MŐHELYTANULMÁNYOK DISCUSSION PAPERS MT -DP – 2009/3 The "Chinese style reforms" and the Hungarian "Goulash Communism" MÁRIA CSANÁDI INSTITUTE OF ECONOMICS, HUNGARIAN ACADEMY OF SCIENCES BUDAPEST, 2009 Discussion papers MT-DP – 2009/3 Institute of Economics, Hungarian Academy of Sciences KTI/IE Discussion Papers are circulated to promote discussion and provoque comments. Any references to discussion papers should clearly state that the paper is preliminary. Materials published in this series may subject to further publication. The „Chinese style reforms” and the Hungarian „Goulash Communism” Mária Csanádi research advisor Institute of Economics Hungarian Academy of Sciences E-mail:
[email protected] March 2009 ISBN 978 963 9796 51 5 ISSN 1785 377X The "Chinese style reforms" and the Hungarian "Goulash Communism"1 MÁRIA CSANÁDI Abstract Similarities and differences will be demonstrated between Chinese and Hungarian party-state systems. We define the role of reforms in the self-reproduction of both party-states. We shall demonstrate how different patterns of power distribution lead to the implementation of different reforms. We shall describe how these different reforms have created the Hungarian “Goulash communism” and the “Chinese style” reforms. We shall also explain the conditions that have lead “Goulash communism” to political transformation first in Hungary accompanied by economic crisis, and “Chinese style reforms” to economic transformation first in China, accompanied by macroeconomic growth. Keywords: reforms, transformation, party-state systems, goulash communism, Chinese style reforms JEL: B52, D85, N10, P2, P3, P41, P52 1 This is the background paper of the presentation given at the conference “China’s Three Decades of Reform and Development:Global Perspective” organized by the East Asian Institute at the University of Singapore in November (7-8), 2008.