Analysis on China's 'Reform and Opening-Up': Based on the Features of Institutional System

Abstract

Institutional reform needs to recognize the institutional rules from the perspective of the institutional system. Based on the system theory, this paper analyzes two features of the institutional system — the order and the irreversibility. Institutional goal is the steady state of institutional system. The closer to steady state institutional system is, the smaller order is, and the greater disorder is. Meanwhile the order moving to the goal of the institutional system is an irreversible process, so the only way that can change the disorder state is to change institutional goal. In this paper, above conclusions were verified from China’s “Reform and Opening-up”, and the evolutional path was summarized and two suggestions for reform were given.