Just four decades ago, a country like China had a rather weak, lagging economy. The economic reforms that have taken place over the years, which have made the country's economy more liberal, are considered to be the Chinese economic miracle. The rate of economic growth over the past 30 years is incredible and amazing: on average, the country's GDP increased by 10% per year, and GDP per capita grew by 9%. Today, China occupies a leading position among world economies. Let's consider how this country managed to achieve such indicators, how the economic miracle happened, what were its reasons and what was the situation that preceded it.

China in the middle of the twentieth century

After the end of World War II, China stood at a crossroads and did not know what to choose: a liberal capitalist or, following the example of the great power of the USSR, a socialist path of development. The civil war that rocked the country until 1949 led to the separation of the island of Taiwan and the creation of the People's Republic of China, led by Mao Zedong.

With the advent of the Communist Party, the painful construction of socialism begins: the nationalization of property and the implementation of agrarian reform, the implementation of five-year plans for economic development... Accepting help from the USSR and focusing on the political and economic system of its socialist neighbor, China is industrializing the economy. Sometimes we had to resort to tough and uncompromising methods.

"Great Leap" to nowhere

However, after 1957, relations between China and the USSR cooled, and Mao Zedong, who did not share the views of the then Soviet leadership, decided to implement a new program, called the “Great Leap Forward.” The goal of the ambitious program was to dramatically develop the economy, but the new direction turned out to be unsuccessful and had tragic consequences both for the people and for the Chinese economy as a whole.

In the 60s, the country experienced severe famine, cultural revolution and mass repression. Many government instruments ceased to function, and the communist party system collapsed. But in the early 70s, the government set a course for restoring party organizations and improving relations with the United States. After the death of the “Great Helmsman” Mao Zedong in 1976, the country found itself in a difficult economic situation, unemployment increased, and a card system was introduced.

Since the end of 1976, Hua Guofeng has become the head of China. But the actual reins of power are taken by Deng Xiaoping, a politician who fell into the millstones of the Cultural Revolution and was restored to the post of Vice Premier of China in 1977.

Decisive plenum

Considering the Great Leap Forward program to be largely erroneous, Deng Xiaoping, relying on the support of the Communist Party, began implementing a program to modernize the economy. In 1978, at the next plenum of the Communist Party, the course towards a socialist market economy was officially proclaimed, which would combine two economic systems: planned-distributive and market.

The new government path is called the reform and opening up policy. Xiaoping's liberal reforms are based on the gradual transition of economic structures to market ones and the preservation of the communist system. assured that all transformations will take place under the leadership of the Communist Party, and the dictatorship of the proletariat will be strengthened.

Highlights of transformations and reforms

Briefly speaking about the new reforms, the Chinese economy should be focused on export production and massive attraction of investment. From this moment on, the Celestial Empire proclaims itself a country open to expanding ties with other states, which has attracted foreign investors. And the liberalization of foreign trade and the creation of special economic zones for foreign entrepreneurs led to an unprecedented increase in export indicators.

First of all, Xiaoping reduces state control over many sectors of the economy and expands the management functions of business leaders. The development of the private sector was encouraged in every possible way, and stock markets appeared. Serious changes affected the agricultural sector and industry.

Four stages

During the entire reform of China's economy, four temporary stages can be distinguished, carried out under a certain slogan. The first (from 1978 to 1984) stage, implying transformations in rural areas, the creation of special economic zones, had the following slogan: “The basis is a planned economy. Addition: market regulation.”

The second (from 1984 to 1991) stage is a shift in attention from the agricultural sector to urban enterprises, expanding their field of activity and independence. Market pricing is being introduced, the social sphere, science, and education are undergoing reforms. This stage is called “Planned Commodity Economy”.

The third (from 1992 to 2002) stage took place under the slogan “Socialist market economy.” At this time, a new economic system is being formed, implying further development of the market and defining the instruments of macro-regulation of state control on a new basis.

The fourth (from 2003 to the present day) is designated as the “Stage of Improving the Socialist Market Economy.”

Transformations in the agricultural sector

The Chinese economic miracle began with the transformation. The essence of the agrarian reform was the abolition of the then existing people's communes and the transition to family contracting with a single collective property. This meant the transfer of land to Chinese peasants into ownership for a period of up to fifty years, and part of the products received from this land was given to the state. Free pricing for peasant products was also introduced, and market trade in agricultural goods was allowed.

As a result of such transformations, agriculture received an impetus for development and emerged from stagnation. The new established system of collective ownership and family contracting qualitatively improved the living standards of peasants and helped solve the food problem.

Transformations in industry

The economic system of industrial enterprises was almost freed from directive planning; they were supposed to be turned into self-sustaining enterprises with the possibility of independent sales of products. Large strategic enterprises remain under the control of the state, while medium and small enterprises are given the right not only to manage their business, but also to change their form of ownership. All this contributed to the fact that the state focused on improving the situation in large state-owned enterprises and did not interfere with the development of the private sector.

The imbalance in the production of heavy industry and consumer goods is gradually decreasing. The economy is beginning to turn toward increased production of goods for domestic consumption, especially since China’s large population contributes to this.

Special economic zones, tax and banking systems

By 1982, as an experiment, some coastal regions of China declared themselves special economic zones, and after the 1984 plenum, a total of 14 cities were approved as special economic zones. The purpose of forming these zones was to attract foreign investment in Chinese industry and the development of new technologies, accelerate the economic development of these regions, and bring the country's economy to the international stage.

The reforms also affected the tax, banking and currency systems. Value added taxes and a single income tax for organizations are being introduced. The central budgets began to receive a larger share of revenues thanks to a new distribution system between local administrations and the central government.

The country's banking system was divided into state-owned banks pursuing the government's economic policy, and other financial institutions on a commercial basis. Foreign exchange rates now began to float freely, which was regulated only by the market.

The fruits of reforms

The Chinese economic miracle began to manifest itself in the late 80s. The results of the transformations had a qualitative impact on the lives of ordinary citizens. Unemployment rates are reduced by 3 times, retail trade turnover doubles. The volume of foreign trade by 1987 increased 4 times compared to 1978. Billions of dollars of foreign investment were attracted, and by 1989 there were 19,000 joint ventures.

Speaking of China, it manifested itself in a decrease in the share of heavy industry and an increase in the production of consumer goods and light industry. The service sector is expanding significantly.

It was amazing at its unprecedented growth rates: 12-14% in the early 90s. During these years, many experts spoke about the phenomenon of the Chinese economic miracle and predicted China's role as an economic superpower of the 21st century.

Negative consequences of reforms

Like any coin, Chinese reforms had two sides - positive and negative. One of these negative aspects was the threat of inflation, which followed as a side effect of increased labor productivity after reforms in the agricultural sector. Also, as a result of the price reform, the situation in the industrial sector worsened. Unrest began, resulting in student demonstrations, as a result of which Secretary General Hu Yaobang resigned.

Only in the early 90s, the course proposed by Deng Xiaoping to accelerate and improve the economic environment helped overcome the overheating of the economy and create systems for controlling inflation and the country's development.

Chinese economic miracle and its reasons

So, now about the reasons. Studying the phenomenon of China's economic miracle, many experts put forward the following reasons for the economic recovery:

1. The effective role of the state in economic transformations. At all stages of reforms, the country's administrative apparatus adequately responded to the tasks of economic modernization.
2. Significant labor resources. Demand in the Chinese labor market is always greater than supply. This allows wages to be kept low while productivity is high.
3. Attracting foreign investment in Chinese industry, as well as in high-tech industries.
4. An export-oriented development model that made it possible, through foreign exchange earnings, to increase the knowledge intensity of the economy and the development of the latest technologies.

However, China's main economic progress was the abandonment of “shock therapy” and the gradual formation of a market mechanism, which improved the economy through effective market regulation.

China today

What have China's four decades of wise reforms led to? Let's look at the main economic indicators below. Today's China is a powerful nuclear and space power with modern industry and developed infrastructure.

Some numbers

Over the three quarters of 2017, China's GDP reached about 60 trillion yuan. This amounts to 6.9% in annual terms. The increase in China's GDP in 2017 is 0.2% compared to the previous year. The share of the agricultural, industrial and service sectors in GDP is increasing by an average of 5-7%. In 2017, the growth trend in innovative and high-tech sectors of the economy continues.

In general, despite a slight slowdown in growth rates, the Chinese economy (it is quite difficult to briefly describe this phenomenon) today retains the potential for long-term growth and continues structural reforms.

Forecasts for the development of the Chinese economy

Having created a market mechanism in the economy, the Chinese government plans to further improve it, while showing the advantages of socialism. However, experts make both optimistic and pessimistic forecasts for the development of the Chinese economy. Some are confident that it will be difficult to confront the growing economic, political and social problems while maintaining communist power. Growing emigration to developed countries and the gap between rich and poor can reduce the effectiveness of government and the role of the party. In contrast to them, other experts argue that, after all, a hybrid of socialism and the capitalist market is possible due to the originality of the Chinese nation and the mentality unique to it. All that remains to be said is that time will put everything in its place.

On September 9, 1976, at the age of 83, Chairman of the CPC Central Committee Mao Zedong died in Beijing. With his death, an entire era in modern Chinese history ended. Mao left China in crisis. According to official data, there were 20 million completely unemployed in the country, 8 million people “looking” for work, and 100 million people were starving. The average per capita annual income was about $220 per year, one of the lowest in the world. In agriculture, it was around $80.

Basic food products and most non-food items were distributed using ration cards. The growth in food production and basic necessities did not exceed the rate of population growth, which further aggravated the economic situation.

As a result of the redistribution of power within the party and state leadership, Hua Guofeng came to the forefront, taking the post of Chairman of the CPC Central Committee while retaining the post of head of government. One of his first steps was the removal from the political arena of Jiang Qing and her three closest associates - Mao's son-in-law Yao Wenyuan, Politburo members Zhang Chunqiao and Wang Hongwen. Branded by official propaganda as the “Gang of Four,” they found themselves at the center of a new ideological campaign to revise the results of the Cultural Revolution.

In 1980-1981 A public trial of the Quartet took place in Beijing. All defendants were found guilty of committing serious crimes during the Cultural Revolution. Jiang Qing, who never admitted the charges, was sentenced to death (soon commuted to life imprisonment); the rest were sentenced to long terms of imprisonment.

Without criticizing Mao Zdong in general, his successors tried to attribute all previous mistakes to this group, including those related to discrediting Deng Xiaoping. At the XI Congress of the CPC, held in the summer of 1977, he again returned to leadership in the party and state, taking the posts of Deputy Prime Minister of the State Council and Deputy Chairman of the CPC Central Committee. Gradually, the army began to come under his full control, and in the new conditions continued to play a vital role in the life of the state. At the same congress, the completion of the “cultural revolution” was officially announced.

1. Economic reform of the system.

The official decision to carry out large-scale economic reform in the PRC was made on the initiative of Deng Xiaoping at the Third Plenum of the CPC Central Committee in December 1978. It was preceded by a resolution of the NPC session at the beginning of the same year, which adopted directives on the deployment of the “four modernization” program: in industry, agriculture, science and technology, as well as in the military field.

However, the implementation of that program encountered a large number of difficulties, which were impossible to overcome without radical modernization of the entire economic system and the support of the highest government authorities.

At the NPC session in the summer of 1979, the task of stabilizing the entire national economic system in the next three years was set. The transition to a system of peasant production responsibility begins. Family farming was introduced everywhere and the previous system of collective farming was modified. At the same time, purchase prices for agricultural products increased.* Agricultural equipment gradually became the personal property of peasants. Peasants could now dispose of surplus production at their discretion.

Then the reform covered the industrial sphere. Enterprises received greater independence, private enterprise was allowed, and free economic zones were created with the participation of foreign capital. Laws are passed that eliminate the previously mandatory universal directive planning. Party committees were now engaged only in educational work among the population, and did not, as before, replace state economic bodies.

Soon the reforms carried out yielded the first positive results. During the Sixth Five-Year Plan period (1981-1985), the growth rate of industrial production increased annually by an average of 11%. Income of the urban and rural population in the 80s. almost doubled, however, continued to remain quite low in comparison with other countries.

By the mid-80s. The growth rate of agricultural products also slowed down, prices began to rise, and inflation increased. Under these conditions, in the fall of 1987, the XIII Congress of the CPC was held, at which a theory about the initial stage of socialism in the PRC was formulated. According to this concept, the construction of socialism in China must go through three main stages. Until 1990 GNP will double (compared to 1980) and China's population will be provided with basic food products and clothing without the use of a rationing system.

The second stage, which will take the next decade, until 2000, will increase GNP by another 2 times (compared to 1990) and the population will achieve “average prosperity.” The last stage, the longest in time, will end in 2049 (i.e., the year of the centenary of the PRC) and will lead to the transformation of China into a country with a moderately developed level of development, by world standards.

To achieve the goals, in the late 80s. Decisive measures were taken to stabilize the economic situation: administrative methods limited the rise in prices for the most important goods, many capital construction projects were mothballed, and purchase prices for a number of agricultural goods were raised. Soon the “overheating” of the economy was stopped.

At the same time, measures were taken to curb abuses by government officials and party workers against private businesses. Exposed corrupt officials were subject to severe punishments, including long prison terms and, in some cases, the death penalty.

At the XIV Congress of the CPC, held in October 1992, the beginning of a new period of transformation was proclaimed, which was supposed to accelerate economic reform, expand ties with foreign countries and increase the rate of growth in industry and agriculture. It was with economic success that the Chinese leadership began to associate the task of transforming the PRC into a “rich, powerful, democratic and civilized democratic state.”

At the congress, the task of building a “socialist market economy” was set, which previously they tried not to talk about in official circles. Apparently, the Chinese leaders were prompted to take such a step by the sad experience of the USSR and other countries of the former socialist camp, which failed to use market development mechanisms in time and suffered political collapse because of this.

After the end of the congress, the scope of directive planning began to shrink, and many line ministries and departments were eliminated.

1. Political development of the PRC during the years of reforms

The Chinese leadership, unlike the Soviet one, did not link the successful implementation of economic reforms with a radical reform of the political system, in which the Communist Party continued to play a leading role. However, the process of gradual rehabilitation of the victims of political repression from the top leaders of the CCP has begun. Thus, the good names of first Peng Te-huai and then Liu Shaoqi were posthumously restored. Many repressed but surviving leading figures of the CCP returned to key positions in the party and state.

In a report dedicated to the 30th anniversary of the PRC, delivered by Deputy Chairman of the CPC Central Committee Ye Jianying, the “cultural revolution” was assessed as a brutal “feudal-fascist dictatorship”, however, the blame for its unleashing and implementation was placed entirely on Lin Biao and the “four” . Mao Zedong continued to be excluded from serious criticism, reflecting infighting within the leadership on these issues. Nevertheless, the initiative finally passes into the hands of Deng Xiaoping's supporters. Already at the beginning of 1980, Hua Guofeng and a number of his like-minded people lost leading positions in the leadership. Hu Yaobang was appointed to the newly restored post of General Secretary of the CPC Central Committee, and many of the most important functions were transferred to his hands. Zhao Ziyang, who replaced Hua Guofeng as Premier of the State Council, was appointed to the Standing Committee of the Politburo of the CPC Central Committee. Both of them were promoters of Deng Xiaoping and victims of the Cultural Revolution.

In June 1981, the VI Plenum of the Central Committee of the CPC was held, at which the “Decision on some issues of the history of the CPC since the founding of the PRC” was adopted. It officially condemned the personality cult of Mao Zedong, the policy of the “Great Leap Forward”, the “Cultural Revolution”, methods terror carried out in the country all these years. According to official* data published at the plenum, during the years of the “cultural revolution” the total number of repressed people was 727 thousand people, of which 34 thousand “were driven to death.” The total number of victims was about 100 million people However, at the plenum it was argued that Mao Zedong’s services to the party and the state occupy the main place, and his mistakes are “secondary.”

At the XII Congress of the CPC, held in the fall of 1982, the main task of the CPC for the period until 2000, along with the modernization of the economy, was declared to be the transformation of the PRC into a country with a high level of culture and a “highly developed democracy.”

At the congress, Deng Xiaoping himself was confirmed as Chairman of the Military Council of the PRC, while at the same time, until 1989, holding the posts of Deputy Chairman of the CPC Central Committee and Deputy Premier of the State Council of the PRC. In fact, all these years he played a decisive role in leadership.

Since the mid-YO-ies, democratic tendencies have been growing in Chinese society, manifested in demands for liberalization of the political system of socialism. Student protests intensified especially sharply, and in a number of cities they turned into open clashes with the authorities. At the beginning of 1987, Hu Yaobang, who was removed from his post as head of the party, was accused of “connivance with bourgeois liberalization.” Zhao Ziyang was appointed to his position. Li Peng became Premier of the State Council. However, the authorities failed to completely suppress this movement.

After the proclamation of the policy of “perestroika” in the USSR, new groups were formed that advocated not only the democratization of the political system, but also a revision of the role of the Communist Party in it. This was especially evident during the events of the summer of 1989, when in Beijing the opposition student movement began open protests for the democratization of life in the country. Troops were sent against the demonstrators. Personal responsibility for what happened was now placed on Zhao Ziyang, who was forced to give up his post to Jiang Zemin, a supporter of a harder line in domestic politics. Deng Xiaoping saw in him his real successor in the 90s. post? He gradually handed over to him all the levers of control of the party and the state. In the last years of his life (Deng Xiaoping died in 1997), he withdrew from leadership work and retired. Nevertheless, the title of “architect of Chinese reforms” was firmly established behind him.

In March 1998, at the NPC session, Jiang Zemin was re-elected to the post of Chairman of the People's Republic of China and Chairman of the Military Council of the People's Republic of China, and a consistent supporter of reforms, Zhu Rongzi, was appointed Premier of the State Council. Li Peng was transferred to the position of Chairman of the NPC Central Committee.

In official propaganda, a line is increasingly being drawn to emphasize the outstanding role of Mao Zedong as the founder of the PRC, Deng Xiaoping as the main ideologist of economic reforms, and Jiang Zemin as a faithful successor of all the best that was accumulated by Chinese society during the period of building socialism with “Chinese characteristics” .

1. Foreign policy. Normalization of Sino-Soviet relations

At the end of 1979, Soviet-Chinese negotiations began to normalize bilateral relations. They were held alternately in Moscow and Beijing at the level of deputy foreign ministers. As preconditions, the leaders of the PRC insisted on the reduction of Soviet troops along the joint border to the 1964 level, the withdrawal of armed forces from the MPR, and the cessation of assistance to Vietnam.

The Soviet delegation put forward its project, which expressed its desire to build bilateral relations on the basis of international law and to expand contacts in various fields in every possible way. However, a real breakthrough came only at the end of 1982, after the XII Congress of the CPC and the death of L.I. Brezhnev. Relations between our countries have intensified in all directions.

In October 1985, Deng Xiaoping sent a letter to the new Soviet leader M.S. Gorbachev with a proposal to hold a summit meeting. Then an exchange of visits between the foreign ministers took place.

In February 1987, negotiations on border issues were resumed, which soon led to an agreement on the eastern section of the Soviet-Chinese border. This paved the way for preparations for the official visit of M.S. Gorbachev in China, held in May 1989.

During M. S. Gorbachev’s conversation with Deng Xiaoping, the Chinese leader announced the complete normalization of bilateral relations. Thus, broad prospects for cooperation opened up for the two countries.

After the collapse of the USSR, relations between China and Russia continued to develop along an ascending line. At the end of 1992, B.N. visited the PRC on an official visit. Yeltsin. More than 20 joint documents were signed, including the Joint Declaration on the Fundamentals of Relations.

In its turn. Chinese President Jiang Zemin made official visits to Moscow several times in the 1990s. In particular, during his visit in 1994, an agreement was signed on the western section of the Russian-Chinese border.

China and Russia in the second half of the 90s. gradually became strategic partners in the Asian region.

From the late 70s until the events in Tiananmen Square in 1989, Chinese-American relations also developed along an ascending line. In 1978, both countries established official diplomatic relations with each other. Economic and military cooperation was constantly expanding. The main stumbling block in bilateral relations continued to be the Taiwan problem. The United States, although it stopped official political contacts with the Taipei regime, continued to maintain a wide range of relations with it.

In 1977, a peace treaty was signed between the PRC and Japan, which made it possible to raise bilateral relations to a new level.

Ties with India continued to remain rather frosty, clouded by long-standing border disputes and the problem of Tibet.

But until the beginning of the 90s, relations with a united Vietnam turned out to be the most tense. The leadership of Vietnam, which received support from the USSR, since 1977 entered into a serious conflict with China over Cambodia, where the left-radical regime of Pol Pot had established itself in power. The PRC accused Vietnam of persecuting ethnic Chinese (huaqiao) on its territory, and after the entry of Vietnamese troops into Cambodia and the overthrow of the Pol Pot regime, in March 1979 it initiated an armed conflict on the joint border. Relations between the two countries were actually frozen at a very low level for more than 10 years. Only after the collapse of the socialist camp did both countries realize their political closeness and find the political will to forget past grievances.

For quite a long time, the PRC's foreign policy has been based on the idea of ​​the priority of national-state interests over the approach to choosing strategic partners based on the principle of ideological proximity. Even at the third plenum of the CPC Central Committee in December 1978, it was unequivocally emphasized that it is necessary to see the world as it is, without excessive ideologization and dogmatic blinders.

Since the mid-80s, the Chinese leadership has been developing the concept of a multipolar world, in which the PRC should take its rightful place as one of the new “centers of power” not only in Asia, but also in the world as a whole. In this desire, the PRC finds active support from Russia, which has been supporting and developing this idea since the second half of the 90s.

1. China in the second half of the 90s

The PRC is taking a leading position in global economic development. It ranked 7th in terms of gross domestic product (GDP) and 11th in terms of foreign trade volume. The country's share in global industrial production exceeded the three percent level.

Despite the significant amount of external debt, China has the ability to repay it on time, and also has a foreign exchange reserve that amounted to $149 billion in 1998. However, per capita income, which has already exceeded 1 billion 200 million people, continues to remain quite low - about 560 dollars a year.

China continues to experience difficulties due to the uneven development of certain regions and the relatively ineffective public sector of the economy.

A significant event in the life of the PRC was the reunification with Hong Kong and Macau - two large industrial centers and the most important strategic bridgeheads in the south of the country.

In the future, the integration of the market systems of these entities into the Chinese economy can lead to significant positive results.

In foreign policy terms, China is trying to play an independent role as a major regional power and as one of the centers of power in a future multipolar world. In this, the Chinese leadership is supported by Russia, and the United States and its closest allies are very wary.

China is the largest country in the world with a population of about 1130 million people, of which the rural population is 70%, urban – 30%. In the late 1980s, about a quarter of China's population was illiterate, mostly rural residents. China is a mountainous country with a low percentage of land development: 65% of China's territory is occupied by mountains, plateaus and hills. There is an average of 1.6 mu of arable land per person, and 1.8 mu per rural resident. It is known that more than half of China's land area is prone to natural disasters and that there is not much scope for developing new land in China. The basis of the economy of modern China is agriculture.

In the period after the 2nd World War, several economic reforms were carried out in China, differing significantly from each other in their objectives and methods.

The first in a series of reforms were transformations aimed at building a socialist economy. They began in 1949, when the PRC government nationalized the property of the Chinese and foreign bourgeoisie, and were largely completed by 1956, when the socialist, i.e. The public sector has taken a dominant position in the country's national economy.

From 1956 to 1958 In China, the “Great Leap Forward” policy was pursued, the essence of which was an attempt to sharply increase the level of socialization of the means of production and property. This period was characterized by the setting of unrealistic economic goals and too high production targets, and the absolute elevation of the revolutionary enthusiasm of the masses as the main factor of economic growth. The principle of material interest was completely rejected - it was condemned as a manifestation of revisionism.

Transformations in the field of agriculture have always been of utmost importance for China, an agricultural country. In 1958, people's communes were created throughout the country. The commune consisted of several brigades, each of which, in turn, included several small production brigades.

The communes acted as primary economic units. During this period, not only all means of production were socialized, but peasants were also forbidden to engage in subsidiary trades. In addition, a “supply system” was introduced, which ignored commodity exchange and led to the absolute distribution of resources among rural collectives. The strengthening of the socialist economic system continued. Indicators of a city dweller’s well-being during this period were a terry towel, an enamel basin for washing and a thermos; a bicycle was considered the ultimate dream. The vast majority of China's population (80%) was illiterate.

Since 1960, a departure from the “Great Leap Forward” policy began. Some “leftist mistakes” were officially recognized, primarily in agriculture, and attempts were made to correct them. The production of the main types of industrial products has increased: cotton yarn, steel, coal, electricity, oil, metal-cutting machines; industries new to China have emerged, such as electronics and petrochemicals; The length of railways and highways has increased. However, soon, in 1966, a “cultural revolution” began in the country, which lasted until 1976, again slowing down economic growth.

Mu is a land measure in China. In different areas it varies from 0.015 hectares to 0.32 hectares. The most common value is 0.067 ha.

The 10 years of the Cultural Revolution brought the greatest losses since 1949. The country lost 500 billion yuan in national income, although official Chinese statistics claim that some economic progress was achieved during these years: grain production in the period from 1966 to 1976. increased by 34%, new advanced industrial enterprises and railway lines were put into operation, a hydrogen bomb was created, and the first space satellites were launched into orbit. In total, during the years of the “cultural revolution,” as Chinese economists believe, 1,570 large and medium-sized enterprises and many small industrial facilities were built.

By the end of the 70s, the main features of China's economic system had emerged. It covered finance, banking, labor and wage management, price control and product distribution. Its characteristic feature is over-centralization. The role of the state in the economy and other spheres of social life was total. Industrial enterprises did not have the opportunity to effectively manage their human, financial, material resources, production, supply, and sales of goods. Production and business operations were carried out in accordance with directive orders from above. The state supplied enterprises with means of production and purchased all their products at prices that it itself set.

The state completely seized all the enterprise's income and covered their expenses. There was no division of functions and responsibilities between enterprises and the government; characteristic features were the lack of initiative among enterprises, the bureaucratization of economic life, the subjectivity of assessments and the arbitrariness of government officials. The role of the market and the commodity economy were denied. Commodity shortages became common. The principle of equalization, taken to the extreme, was consistently implemented in life: “everyone eats from the same pot.” Administrators received wages regardless of whether their enterprise performed well or poorly. Workers received wages without taking into account the quantity and quality of their work. Chinese propaganda called on workers to strictly follow the “ten don’ts”: not to be afraid of difficulties, not to be afraid of death, not to pursue personal glory and personal gain, not to pay attention to working conditions, not to pay attention to the length of work, not to take into account rewards, etc.

The standard of living of the population remained at the level of the 50s and was extremely low. The country maintained the previous system of supplying the population with food through its distribution. The rationing system for industrial and agricultural goods was maintained, and food, primarily grains and vegetable oil, was strictly rationed. A “low wage” policy was pursued. Despite significant levels of unemployment, in a number of places, enterprises introduced extended days. Prices in state trade grew; prices in markets were 5-7 times higher than state prices. There was a “black market” in the country, and speculation became a widespread phenomenon. The average income of a peasant was about 100 yuan per year (49 rubles at the 1979 exchange rate)

The main methods by which influence on the economy was ensured were military-administrative and coercive measures and the use of the army. The labor activity of the people remained low. The Chinese economy of this period experienced an acute shortage of raw materials and fuel, and expenses on the state apparatus increased. The slogan “politics is command power” was widely promoted.

Yuan is a Chinese currency equal to 10 jiao or 100 fen.

The development of the national economy continued to be subordinated to the needs of building up military potential: more than a third of the state budget was spent on these purposes. Intensive work was carried out to create a nuclear missile complex and expand military production. Nuclear tests were carried out, the work of industrial enterprises was militarized. Measures were taken to further transform provinces and large cities into “self-sustaining units”, to disperse enterprises and facilities, create conditions for the rapid switching of enterprises to the production of military products, and the construction of military structures.

The group of industries directly related to military production and controlled in a strictly centralized manner enjoyed complete priority in financing and technical equipment. The system of centralization for the management of large industry became increasingly strict. Local industry and agriculture were required to do without government funds and to find sources of financing and raw materials themselves.

In the 2nd half of the 70s, China experienced significant economic difficulties. In 1977, the volume of industrial production did not reach the level of 1975, agricultural production decreased, food imports sharply increased, and living standards decreased.

The course for reforms was adopted at the party and state level in December 1978, and it can be considered that this decision was forced. Officially, the objectives of the reforms were formulated as the need to more fully reveal the potential of socialism and improve its economic mechanism. Since 1979, it was planned to carry out: a “settlement” policy, i.e. eliminating the economic imbalance caused by the government's excessive attention to heavy industry; the policy of “transformation”, changing economic structures in the interests of implementing the socialist modernization of the country; the “streamlining” policy, which meant the consolidation of financial resources in the most promising areas of economic construction; the “increase” policy, the task of which was to ensure higher quality of products and planned work in general. So, the main directions of the 1978 reform were to be the restructuring of the economic management system, ensuring a balance between sectors of the national economy, strengthening and improving the foundations of the socialist economy.

The first stage of reform lasted until 1984, during which time the emphasis in carrying out reforms was on rural areas. The most important element of the new policy in the village was the transition to family farming. As a result, the peasant household became the basic unit in the village. The family contract system, however, did not at all negate the results of collectivization of agriculture, but, on the contrary, relied on them. The land still remained in the common possession of the people, i.e. state property.

The form of organization of production changed somewhat: agricultural production teams were given the authority to make some production decisions, and a “system of responsibility” for labor results was introduced, which by 1984 had been adopted by 99% of all production teams. Ancillary peasant crafts were allowed. The state increased purchase prices for agricultural products and ancillary crafts; official propaganda tried to introduce into people’s consciousness the principle of “to each according to his work” instead of the usual egalitarianism.

At the state level, the need was proclaimed to instill in the population respect for property rights, and the task was set to protect personal property in the land of the commune. The activity of agricultural markets has revived.

It is characteristic that the transformations in the Chinese village of the late 70s and early 80s were not accompanied by increased mechanization. The economic effect was achieved, first of all, thanks to changes in the organization of labor, improvement of land management and crop structure. Thus, the transition to family contracting caused a surge in the labor activity of the peasantry. Over six years (1979 - 1984), annual grain harvests in China increased from 300 to 400 million tons (300 million was the usual figure for China for centuries). The harvest of cotton and oilseeds doubled, which made it possible to cancel the rationing of cotton fabrics and vegetable oil. Grain production developed successfully, the marketability of which increased from 20% in 1978 to 30% in 1984. During this period, the average annual growth rate of gross agricultural output was 9.4%. Overall, agricultural marketability increased to 53.3% in 1984 versus 33% in 1978. By the mid-1980s, China became the world's largest producer of grain, cotton, rapeseed, sugar crops, peanuts, soybeans, tea, meat, owner of the world's largest livestock population. However, per capita agricultural production remained low, and China continued to import grains (3–4% of the country's total grain production), as well as small amounts of cotton and sugar.

The standard of living of the people has increased. In 1983, the net per capita income in the village was 309.8 yuan, which was 176 yuan more than in 1976. Taking into account rising prices, China's per capita income almost doubled. In 1984, peasants allocated 60% of their cash expenditures to consumption instead of 40% in 1978.

The economic reform also affected industry. The attitude towards foreign capital has also changed. By 1982, there were 6 “special zones” in China, where foreign capital was provided with benefits for the construction of enterprises, the import and export of capital, and the hiring of Chinese labor. The total amount of capital investments in foreign and joint ventures amounted to more than $1.5 billion. China was especially active in developing cooperation with the United States, Japan and West Germany.

So, the main result of the transformations of the late 70s - early 80s can be considered the revival of the economic initiative of the population, the transition of the Chinese village and a small part of industry to new forms of farming, characterized by market orientation, while generally maintaining the socialist economic system.

The second stage of economic reforms in China began with the adoption in 1984 of the CPC Central Committee of the resolution “ ABOUT reform of the economic system”, which specified the task of building a socialist economy with Chinese characteristics. The reform provided for the creation of a planned system, which was based on the conscious use of the law of value, and aimed at developing a socialist commodity economy, establishing a rational price system by ensuring freedom of action of economic levers. New forms of economic responsibility of business units were introduced. It was planned to promote a new generation of personnel to leadership positions, which was supposed to contribute to the creation of a powerful and effective apparatus for managing the economy of the new China. The goal was to strengthen market elements in planning, trade, financial and tax systems, and in the wage calculation mechanism; The need to revive foreign economic activity was emphasized.

It is characteristic that to ensure the implementation of this entire program, special attention was paid to the need to strengthen the leadership role of the CPC. The Chinese party authorities assumed that socialist modernization would be carried out in three stages: by 2000, the country should quadruple the gross output of industry and agriculture and achieve average living standards for the people; by 2021 (100th anniversary of the CPC) – raise China to the level of a moderately developed country; by 2049 (100th anniversary of the People's Republic of China) - to transform China into a modern highly developed power.

In the agrarian sector, the 1984 reform provided for the continuation of the policy begun in 1978: further reorganization of people's communes along the path of separation of administrative, economic and party powers; strengthening the system of peasant production responsibility; expanding the rights of peasants to their personal plots, to the products of subsidiary crafts and agriculture; creating conditions for selling surplus products in markets.

What was new, compared to the end of the 70s, was the attention of reformers to the urban economy and industry. The meaning of urban reforms was to strengthen the economic independence of enterprises: subject to the implementation of the plan, the enterprise was allowed to conduct production taking into account the needs of the market. Enterprises were allowed to buy equipment and raw materials on the market and sell additionally produced products not included in the enterprise plan, and sometimes even part of the planned products. Incentive funds were formed from part of the profits remaining with the enterprise. Thus, the scope of "directive planning" was reduced, as was the scope of "uniform government price setting". Macroeconomic control over the activities of enterprises by the state was supposed to be indirect rather than direct. It was assumed that a new socialist economy would be formed, in which the functions of state bodies and enterprises should be clearly delineated. It was important: permission to operate small private and collective enterprises, handicraft workshops, the admission of private entrepreneurship, primarily in the sphere of trade and services, and a course to attract foreign capital.

It was assumed that the reform of the economic system in cities should have a direct impact on the economy of the country as a whole, since it was the cities that acted as centers of commodity production.

Let us consider the main results of the new economic policy in China in the second half of the 80s and early 90s.

Reforms aimed at creating a market economy stimulated China's economic development. In the second half of the 80s, China took 1st place in the world in the production of cotton fabrics and cement, 2nd in the production of televisions and coal mining, 3rd in the production of sulfuric acid and chemical fertilizers, 4th 1st – in steel production, 5th – in the production of electricity and chemical fibers, 6th – in crude oil production and sugar production (meaning gross indicators). New industries for China were created, such as the production of metallurgical and mining equipment, aviation, automotive, machine tool manufacturing, non-ferrous metallurgy, nuclear and space energy, and the production of large-scale integrated circuits and computers. The ratio between light and heavy industries has improved, the share of industry in the gross national product has increased - from 25.2% in 1949 to 53.7% in 1985. While maintaining the dominant position of the public sector in industry, the share of the cooperative and private sectors has increased . A market for production means has formed. The scope of planning was limited, the importance of directive plans noticeably decreased, and the market began to play an increasingly greater regulatory role. All state-owned enterprises were transformed into relatively independent economic units, acting as socialist commodity producers, fully responsible for their losses and profits. However, the dominant role of the state remained unchanged.

The pace of agricultural development has slowed down somewhat. In terms of yields of major agricultural crops and per capita production, China lags significantly behind the developed countries of the world. The transition to family contracting gave a quick effect due to the intensification of manual labor. However, the possibilities for small-scale production with a low level of technical equipment are limited, and the modern Chinese village lacks equipment and specialists.

Experts studying the development of agriculture in China have noted an interesting pattern: where the annual income of rural residents exceeded 800 yuan per capita, their labor activity noticeably decreased. Instead of spending money on production needs, peasants preferred to build houses, and sometimes on arable land. Many peasants “eat up” their savings rather than invest them in production. This was an obvious brake on the development of the commercial economy.

In the second half of the 80s - early 90s, the general management of trade activities in China was carried out by the Ministry of Trade: it developed uniform instructions for trade management, coordinated intersectoral relations, participated in the preparation of annual and long-term plans, and monitored the progress of implementation of planned targets. Local trade and administrative organizations were subordinate to higher ones. The public sector occupied a leading position in China's socialist single market. The state controlled the stocks of goods most important for the national economy, carried out uniform measures to supply urban and rural markets throughout the country, coordinated relations between various areas of trade, and distributed goods between populated areas. The collective and individual trade sectors were seen as an important complement to the public sector of the economy. In 1985, controls over purchasing and commodity prices were abolished.

The changes also affected the organization of China's foreign trade activities. Foreign policy has become more open, focused on expanding ties with foreign countries. An exclusive place in its implementation was given to developed capitalist countries.

In a number of areas: Shenzhen, Zhuhai, Shantodu, which were turned into special economic zones, an open door policy began to be pursued. For the influx of foreign capital, 14 seaports were opened.

At present, economic transformation in China continues to deepen and expand, and market elements are strengthened. However, the private sector is under strict tax and inspection control. In China there is no massive social differentiation of income, as, for example, in Russia. Therefore, it is the public sector, and not the private sector, that remains the most important factor in the country’s economic development.

The outcome of the “cultural revolution” finally compromised the image of the communists and their social ideals in the eyes of the population.

The people clearly realized this and were internally prepared for sharp turns in politics. Although officially no radical changes in the political system have yet occurred in China, the political course has changed. Since February 1978 education policy is changing. The attitude towards the intelligentsia also changed: they finally stopped calling them a “stinking category”; educated people began to be given preference when appointed to positions. In August 1978, the XI Congress of the CPC took place. There was sharp criticism of the “gang of four” - they were accused of the excesses of the “cultural revolution”. Happened purge of the CCP from its promoters- 290 of the 350 leaders and their deputies in provincial committees were removed from their posts. The congress testified to strengthening the position of Deng Xiaoping, he was the most experienced in the party hierarchy, had enormous connections and authority. At the XII Congress of the CPC created at the suggestion of Deng Xiaoping advisor system at all levels of the party; Deng himself headed the Central Commission of Advisors. Many followed his example, moving to advisory positions, thus freeing up positions for younger and more educated party members. In September 1985, at the CPC party conference, half of the members of the Politburo resigned immediately - opportunities for reform were open. Deng Xiaoping was a sensible man, he was ready to any reforms but I realized that in China they must be carried out exclusively from above, while maintaining control of the central government. According to Chinese traditions, one should also never officially question the highest authority, be it the authority of a specific person (Mao Zedong) or the authority of the party (CCP). It cannot be admitted that the country has been heading in the wrong direction for several decades, and now the leadership has realized this.

In 1978, censorship was relaxed, which immediately led to sharp criticism of the CCP's policies. In Beijing, a so-called “democracy wall” was created, where dazibao were posted criticizing the communists and calling for the overthrow of their power. In response, Deng Xiaoping said at the end of 1978 that while carrying out reforms, China would maintain the dictatorship of the proletariat, the leading role of the CPC and loyalty to the ideas of Marx-Lenin-Mao Zedong. In December 1978 At the 3rd Plenum of the CPC Central Committee, an official decision was made on the transition of the PRC to economic reforms. In January 1979, the “wall of democracy” in Beijing was demolished, student demonstrations were dispersed, and arrests were made. This indicated that the CPC did not intend to give up power and lose the initiative from its hands. March 30, 1979 passed theoretical conference of the CPC, at which it was approved general concept of reforms. They must be carried out from above, under the strict control of the central government, gradually, taking into account social consequences. At the theoretical conference of the CPC in 1979, reforms were officially discussed "four modernizations": in agriculture, industry, science and technology and the military.

The transition to a system of production responsibility and peasants began. Family farming was introduced everywhere and the previous system of collective farming was modified. At the same time, purchase prices for agricultural products increased. Agricultural machinery also gradually became the personal property of peasants. Peasants could now dispose of surplus production at their discretion.

Then the reform covered the industrial sphere. Enterprises received greater independence, private enterprise was allowed, and free economic zones were created with the participation of foreign capital. Laws are passed that eliminate the previously mandatory universal directive planning.

Soon the reforms carried out yielded the first positive results. During the VI Five-Year Plan period (1981-1985), the growth rate of industrial production increased annually by an average of 11 %. Income of urban and rural population in the 1980s. almost doubled, but continued to remain quite low compared to other countries. In the fall of 1987, the XIII Congress of the CPC was held, at which the theory of the initial stage of socialism in the PRC was formulated. According to this concept, the construction of socialism in China must go through three main stages. Until 1990 GNP will double (compared to 1980) and the Chinese population will be provided with basic food products and clothing without the use of ration cards

systems. The second stage, which will take the next decade, until 2000, will increase GNP by another 2 times (compared to 1990) and the population will achieve average prosperity. The last stage, the longest in time, will end in 2049 and will lead to the transformation of China into a country

moderately developed (by world standards) level of development. To achieve the set goals in the late 1980s. Decisive measures were taken to stabilize the economic situation: administrative methods limited the rise in prices for the most important goods, many capital construction projects were mothballed, and purchase prices for a number of agricultural goods were raised. In general, this provided additional incentives for economic development. In parallel, measures were taken to curb the abuses of government officials and party workers in relation to private business. Exposed corrupt officials were subject to severe punishments, including long prison terms and, in some cases, the death penalty. In the second half of the 1990s. The PRC has taken a strong position in the global economic economy. The country took 7th place in terms of gross domestic product production and 11th place in terms of foreign trade volume. However, per capita income, which exceeded 1 billion 200 million people, continued to remain quite low - about $560 per year. The development of individual regions remains uneven, of which the north-west of the country is the most backward. However, a significant event in the life of the PRC - the reunification of China with the highly developed Hong Kong (1997) and Macau (1999) significantly strengthened the country's economy.

Economic reform in China: achievements and challenges

ZHOU XINCHENG
Director of the Institute of Eastern Europe and Central Asia
People's University of China
(Beijing)

The goal of the reform is to create a socialist market economic system with Chinese characteristics
By shifting the center of gravity to indirect levers, the state should not weaken macroeconomic regulation
With a multi-structured economy, the social form of ownership remains dominant
The mechanism of a market economy in China will be basically created by the end of the 20th century.

The beginning of economic reform dates back to the end of 1978, when the 3rd Plenum of the 11th CPC Central Committee announced the implementation of the policy of “reform and opening up”. The essence of the transformation is a radical change in the old economic system, which has become an obstacle to the development of productive forces, and its gradual replacement with a new one, capable of giving this development a dynamic character. The reform, therefore, is a kind of revolution, its main task is the liberation and effective development of the productive forces.

The former highly centralized planned economic system gave China a lot of historically valuable and useful things, but much of it was flawed. The main flaw was rooted in the relationship between the state and enterprise. Under a rigid planned system, an enterprise was only an administrative appendage of state bodies and did not have the right to do business. Besides, the role of market regulation was categorically denied. Economic activity was entirely determined by directive plans.

The defects of the old mechanism manifested themselves most clearly in the context of changes in the general situation in the country. A radical restructuring of the economy has become an objective necessity.

The essence of the reform

To understand the essence of the Chinese reform, one must understand that the socialist system and the socialist economic system are two different things. Reform requires a radical change not of the socialist system, but of the old economic system. This means that, firstly, the goal of reforms cannot be the elimination of the socialist system, and secondly, the object of reform should be a highly centralized planned economic system. At the same time, one cannot limit oneself to its purely external changes and additions; it is necessary to radically transform the very model of the economic system and the basic economic mechanism, i.e. to carry out a certain transition from a planned economy to a market economy.

For a long time, China saw a market economy as a distinctive feature of capitalism, and a planned economy as the main characteristic of socialism. Practice, however, has shown that the plan and the market are only means for economic regulation, and that a market economy is also suitable for socialism.

Under a socialist market system, the market is called upon to play a major role in the distribution of resources; economic activity must necessarily take into account the law of value and changes in the relationship between supply and demand. Market forces will pump resources into more efficient enterprises and thereby put pressure on each enterprise to perform better. As a result, only the most viable will be able to stay afloat.

Market regulation is dual in nature: on the one hand, the market reacts to economic signals faster than the plan, which is useful for the timely orientation of production, on the other hand, market regulation is spontaneous and can bring a negative effect. Therefore, the macroeconomic control of the state cannot be weakened; it is necessary to improve it in every possible way. The state should create all conditions for strengthening the single market within the country and its healthy development.

The socialist market economic system is inseparable from the socialist system. In the structure of ownership, its public form, including national and collective, should occupy a dominant place, while private, including with foreign participation, should have an additional status. State-owned enterprises have to enter the market through equal competition and protect their dominant position in the economy.

The principle of distribution according to work will remain the main form of distribution. At the same time, other forms that complement it are also allowed. Distribution should primarily be guided by the principles of efficiency and fairness. Incomes should be differentiated in order to reward the most active employees and stimulate efficiency growth. At the same time, it is necessary to curb the tendency towards social stratification of society and strive for general well-being.

In macroeconomic control, current and future, local and national interests should be taken into account in a timely manner. It is necessary to simultaneously use various economic and administrative methods of regulation. The reform must be carried out gradually, step by step, systematically and comprehensively. You cannot hope for a quick result and stay ahead of the historical course of development. Before you bring any idea to life, you need to develop a comprehensive plan, implement it in a small area and test it in practice. Only with positive results is its wide distribution possible.

Stages of reform

Having begun at the end of 1978, the reform received comprehensive development after the XII Congress of the CPC (1982) and strengthened its position as a result of the decisions of the XIV Congress (1992).

Important milestones on its path were the XIII Congress of the CPC (1987), which gave a detailed interpretation theories of the initial stage of socialism, and the XIV Congress of the CPC, which decided that The goal of the reform is to create a socialist market economic system with Chinese characteristics.

The reform began with agriculture, which met the requirements of the time. Agrarian transformations were associated with the abolition of the people's commune and its replacement with family contracting and unified collective property. Almost all 800 million peasants received the right to free agricultural production. The state procurement system has been largely abolished, and prices for most types of agricultural products have been freed up.

The reform brought the agricultural sector out of stagnation and helped it embark on the path of specialization and increased marketability. Enterprises created on the initiative of peasants appeared in the village - volost-village enterprises. They created new jobs, thereby helping to solve the problem of excess labor in agriculture, improve the living standards of peasants, modernize agriculture, and develop the reform in general.

The 3rd Plenum of the Twelfth CPC Central Committee (1984) first put forward concept of planned commodity economy, discarding the traditional idea of ​​​​the incompatibility of planned and commodity economy. In cities, in accordance with the principle of separating business rights from property rights, a number of enterprises were selected and given greater freedom of action. Gradually, they must become independent self-financing economic entities and enter the market directly as commodity producers. A profit tax has been introduced at enterprises instead of the old system of handing over part of the profit, a system of responsibility for the results of business on the basis of a contract has been established, and the planning and pricing system has been transformed in order to strengthen market leverage.

Four cities - Shenzhen, Zhuhai, Xiamen, Shantou - were declared special economic zones. Following them, 14 coastal cities, four regions at the mouths of the Yangtze and Pearl Rivers, the southeastern part of Fujian Province, and the region in the Bahai Gulf region became open economic zones. A new province of the same name was created on Hainan Island, and it itself became a special economic zone. All these cities and regions received various investment and tax incentives to attract foreign capital and technology, and borrow effective management methods from foreign partners. The rapid development of their economy contributed to efficient growth throughout the country.

Main results

During the years of reform, China's economic system has undergone profound changes.

n Formed mixed economy. State-owned enterprises today provide 48.3% of industrial output, collective enterprises - 38.2%, private enterprises, including those with foreign participation, - 13.5%. State trade accounts for 41.3% of total retail turnover, collective trade - 27.9%, private trade - 30.8%. Multistructure meets the requirement for the development of productive forces at the initial stage of socialism, but we believe that public property should remain dominant.

n V cities The reform of state-owned enterprises has not yet produced the same positive results as in the countryside, although there are certain changes. The system “ modern enterprises”, requiring a clear delineation of rights and responsibilities between the enterprise and the central administration. The formation of group enterprises began, which became the main market participants. In accordance with the principle of “Zhua Da Fang Xiao” (“hold big enterprises in your hands, let go of small ones”), many small state-owned enterprises received the right to change not only the management mechanism, but also the form of ownership. This allowed the state to concentrate its efforts on improving the situation of large enterprises.

n V village A two-layer economic system was formed based on a combination of collective ownership and family contracting.

Over more than 10 years of intensive development, the volume of production fixed assets of the collective sector in rural areas increased from 94.9 billion to 179.7 billion yuan, with an average annual increase of 13%. Services (free or cheap) provided by the collective sector to peasant households annually satisfy 60.5% of the total need for machine plowing of land, 63 - for irrigation work, 66.1 - for protecting crops from pests and diseases, 42 - for seeds, 48 - in chemical fertilizers, 35% - in the fight against diseases of domestic animals and birds. This contributes to the successful development of family contracting.

In addition, a large number of volost-village enterprises have appeared in the collective sector, creating jobs for 120 million peasants.

Family contracting is also developing rapidly as the basis of the rural economy, which is gradually moving to large-scale farming.

n Profound changes have occurred in pricing system. Prices for most types of products have become free. Thus, for consumer goods the share of market prices reached 90%, for means of production - 80%, for agricultural products - 85%.

n Converted tax, banking, currency and investment systems. Value added taxes, a unified income tax for enterprises, and a system of tax distribution between the central government and local administrations have been introduced. The center accounts for the majority of tax revenues.

A two-tier banking system was created through the division of functions of the central and lower state banks. At the same time, banks that implement the economic policy of the central government are identified. The remaining credit and financial institutions are switching to a commercial basis.

Official and market rates of foreign currencies were abolished and unified floating rates regulated by the market were introduced.

A system of “risk liability” is gradually being created based on a combination of investments by legal entities and bank loans. Investment channels should be determined by the nature of the objects, i.e. depend on whether the object belongs to basic industries (coal mining, oil), industries producing end-use products (canned food, clothing), or of public importance (transport, municipal construction).

Reform in these areas is designed to create a favorable environment for the independent management of enterprises and equal competition between them.

n Formed market mechanism, which plays an increasingly important role in the economic life of the country. The share of types of industrial products, the production of which is regulated by state directive plans, has decreased from 95% in 1978 to 5% currently. The share of goods whose prices are directly controlled by the state in retail trade turnover fell from 95 to 6%. In addition to the goods market, markets for capital, machinery and equipment, labor, and other elements necessary for production began to be created. Thus, the market will play a major role in the allocation of economic resources.

Having the opportunity to use a variety of levers to regulate the macroeconomy, the state reduced direct regulation through administrative directives, increasing indirect regulation through the use of economic instruments (taxes, interest rates, exchange rates, money supply), as well as legislation.

n Formed a distribution structure that combines the principle of distribution by labor with its other types. The creation of the system has begun social security population.

To evaluate the reform, it is necessary to determine main criteria. According to Deng Xiaoping, transformations can be considered successful if they contributed to the development of productive forces, strengthening the country's power, and improving the standard of living of the population. Based on these criteria, the Chinese reform can be assessed as successful.

After the start of the transformation growth rates have accelerated noticeably. In 1978-1995. the average annual GDP growth was 9%, while in 1991-1995. - eleven%. These figures are significantly ahead of the world average. China continues to rank first in the world in the production of cement, cotton fabrics, and coal. The country took 1st place in the production of grain, cotton, rapeseed, meat, eggs, 2nd - chemical fertilizers, 3rd - sugar, 4th - electricity, 5th - crude oil. In terms of GDP, China is one of the first places in the world. It accounts for 3.2% of the world's gross product.

It increases every year the quality of life population. The peasant's income increased from 134 yuan in 1978 to 1,578 yuan in 1995, and the worker's wage increased from 615 to 3,893 yuan. The real (taking into account price increases) average annual growth rate of income for peasants during this period was 7%, for workers - 5%. The balance of deposits in household accounts increased from 21 billion yuan in 1978 to 3000 billion yuan in 1995, i.e. 142 times.

Thus, the socio-economic results of the reform indicate the success of its implementation.

Ways to form and improve the socialist market economic mechanism

Creating and improving the socialist market economic mechanism is the task of reform for the current period and the future. It includes five main links.

n State-owned enterprise reform. Although they make up only 19% of the total number of industrial enterprises in the country, they account for about 50% of output, 66% of taxes and profits transferred to the state, and 75% of the residual value of fixed assets. In addition, state-owned enterprises belong mainly to key sectors of the national economy (energy, transport, production of the most important types of raw materials, materials and equipment). Therefore, the fate of the reforms as a whole largely depends on the success of their reform.

The reform of state-owned enterprises does not aim to abolish state ownership and carry out privatization, but change the management mechanism. We believe that public ownership is compatible with the market for the following reasons:

firstly, to create a market economy it is only necessary that market participants have the right to manage and have independent economic interests;

secondly, this condition can be met by separating the right to manage from the right to property according to the principle of “state ownership, independent entrepreneurship, self-sufficiency.”

The core of SOE reform is the creation of a “modern enterprise system.” Roles and responsibilities must be clearly divided between government and enterprise. The government, as the owner and macroeconomic regulator, has the right to control its activities. An enterprise, having received the status of a legal entity, must bear limited financial liability for the result of business at the expense and within the framework of its property. The connection of enterprises and the creation of consortia and groups are encouraged. To transform small enterprises, it is allowed to use contracting, renting and corporatization.

n Creation of an integrated market system. To form it, it is necessary to develop (in addition to the market for consumer goods) markets for means of production, labor, real estate, technology and information, as well as the stock market. We must fight the desire of certain regions for self-isolation and protectionism in the interests of their own enterprises. It is important to defend the single market within the country, integrate it into the global one, and provide the necessary legislative framework.

It is important for equal competition between enterprises and optimization of the distribution of economic resources. change in pricing system. In a few years, its new mechanism will be formed. The state will set prices only for the products of natural monopolies (oil, natural gas, rare metals, etc.), specific goods (medicines, weapons), as well as services of institutions in such areas as healthcare, education, culture and sports. Prices for other goods and services should be determined by the market. When carrying out price reform, it is necessary to closely monitor their levels to prevent sharp inflation.

n Deepening the reform of distribution and social security systems. When distributing the income of the national economy, the interests of the state, the collective, the individual, the central government and local administrations should be taken into account. It is necessary to eliminate the existing imbalances in the receipt of income by local citizens and local administrations.

Great importance is attached to the transformation of the wage system at enterprises, institutions and government bodies based on their specifics. Personal incomes must be differentiated and comply with the principle “the main thing is efficiency, but taking into account fairness.” A person must be given the opportunity to receive income from his capital and property, but this form of income will remain only additional. The government intends to regulate personal income through distribution policies and tax levers to prevent social stratification of society.

It is planned to establish a reporting regime for income subject to taxation, strengthen control over income tax, and introduce inheritance and gift taxes.

An important task is to improve the social security system, accelerate the development of laws to combat unemployment, as well as on pensions and healthcare. City workers and their collectives must jointly bear the costs of pension and health insurance.

A distinction must be made between the administrative work of social security institutions and the business activities of social security funds. Institutions must control the income and expenses of funds that may engage in business activities, mainly the purchase of government bonds in order to preserve and increase capital stock while ensuring normal payments and liquidity.

n Creation of a mechanism for indirect regulation of macroeconomics. The main task of macroeconomic regulation in market conditions is to ensure a balance of aggregate supply and demand, stimulate optimization of the structure of the national economy, and ensure long-term, rapid and healthy development of the economy. To create an effective regulatory mechanism, it is necessary to carry out reforms of the planning, banking and tax systems.

Planned system must move from direct to indirect control, from the predominance of natural indicators to the dominance of cost ones, from control of public enterprises to control of enterprises of all forms of ownership.

Banking reform includes the further division of the functions of banks of different categories and the development of credit and banking institutions associated with different forms of ownership.

Core tax reform is a tax distribution system. The central government receives customs duties, a portion of consumption and value added taxes subject to customs, consumption taxes, and income of state-owned enterprises under the central government.

The central government and local administrations jointly receive VAT, taxes on stock exchange transactions and the use of natural resources.

Local administrations receive taxes on the income of enterprises under their jurisdiction, on the individual income of citizens, on the use of land, agricultural land and pastures, on municipal construction, and on the owners of buildings and vehicles. It is planned to create bodies responsible for collecting state and local taxes (the central body - for state and general taxes, the local body - for local ones).

n Changing functions of government. To create a market economy, it is necessary to separate the functions of government and enterprises. Government functions include planning, developing economic policy, providing information, coordinating controversial issues, providing various types of public services, and monitoring implementation. Local administrations should not interfere with the work of enterprises permitted by law and within their powers. It is necessary to correctly distribute powers in economic management between the center and local administrations in order to encourage the initiative of both structures.

All links of radical transformations are interconnected. The Chinese reform, unlike shock therapy, is carried out gradually and comprehensively, each link is carefully thought out. Practice has shown that shock therapy can only destroy the old mechanism, but cannot create a new one. As a result, the country is completely deprived of its economic mechanism, which leads to chaos. Reform in certain areas of the economy cannot be successful in the absence of radical changes in other areas.

By the end of the 20th century. China will basically establish a market economy mechanism. Over the course of 20-30 years, we will improve it by legitimizing the rules developed during the reform. Then the advantages of socialism will become obvious and society will achieve even greater success in economic and social development.