Economy of the Indochinese DR

The Economy of the Indochinese DR is strongly tied to its political regime. Throughout its history the Indochinese Democratic Republic has shifted between a centrally planned economy and reform towards a market-involved system. Ever since the creation of the Indochinese DR in 1995, the country has denounced the neoliberal reforms it engaged in during the late eighties and early nineties. Indochina is considered a Third World development country even though some economists have noted the trends towards more capital inflow and a growing industrial output in recent years. The regime of Indochina describes its economic organization as 'a mixed economy in the line of market socialism'. Most economists agree to this classification even though they are more inclined towards the usage of the label 'third way mixed economy'.

Characteristics and numbers

 * Public ownership: The economy of the Indochinese DR is classified by economists as a 'third way mixed economy' even though its strongly leans towards market socialism as it existed in Eastern Europe under 'liberal' Communist leadership. About 80 percent of the economy (measured as share of output in GDP) is in public ownership, either trough direct state ownership or owned in collectives. The share of private ownership in the agricultural industry has grown the last decade to a moderate 25% but strategic industries have been monopolized under state-governed enterprises. In the light of this balance heavily inclined towards public ownership some critics denounce the classification of the economy as third way. Nonetheless a lot of collectively owned enterprises are no longer tied to centrally planned directives and the Indochinese DR is even opening up to international trade after a period of isolationism in the late nineties.
 * Guided economy: The establishment has stepped down of a centrally planned economy. It traded its Soviet-like model of centrally planned directives for what it calls a 'guided economy'. The state still interferes heavily in the economy trough a thorough macro-economic policy, subsidizing food products, pulling up trade barriers to protect the domestic market, state enterprises etc. Nonetheless only the strategic sectors remain subject to direct government control. Recent government programs are aimed at introducing more market-incentives and allowing a minimal degree of competition. The positive reaction of friend and foe on these changes have risen expectancies on Indochina's economic future performance.

- composition (2fold) and sectors - numbers (GDP and per capita GDP) - criticism ==> HDI - FDI inflow/export balance - monetarism/neoliberal --> protectionism

Structural problems
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The Economic Planning Administration
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The Indochinese Central Blank
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From plan to reform and back
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The 2011 Development Plan
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