Question 2

Barry Naughton defines "institutional transformation" as changes in organizations, information, and incentives that guide economic decisions.Pickoneof the following sets of institutions and describe how it evolved over time within China from 1993 to now, and how economic incentives for their households and producers were changed in the process.

Choose ONE of the following areas: (1) rural land rights; (2) the financial system; (3) governance of state-controlled enterprises