Sunday, October 9, 2011

Distinct Features of China's Reform

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Due to the drawbacks of a socialist economy and the acknowledgment that China held a weak position in the overall world economy, Chinese Government officials and planners founded Chinas reform on building socialism with Chinese characteristics. Not only does a socialist economy have the inability to compete in a world market but it also hinders development by not taking full advantage of an available work force and having a rigidly planned economy with little freedom. The Chinese government, by pursuing an open door policy and drawing from other country experiences, gradually redirected Chinas ideologies to that of pro-market authoritarianism in a unique process. Distinct features of the reform included development as a priority, gradualism and soft nationalism.

Unlike reforms undertaken in Eastern Europe, Chinas reform was not a result of a recession nor was it based on a priority of transition. Instead, the implementation and development of a socialist market economy was accomplished gradually as opposed to spontaneously with development as a priority and transition being a secondary goal (Zhang, 000). Planners did not set detailed goals or plans for future development, instead reform processes were highly flexible and subject to constant adjustments. In this sense, a gradualist approach was undertaken whereby an idea or strategy was formulated, experimentation undertaken and then a policy implemented. Despite reform policies being aimed at one specific target, goals were often pursued simultaneously. Progressively reform policies worked through the existing institutes, while gradually reforming them or creating new ones. It must be noted however, that many policies were both gradual and radical, depending on the stage of the reform.

Another unique aspect of Chinas economic reform was that of soft nationalism and the way in which hard reforms were deferred. The main idea behind this method of policy implementation was that soft reforms produced quick tangible growth with little community resistance. The main reason hard reforms were not implemented to the degree they were in other Countries, was the fear of political instability from lack of community acceptance. Soft reforms were implemented with the aim of improving the systems efficiency without changing the fundamentals.

Due to a focus on development, rather than transition, Chinas reform has lead to economic globalisation, increased information and technology sectors, and improved standards of living. It must be noted however, that the reform has also resulted in corruption and decreased moral standards.

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Zhang, W. 000. Transforming China Economic reform and its political implications. Macmillan. Pp. 8-74 and 148-16.

Secondary References

Li, L. 00. Economic Reform in the Urban Land System in China, Journal of Contemporary China. Vol. 1, i4, p. 07(18).

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