"I think there is a huge change from the independent sector to the state sector and that increased forensic accountably, " he said.
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The innovation in China is much more likely to be generated out of the private sector, even though the state sector is hugely well-endowed with resources that could fund innovation.
China can claim that it has avoided a credit crisis so far (though I doubt that this is true, given Chinese banks' exposure to real estate, corporations with evaporating profit margins and state-inspired lending to the state sector).
First, productivity in the state sector, especially in fields like education and health, has lagged behind the private sector.
The only way to really view this is from a mile high: this is a coordinated, state-by-state assault on public sector unions and public education.
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State Enterprises Minister Laksamana Sukardi, in charge of reforming the state-owned sector, is a former banker who joined Vice President Megawati Sukarnoputri's Indonesian Democratic Party of Struggle (PDI-P) in the early 1990s, when it was hardly politically expedient to do so.
The master of Marlborough, Edward Gould, says many independent schools are keen to work with the state sector.
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Moreover, in reforming the state sector, China's leaders have run up against a brick wall.
China traps these "globalization" dollars and uses them to subsidize its unproductive state sector.
The state sector had more of a problem recruiting and retaining staff than the private sector.
The creaking state sector can no longer provide a livelihood for Syria's rapidly growing population.
The Iranian people are faced with spiralling inflation and job layoffs within the state sector.
And many markets are closed to them because the state sector is squatting there.
This view ignores the baleful effects that the state sector has on the efficient allocation of resources.
However there is still plenty of growth for the company when it comes to the state sector.
But in the state sector there is strong sense that there should be equal chances for all.
In many rich countries average wages in the state sector are higher than in the private one.
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In the cities decent pensions are almost as rare, except among workers in the privileged state sector.
That would settle the argument about the relative merits of private and public provision in the state sector.
Two leading private schools have been selected as teaching schools to train teachers for the English state sector.
The state sector is not famously ill-run: some things are far worse done in some parts of Brazil.
Some analysts, awed by the economic strides China has already made, deny the dead weight of the state sector.
But even here, a gradual reform of the state sector is under way.
"For this coming October, 53% of our offers have gone to applicants from the state sector, " Dr Lucas said.
She rose steadily in the state sector and by 1992 had enough savings (and a loan) to buy property.
It co-exists with an expanding state sector and a host of government-funded co-operatives.
True, Carinthia suffers acutely from the dead hand of a bloated state sector and the pork-barrel politics it engenders.
With the troubled state sector undergoing extensive overhaul in a tough year, private businesses will need to provide more jobs.
These have been triggered both by the shrinking of the state sector and by harsh working conditions in some private enterprises.
That changed in the 1980s, when the state sector was shrunk, labour markets were made more flexible and other distortions removed.
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