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Contents Introduction

This paper examines Sachs and Woo’s (2000) claim that Viet Nam’s experience shows that China would have done better if followed the Big Bang approach to reform instead of the Gradual approach. The paper scrutinizes this claim from the point of view of (a) factual correctness, (b) appropriateness of characterizations, (c) appropriateness of the analogy, and (d) the validity of the conclusions. It finds that Sachs and Woo’s claim falls short of meeting these criteria. The Vietnamese economic reforms do not lend support to the Big Bang approach. Instead they provide further evidence that the Gradual approach is the appropriate route to reform.