MACMILLAN Middle-Income Trap: An Analysis Based on Economic Transformations and Social Governance

This book explores the essence of the middle-income trap based on two major perspectives, namely “economic transformation” and “social transformation”. China has experienced high-speed economic growth for nearly 40 years since the adoption of the Reform and Opening policies. However, China’s economic growth has been slowing down significantly in recent years. Has China tumbled into the middle-income trap? This book reveals the essence of the middle-income trap is that a country's economic growth is facing a "double squeeze" in the middle-income stage, while the social structure and system are unsuitable for the new social development stage, which leads to economic stagnation or recession, and the aggravation of social contradictions, that is, the double predicament of economic transformation and social transformation. This judgment is of great value for understanding the problems encountered in the current development of China. Review "Given the urgency of the challenge, Mr. Zheng Zhijie’s original and wide-ranging examination of the topic, The Middle-Income Trap: An Understanding Based on Economic Transformations and Social Governance, could not be more timely or relevant. To become a high-income country is not only a success for China, but also a success for the world and a contribution to the world." (John L. Thornton  is  Chairman  of  the Board  of  Trustees of  the Brookings Institution, Executive  Chairman of  Barrick Gold  Corporation and  Professor and  Director  of  the Global Leadership  Program  at  China’s Tsinghua University. He was President of Goldman Sachs) "As a banker, Mr. Zheng carries out in-depth study from perspectives of economic and social development instead of mere economics. This book compares the middle-income stage in various countries across the world, analyzes features and issues in China’s economic and social development, and comprehensively explores approaches of reforms in China’s economic, financial, social, and legal fields in the middle-income stage, which include changing economic growth patterns, facilitating reforms in social institutions, achieving rule of law, enhancing cultural and moral construction, and making use of development finance." (Li Yining is a professor of economics at Peking University) From the Back Cover This book explores the essence of the middle-income trap based on two major perspectives, namely “economic transformation” and “social transformation”. China has experienced high-speed economic growth for nearly 40 years since the adoption of the Reform and Opening policies. However, China’s economic growth has been slowing down significantly in recent years. Has China tumbled into the middle-income trap? This book reveals the essence of the middle-income trap is that a country's economic growth is facing a "double squeeze" in the middle-income stage, while the social structure and system are unsuitable for the new social development stage, which leads to economic stagnation or recession, and the aggravation of social contradictions, that is, the double predicament of economic transformation and social transformation. This judgment is of great value for understanding the problems encountered in the current development of China. Zhijie Zheng, PhD in Economics, is Vice Chairman and President of the China Development Bank (CDB). Previously, he served as Executive Vice President and Executive Director of CDB, President of China Jianyin Investment Co. Ltd. and Vice President of China Construction Bank. In 1999 he received the special government allowances issued by the State Council. His major works are: Legal Problems and Practices of ‘Going out' and A Closer Look at Global Quantitative Easing. Many of his academic papers and policy reviews have been published in major newspapers and highly ranked journals including Economic Research Journal,People’s Daily, Economic Daily, Study Times, and China Finance.