Ahead of its birth in 1949, China had inadequate systems of production and under-developed manufacturing industry. In 1970’s, the planned economic scheme started to prove its limitations. They resorted to focus on the central mission of economic expansion through opening up the economy to the external world and introducing reforms of the economic system.
In 1978 Deng Xiaoping established a chain of economic transformations, described as “social market reforms”. Some of the questions in this context is how did the development of socialism policy impact China government. Scholars such as Horesh (40) claim that China’s economy, ahead of socialism reforms, suffered from an antagonistic international society, faults of the planned economic scheme, which changed after the reforms.
However, this thesis answers the question as follows: The adoption of the social market economy brought rapid economic expansion in China in the form of technological advancement and rise in foreign capital, since international firms augmented their investments in the nation.
The change after the introduction of the policy of socialism market economy, in China, helps us perceive the role that different government policies can have on a country’s economy. Particularly, we can trace the development of foreign capital and technological advancement in China. Socialism market economy brought about a noticeable difference in China’s economy (Alon 70).
The impacts of modernization in china is largely attributed to the emergence of socialism before the reform and as well as opening-up policy in the year spanning from 1949 to 1979. Prior to its rebirth in 1949, despite the government’s lack of a defined blueprint coupled with initial elevated boom-bust cycle a lot can be learned from this country. China’s production systems were inadequate as well as under-developed manufacture industries.
Its shift in economic strength took a new direction upon the realization that a strong foundation on planned economic strides was long overdue. She therefore built a planned economic stride to act as a crucial segment in centralization of distributing the rare resources for the country’s economy revolution. Since the scarcity of resources inhibited economic development, China survived with deficiency for a long phase, ahead of the reform.
The case of Chinese is unique in many aspects. This makes it hard to equally replicate what was witnessed in any setting. Her initial predicaments are largely seen as catalyst towards what it is today. More so it showcases an experimental, evolutionary as well as a bottom up approach. Despite all the factors that contributed in one way or the other to its eventual achievements there are other numerous factors that made it hard for the attainment of what is there today.
Some of these hindrances are the planned economic scheme itself (Alon 70). Others are opposition from conservative party. This revolution took several phases under a number of leaders. Gradual evolution took place despite resistance and opposition from anti reformists de factor leaders. Commencement of economic reforms started with Deng Xiaoping and his reformist allies ousted the going of four Maoist faction (Wakeman 126).
In the first phase of industrialization, centralized distribution assured the financing of several chief industrial schemes at both rural and urban settings. When Deng took over the leadership he knew the first step in moving ahead was to increase food production. Most of these reforms targeted areas that were initially neglected by the communist party.
These includes the agricultural reforms, de-collectivization of agricultural systems and a keen emphasis on responsibility system in household system played a significant role in championing these key developmental aspects. The catalyst for increased food production was largely attributed to the great leap forward famine in late 1950s. Hence, there was noteworthy enhancement in China’s technological competence level, in the late 1960’s (Alas and Wei 298).
Some of the aftermaths that evolved with post Maoist includes increased agricultural productivity; this increased the living standards of both the rural and urban industries. Citizens developed the desire to avoid shortages witnessed during the era of Maoist.
Rapid expansion was largely because of adoption of social market economic. This opened up new avenues for all the people to adapt and conform to the new trends. This kind of approach made it possible for the entire country embrace a culture of hard work and being independent so as to achieve the common goal.
Socialist economic market supported development of other forms of ownership like independently owned businesses. People were allowed for the first time to own their own business amongst other privately owned schemes like individual companies and foreign capital investment was also put forth and its implementation made it pivotal to bring in changes. This organizational innovation stimulated the efficiency of industrial workers and farmers, thus enhancing the country’s resource distribution.
Demonstration of socialist market economic system in China is also attributed to the state of technology it has in place. This played a role especially initially and after the reform. The planned economy did not have the inducement to establish advanced technologies, enhance eminence, or boost factor productivity.
Agrarian revolution largely depended on this. It scaled up the productivity and involvement of the people in food production. Industrial output went up. Even though there was a notion that a segment of elite and rich people benefited a lot at the expense of the majority under the leadership of Xiaoping the overall effect was positive as opposed to what was prior on during communist party.
On the other hand, socialist market economic system encouraged the efficiency of industrial workers, thus enhancing the nation’s technological competence (Chen 54). This catalyzed the entire community to get involved in one way or the other to achieve the set goal. Hence, socialism policies in China government saw the advancement of technology, which had failed during the era of planned economy, due to poor investment atmosphere that hindered foreign investors’ involvement. A change in these policies made it possible for the country to make tangible strides towards realization of what it has achieved so far. These changes after the introduction of the policy of socialism market economy, in China, is noteworthy as it helps in perceiving the role that different government policies can have on a country’s economy. Particularly, one can trace the development of foreign capital and technological advancement in China. Socialism market economy brought about a noticeable difference in China’s economy. These transformation spans a wide extension from rural and urban agrarian, flexibility in pricing policies, allowing the operation of private businesses as well as expansion of service sectors (Wakeman 109).
Socialism with Chinese characteristics combined with the facts related to building socialism is considered unique to china in many ways, scientific socialism, socialism essential feature and common role of practice. The planned economy became lethargic to fine-tune of the swift economical expansions that had vastly augmented the levels of planned economic complexities.
Besides, the dent to the economic system fashioned by the Cultural Revolutions positioned the technological competence level of China on a constant downhill trend. One of the characteristics of Chinese economy is the boom-bust cycle which is a result of institutional incompatibility arising from piecemeal and partial approach to reform.
The emergence of socialism however, had some detrimental effects on the people’s motivation because the deficiency of information and motivation to direct the government’s economic policies became a limiting force. Cultural Revolution took policy-formulators in China to complete awareness of the economical and political faults committed previously.
They resorted to focus on the central mission of economic expansion through opening up the economy to the external world and introducing reforms of the economic system. Other limitations included inefficiencies that were largely attributed to leadership incapability’s. Mal-investments also did more harm than good in stagnating developmental processes. These were some of the reasons that made the CPC to adopt a leadership trend of market oriented reform in an attempt of salvaging the failed economic status quo.
After the reform and opening up policy from 1979 to present date, china started pecuniary restructurings. The adoption of fundamental Marxism principles by the China Community party is largely linked to what is currently in place. The party ensured economic segments were realized on the basis of people’s desire to embrace hard work and wealth acquisition.
A rise in capital from the foreign countries for the first time had a significant contribution in this goal because businesses opening up rose sharply and accommodated most of the limitations that had ensued prior to this devolution. The key driver to this was the intensive labor industries.
The industry provided most workers with jobs. This became a catalyst to drive people in attaining what she has instituted. Apparently, the centralized, egalitarian employment and allocation schemes, served as poor stimulants of employee motivation. What socialism did was to instill a socialist economic market that supported development of other forms of ownerships that made it possible for the Chinese to attain great strides in economic strengths (Lin et al. 1).
China community party responded to a sequence of key questions in regards to china’s own socialism path. The effectively and efficiently of this approach is largely tied to the party’s desire to embark on viable programs to boost economic gains. Socialism with Chinese characteristics enforced Marxism position. This position knew they had to study new conditions, upon which a summary of new experiences to resolve new problems became a guiding principle.
Critical examination of historical period provided a much needed vigor because the lessons as well as new direction proved pivotal in laying down strategic plans to curb any prior challenges that pulled their desires to progress.
Such lessons are only helpful if they can provide directions that would turns out to be beneficial for a common set goal in place. This is because when alluding to the past failures and challenges she was able to learn from her mistakes and embrace new fundamental dimensions of making things possible as well as attaining that goal at the end of the tunnel.
Political instability provided the much needed atmosphere for the attainment of these. There was a strong system of political consultations that ensured governing did not merely relied on one political party or a group of individual. Probably, multiparty cooperation system is the huge contributor. This system of governing instituted by the China Community People alongside the regional ethnic autonomy system became the major player.
This is partly in the essence that when people are allowed with the freedom to own their business ideas and all that comes from their hard work, they will give their best foot. This is contrary to former system where everything was owned with the state and people had to pay something to the state in return, such move was seen as a discouragement in attaining economic milestone.
Socialism with Chinese characteristics is a just and successful direction that China must have taken to bind it into a civilized, harmonious, democratic, and modern nation. This system is unique in many ways as earlier on stated but one major demerit to use it a case study in helping other nations is not possible because Chinese initial conditions were unique in many ways and these features are what made it attain it has achieved and installed in terms of economy.
Implementation of these reforms was also accommodated in almost all facets of life inclusive of educational systems. At a very tender age, school going children ware made aware of their capabilities and potential of their future contribution on the same. This made it possible for this group to later on appreciate their scientific practices that were tailored towards the country’s attempt of streamlining economy (Chen 53).
Marxism position in China followed a scientific open system with advancement of scientific practices. Adoption of this novel technological approach made it possible to open up new avenues in innovations and inventions that sought to improve all segments of economy. From agrarian to industrial sectors, new approaches were put in place in line and spirit of new country that sought to accommodate this idea in all the crucial economic segments.
One of the primary positions of socialism with Chinese characteristics is that productive forces were publicly held in the socialist economic market. This is contrary to what was witnessed prior to, because huge trucks of land were privately owned and the citizens were required to pay a subsidy to the state.
This expanded the service sectors which also witnessed a major boost of price flexibility. These moves played an important role in attaining production. The impacts of modernization in china is largely attributed to the emergence of socialism before the reform and as well as opening-up policy in the year spanning from 1949 to 1979. Prior to its rebirth in 1949, despite the government’s lack of a defined blueprint coupled with initial elevated boom-bust cycle a lot can be learned from this country.
China’s production systems were inadequate as well as under-developed manufacture industries. Its shift in economic strength took a new direction upon the realization that a strong foundation on planned economic strides was long overdue. She therefore built a planned economic stride to act as a crucial segment in centralization of distributing the rare resources for the country’s economy revolution. Since the scarcity of resources inhibited economic development, China survived with deficiency for a long phase, ahead of the reform.
The case of Chinese is unique in many aspects. This makes it hard to equally replicate what was witnessed in any setting. Her initial predicaments are largely seen as catalyst towards what it is today. More so it showcases an experimental, evolutionary as well as a bottom up approach. Despite all the factors that contributed in one way or the other to its eventual achievements there are other numerous factors that made it hard for the attainment of what is there today.
Some of these hindrances are the planned economic scheme itself (Alon 70). Others are opposition from conservative party. This revolution took several phases under a number of leaders. Gradual evolution took place despite resistance and opposition from anti reformists de factor leaders. Commencement of economic reforms started with Deng Xiaoping and his reformist allies ousted the going of four Maoist faction (Wakeman 126).
This work attempted to keenly look at the impacts of the economic changes following the reform and the opening-up policy (1979-present) in China. It also compares these impacts with the period before the reforms and demonstrated that insignificant economic achievement became experienced during the era.
Although this was a catalyzing effect other hindrances had a major influence. These are inefficiencies, mal-investments, and Mao’s death. Despite these setbacks, the deficiency of information’s that motivates for directing the government’s economic policies became the most outstanding hindrance. The planned economy as well became lethargic to fine-tune the swift economical expansions that vastly augment the level of economic planning complexion.
In addition to, the dent in the economic system fashioned by the Cultural Revolution positioned the technological competence level of China on a constant downhill inclination. The adoption of the social market economy brought rapid expansion in Chinese economy. Some aspects that contributed to this expansion included technological advancement and rise in foreign capital, because international firms augmented their investments in the nation.
One major attribution to these trends is the leadership and their unique way of initiating programs besides their successors carrying on the former projects into a conclusion.
Works cited
Alas, Ruth, and Sun Wei. “Institutional Impact on Work-related Values in Chinese Organizations.” Journal of Business Ethics 83.2 (2008): 297-306. Print.
Alon, Ilan. “Analysis of the Changing Trends in Attitudes and Values of the Chinese: The Case of Shanghai’s Young & Educated.” Journal of International and Area Studies 2.11 (2004):67-88. Web.
Chen, Anmin. “Thirty Years of Chinese Reform-Transition from Planned Economy to Market Economy.” Asian Social Science 3.5 (2009):52-56. Web.
Horesh, Niv. “Shanghai Studies: An Analysis of Principal Trends in the Field.” Provincial China 2.1 (2010): 39-67. Print.
Lin, Justin Yifu et al. “The Lessons of China’s Transition to a Market Economy.” The Cato Journal 2.16 (2011): n. p.
Wakeman, Frederic. “The Civil Society and Public Sphere Debate: Western Reflections on Chinese Political Culture.” Modern China 19.2 (1993): 108-138. Print.