text: Firstly, let me say the research Nicholas Lardy has conducted is commendable and a welcome addition to the existing literature. His data sources are vast and highly informative.  The major limitation of this  publication is that the central argument is biased. Lardy selects those  data and pieces of existing literature which support his own view. As a  result, major sections of the literature concerning financial reform in  transitional economies are simply ignored or brushed over.  Lardy's view is  the typical Western, dare I say "American" argument. Primarily he  uses financial criteria to evaluate the economic performance of China's  state banks. This methodoloy is extremely poor - particularly in the  context of China's trannsitional economy. Financial criteria are a horrible  guide to both internal and allocative economic efficiency. If anyone would  like elaboration on this point feel free to email me.  In summary, Lardy's  book is informative and makes for interesting reading. However as a piece  of economic analysis, its usefulness is limited. The major reason for this  is a total lack of economic theory(as indicated by the previous reviewer)  which has resulted in a poor methodology
  