China: A Struggle for Economic Reform
The Effects of Central Planning the Cultural Revolution in ChinaThe Cultural Revolution was launched in 1966 to manipulate and to lower the standards on the realm of the educated. The slow conversion from the Central Planning System to the New Economic Market to open up free trade affected China inadequately, leading China into chaos, such as the Tiananmen Square massacre in 1989. There is no determined reason why Mao Zedong, then Chairman of the Communist Party and the principal leader of China, unleashed millions of youths, soldiers and later adults, male and female against the historical, educational, artistic, musical, and cultural institutions and the people of China. In the mayhem, parts of many museums, universities, libraries and their books, statues, and even the Great Wall of China were destroyed during the Cultural Revolution. These series of events came to be known as “The Great Proletarian Revolution” or the “ten lost years”. While Japan, Hong Kong, and most of the world looked outward to world trade, modern living conditions, and industrialization, China tragically was not only turned inward, but was destroying itself from within. A large impact of the Cultural Revolution was on the youth of China,
When Deng XiaoPing came into power a few years after Mao died in 1978, a little group of farmers were initiated to grow their own crops and keep their own land. This became a success and a report was sent to Deng where he accepted this new system, allowing development in an open market economy and slowly reducing the central planning system in China. “When Deng came into power, he focused his leadership much on building a series of market reforms including a multi-sector economy. This lead to an economic breakdown after the June 4th bloodbath” Soon Deng announced an Open Door trading policy and created special economic zones, which specifically looked at retail, food, and other such industries. These economic zones were sixteen cities that were designated along China. This led to tax advantages and cheap labour that encouraged people to start investing in China. It started opening up borders to foreign investors. Because the open market economy was introduced and the central planning system was still in place, China had established a duel economy system. The raw materials and energy continued to be regulated by the government and people needed a permit to buy these raw materials. The market economy helped buy the quota in order to supply the factories in the economic zones. The quota pricing was under the control of bureaucrats, which meant it was much cheaper to buy it at the official price under the Central Planning system than buying it from an open market price. This led to corruption within the government officials. They would be able to legally distribute quota papers and sell it to family and friends in the open market. People associated with the government officials were becoming richer, while others without such relationships started upon the road to bankruptcy because this dual system was leading to inflation. Taxi drivers were making more
Some topics in this essay:
Cultural Revolution,
Deng XiaoPing,
Soon Deng,
Central Planning,
Tiananmen Square,
Communist Party,
Party Secretary,
Hong Kong,
Soon Hu,
Economic Market,
cultural revolution,
central planning,
tiananmen square,
central planning system,
planning system,
market economy,
government officials,
economic zones,
deng xiaoping,
planning system china,
peace protest,
graduates transferred countryside,
colleges universities,
tiananmen square massacre,
manual labor countryside,
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Approximate Word count = 1259
Approximate Pages = 5 (250 words per page double spaced)
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