Issues Facing China: Economic Reform 1978 until Present

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Issues Facing China Economic Reform 1978 until
Present

• By Adam Farquhar

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(No Transcript)
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Points of Discussion

• Decentralization
• Government policies towards urban and rural
  workers
• Public opinion of Chinese Citizens

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A Brief History

• After 1919, there was a power vacuum
• The Treaty of Versailles was signed, giving land
  back to Japan.
• Chiang Kai-shek took over much of the South.
• A brutal war ensued between Mao Zedong and Chiang
  Kai-shek.

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Government Structure

• The top level of Government is organized under
  the Politburo.
• Jobs are divided up within the Politburo.
• 1. Preeminent Leader
• 2. Elders
• 3. Generalists
• 4. Functional Specialists
  

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Deng Xiaoping
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Decentralization

• The death of Mao Zedong brought about the rise of
  Deng Xiaoping in 1978.
• He began the process of Decentralization.
• Eating in Separate Kitchens

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Decentralization (cont.)

• A strong central government is more capable of
  meeting basic needs of people.
• The Government does step in when needed.
• The political factor is not given enough weight.

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Deng Xiaoping and the Rural Workforce

• Initially, the peasant framers loved Deng
  Xiaoping.
• This changed when the CPC Central Committee
  passed Chinas Economic Structure Reform.
• Rural farmers were left with a surplus of output.

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Jiang Zemin
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Deng Xiaoping and Jiang Zemins Policies Towards
the Urban Unemployed

• Unemployment was originally unheard of.
• The Government had to compensate for workers
  effected by the economic transition.
• They were divided into 3 categories the
  Unemployed, the Xiagang, and the Newly Indigent

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Unemployed

• Workers started being hired only on limited term
  contracts.
• One percent of wages had o go to an unemployment
  fund.
• Unemployment insurance could only go to state
  enterprise workers.

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Xiagang

• This term refers to workers who were no longer
  needed but still associated with their firm.
• Workers were retrained in this program, then
  redistributed.
• Program was scrapped in 2001.

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Newly Indigent

• This was the name given to the urban poor who
  were unable to get a job.
• In this plan ties were severed with their former
  employer and they were given assistance.
• People who worked for firms not directly owned by
  cities were not receiving the aid.

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The Chinese People
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Public Opinion

• Collecting reliable public opinion data is not
  impossible in China.
• Average citizens were more willing to share their
  views than the wealthy and politically connected.
• Results were published in Public Opinion and
  political Change in China, by Wenfang Tang.

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Public Opinion (Positive)

• Highest rated aspect of life was family life and
  social life.
• Two-thirds of people interviewed were also happy
  with their freedom of speech.
• The peoples understanding of freedom of speech
  did not have to do with government structure.

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Public Opinion (Negative)

• The two biggest problems the average person had
  with reform was with the environment and crime
  control.
• A little over half of people surveyed were
  disappointed with their job prospects.
• People were divided over the issue of housing.

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Conclusion

• China is growing at a rapid pace.
• The country is still in a stage of
  self-discovery.
• There are some pressing issues that if not
  addressed could cause major problems for China.
• Improving government structure and resilience on
  the part of the Chinese citizens make Chinas
  outlook seem more hopeful than not.

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The End