China, which was described as"a Sleeping Lion" by Napoleon, was eventually awakened at the end of the 20th century. In the past 30 years, the Chinese miracle was created by only one generation. China made the leap from being a needy and undeveloped country to an economic power of worldwide attention.
The revival of China will definitely remodel and shake the global political and economic balance in the 21st century, which deserves worldwide concern and investigation, and further analysis and tracking of the key information. The subject of Chinese Economy by Professor Lin Yifu can help us clear up our confusion about the Chinese miracle and guide us to ponder the challenges and future that China’s economy faces. It tends to not only explain rationally the reasons for China’s economic performance, but also gives a humanistic understanding of the beneficial influences on the masses that the path of historical development has made.
In 1978, Xi Zhongxun, the secretary of Guangdong Provincial Committee of the CPC, came to Guangdong with an important task assigned by Deng Xiaoping —"fighting a way out". Back then, the average income per capita in Guangdong approximately equalled merely 1% of that in Hong Kong, which is just on the other side of the river. Facing such a severe challenge, Xi Zhongxun realised that economic development was the only way out. However, the central government could not give him the funds he wanted. So he asked for preferential policies instead. Xi Zhongxun requested the government to set up Special Economic Zones like Shenzhen and Zhuhai, and introduce foreign investment and market economy. This marked the start of the Reform and Opening-up.
Henceforth, the waves of Reform and Opening-Up spread out. From the South to the North, from Shenzhen to Shanghai, from Special Economic Zones to towns and villages, after 30 years, the waves finally assembled together the tide which accomplished the current economic strength of China. 30-years of Reform and Opening-up has made the GDP of mainland China increase rapidly from 360 billion RMB in 1978 to 30 trillion RMB in 2008.Mainland China has now become the second largest economy in the world, inferior only to the U.S.A. In retrospect of the hardships it has experienced during these 30 years, we can say that China has indeed created a Chinese miracle in many aspects.
The development strategy mainland China implemented during the last 30 years differs from the "Shock Therapy" of Soviet and Eastern Europe, or the "Washington Consensus" brought up by mainstream economists. In every phase of economic development, China often moves forward surrounded by objections and censures, which is the reason why others are confused by the economy in mainland China. They are full of curiosity, but cannot see it through. This fact represents another meaning of the Chinese miracle — existing economic theories cannot explain completely why mainland China succeeds.
Facing the fast changing 21st century, every movement of China affects deeply the future trend of global politics and economics, and benefits to the masses. How to enhance the understanding of China is the most vital issue to instantly solve at present. On the other hand, mastering the principles of China’s rapid development may help the world, in its current state of financial crisis, to get out of trouble soon.(By Wu Hemao) |
