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CHINA AFTER MAO: The Deng Xiaoping Revolution 1979-97

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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CHINA AFTER MAO: The Deng Xiaoping Revolution 1979-97

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  1. CHINA AFTER MAO: The Deng Xiaoping Revolution 1979-97 Deng’s Economic Reforms

  2. DENG’S BASIC APPROACH TO ECONOMIC MATTERS • Economic Realism • Performance of Market or Performance of Socialism? • Contact or Isolation from Capitalist World?

  3. 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

  4. DENG’S HANDS OFF POLICY • Hand’s Off Policy Begins • Departure from Planned Economy Under Mao • Problem of State Owned Enterprises (SOEs) Tackled

  5. 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

  6. Agricultural Reform • Commune System Abandoned, Replaced by the xiang • Production Quotas Remain • Peasants Given Incentive to Produce More

  7. China’s Agricultural Record 1978-1989

  8. Problems with Agricultural Reform • Major Problem Caused by Reform: Property Rights • Peasants Have Precedent to not trust State • Property Questions Leave Efficiency in Doubt

  9. 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

  10. 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

  11. Special Economic Zones - Deng’s Pragmatism

  12. Industrial Reform - Problems • No More Guarantees For Workers and Businesses? • SOEs would now need to become efficient • Employees Paid Based on Efficiency and Output

  13. 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

  14. 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?

  15. 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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