Success of Firms and Clear Lines of Ownership and Assets
SUCCESS OF FIRMS AND CLEAR LINES OF OWNERSHIP AND ASSETS
The term ‘TVE’, Town and Village enterprises, was officially used in the year 1984, with their previous role being limited to the manufacturing sector, in the production of farm tools, chemical fertilizers, cement, steel, iron and hydroelectric power. However, it is during the reform period (1980s) that a majority of the People’s Republic of China TVEs emerged. During the 1978, reforms were fundamentally crucial to the radical and dynamic nature with which TVEs took over China’s economy. During the post 1980s, TVEs were to become the most pulsating of China’s economy through an experienced growth into the 1990s. From roughly employing 28 million people, they were to reach a peak of 135 million employees by the year 1996. Therefore, the economic impacts generated tipped over the 1.8 trillion Yuan mark by the year 1992, thus showing the resilience and acknowledgment of such enterprises. Specifically so, was the marked growth in TVEs along the border line of China and the Pacific Oceanic five provinces including Fujian, Guangdong, Zhejiang, Shandong and Jiangsu. The latter two provinces proved themselves fruitful in their operation and management of the aforementioned TVEs, as a rough estimate of 30% of rural folk was employed there. “TVEs included enterprises that were sponsored by villages and townships, individual enterprises, alliance enterprises (private stock companies) formed by peasants, and other alliance enterprises” (Huang, 2008, p. 86). As detailed below, I agree with the thesis that the secret success of China’s Town and Village Enterprises was that no one knew exactly who owned the firm and its assets. The fact that the collective ownership of these enterprises was unknown, aided in the Chinese citizenry working tirelessly in improving not only their welfare, but that of the republic as well. These well-grounded and funded
The term ‘TVE’, Town and Village enterprises, was officially used in the year 1984, with their previous role being limited to the manufacturing sector, in the production of farm tools, chemical fertilizers, cement, steel, iron and hydroelectric power. However, it is during the reform period (1980s) that a majority of the People’s Republic of China TVEs emerged. During the 1978, reforms were fundamentally crucial to the radical and dynamic nature with which TVEs took over China’s economy. During the post 1980s, TVEs were to become the most pulsating of China’s economy through an experienced growth into the 1990s. From roughly employing 28 million people, they were to reach a peak of 135 million employees by the year 1996. Therefore, the economic impacts generated tipped over the 1.8 trillion Yuan mark by the year 1992, thus showing the resilience and acknowledgment of such enterprises. Specifically so, was the marked growth in TVEs along the border line of China and the Pacific Oceanic five provinces including Fujian, Guangdong, Zhejiang, Shandong and Jiangsu. The latter two provinces proved themselves fruitful in their operation and management of the aforementioned TVEs, as a rough estimate of 30% of rural folk was employed there. “TVEs included enterprises that were sponsored by villages and townships, individual enterprises, alliance enterprises (private stock companies) formed by peasants, and other alliance enterprises” (Huang, 2008, p. 86). As detailed below, I agree with the thesis that the secret success of China’s Town and Village Enterprises was that no one knew exactly who owned the firm and its assets. The fact that the collective ownership of these enterprises was unknown, aided in the Chinese citizenry working tirelessly in improving not only their welfare, but that of the republic as well. These well-grounded and funded