BI: Why is it significant?
BB: Not all Third Plenums are that significant, and plenty of reforms have happened outside of a Third Plenum, But, the Third Plenum of the 11th Party Congress in December 1978 launched “reform and opening” and put China on its current path.
The Third Plenum of the 14th Party Congress, held in November 1993, formally endorsed the concept of “Socialist market Economy”, which provided the theoretical foundation and political cover for a more aggressive set of economic reforms pushed by then-Premier Zhu Rongji
BI: What reforms should we expect at the 3rd Plenary Session of the 18th CPC?
BB: The top leadership has recently repeatedly said that the Third Plenum will introduce comprehensive and unprecedented reforms. The hope is that the Plenum will introduce land ownership and transfer reforms, broader financial reforms, changes to the household registration system that give rural residents greater rights and social protections, changes to the center-local fiscal relationships, more trade liberalization to increase openness, policies designed to try to spur innovation, factor price reform that may weaken State-Owned Enterprises (SOE), reduction of administrative interference in the economy, and a 5 year plan to combat corruption.
BI: What reforms do you think will be sidelined?
BB: There may be some SOE reforms but we will not see talk of privatization. More likely there will be reforms that will weaken many of those SOEs, such as factor price reform. There will be political reform but not in the Western, liberal sense. The goal will be to make the party more efficient, responsible and accountable, all to ensure continued single Party rule.
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