Research On The Relationship Between Crisis Shock And Reform Breakthrough

The history of China's reform experience shows that every major crisis are triggered or contributed to the reform process. The political economy of crisis and reform becomes an important issue. The problem about the mechanism of the crisis promote reform becomes one of the most important academic and practical problem in China's transition process. And it is also the key to understand a number of phenomena arising in the China's reform process. In order to deepen the understanding of the relationship between crisis and reform, this paper tries to construct a theoretical framework to analyze why reforms are delayed and the mechanism of the crisis to promote reform.This paper firstly describes the research background and puts forward the topic. Besides, it introduces the research purpose, significance, content, approaches, as well as break-through points and limitation of the research. Then this paper introduces the related theories on the political economy of crisis and reform. Based on extended Alesina-Drazen Model, this paper analyzes why reforms are delayed and the mechanism of the crisis to promote reform. From the perspective of the costs and benefits, it tries to explain the delay and Breakthrough of China's reforms. Through the study , this paper reached the following conclusions: First, with the increasing of the number of interest groups, it is more and more difficult to promote the reform ; Second, in the process of reform, cost allocation is the main factor affecting reform; Third, if the crisis contributed to the change, the crisis is conducive to improve overall social welfare. Through the case of the reform of public health system, this paper tries to test the theory of this paper. Finally, according to the article's conclusions, the paper puts forward some policy recommendations.