Income inequalities between urban and rural areas remain high in China, but the gap has begun to narrow. Peasant incomes have increased dramatically since the post-Mao reforms. Rural areas have new power, but this is a consequence not a cause of the reforms. The improvement in rural conditions reflects a change in the central state's development strategy and ideology, and the local response to incentives embedded in China's reforms.

The case study approach is always a refreshing antidote to the frequently superficial approach of a narrative textbook. This is particularly the case in an area as complex as the study of Asia. In an increasingly interdisciplinary world, Asia: Case Studies in the Social Sciences could be an invaluable supplement to a teacher well versed in the general principles but needing the depth and perspective of specialized knowledge of particular topics. I recommend this approach for both college instructors and for advanced study at the pre-collegiate level.

In the 1980s fiscal reform in China provided localities with strong incentives and a heightened capacity to pursue industrial growth. As a result, local governments have responded vigorously to economic reform, managing rural collective-owned enterprises as diversified corporations, with local officials performing the role of a board of directors. This article analyzes the incentives that have led to the development of this form of local state corporatism and rapid rural industrialization, and it describes the ways in which local governments coordinate economic activity and reallocate revenues from industrial production. These developments are important for two reasons: they show that local government involvement in the economy does not necessarily decline with the expansion of market coordination; and they offer a successful model of reform that serves as a counterpoint to privatization proposals.

'Local corporatism' has been identified as a major factor in the rapid growth of the Chinese economy. The institutional environment, ownership, political and social factors operate along with economic factors in explaining local cor poratism and differences in the degree of corporatism of collective and private enterprises with local governments. The differences lead to the distinction between collective and private enterprises in terms of organizational character istics. This is confirmed by data from 132 rural enterprises in China.

This volume, composed of nine provocative chapters by prominent Chinese specialists, analyzes Chinese economic change — the break-up of collective farming, the growth of private commerce, and the decentralization of industry.

Ezra Vogel contrasts the potential of China to industrialize with the rapid post-war industrial breakthroughs made by Japan, Taiwan, and South Korea. He believes China, despite starting with a lower average income and lower educational level than these other east Asian nations, possesses the drive and determination to make rapid industrial progress before the mid-21st century.

David Zweig explores the dilemmas which result from continued regulatory controls on some sectors of the Chinese rural economy combined with deregulation of other sectors.

The Chinese village receives the keen attention of Thomas Gold and Jean C. Oi. Gold examines "decollectivization" in terms of how village leadership continues to maintain the power of the collective over the peasants and the nature of peasant "entrepreneurship" that has emerged. Oi suggests that diversification and particularly the industrialization of the village economics following reforms allow the collective to endure as an entity but with a different character.

• Ramon H. Meyers focuses on how the significance of the CCP's decision to initiate new economic reforms, first in 1978 and again in 1984, will influence the overall economic development in China. Robert Dernberger assesses the rate and structure of Chinese economic growth.
• Justin Yifu Lin explores the agricultural expansion during 1980 and 1984 as a result of the household responsibility system reform. The impact of the reform on saving and investment mechanisms receives the attention of Bruce Reynolds.
• Dorothy Solinger discusses Wuhan's comprehensive urban economic reform in terms of decentralization, leasing, stocks, bonds, bankruptcy, manager responsibility, markets, and trade centers.
• Victor C. Falkenheim explores China's efforts at decentralization of the economy through fostering regional reforms.

These authors, through their explorations and observations of China's efforts at reform, present a dynamic picture of change. However, they have not overlooked the staggering problems facing China's advancement into the 21st century. The China specialists who contributed to this volume provide a comprehensive view of China's path toward full industrialization.