The great architect of Chinese economic reforms and modernization, Deng Xiaoping, created an economic miracle in the most populous country in the world, guiding the communists with a firm hand to the path of capitalism

Biography of Deng Xiaoping

He was born on August 22, 1904 in Sichuan province into a wealthy family. He grew up in a house with 22 rooms, on which now hangs a memorial plaque with the inscription: “Here was born a man who saved the country in times of disaster and is reviving it with all his might. Low bow to him."

At age 15, Deng went to Paris with a group of 80 Chinese students to study. To make ends meet, I had to combine my studies with work. Xiaoping was both a digger in the mines and a mechanic at the factory. Renault, and a waiter, and a fireman.

Paris in the 1920s was characterized by increased revolutionism. And more than others, leftist ideas struck young people who came from Southeast Asian countries. The Vietnamese Ho Chi Minh, the Cambodian Pol Pot and the Chinese Zhou Enlai returned to their homeland as complete revolutionaries.

Deng Xiaoping suffered the same fate. In 1921, he joined the Chinese Communist Youth League, and two years later he joined the Chinese Communist Party. And he quickly rose to the top positions in the European branch of the CCP.

As you know, the communists of that time - just like today's Americans - wanted to make everyone happy at once and were preparing a world revolution. In Paris, Deng printed proclamations and distributed them among the workers of Chinatown. The police drew attention to this, and he had to leave France.

The world revolutionary was welcomed with open arms to the USSR, where, under the name Drozdov, he began studying at the Communist University of the Toilers of the East.

Returning to his homeland in 1927, Comrade Dan chose a military career. Naturally, on territory controlled by the revolutionary Red Army. Under his command, units of the Red Army fought against Kuomintang troops. Dan makes cunning maneuvers, takes the enemy by surprise, uses modern military tactics, and pushes the enemy back.

The party appreciated his military successes. With the support of Mao Zedong, Comrade Deng is elected secretary of the CCP in Ruijin County. Serves as political commissar of the 129th division, political commissar of the 2nd field army, is a member of the CPC Central Committee, and is appointed first secretary of the Southwestern Bureau of the CPC.

In 1966, Deng Xiaoping formulated: “It doesn’t matter whether a cat is black or white. If she can catch mice, then she is a good cat.” But this formula only started working in the late 1970s.

Let a hundred flowers bloom

In 1949, the Chinese revolution finally won, and the People's Republic of China was formed. Having proven himself to be a talented organizer in one of the largest administrative regions - the Southwestern Region, which included the provinces of Guizhou, Yunnan, Xikang and Sichuan, Deng achieved a transfer to Beijing. He was involved in the work of forming the political and economic foundations of the new state as a member of the commission for the preparation of the constitution of the PRC. Soon Deng holds the posts of General Secretary of the Central Election Commission for Elections to the People's Council, Deputy Chairman of the Central Military Council, and Deputy Premier of the State Council Zhou Enlai. And finally, in May 1954, he was elected General Secretary of the CPC Central Committee.

From the very first days of the founding of the PRC, Mao, who usurped the status of the leader, the Great Helmsman, built the state in the image and likeness of the Stalinist USSR. Naturally, repression was widely used against both wealthy Chinese and political opponents, who were declared agents of the Japanese bourgeoisie and Kuomintang spies.

In 1956, when the new leader of the USSR, Nikita Khrushchev, announced a departure from the Stalinist model of socialism, Zhou Enlai and Deng Xiaoping also proposed reforms. Mao, after hesitating, nevertheless authorized Deng Xiaoping’s report at the Eighth Congress of the CPC in 1956, in which the Secretary General spoke about the division of powers between party and administrative bodies, about the harmfulness of transforming state mechanisms that were constitutionally democratic into bureaucratic ones, and about the need to democratize public life.

In 1957, Mao put forward the slogan “Let a hundred flowers bloom, let a hundred schools compete,” calling on the country to debate. But what he heard horrified him. The Chinese enthusiastically began to criticize the CCP's policies for corruption, violence, and incompetence. A year later, there was no talk of any reform. Repressions unfolded. However, neither Deng Xiaoping nor Zhou Mao was touched.

High cultural revolution

A year later, the Great Leap Forward hit China. Mao decided to exceed Stalin’s plans for collectivization and industrialization of the country a hundredfold. “Three years of hard work and a hundred years of happiness,” was his slogan. The result was a terrible famine, which, according to various estimates, claimed from 10 to 30 million lives.

Liu Shaoqi and Deng Xiaoping were entrusted with saving the economy. They managed to partially carry out decollectivization and stop the administrative chaos. Private property returned to agriculture and trade was revived.

In 1966, Deng Xiaoping formulated: “It doesn’t matter whether a cat is black or white. If she can catch mice, then she is a good cat.” But this formula only started working in the late 1970s. And then, in 1966, Mao put forward the slogan “Fire at the headquarters!” The “Great Proletarian Cultural Revolution” began.

Liu Shaoqi was arrested and died in prison under unclear circumstances. His young wife was beaten to death by the Red Guards and thrown out of the window. Deng Xiaoping was treated more leniently. The General Secretary of the CCP was sent with his family to a remote county in Jiangxi Province, where he worked at a tractor factory until 1973. The son was thrown out of a third-floor window, and he remained disabled for the rest of his life.

The economy was growing at a fantastic speed - up to 15% per year! I even had to slow down a little.

Gang of Four Hostage

When Premier Zhou Enlai learned that he was terminally ill and only had two years to live, he convinced Mao that a better successor than the disgraced Deng could not be found. Mao reluctantly appoints Deng Xiaoping as vice premier.

He carefully, without making sudden movements, so as not to be subjected to repression again, begins to correct the economic situation. Despite his demonstrative loyalty to Mao's policies, Deng Xiaoping in 1975 was forced to publicly criticize himself and admit his “mistakes.” Clouds gather after the death in 1976 of Zhou Enlai, who supported a fellow reformer. The radical left faction of the CCP, the same “gang of four” led by the Great Helmsman’s wife, which usurped virtually unlimited party power, declares Deng Xiaoping a “counter-revolutionary element” preparing mass unrest in the country. He is thrown behind bars, and the final punishment seems inevitable.

However, in September Mao dies, and in October the “gang of four” is arrested. And Deng Xiaoping triumphantly returns to power. He occupies by no means the highest post, which is occupied by Mao’s protege Hua Guofeng. Deng is elected chairman of the National Committee of the People's Political Consultative Conference, a body that has no authority to decide the country's key problems. But, having enlisted the support of like-minded people in the CPC Central Committee, Deng gradually increased his powers - First Deputy Prime Minister, Deputy Chairman of the CPC Central Committee, Deputy Chairman of the Military Council, Chief of the General Staff.

And at the end of 1977, he already had enough power to achieve the adoption of a program document condemning the cultural revolution at the plenum of the CPC Central Committee. And next year he launches economic reforms that ultimately turned China into the current powerful power dictating its terms on the world market.

Big Leap 2

Deng proclaimed the principle of “four modernizations,” according to which the entire economy was divided into four sectors: the military-industrial complex, industrial production, agriculture and science. A theoretical platform was put forward for the reforms: a country at the first stage of socialism will build “socialism with Chinese characteristics,” which is characterized by a “socialist market economy.”

Deng Xiaoping outlined several stages of reform. However, there was no strict scheme. “When crossing the river, we feel the stones,” Dan said. Reforms developed taking into account pressing problems and the circumstances that arise in solving them. And they relied not only on the decisions of the Beijing sages, but also took into account the initiative from below. Many efficient management methods were developed and implemented by provincial leaders. If the method proved its effectiveness in practice, it was introduced in larger regions, and then used on a national scale.

At the first stage, until 1984, the most radical changes affected agriculture. Communes were replaced by “household contracting”, which allowed each family to work for themselves, and not for everyone at once. But private ownership of land was not introduced: the land remained collective, assigned to rural communities.

In industrial enterprises, directors were given greater freedom in decision making. Successful plants and factories were encouraged not only morally, as before, but also financially. The private sector expanded - primarily in light industry, which now clothes and shoes half the globe.

At the second stage of reforms, in addition to undoubted economic successes, negative processes also appeared: corruption, inflation, stratification of society, and an increase in crime. That is, “socialism with a Chinese face” acquired the features of capitalism of the period of initial accumulation. Deng Xiaoping had to skillfully maneuver to prevent opponents of reforms from the left wing of the CCP from returning the country to the past.

Large industrial enterprises, mines, and oil fields were already becoming private property. A flood of foreign investment poured in. Special economic zones were created. High technologies have come to the country.

The economy was growing at a fantastic speed - up to 15% per year! The reformers, led by Deng Xiaoping, even had to slow down a little to prevent “overheating.” Deng made significant efforts in the international arena to ensure that the PRC ceased to be a “communist bogeyman” and that the country was accepted into the noble family of the so-called “civilized countries.” He achieved agreements with Great Britain and Portugal on the return of Hong Kong and Macau to the PRC.

A middle class quickly emerged in China. And he desired political freedoms. In 1989, large-scale protests against the omnipotence of the CCP unfolded in the capital's Tiananmen Square. Deng Xiaoping perceived this as a real threat to the existence of the state, since the European socialist camp was literally bursting at the seams. On May 20, tanks moved into the square. Resistance was quickly crushed. According to various estimates, from 400 to 2,500 people died.

Deng resigned as chairman of the Central Military Commission. And in 1992 he left the political scene forever. However, six months earlier, he made his famous “southern tour”, visiting Guangzhou, Shenzhen, Zhuhai and Shanghai. Like an iconic rock musician, he spoke to huge audiences, speaking about the need for economic change and criticizing opponents of economic reform and opening up. And then he published a series of high-profile articles in a central newspaper. His ideas received popular support. And the then President of the People's Republic of China Jiang Zemin, who had previously hesitated about the country's course, completely went over to the side of the father of reforms.

Deng Xiaoping passed away on February 19, 1997 at the age of 92. But his cause lives on and wins. In this case, this formulation is not a propaganda cliché at all. This is how it really is, as can be easily seen by looking at the economic indicators of the PRC.

Is the Chinese experience of the “four modernizations” suitable for us?

Photos from open sources

In the fall of 2008, they said that the model of economic development through liberal capitalism had collapsed. In the last few years, they have already said that the socialist path of development followed by the countries of Southern Europe has also shown its insolvency and incapacity. And it turns out that the authoritarian states of Asia are doing best now. What happens? They say that the “Washington Consensus” is coming to an end, and that the “Chinese Consensus” will soon be imposed on the whole world?

With every new TV news turn on, you expect an even worse scenario to begin. We are immersed in the dullness of today's existence, forcing us to expect changes for the better. However, we are increasingly becoming convinced that the Cabinet of Ministers of Volodymyr Groysman and the Verkhovna Rada are unlikely to be able to cope with this major crisis, to lead Ukraine out of the systemic dead end into which we found ourselves not only as a result of the ATO in the east of the country, but even more so thanks to many years of efforts dominant financial and political groups in the country.

Moreover, political and business risks continue to grow latently. The social consequences of this crisis are also obvious; following the fall in both domestic and foreign investment, there will be savings on wages, and then on employment, plus another and more powerful round of devaluation awaits us (according to the calculations of the 2018 state budget, by the end of next year the US dollar will cost 30.1 hryvnia). What dangers still lie ahead? And which political leader will still dare to choose one of the two? Or destroy the monopoly-oligarchic foundations and re-build the country’s competitive economy in order to at least feed the poor population. Or extinguish the flames of food riots.

News on the topic

I would like to note on my own behalf, having met the oligarchs back in the 90s, I know that they are cruel and intelligent people. It would be good if we could shake the old political and economic rules of the game and begin to create new institutions. Delaying this process is like death. Having two higher educations (military-political and economic) in my baggage, I am convinced that we have two catastrophic processes going on: first, the ATO has continued for 3 years in a row in the east of the country; second, the split in Ukrainian society is widening (60% of the population is below the poverty line). And if the third Maidan occurs, then most likely it will be called the revolution of the poor, because... Today we have the lowest level of compensation for labor in Europe.

Of course, we need to study the experience of European countries with high-quality economies, but isn’t it time we also take a closer look at the best Asian examples. For example, unlike all Ukrainian governments, China approached reforms comprehensively and systematically. Thus, the beginning of economic reforms was made in 1978 at the III Plenum of the Central Committee of the CPC of the 11th convocation. Then Deng Xiaoping first proposed the “four modernizations” program: reforms in industry, agriculture, national defense, science and technology.

The national program included not only the borrowing of capitalist methods of economic development according to the principle: “it doesn’t matter what color the cat is, as long as it catches mice,” but also the consistent democratization of society. It is difficult not to recognize the fact that Chinese reforms today are an outstanding phenomenon of our time, which has no analogues in the world. These are decisive, effective and efficient reforms. But can we apply this in Ukraine? Not a single Ukrainian politician has yet given the answer to this question. Also, among experts there is no consensus on whether the Chinese experience is suitable for us, and if so, which of its elements are of the greatest value and which should be decisively discarded?

News on the topic

For example, the “architect of reform” Deng Xiaoping also became the gravedigger of the unfortunate Chinese Maidan in Tiananmen Square. Just like today's events in Ukraine in 2004 and 2014, Tiananmen 1989 became a major bifurcation point for China, with strategic significance for decades to come. Therefore, I often still hear from my colleagues that if Chinese students had won then, then perhaps China would have faced almost the same thing as the Soviet Union at the end of the last century. Alas, the USSR did not find its own Dan, and his fate on the scales of history turned out to be sad.

Unfortunately, as leading foreign and domestic experts note, such a leader has not yet been found in corrupt post-Soviet Ukraine. Our fate with the current oligarchic structure is also unenviable. Especially in the example of parliament, we see how the state system breaks the idealists of the Maidans. And who will answer which political party we have in the crisis has given strategic objectives for the development of Ukrainian markets? How to stop the fall in real incomes of the population and the rise in inflation? But life has already taught us all to count and understand, having recently watched the growth of the US dollar in currency exchange offices, we realize that we need to prepare for the fact that imports will become more expensive, the hryvnia will depreciate, and wages will decrease. I wouldn’t be surprised if we soon hear about a Masonic conspiracy.

Yes, our inflation has begun to accelerate. I expect by the end of 2017 somewhere up to 3-3.5 percentage points. Next comes the inflation shock. And this fall and winter will be not only fruit and vegetable and meat inflation, but also inflation of prices for services. The Cabinet of Ministers of Vladimir Groysman itself provokes an uncontrollable increase in inflation. It is not clear why the Prime Minister and Finance Minister Danilyuk need to fence this whole garden? After all, this new inflation shock under their leadership may last significantly longer. That is why I am increasingly inclined to think that only technocrats in power and international investors from America, Asia and Europe are capable of saving the Ukrainian economy.

News on the topic

It is no secret that today the Ukrainian bureaucracy is very ineffective in its professional qualities. And too many mistakes were made in personnel policy. After all, any economic reforms have three mandatory rules. First, they must be fair. Secondly, decisive. And thirdly, fast. In our case, none of the rules were implemented by either the Cabinet of Ministers or the Verkhovna Rada. This is an indicator of a systemic crisis. Also, building a “vertical of power” and transferring the country to manual control inevitably lead to failures in the management of such a weak system as the state. Well, the authoritarian system, especially carefully and intensively built by the Administration over the past two years, entered a crisis phase by the fall of 2017. After all, it, in fact, cannot solve a single serious problem; it suffers failure after failure. This cannot go on for long.

In this regard, a very short philosophical conclusion. Let me remind you that in the fall of 2008 they said that the model of economic development through liberal capitalism had collapsed. In the last few years, they have already said that the socialist path of development followed by the countries of Southern Europe has also shown its insolvency and incapacity. And it turns out that the authoritarian states of Asia are doing best now. What happens? They say that the “Washington Consensus” is coming to an end, and that the “Chinese Consensus” will soon be imposed on the whole world?

Alexander GONCHAROV,

Director of the Institute for Economic Development of Ukraine

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At the CPC theoretical conference in 1979, reforms were officially discussed "four modernizations": in agriculture, industry, science and technology and the military.

Reforms in agriculture

More in 1978 in Sichuan province, whose leader was Zhao Ziyang(since September 1979 - Premier of the People's Republic of China), was held experiment on family contracting. It was based on the old idea of ​​Deng Xiaoping - “assigning tasks to peasant households.” The results were stunning: the production of grain and other agricultural products increased sharply, and peasant incomes increased. It was decided to extend this practice to the entire country, which was approved by the Plenum of the CPC Central Committee in September 1979. Purchasing prices were increased by 30%. In the early 1980s. The dissolution of cooperatives began. Large-scale restructuring of agriculture began to take place in the summer of 1981. The most important measures:

a) peasant markets and subsidiary crafts are allowed;

b) the area of ​​land allocated for personal plots has been increased threefold;

c) state allocations for the development of agricultural infrastructure have been increased;

d) industry is reoriented to the production of small agricultural equipment;

e) gradually reduced, and since 1985 obligatory supplies of agricultural products were completely abandoned; they were replaced by a system of government contracts, and the products needed by the population came through the market.

By that time, the system of production responsibility had spread throughout China: the arable land of production teams was divided and assigned to individual families. They were given tasks; After delivering a set amount of produce, the family could dispose of the surplus at its own discretion.

Gradually tasks were replaced by taxes, established taking into account the quantity and quality of land. True, government agencies have tightened control over its use. In particular, soil erosion was not allowed, and the use of arable land for other needs was prohibited.

No private ownership of the land was established. Lease was introduced, its terms were constantly increasing: 15 years, 50 years. Subsequently it was introduced lifetime lease with the right of inheritance use and transfer of land to other hands for an appropriate fee. Formally, there is no right of private ownership of land in China to this day; land, for example, cannot be sold, mortgaged, etc.

These measures led to rapid growth in agricultural production - by 11.7% per year. By 1987 China had solved the problem domestic supply of food and agricultural raw materials and started exporting food products.

True, this increased social stratification in the village, which explains the rejection of reforms in certain sections of society. But in general, the material well-being of the rural population has increased significantly (annual income growth was 8.1%).

Increased production efficiency has aggravated the problem of surplus labor in rural areas. The state has become encourage the development of local industry, allowing large enterprises to create their branches in villages, where they would have significantly fewer problems with recruiting labor, providing housing, utilities, etc. Such enterprises were provided with preferential loans and tax discounts. Rural enterprises absorbed the freed labor - by the beginning of the 1990s. 85 million people worked there, producing a third of all industrial products, some of which were exported. This helped reduce the severity of the employment problem, but by 1990 there were over 150 million surplus labor in the Chinese countryside.

Industrial modernization

The task was not limited to updating equipment; enterprises must receive constant incentive to innovate. This required the destruction of the state economy, introduce market principles, develop competition, “open up to the world.”

It was important to preserve the social well-being of the population and survive the inevitable rise in prices. The specificity of China was also a huge number of unprofitable enterprises with primitive technology; They cannot be closed immediately, as the employment problem will worsen.

In the most general terms, Deng Xiaoping formulated the following provisions:

a) reduce the scope of directive planning and distribution
resources;

b) eliminate excessive centralization, expand economic
new independence of enterprises and regions;

c) use the opportunities of small private enterprises;

d) remove restrictions on wage and income growth.
Reducing directive planning was carried out for the first time

in Sichuan province; in 1979, an experiment began there: enterprises, having fulfilled the state order, received independence in the distribution of the remaining profits.

The result exceeded expectations: production increased by 80%. Since 1981, the system has been extended to all of China. All large enterprises have received government orders, but not more than 50% of their capacity. Beyond this, the enterprise can produce anything it wants and sell it at market prices.

At the same time, wholesale trade at free prices was allowed. This had an effect; enterprises became interested in the results. True, over time, negative trends also appeared: double prices for the same goods (free and state-owned) arose, and attempts were made to speculate on the difference in prices.

IN 1987 the scope of centralized control has narrowed. With directors state enterprises began to conclude contracts; In case of non-compliance, directors faced criminal liability. As a result, in the first year, 80% of the current directors voluntarily resigned, since in the new conditions other qualities were required of them: professionalism, the ability to analyze, and economic preparedness.

WITH 1979 in China, the creation of private enterprises: initially only in retail trade and consumer services; this then spread to other sectors of the economy. The permissible scale of private entrepreneurship also gradually expanded: at first it was allowed to use hired labor in the amount of no more than 5 people, then 15, 50 people, and so on until all restrictions on the number of employees were lifted. By 1987, about 25 million private enterprises operated in China.

The private sector not only helped alleviate the labor surplus situation - as early as 1985, the sector produced 35% of gross domestic product.

Attraction foreign capital began with the creation in 1979 4 free economic zones in southern China: these closed administrative entities became a kind of enclaves of the market economy in the PRC. There were special rules for the circulation of foreign currency, the transfer of profits abroad, low taxes were established, etc. But the administration of the zones was Chinese, permission to open enterprises was given by the Chinese, the creation of export-oriented enterprises was encouraged, i.e., producing the best products quality. An example would be the Shenzhen zone created on the border with Hong Kong. In addition to attracting foreign capital, foreign experience, new technologies, and administrative skills were widely used. Free zones have become locomotives of progress in China, their number has constantly grown, covering more and more new regions.

Summer 1979 was accepted Law “On Joint Ventures”: their area of ​​action was constantly expanding. China began to turn to foreign loans, something I had never done before. Since 1984, the country began to receive concessional loans through the IBRD (International Bank for Reconstruction and Development) and the IMF (International Monetary Fund), providing serious competition to India. Chinese exports gradually began to grow, especially rapidly since 1985; Foreign currency reserves were also replenished.

Industrial growth reached 16% in some years, real wage growth at urban enterprises was 9%. The well-being of the population increased: by 1987, 93% of urban families already had their own televisions, 60% - washing machines, 52% - tape recorders. The Chinese economy began to develop.

Modernization of science and technology

First of all, in China the attitude towards the intelligentsia and educated people has changed dramatically. Moreover, education has become the main criterion upon appointment to positions, i.e. it became prestigious.

Government spending increased for all types of educational institutions, teachers' salaries have increased. Capable students began to be sent to study abroad, to the best universities in the world, and at state expense. True, there were doubts about this: whether there would be a flight abroad, but such considerations were not taken into account.

In addition, families were given the opportunity to study their children abroad at their own expense. But still, it turned out to be difficult to repair the damage caused to education during the years of “building socialism” and especially during the “cultural revolution”.

It should be noted that China objectively needs to translate hieroglyphic writing onto a phonetic basis. This would expand opportunities for obtaining technical education and facilitate the adoption of innovations. In recent decades, the issue of appropriate reform has not been removed from the agenda, but there is a problem of different dialects (the dialects in southern China are especially different). Thus, although the hieroglyphic writing unites the Chinese language into a single whole, there is no unity in the language phonetically.

Defense modernization

This modernization was assigned last place on the list of priorities, first of all, by due to lack of funds. After limited conflict with Vietnam in 1979 began reduction in military spending. TO In 1984, the share of military expenditures in the budget decreased by more than half compared to 1979. A reduction in the size of the Chinese army also began: from 1979 to 1981 it was reduced by 1/3; in 1985, another large reduction was made - by 1 million people. Currently, the Chinese army numbers up to 3.5 million people.

The conversion of the military industry began: enterprises began to transfer to the production of civilian products. Many military facilities, warehouses, bomb shelters, etc. were subject to privatization.

At the same time, fundamentally the military doctrine itself has changed in China: the authorities abandoned their previous focus on “guerrilla warfare” and began to pay more attention to the technical equipment of the army.

Particular attention in China was paid to the development nuclear weapons and their means delivery: since 1982, China adopted the first ballistic missiles; Since 1983 it has been developing satellite communications.

In recent years, the army has become a huge independent economic force: it has owned plants, factories, agricultural enterprises, mines, mines, trading companies and even distilleries. The military gradually switched to complete self-sufficiency, without requiring funds from the state budget.

Deng Xiaoping is one of the outstanding political figures of communist China. It was he who had to deal with the disastrous consequences of the policies of Mao Zedong and the “cultural revolution” carried out by the famous “gang of four” (these are his associates). Over the course of ten years (from 1966 to 1976), it became obvious that the country had not made the expected “great leap”, so pragmatists were replacing supporters of revolutionary methods. Deng Xiaoping considered himself one of them, whose policy was marked by consistency and desire to modernize China and preserve its ideological foundations and identity. In this article I would like to reveal the essence of the transformations carried out under the leadership of this person, as well as understand their meaning and significance.

Rise to power

Deng Xiaoping overcame a thorny career path before becoming the unofficial leader of the CCP. Already by 1956, he was appointed to the post of General Secretary of the Central Committee. However, he was removed from his post after ten years of service in connection with the beginning of the “cultural revolution,” which provided for a large-scale purge of both personnel and the population. After the death of Mao Zedong and the arrest of his associates, the pragmatists were rehabilitated, and already during the 3rd plenum of the party of the eleventh convocation, the reforms of Deng Xiaoping in China began to be developed and implemented.

Policy Features

It is important to understand that he in no way abandoned socialism, only the methods of its construction changed, and there was a desire to give the political system in the country uniqueness, Chinese specifics. By the way, Mao Zedong’s personal mistakes and atrocities were not advertised - the blame fell mainly on the aforementioned “gang of four”.

The famous Chinese reforms of Deng Xiaoping were based on the “policy of four modernizations”: in industry, army, agriculture and science. Its ultimate outcome was to be the restoration and improvement of the country's economy. A specific feature of this political leader’s course was his readiness to contact the world, as a result of which foreign investors and businessmen began to show interest in the Celestial Empire. What was attractive was that the country had a huge cheap labor force: the dominant rural population there was ready to work for a minimum, but with maximum productivity, in order to feed their families. China also had a rich raw material base, so there was an immediate demand for government resources.

Agricultural sector

First of all, Deng Xiaoping needed to carry out reforms because the support of the masses was vital for him to consolidate his figure in power. If under Mao Zedong the emphasis was on the development of heavy industry and the military-industrial complex, the new leader, on the contrary, announced a conversion and expansion of production in order to restore domestic demand in the country.

People's communes, in which people were equal, were also abolished and had no opportunity to improve their situation. They were replaced by teams and households - the so-called family contracts. The advantage of such forms of labor organization was that new peasant collectives were allowed to leave surplus production, that is, the excess harvest could be sold on the emerging market in China and profit from it. In addition, freedom was provided in setting prices for agricultural goods. As for the land that the peasants cultivated, it was leased to them, but over time it was declared their property.

Consequences of reforms in agriculture

These innovations contributed to a significant increase in the standard of living in the village. In addition, an impetus was given to the development of the market, and the authorities were convinced in practice that personal initiative and material incentives for work are much more productive than the plan. This was proven by the results of the reforms: over the course of several years, the amount of grain grown by peasants almost doubled; by 1990, China became the first in the procurement of meat and cotton;

End of international isolation

If we expand on the concept of “openness,” it is worth understanding that Deng Xiaoping was against a sharp transition to active foreign trade. It was planned to smoothly build economic ties with the world and gradually penetrate the market into the country’s unchanged command-administrative economy. Another feature was that all changes were first tested in a small region, and if they were successful, they were introduced at the national level.

So, for example, already in 1978-1979. In the coastal regions of Fujian and Guangdong, SEZs were opened - special economic zones, which represent certain markets for the sale of products by the local population, and business ties were established with investors from abroad. They began to be called "capitalist islands", and their number grew rather slowly, despite the favorable state budget. It was the gradual formation of such zones when building foreign trade that did not allow China to lose the lion's share of raw materials, which could be instantly sold at a very high price by Chinese standards. Domestic production, which risks being overwhelmed by imported and cheaper goods, has also not been affected. Beneficial connections with various countries led to the acquaintance and implementation of modern technologies, machines, and factory equipment in production. Many Chinese went to study abroad to gain experience from Western colleagues. A certain economic exchange between China and other countries has developed, satisfying the interests of both sides.

Changes in industrial management

As you know, before Deng Xiaoping was chosen as the unofficial leader of the CPC of China, whose economic reforms made China a powerful power, all enterprises were subject to a plan and strict control by the state. The new country recognized the ineffectiveness of such a system and expressed the need to update it. For this purpose, a gradual method was proposed. Over time, it was assumed that the planned approach would be abandoned and the possibility of creating a mixed type of economic management of the country with the predominant participation of the state would be created. As a result, in 1993 plans were reduced to a minimum, government control decreased, and market relations gained momentum. Thus, a “double-track” system of managing the country’s economy emerged, which continues to exist in China to this day.

Approval of diversity of ownership forms

While carrying out one reform after another to transform China, Deng Xiaoping was faced with the problem of property. The fact is that changes in the organization of farming in the Chinese village allowed newly created households to have income, and capital grew to start their own business. In addition, foreign businessmen also sought to open branches of their enterprises in China. These factors became the reason for the formation of collective, municipal, individual, foreign and other forms of ownership.

The interesting thing is that the authorities did not plan to introduce such diversity. The reason for its appearance lies in the personal initiative of the local population, who have their own savings, to open and expand independently created enterprises. People were not interested in privatizing state property; they wanted to initially run their own business. The reformers, seeing the potential in them, decided to officially secure for citizens the right to have private property and conduct individual entrepreneurship. Nevertheless, foreign capital received the greatest support “from above”: foreign investors were provided with a range of various benefits when starting their own business in the territory. As for state-owned enterprises, in order to prevent them from going bankrupt when such high competition appeared, the plan for them was maintained, but was reduced from for years, and they were also guaranteed various kinds of tax deductions, subsidies, and favorable loans.

Meaning

It is impossible to deny that Deng Xiaoping, together with like-minded people, did a great deal of work to bring the country out of a deep economic crisis. Thanks to their reforms, China has significant weight in the global economy and, as a result, in politics. The country has developed a unique “concept of two-track economic development” that competently combines command and administrative levers and market elements. The new communist leaders are steadily continuing the ideas of Deng Xiaoping. For example, the state has now put forward the goals of building a “moderately prosperous society” by 2050 and eliminating inequality.