The central components in the Chinese modernization campaign are her economic plans, and the central issue in the economic plans is the question of financing various developmental projects. This paper intends to focus on the question of mobilizing bot...
The central components in the Chinese modernization campaign are her economic plans, and the central issue in the economic plans is the question of financing various developmental projects. This paper intends to focus on the question of mobilizing both domestic and foreign capital resources in China as well as to determine the difficulties associated with such mobilization. First, a comparison is made between the domestic capital mobilization methods in the PRC and those in less developed societies under market economic arrangements. This is followed by a comparison of foreign resource mobilizations between capitalist LDCs and the PRC. Next, the paper discusses the circular flow of capital resources, and this is followed by a discussion of the mechanics with which capital is actually saved, collected, allocated, and invested in China. Finally the actual resource requirements for the achievement of moderate economic growth targets in the PRC are roughly estimated.