China after mao the deng xiaoping revolution 1979 97
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CHINA AFTER MAO: The Deng Xiaoping Revolution 1979-97. Deng’s Economic Reforms. DENG’S BASIC APPROACH TO ECONOMIC MATTERS. Economic Realism Performance of Market or Performance of Socialism? Contact or Isolation from Capitalist World?. DENG’S BASIC APPROACH TO THE ECONOMIC MATTERS.

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Deng s basic approach to economic matters
DENG’S BASIC APPROACH TO ECONOMIC MATTERS

  • Economic Realism

  • Performance of Market or Performance of Socialism?

  • Contact or Isolation from Capitalist World?


Deng s basic approach to the economic matters
DENG’S BASIC APPROACH TO THE ECONOMIC MATTERS

  • Economic Realism Not Possible During Mao’s Reign

  • Deng Discriminated Due to Economic Realism

  • 1982: Deng’s Aims for China’s Economy Released


Deng s hands off policy
DENG’S HANDS OFF POLICY

  • Hand’s Off Policy Begins

  • Departure from Planned Economy Under Mao

  • Problem of State Owned Enterprises (SOEs) Tackled


Deng s hands off policy1
DENG’S HANDS OFF POLICY

  • Dogma Replaced by Pragmatism

  • The economy would become the key focus of Chinese government policy

  • Return to Market Economy

  • Stages of Economic Development


Agricultural reform
Agricultural Reform

  • Commune System Abandoned, Replaced by the xiang

  • Production Quotas Remain

  • Peasants Given Incentive to Produce More



Problems with agricultural reform
Problems with Agricultural Reform

  • Major Problem Caused by Reform: Property Rights

  • Peasants Have Precedent to not trust State

  • Property Questions Leave Efficiency in Doubt


Industrial reforms education
Industrial Reforms - Education

  • Focus by mid-1980s Turns to Industry

  • First Focus on Education

  • Expansion of Education to Produce Technical Experts

  • Thousands of Chinese Students Go Abroad


Industrial reforms special economic zones
Industrial Reforms - Special Economic Zones

  • Educated Youth to Return to Develop SEZs

  • 4 SEZs Established in the country

  • SEZs were Chief Commerical Outlets and Key to Opening Up Commerce



Industrial reform problems
Industrial Reform - Problems

  • No More Guarantees For Workers and Businesses?

  • SOEs would now need to become efficient

  • Employees Paid Based on Efficiency and Output


Resistance from soes
Resistance from SOEs

  • SOEs Resistant to Changes

  • Loss of “Iron Rice Bowl”?

  • State Tried to Please Workers, Reforms Carry Through

  • Centralized Planning Would Have Been Impossible in China


Results of deng s economic reforms
Results of Deng’s Economic Reforms

  • China On An Economic Boom Since Deng’s Reforms

  • Massive Growth…Fastest Growing Economy in the World the Past 25 years

  • Growth at any Cost? Impact on prices? Environment? Equity?


Deng’s Basic Aims

To stimulate China’s Domestic Economy

To open Chinese trade to the outside world

Means

The 4 Modernizations

Education

Agriculture

Industry

Defense

Methods

Allowing market forces to operate

Subordinating theory to practical considerations

Allowing the development of individual enterprises

Encouraging joint venture of Chinese and foreign investment

Industry

Training of students

Creations of SEZs

Export Drive

Drive for Efficiency/Productivity

Reforms

Land

End of the Commune


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