1978 in the conditions of the political instability caused, first, by Mao Zedong’s
death in 1976, and secondly, continuing several years stagnation in economy,
the Chinese leaders led by Deng Xiaoping announced the beginning of
implementation of the program of economic reforms. Possibly, we never learn for
certain whether Deng Xiaoping from the very beginning a confidential
“conductor of capitalism” (as Mao Zedong in the years of the cultural
revolution claimed) was, or reforms just became the step necessary for ensuring
economic security of China and increase in its prestige in the conditions of
rapid development of capitalism in other countries East and Southeast Asia.
Reforms coincided — and it is very difficult to see something other except as accident
of world-wide and historical scale here — with turn to neo-liberalism in the
United States and Great Britain. As a result in China there was a special kind
of market economy which unites the neoliberal elements and the authoritative
centralized control. In other countries, for example in Chile, South Korea,
Taiwan, Singapore, by this time a certain combination of authoritarianism and
the capitalist market was already established.
refused egalitarianism as a long-term goal of development of China, Deng
Xiaoping claimed that the private and local initiative has to receive freedom
of expression to increase overall effectiveness and to stimulate economic
growth. Emergence of a certain inequality was recognized as logical and quite
acceptable result. Under the slogan “xiaokang” — the concept of the ideal
society guaranteeing wellbeing of all his citizens — Deng Xiaoping concentrated
efforts on “four directions of modernization”: in agricultural
industry, the industry, science and education, defense. Reforms had to provide
emergence of market forces in the Chinese economy. It was necessary to
stimulate the competition between the state enterprises to achieve innovations
and growth. The principles of market pricing began to be used, but it probably
was much less important, than fast transfer of the political and economic power
to regions. This last course was especially far-sighted. Beijing managed to
avoid confrontation with the traditional regional centers of influence, and now
the initiative on places could promote establishment of a new social order.
Failure during innovations could just be not taken into account. For
maintenance of this process China opened access to domestic markets for foreign
investments and trade, though under strict control of the state, having
stopped, thus, isolation of China from the outside world. In the beginning
experiments were limited to the province Guandong which is near Hong Kong and
is rather removed from Beijing. Ensuring inflow of technologies (from here and
special attention to creation of cooperation management enterprises between the
Chinese and foreign enterprises) was one of the purposes of opening of the
markets for the foreign capital. Accumulation
sufficient quantity of currency reserves for maintenance of internal economic
growth was other purpose.
would not have that value which we attribute them now, and the followed
unexpected evolution of the Chinese economy would not develop so successfully
and would not achieve such results if in parallel there were considerable and,
apparently, no processes which do not have relations to China in the developed
capitalist world, the functioning of the world market connected with the mechanism.
Starting with the 1980th the neoliberal policy gained strength in international
trade, and as a result the whole world was open for the transforming influence
of market and financial processes.
As a result of
this process there was a possibility of inclusion of China in the world market
that would be impossible within the Bretton Woods system! Victorious emergence
of China as global economic force after the 1980th was partly an unforeseen
consequence of turn to neoliberalism in the developed capitalist countries.