The central question of this book is how centrally planned economies transition to market economies through institutional reform. The author, John McMillan, draws on his expertise to examine the creation of new markets and institutions in countries undergoing this transformation. The book specifically analyzes the reform processes in China and Vietnam, using Poland and Ukraine as comparative examples, and contrasts them with North Korea's lack of reform. China's early and extensive reforms make it a key case study, revealing successful, unconventional institutional forms in its rural industries.

This book is regarded as a significant academic contribution to understanding economic transitions in Asia. The detailed examination of China's unique institutional experiments and their success provides valuable insights for economists and policymakers. Its comparative approach, contrasting reforming and non-reforming economies, offers a robust framework for analyzing market creation. The work is noted for its empirical depth and its focus on the practical challenges and innovative solutions found in real-world economic reforms.