National Chiao-Tung University, Taiwan Lecturer: Dr. Andrea, Pei-Shan Kao

1. National Chiao-Tung University, Taiwan Lecturer: Dr. Andrea, Pei-Shan Kao Unit 4: A Pluralistic World: China vs. Cuba 第4單元:多元世界-中國與古巴

2. The Planned Economy vs. The Market Economy • 計劃經濟 vs. 社會主義市場經濟 • What is a planned economy? • * A planned economy is an economic system in which the state or government to • one degree or another manages the economy. Its most extensive form is referred • to as a centrally planned economy, or command and control economy. • * In such economies, the state or government controls all major sectors of the • economy and formulates all decisions about their use and about the distribution • of income. • * The planners decide what should be produced and direct enterprises to produce • those goods. • (For detailed discussion, see Wikipedia.) • 2. What does a market economy mean? • *A market economy, where production, distribution, and pricing decisions are • made by the private owners of the factors of production based upon their own and • their customers' interests rather than upon furthering some overarching • macroeconomic plan.

3. China’s socialist market economy, plain capitalism? *China’s Reforms中國的改革 1. The setting up of four special economic zones (SEZs) around Hong Kong and Macao.設立經濟特區 2. Open up to foreign investment, most of the investment came from Taiwan.開放外資 3. In the mid 1980s, price controls were removed from the bulk of goods and services.1980年代中期廢除價格控制 4. Transformed state-owned enterprises, set up a modern entrepreneurial system.改革國有企業，建議現代企業制度 5. In 1996, abandoned centralised planning. 6. In 2001, allowed private capitalist into the Communist Party. 2001年允許資本家加入共產黨 7. In November 2001, China joined the World Trade Organisation (WTO).2001年11月，中國加入世界貿易組織

4. Controversies with western countries (particularly with EU, USA): State control of finance and the non-convertible Reminbi (China’s currency, yuan)→ trade frictions -∵Chinese government still controls its finance and insists the non-convertible Chinese currency ▼ Advantage: this allowed China to overcome the 1997 South East Asian crisis, and it is beneficial to China’s export businesses. Problem: trade imbalance with China’s trade partners (as the yuan is undervalued, which is disadvantageous for other countries, i.e. China’s trade partners)

5. CONCLUSIONS(結論) *對中國而言＝人民幣升值對於一向依賴出口與外資甚深的中國經濟會有減緩的作用，對體質仍然十分不健全的銀行體系及為數眾多的失業人口亦會產生不利的影響。 *對其他國家而言＝維持低估的人民幣不但有違自由市場原則，造成財富與資源的不當分配，同時其他國家也因此產生進出口上的失衡。由於人民幣幣值的低估，其他國家廠商的貨品因過於昂貴而不易進口至中國，必須採取直接投資（FDI）的方式才能在中國市場佔有一席之地，造成其他國家資金外流與國內投資減少。 *就經濟學來看＝採用低匯率做為追求經濟成長的工具，將犧牲其他國家正常經濟發展。由這個角度看，人民幣的升值與否尚涉及到公平貿易的原則。雖然中國十分排拒人民幣的升值，但是長期維持低估的幣值非但不利於國內金融體系的穩定，並可能遭致其他國家採取貿易上的報復措施。 (For detailed discussion, see 趙文衡，「客觀看人民幣問題」，台灣日報，2003年9月17日。http://www.globalpes.com/Crossstrait/RMB.htm)

6. Agenda of the Second Session of the 11th National People's Congress (NPC): 1. Hearing and deliberating the government work report by Premier Wen Jiabao. 2. Examining the Report on the Implementation of the 2008 Plan for National Economic and Social Development and the Report on the draft 2009 Plan for National Economic and Social Development; and voting on the 2009 plan. 3. Examining the Report on the Implementation of the Central and Local Budgets for 2008 and on the Draft Central and Local Budgets for 2009; and voting on the 2009 central budget. 4. Hearing and deliberating the work report of the NPC Standing Committee made by chairman of NPC Standing Committee Wu Bangguo. 5. Hearing and deliberating the work report of the Supreme People‘s Court(elected by the NPC) made by President of the Supreme People’s Court Wang Shengjun.(最高人民法院院長王勝俊) 6. Hearing and deliberating the work report of the Supreme People‘s Procuratorate made by Procurator-General Cao Jianming. (最高人民檢察院檢察長曹建民)

7. 2009.3 第十一屆全國人民代表大會第二次會議全國人大會議議程一.聽取和審議國務院總理溫家寶關於政府工作的報告　二.審查和批准2008年國民經濟和社會發展計劃執行情況與2009年國民經濟和社會發展計劃草案的報告、批准2009年國民經濟和社會發展計劃　三.審查和批准2008年中央和地方預算執行情況與2009年中央和地方預算草案的報告、批准2009年中央預算　四.聽取和審議全國人民代表大會常務委員會委員長吳邦國關於全國人民代表大會常務委員會工作的報告　五.聽取和審議最高人民法院院長王勝俊關於最高人民法院工作的報告　六.聽取和審議最高人民檢察院檢察長曹建明關於最高人民檢察院工作的報 告 資料來源: http://specials.mingpao.com/cfm/News.cfm?SpecialsID=184&News=c8d85517227e4502e8da451fbadc7662ac98012b3a74542a808e59ff29a676cb0a8c, “consulted in March 2009”.

8. Cuba: Introduction *Cuba is one of the last communist countries of the world, situated in a tropical archipelago of paradisiacal natural resources. *Its economy is mainly based on sugar, tobacco and tourism. *After the revolution in 1959, Cuba has received a substantial economic aid from the Soviet Union (USSR). Now, the country strives for basic needs for its 11 million people. *Cuba is composed by the main island and about four thousand islets. There are more than 300 beaches of white sands and clear waters. Source: http://www.geographic-guide.com/central-america.htm, “consulted in March 2008”.

9. 1. General Information on Cuba(古巴資訊) Official Name: Republic of Cuba Capital: Havana Government Type: Communist state Chief of State: Raul Castro, Cuba’s new president Population: 11 million Area: 44,200 square miles; about the size of Pennsylvania Languages: Spanish Literacy: Total Population: [100%] GDP(Gross Domestic Product國內生產毛額) Per Capita: $4,100 Year of Independence: 1902 Web site: Cubagob.cu

10. 2. Raul Castro: The Economy First勞爾．卡斯楚經濟優先 • *In September 2007, Raul Castro • settled the state’s debts to farmers and tripled prices paid to • milk and beef producers;  • 解決國家積欠農民的債務，並以三倍價格支付牛農 • (2) ended abusive pricing at Cuba’s airports, where high landing fees and refueling charges were making Cuba a less competitive tourism destination; • 消除使古巴旅遊業喪失競爭力的機場高額降落費用與燃料費 • (3) changed customs regulations to allow Cubans to receive video equipment and car parts from relatives overseas; • 修改海關法令，允許自海外進口影視設備、汽車零件 • (4)ordered police to stop harassing private taxis; • 禁止警察壓迫私人計程車 • (5) Private restaurants remain open; 允許私人餐廳繼續營業

11. 6. called for increased foreign investment, called for “structural changes”. 要求引進更多外資，要求進行 “結構性改變” ▼ “Revolution is a sense of the historical moment, it is to change all that must be changed.” (Fidel Castro, 2000) (Raul Castro, 2007)

12. Thanks for Attending Today’s Class! Have a nice day!!