China after the death of Mao Zedong was a sorry state of affairs. Communist had failed to bring prosperity to the country; instead, was poor and isolated from the rest of the world. The Cultural Revolution had also been a failure, and the youths sent down during the period came to be known as the ‘changed generation’. On top of that, infighting within the Chinese Communist Party (CCP) stagnated its decision-making and threatened its authority. It was in the light of all this turmoil than Deng Xiaoping introduced the economic reforms of the 1980s, with the intention of salvaging the economy and raising the peoples’ standard of living. …show more content…
One of the first changes Deng implemented was to abolish Mao’s rural agricultural communes. Under the ‘contract responsibility system’, land was leased out to peasants to cultivate family plots, and surplus production could be sold for profit. Grain harvest quickly increased following this new incentive. However, the communist principle of equality was soon replaced with a large income disparity between regions and provinces, because of differing conditions, climate, or levels of entrepreneurial skill. Violence and conflict occurred more frequently, with successful farmers and entrepreneurs being attacked by jealous competitors. Decollectivisation of social welfare and services soon followed, and the poor found themselves unable to afford access to privatised hospitals and education. Instead of raising the standard of living, the reforms had, in fact, worsened impoverishment in some …show more content…
In 1984, China’s food supply hit 400 million tonnes of grain, making the nation self-sufficient in food. The ‘open door policy’ opened China to the world, reversing the communist principle of an isolated economy by actively courting foreign capitalist investment. Regions such as Hainan and Shenzhen were declared Special Economic Zones, and private businesses attracted to invest using baits of low rent, low taxes and cheap labour. This not only contributed greatly to China’s rapid economic growth, but also led to better international relations with the other superpowers, as China’s economic, and therefore, political, clout grew with its prosperity. As a result of the reforms, China was soon being considered to have the potential to become the world’s largest economy in the near