Since the founding of the People's Republic of China in 1949. China has been pursuing a modernist vision of rapid economic development by implementing several policy variants.
From the 1950s up to the 1970s, China followed the Soviet model of development. Which meant that industrial production was solely in the hands of the central government whilst agricultural production was controlled by a network of rural collectives.
It was only in 1978 that China started to abandon the planned system and gradually returned to a more market-oriented economy. 1978 marked the beginning of a suite of economic reform policies known as Reform and Opening 改革开放 (gǎigé kāifàng).
Before the reforms, the Chinese economy was dominated by state ownership and central planning. From the 1950s up to the 1970s, Chinese real GDP per capita grew at a rate of only 2.9% per year on average and worse still Starting in 1970, the economy entered into a period of stagnation.
It was then after the death of Mao Zedong that the Communist Party leadership turned to market-oriented reforms to salvage the failing economy.
2. 1978 marked the beginning of a suite
of economic reform policies known as
Reform and Opening 改革开放
(gǎigé kāifàng).
- Bryan Tilt and John A. Young (2007)
3. Introductory Essay: Development in Contemporary
China - Bryan Tilt and John A. Young (2007)
Forty-three years of gradual reform have brought sweeping
social and economic changes, including:
• the return of smallholder agriculture under the
Household Responsibility System
• the privatization of industrial production
• greater integration into the world economy, and the rise
of a consumer class.
4. 1. The return of smallholder agriculture
under the Household Responsibility
System
2. The privatization of industrial production
3. Greater integration into the world
economy
4. The rise of a consumer class.
- Bryan Tilt and John A. Young (2007)
Resulting Economic Changes
5. Economic Development in the Chinese
context aimed to improve living standards
for the Chinese citizenry by increasing
agricultural and industrial outputs,
generating employment opportunities, and
increasing household incomes
6. Success in China’s economic reform can
be measured partly by its rapid economic
growth in GDP per Capita - Gregory C. Chow (2004)
View China's GDP per Capita from 1950 to 2019 in the chart
7. Timeline
Imperial China Republic of China
221
BC
Peoples Republic of China
1911 1949 Now
Notable Dates
• 1971
• 1978
• 2001
• 2010
Accepted into the United Nations
Economic Reforms Started
Became apart of the World Trade Organization
China has 2nd largest Economy
8. 1. The basic elements of a market
economy were successfully introduced
and adopted by the Chinese government
in the initial stage of reform.
2. The large amount of human capital in
China.
3. The competence of Chinese leaders in
carrying out economic reform.
- Gregory C. Chow (2004)
Success Factors
9. A number of institutional shortcomings in
the form of state control, lack of
competition, and bureaucratic interference
in the market economy
- Gregory C. Chow (2004)
Even in the face of these shortcomings The Chinese people
were able to get rich through hard work and entrepreneurship.
Shortcomings
10. The Chinese government shows great
determination to continue reforming in the
future.
Those who will participate in this
economy as it is developing may as well
be heavily rewarded in the future even
though they have to endure the
bureaucracy, legal challenges and
sometimes corruption.
Final Thoughts
12. Quoted Articles
Introductory Essay: Development in
Contemporary China - Bryan Tilt and John
A. Young (2007)
Economic Reform and Growth in China -
Gregory C. Chow (2004)
