduces the present state of China-Russia economic and trade cooperation and analyzes the new challenges and opportunities for future bilateral cooperation.