China's economic reforms : pointers for other economies in transition?

China's two main economic problems before reform were low incentives to workers and the misallocation of resources among sectors. These problems were theresult of a development strategy oriented toward heavy industry. By improving material incentives, China's reforms created a flow of new resources and allowed them to be allocated to sectors suppressed under pre-reform strategies. The onset of reform in China was not allowed to disrupt production from existing resources. Instead, the newly created resources were permitted to accrue and to flow into the more productive, often light industrial sectors, thus stimulating continuous growth of the national economy during reform. Low incentives and the suppression of nonpriority sectors are common features of the legacy of economies in transition from central planning that based their development on the rapid growth of heavy industry. China's approach may be of interest to them. Among lessons China learned are that: (a) Autonomy must be granted to micromanagement units and preserved to improve the incentive structure and create a new flow of resources. (b) While maintaining essential minimum levels of production in the pre-reform priority sectors, autonomous enterprises must be permitted and encouraged to allocate new incremental resource flows to the previously suppressed sectors. (c) In parallel, the distorted policy environment and planned-allocation system must be progressively reformed to bring them into line with the new system of incentives and modus operandi of autonomous enterprises.Banks&Banking Reform,Municipal Financial Management,Water and Industry,Economic Theory&Research,Environmental Economics&Policies

Enhance Primordial Black Hole Abundance through the Non-linear Processes around Bounce Point

The non-singular bouncing cosmology is an alternative paradigm to inflation, wherein the background energy density vanishes at the bounce point, in the context of Einstein gravity. Therefore, the non-linear effects in the evolution of density fluctuations ($\delta \rho$) may be strong in the bounce phase, which potentially provides a mechanism to enhance the abundance of primordial black holes (PBHs). This article presents a comprehensive illustration for PBH enhancement due to the bounce phase. To calculate the non-linear evolution of $\delta \rho$, the Raychaudhuri equation is numerically solved here. Since the non-linear processes may lead to a non-Gaussian probability distribution function for $\delta \rho$ after the bounce point, the PBH abundance is calculated in a modified Press-Schechter formalism. In this case, the criterion of PBH formation is complicated, due to complicated non-linear evolutionary behavior of $\delta \rho$ during the bounce phase. Our results indicate that the bounce phase indeed has potential to enhance the PBH abundance sufficiently. Furthermore, the PBH abundance is applied to constrain the parameters of bounce phase, providing a complementary to the surveys of cosmic microwave background and large scale structure.Comment: 17 pages, 6 figure