China's Rapid Economic Development

Question:

Can institutional reform (the transition from central planning to a market economy) provide a sufficient explanation for China’s rapid economic development over the past three decades? What needs to happen in order for growth and development to be maintained in future?

China with a population of over 1.3 Billion, is the second largest economy in the world only to the United States of America. China’s ability to extricate itself from a legacy of economic problems in the 1980’s, followed by a period of rapid economic growth ….. this with a rapid growth levels and the transformation of its economic system from central planning to a market economy is second to none. both fascinating and surprising at the same time. In terms of recent political and economic development growth, China’s is both fascinating and surprising. has seen periods of great change and growth, particularly over the past three decades.

second to none.

This essay will firstly give a brief historical outline of the

Deng Xioaping is arguably one of the most influential political figures of 20th century. By presiding over the government during a period of enormous economic change, Deng helped transform China from an isolated traditional economy riddled with social, political and economic problems into a booming market economy with a huge presence on the international market (Naughton, B. 1993). In China to this day, greater influence is placed on political rather than economic processes. The people driving economic advancement have powerful political connections and as a result often interfere with the running of the market to ensure they reap the greatest benefits.

NOT A PURE MARKET ECONOMY, HOWEVER IT IS A MIXED MARKET ECONOMY>

During the 1980’s China experienced a period of change accompanied by political turmoil.

Deng Xiaoping's economic legacy is overwhelmingly positive and quite secure-in this, it stands in contrast to his troubled and ambiguous political legacy....