CHINA"S FUTURE STEPS TO A BETTER ECONOMY.
For centuries China has stood as a leading civilization, outshining the rest of the world in the arts and sciences. However, its communist system and command economy has given a great disadvantage to China because of the lack of economic growth. Since 1978, Chinese leadership has been trying to move the economy from the sluggish Soviet-style centrally planned economy to a more productive and flexible economy with market elements, while containing some of its communist ways. In a communist country, the people are meant to run the country by making decisions and setting an example. However, a communist country usually ends up as a strong government police state. In addition, a communist country in most cases contains a command economy because of the strong government involvement. This command economy, which China falls under, means that there is state ownership of the factors of production and that it is a centrally planned economy. In a country where there is state ownership of assets, private individuals do not own any resources because majority is owned by the government. Also, the central-planning authority gives decisions on what is to be produced, how it is to be produced and how it is to be distributed. Therefore, an everyday citizen of China is not entitled to individual freedom or many rights and opportunities. China needs to slowly but effectively steer away from its command economy into a mixed economy, where most of its economic and political attention will be concentrated on constructing an effective market economy. Its current command economy has many disadvantages, which make China very vulnerable. Planning difficulties, inefficiencies and lack of freedom are occurring in China with its corrupt government officials, limited choices and lack of political freedom. Furthermore, planning for such an extreme economic change can be challenging at times and quite risky.