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Chinese Socialism Characteristics

Prospectus

The emergence of socialism in China before the reform and the opening-up policy (1949-1979) had much impact on its modernization. Ahead of its birth in 1949, China had inadequate systems of production and under-developed manufacturing industry. Against the milieu of the economic ban forced by western nations, China built a planned economy that acted a crucial part in the centralized distribution of scarce resources for the country’s economic revitalization. Since the scarcity of resources inhibited economic development, China survived with deficiency for a long phase, ahead of the reform.

In the first phase of industrialization, centralized distribution assured the financing of several chief industrial schemes. Hence, there was noteworthy enhancement in China’s technological competence level, in the late 1960’s. Nevertheless, in the 1970s, with the extension of China’s economic level, in 1970’s, the planned economic scheme started to prove its limitations. The deficiency of information and motivation to direct the government’s economic policies was the most outstanding limitation. The planned economy became lethargic to fine-tune to the swift economic expansion that had vastly augmented the level of economic planning complexity. Furthermore, the dent to the economic system fashioned by the Cultural Revolution positioned the technological competence level of China on a constant downhill inclination. The concise raise in technological competence in the final years of the Cultural Revolution, 1975 -1976, did not last, and the downward drift recommenced thereafter.

From the standpoint of technological advancement, projects in a “shortage economy” did not have the motivation to establish pre-eminent technologies, enhance quality, or boost factor productivity. Teachings from the Cultural Revolution took policy-formulators in China to the 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. In 1978 Deng Xiaoping established a chain of economic transformations, described as “social market reforms.”

This leads me to ask the following question: How did the development of socialism policy impact China government. With this query, I plan to discuss the impacts of the economic changes following the reform and the opening-up policy (1979-present). I also plan to compare these impacts with the period before the reforms and demonstrate that little economic development became experienced during this era.

Some scholars believe that China’s economy in the period before the reforms suffered from an antagonistic international society and faults of the planned economic scheme. For instance, Wakeman makes the point that the period of the planned economic can be distinguished by proletarian dictatorship (126). Alon argues that, although, Deng Xiaoping contributed to the growth and realization of common target for all Chinese, he only enabled a section of the Chinese to become rich first (70). This is a stark contrast from the condition following the reform period, when China developed a social market economy.

In this research paper, I intend to pose this argument: The adoption of the social market economy brought rapid economic expansion in China. Some aspects that contributed to this expansion included technological advancement and rise in foreign capital, since international firms augmented their investments in the nation. I will support my thesis with precise examples of how the establishment of socialist market economic system, during the 1990s changed people’s way of life in terms of both economic and social survival. One example that I plan to discuss is how China became forced to lay a strong stress on labor-intensive industries, in order to provide a job for every worker, ahead of the reforms. Apparently, the centralized, egalitarian employment and allocation schemes, served as poor stimulants of employee motivation. I will compare this with the socialist economic market, which supported the development of other forms of ownership like independently owned businesses, individual companies and foreign capital. This organizational innovation stimulated the efficiency of industrial workers and farmers, thus enhancing the country’s resource distribution (Lin et al. n. p.). Another example that I will use to demonstrate, how the socialist market economic system impacted China, is the state of technology. I will compare technology during the period before the reforms and after the socialist market economic system. The planned economy did not have the inducement to establish advanced technologies, enhance eminence, or boost factor productivity. On the other hand, socialist market economic system encouraged the efficiency of industrial workers, thus enhancing the nation’s technological competence (Chen 54). 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.

The change after the introduction of the policy of socialism market economy, in China, is noteworthy as it 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. Hence, my task is to investigate this transformation, and its inferences. Socialism in China is a subject of debate amongst scholars and thus merits a deeper consideration.

Prospectus Template

In my research on the topic of Socialism with Chinese Characteristics I have learned the following:

Ahead of its birth in 1949, China had inadequate systems of production and under-developed manufacturing industry. Against the milieu of the economic ban forced by western nations, China built a planned economy that acted a crucial part in the centralized distribution of scarce resources for the country’s economic revitalization. Since the scarcity of resources inhibited economic development, China survived with deficiency for a long phase, ahead of the reform. In 1970’s, the planned economic scheme started to prove its limitations. The deficiency of information and motivation to direct the government’s economic policies was the most outstanding limitation. The planned economy became lethargic to fine-tune to the swift economic expansion that had vastly augmented the level of economic planning complexity. Nevertheless, teachings from the Cultural Revolution took policy-formulators in China to the 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. In 1978 Deng Xiaoping established a chain of economic transformations, described as “social market reforms.”

These observations lead me to ask the following question: How did the development of socialism policy impact China government.

This question has several plausible answers. For example, scholars such as Wakeman (126) and Alon (70) 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.

It is also possible to argue that the socialism market economy transformed a sequence of weaknesses that the planned economic system faced during economic planning.

While the above answers are plausible, they have several weaknesses. These weaknesses include inclination to the period before the reforms in explaining the situation and failure to explain how the actual changes took place.

My own answer to the question—my thesis—is 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.

My thesis gets supported by the following piece of evidence:

This organizational innovation (which supported the development of other forms of ownership like independently owned businesses, individual companies and foreign capital) stimulated the efficiency of industrial workers and farmers, thus enhancing the country’s resource distribution (Reference: Lin et al. n. p.).

My thesis can also be supported by the following:

The planned economy did not have the inducement to establish advanced technologies, enhance eminence, or boost factor productivity. On the other hand, socialist market economic system encouraged the efficiency of industrial workers, thus enhancing the nation’s technological competence (Reference: Chen 54).

My thesis is significant because it modifies and/or adds to current thinking on this topic in the following way: 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, and my task is to investigate this transformation, and its inferences. Socialism in China is a subject of debate amongst scholars and thus merits a deeper consideration.

Works Cited

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. 2012. Web.

Lin, Justin Yifu et al. “The Lessons of China’s Transition to a Market Economy.” The Cato Journal 2. 16(2011): n. p. Web.

Wakeman, Frederic. “The Civil Society and Public Sphere Debate: Western Reflections on Chinese Political Culture.” Modern China 19.2 (1993): 108-138.Print.