Fourthly, Socialism does not mean shared poverty. However, it is impossible foe the whole nation to get rich at the same time, Therefore, certain people in certain areas should be allowed and encouraged to get rich first. They will then lead the whole country to prosperity.
Fifthly, the economic development should be carried out in three stages. First, China’s GNP in 1990 should be about twice as much as that in 1980, so that all people would be warmly clothed and well- fed. Second, the GNP in 2000 should double that in 1990, so that a middle- class level would be attained. In 2050, the GNP per capita should reach a level close to that of certain developed countries. By then, the PRC should be basically modernized.
(b.)
The economic and social reforms introduced after 1978 have brought great achievements to the Chinese society.
From 1979, the government allowed private enterprises to be set up. The reform of state enterprises were carried out and individual enterprises were allowed to have full control over their operation and their profit and losses. It also encouraged foreign investment through setting up Economic Open Zones and Special Economic Zones. These policies led to a diversified economic composition. In 1993, state enterprises made up 43.1% of the total industrial production, while collectively- owned industries made up 38.4%, and the remaining 18.5% was shared among individual entrepreneurs, private enterprises and foreign investors.
The state enterprises had always played an important role in the Chinese economy. However, since they were run by the state and led by the Communist Party, and their employees received the same salaries regardless of work performance, most of them were in deficit. Thus, the government began to transform them into share companies and limited companies in the 1990s.
The CPC had always adopted a planned economy and implemented a series of Five- Year Plans, after 1978, however, it started to realise the importance of market economy as well. The result was a “Socialist market economy”, which was an integration of planned and market economies. More and more people engaged in business. Stock markets began to operate in Shenzhen and Shanghai. The markets in towns and villages were also getting more and more prosperous.
During the last 20 years of the 20th century, production increased rapidly in the PRC. Her average economic growth rate between 1979 and 1999 was 9.5% per year. Such economic improvement raised the living standard of the people. For example, the average annual income of a peasant increased from RMB ￥130 to RMB ￥ 2200 in 1999.
Industrial development led to urbanization. After 1978, more and more peasants took up non- agricultural jobs and moved to towns or cities. The population increased as a result. The number of cities also grew.
The economic and social reforms introduced after 1978 helped to narrow the gap between China and the developed countries. During 1979- 97, the PRC had the fastest economic growth rate, with a average of 9.8% per year. She also had a leading position in various agricultural and industrial productions, like grain, cotton, oil, steel, coal, cement and chemical fertilisers. With continuous economic development and a controlled population, the gap between China and the western countries would become even narrower.
Compared with time when the Cultural Revolution was carried out, the values, customs and traditions of the Chinese people underwent great changes after 1978. People had a more diverse and relaxed lifestyle. They also became more realistic and materialistic. The traditional Chinese values on chastity, marriage and family were less emphasised. In addition, people enjoyed greater freedom of speech.
However, despite all the successes in China’s socialist construction of modernization after 1978, there were still certain problems and limitations.
Although peasant generally enjoyed a higher standard of living after the introduction of “reform and openness”, three rural problems remained unsolved, Agricultural production was still mostly carried out by hand. Many villages, untouched by most modernization measures, remained backward. In addition, a large number of peasants were still living below the poverty line.
The economic reforms after 1978 caused various social problems. For example, the reform of the state enterprises was not successful as expected. There was also high unemployment rate. Many people were waiting for jobs while many people were asked to leave their jobs before retiring age. In addition, there was the problem of huge national and foreign debts. All these problems, if left unsolved, would hinder the further modernization of China.
During the past twenty years, China began to put more emphasis on the rule of law. Many new laws and regulations were made. But loopholes could still be found in the legal system. For example, the economic laws in China could not be applied to the management o modern enterprises. When a lawsuit was filed, there were no clear guidelines or procedures to follow.
In the political system, there were also no proper regulations or effective mechanisms for the election, supervision, impeachment, dismissal and punishment of Party and government leaders. Many corrupt officials remained in office without any punishment or criticism. In 1989, the June 4th incident took place in Beijing. One of the reasons why university students had gathered in the Tiananmen Square was to protest against corruption, bureaucracy and other social problems. Although the Party has already started to fight against corruption, such a problem remains unsolved at moment.
In conclusion, though there are certain limitations, China’s socialist construction of modernization after 1978 is a great success and brings China toward prosperity. China’s role in the world and in Asia has become more important, as the new “Industrial Workshop”, the biggest market and investment venue in Asia, the driving force behind economic cooperation within Asia- Pacific Rim and an important peacemaking force in Asia.
