The People’s Republic of China (PRC) has experienced unprecedented economic growth under the leadership of the Chinese Communist Party (CCP) since 1978. In his speech “The Present Situation and the Tasks Before Us,” Deng Xiaoping emphasized the importance of economic reform: “The superiority [of the socialist system] should manifest itself in many ways, but first and foremost it must be revealed in the rate of economic growth and in economic efficiency” (Deng 1980). With this explicit commitment to growth, Deng links the political legitimacy of the CCP, as the monopolist of power within the PRC, to economic performance. Therefore, the inevitable economic slowdown in the PRC will undermine the legitimacy of the authoritarian CCP and force political liberalization. Given this statement, I suspect two major questions have arisen: (1) How is economic slowdown in China inevitable and (2) Could the CCP just adapt its basis of authoritarian legitimacy without political liberalization? I will address both questions in full after examining the history of economic reform in the PRC.
Economic Growth in the PRC from 1978 to 2016
The story of economic reorganization starts in 1978 after the Cultural Revolution when Deng, acting as the paramount leader of the CCP, replaced “collective farming” with the “household-responsibility” system in which farmers were allowed to sell extra grain on the open market. With increased incentives, agricultural production increased by 47 percent from
While Deng Xiaoping was in power, Deng reformed the education system and changed the Chinese culture to value education rather than view education as nonessential. Deng created advanced levels each year, and enforced education in all social classes (Chen). In 1988, the net enrollment and attendance rate in China for boys was approximately 98% and the rate for girls was approximately 92% (Education statistics: China). This new education system prepared Chinese citizens to contribute to the modernization of China. More people had become educated in subjects that were essential for coming up with new ideas and technological developments for China. Educated people helped expand industries and improve the economy. Also, since China’s workforce was made up of skilled workers who had more incentive to work, each industry in China was succeeding, and China’s economy thrived. However, Deng did not only restructure the education system. Deng also made many reforms to the agriculture industry, such as when Deng allowed for the privatization of farms. “Between 1978 and 1984 the per capita income in the countryside almost doubled”, meaning that farmers were making twice the amount of money they had made before Deng became the leader of China (Schoppa). Refining and modernizing the agriculture industry was very important. Under Deng’s rule, farmers could make the maximum
In correlation to Stalin’s Russia, Mao’s China shadowed through the darkness of an intensive economic crisis, generally referred to as, ‘The great leap forward’. The campaign lasted over a decade despite the catastrophic events that made China and its economy go downhill. Although Mao’s efforts were too colossal to go unnoticed, the monstrosity of a decade lead Mao to slowly fade in the background. Consequently, Zedong’s acquaintances, Deng Xiaoping and Liu Shao-chi, rose to power to rectify the situation. Deng and Liu’s attempts to restore China – after the period of the great leap forward - may have been an optimistic road for the two officials. However, for Mao Zedong, it was far from the ideologies he obtained from the very beginning. Mao’s return in 1966 was merely to enforce his socialist principles, underpinning the Cultural Revolution.
China has reached a milestone in terms of achieving its centenarian goal of making China a prosperous nation once again. One of the ways that it has done this is by having steady economic growth even in the midst of an economic crisis. Not only has China’s economy grown, but its standard of living has also improved, it has achieved this by spending 70 percent of its fiscal revenue towards improving people’s standard of living. China has also pushed more anti-corruption reforms and has made efforts towards widening its economy by setting up freer trade.
At first these plans along with an extremely ingenious propaganda campaign stirred great optimism and productivity within the Chinese people, but as years went by the initial flare and excitement went out and few of these promises, reforms and goals had been reached. In some cases the promises were lies. The real actions of the Communist party showed quite a different picture than the lie of democracy that it was feeding the people. The new government never was a democratic one. As a matter of fact it was a dictatorship controlled by the China’s Communist Party (CCP). Throughout the years the communist government consistently and cruelly suppressed any attempts for the country’s democratization.
“The Party: The Secret World Of China’s Communist Rulers,” by Richard McGregor is a book which provides detailed insight into the Communist Party of China, revealing many of the secret underpinnings of how the party is run, and explores the question of how they have continued to stay in power for so long. While other strong socialist powers, such as the Soviet Union and Eastern Germany, fell at the end of the 20th century, the CPC was able to stay in control and ultimately come out of that period even stronger. In McGregor’s own words “the party picked itself up off the ground, reconstituted its armor and reinforced its flank. Somehow, it has outlasted, outsmarted, outperformed, or simply outlawed its critics, flummoxing the pundits who have predicted its demise at numerous junctures.” Instead of letting its own ideologies weaken its power, the CPC has continually adapted and transformed its policies and goals in order to maintain their stronghold over the nation. Through his impressive list of Chinese scholars and political contacts, McGregor is able to lay out the fundamental workings inside the Chinese government and the impressive actions they’ve taken to remain such a powerful organization.
According to Lawrence (1998), the future of China will largely depend on its top leaders. Their priorities, reputations, and ability to get local officials and society at large to support their policies will shape the course of future events. At the vanguard of the group of up-and coming leaders is Hu Jintao, who joined the Communist Party’s most senior body, the seven-man politburo Standing Committee, at the age of 49 in 1992.
However, the implications of globalisation can form volatility in the international business cycle. Highly integrated economies are at greater risk of experiencing economic downturn in the business cycle. Therefore, China’s utilised process of economic liberalisation has reflected in ability to embrace globalisation and maximise the benefits of economic integration and rapid growth. As this evolutionary process continues, by 2025 China will be the world’s biggest economy (Ross Gittins: How Asia is catching up with the rich West). The Chinese ‘economic renaissance’ began in the 1970s after the government converted from socialist economy to a capitalist economy.
The major actors involved in the Chinese challenge include the US government, the Chinese Government, US and Chinese businesses, and the American Citizens. When analyzing the hierarchy of goals for the Chinese government, it is important to note that the Chinese Communist Party is not democratically elected. Their mandate to govern has been based on China’s strong economic performance. Above all else, it is crucial for the Chinese government to maintain its economic success. 29% of China’s GDP is composed of exports of goods and services.
Hung’s stated goals are as follows. First, he aims to outline the historical origins of the capitalist boom in China as well as the conditions which predicated said boom. He also names four conceptions against history to explore the global effects of China’s capitalist boom and the limit of that boom. Firstly, he seeks to challenge the notion that China is challenging the United States neoliberal order. Secondly, he examines the belief that the increasing incomes of poor Chinese citizens helps to reverse worldwide income polarization. Thirdly, he analyzes the claim that China’s rise is challenging Western dominion over the world, and is radically altering the world order. Lastly, he plans to evaluate the assertion that China has been emerging as the most powerful driver of growth since the global financial crisis. He plans to devote a single chapter to the refutation of each of these views and explanations of why they overstate the importance of China, in addition to several introductory chapters describing China’s rise. He aims to prove with this work that China is no different than the other major capitalist powers, that its boom is dependent on the global neoliberal order, that its boom contributes to rampant inequality, and, in sum, that China is just a foundation of the capitalist status quo.
Chinese philosophy places great emphasis on gradual change in order to maintain stability. Many Chinese elite, scholars and technocrats, who are affiliated with the CCP, are the ones who shape the debate and are able to change norms and policies. Whereas Americans, regardless of social standing and political patronage, have been known to challenge social, economic and political norms, resulting in constant innovation. In China, pulling the lever is reserved to a minority elite with limited room to address issues beyond business, finance and economics. The Chinese government is already grappling with the consequences of market reforms which has given Chinese citizen the ability to voice their opinions through their economic rights. Unfortunately, challenging orthodoxy does not go hand in hand with Chinese
A large amount of work done on the part of China savants, especially after the Cultural Revolution, ascribes major changes in state rules to the Party elites and the movements that they began. Despite of this, in the case of modern improvements in China it can be said that Deng Xiaoping and his economic liberalization enterprises were not simply initiatives from higher-ups who make a decision the future of their nation. These initiatives are at the least partly reactions to general patterns that already
Deng Xiaoping has been the individual with the most impact on China since the 1970’s. Along with Mao Zedong and Zhou Enlai, he is looked at as one of the key figures in evolution of communism in China . Deng Xiaoping will be remembered as a national hero, but this was not always the case. The real story of Deng includes the fact that, on more than one occasion, his peers ostracized him. During his lifetime he has been a part of the many changes in China throughout the twentieth century. He was by Mao Zedong’s side through all of the struggles of the Chinese Communist Party; battling with Chiang Kai-shek and the Guomindang over
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The purpose of this essay is to show how the economy of China has, and is changing, becoming the second largest economy in the world today. Although China is currently under the leadership of Xi Jinping, this essay will concentrate primarily on the actions undertaken by then President Mao Zedong, followed by then President Deng Xiaoping, (sans mention of Hua Guofeng). Given the relative infancy of Xi’s assumption of power, economic policies still remain largely rhetorical in form. Likewise, the majority of literature concerning economic policies under Xi are largely speculative, often citing strategies and ambitions as opposed to thereby, lacking a solid basis for rational induction In addition to China’s lack of transparency, In addition, it will be shown that the methodology behind the Chinese economy demonstrates the implementation of varying levels of the characteristics associated with the schools of Realism, Marxism and Liberalism. Thus, China’s approach to global trade in the 21st Century is pluralistic, testamentary to the failed economic
In 1949 the Chinese Communist Party (CPP) beat the Kuomintang (KMT) in the Chinese Civil War becoming the reigning regime in China. The new communist leadership drastically changed China’s future. Today the CCP remains in power in China, shaping every aspect of Chinese society. Academics like Chalmers Johnson argue that the CCP’s ability to mobilize Chinese peasants ultimately led to the CCP’s victory. This paper will supplement Johnson’s argument by examining how KMT economic, military, and ideological missteps led to the CCP’s victory.