economic reform socialism to capitalism Flashcards
[INTRO]
In the late 1970s and early 1980s, reform was an important keyword in the international arena
In the East, China was launching a round of marketization reforms that would bring fundamental changes to its thousands of years’ history; in the West, the liberalization reforms proposed by Reagan and Thatcher were getting well underway.
MARTIN FELDSTEIN (2000)
As MARTIN FELDSTEIN (2000) put it, the 1980s was a decade of major changes in economic policy across the world. What was common in these changes was the governments’ decreasing role in economy.
In his statement made in “Southern tour” in 1992, Deng Xiaoping
The proportion of planning to market forces is not the essential difference between socialism and capitalism. A planned economy is not equivalent to socialism, because there is planning under capitalism too; a market economy is not capitalism, because there are markets under socialism too. Planning and market forces are both means of controlling economic activity”
ease suppressive policy towards indiv and private economy
Having gradually recognized the potential of reform in individual and private economy, the Chinese leadership begun to progressively ease the previously suppressive policy towards individual and private economy, and accepted and legitimized their existence and development. As the reform deepened, they continuously provided favorable conditions to encourage the development of individual and private economy.
3 stages:
Stage 1978–1984, The emergence of individual economy also marked a transition from socialist to capitalist economy.
Stage II: 1984–1992, Economic privatisation allowed the private sector to develop and exist outside the state sector, representing a key landmark in transition.
Stage III: 1992–2002, gradually endowing non-public economy the equal status to participate in the market competition, and clarifying the important status and role of the various forms of non-public economy in the socialist market economy.
Stage 1: Constitution (1982) & CPC central document (1981)
Constitution of the People’s Republic of China approved in 1982: The state protects the lawful rights and interests of the individual economy. The state guides, helps and supervises the individual economy by exercising administrative control.
CPC central document (1981) states that ; individual economy of laborers within a certain range is a necessary complement to the public economy.
Stage 3: 1997 15th National Congress & 1999 Amendments to the Constitution
Non- public economy is an important component of the socialist market economy. We shall continue to encourage and exercise guidance over non-public sectors of economy such as individual economy and private economy in order for them to develop healthily.
non-public economic sectors such as individual economy and private economy, operated within the limits prescribed by the law, are an important component of the socialist market econom
The admittance of the private entrepreneur stratum into the political and legal sphere was a key landmark in the transition 1997
Since SOEs and much of the public sector proved unable to compete with private enterprises, the leadership decided to privatize money-losing SOEs (except “pillar industries” or large SOEs) in 1997
landmark Law on Property Rights (2007)
The long march toward official recognition of private business came to an end only in 2007 when, following five years of fierce debate, China’s legislature enacted a landmark Law on Property Rights which, for the first time, explicitly places privately held assets on an equal footing with state and collective property.
80th anniversary of the CCP on 1st July 2001, General Secretary Jiang Zemin
gave a speech in which he emphasised that it was essential to absorb the excellent private entrepreneurs into the CCP
These events confirmed property ownership rights for private proprietors and indicated that the period of the boycotting and exclusion of capitalists had ended. .
YAN, XIAOJUN (2012)
Currently, private entrepreneurs not only enjoy economic success as the “ECONOMIC ELITE,” but also have become an important part of “the people,” some of them even elected as representatives of NPC or members of the Chinese People’s Political Consultative Conference (CPPCC) (Yan, XiaoJun, 2012)
16th Party Congress of 2002
WTO membership china
the new CCP leadership agreed to accelerate China’s transition toward a market (capitalist) economy.
A market economy was also required for China’s WTO membership (since 2002).
Stage 2 13th Congress in 1987 & 1988 Amendments to the Constitution
“It is determined by the reality of productivity at the primary stage of socialism to develop economy of various ownerships with public ownership as the main body, and even allow the existence and growth of private economy”,
The state permits the private economy to exist and develop within the limits prescribed by law. The private economy is a complement to the socialist public economy “
