Uncertainties Associated with Transition

In its drive to becoming a market driven economy, the country's economic performance tends to be 3 steps forward and 1 to 2 steps back. State planning has not been dispensed with, just not as obvious. As the late Chen Yun, China's former erstwhile economic planner, was known to have said: "A free economy can fly away like a bird." Part of the planning function is to put a cage around the economy. Sometimes the cage is loose and other times tight. So far no one has found a reliable way to forecast financial performance for a business in a pulsating birdcage economy.