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By Shujie Yao

China has skilled over 1 / 4 century of fast monetary development, which has had a ravishing influence at the international financial system. getting into the twenty-first century means that China has started a brand new part of monetary and social development. Yao reports the commercial improvement background of latest China from 1949 to the current, paying specified cognizance to development, inequality and poverty relief. a true chinese language monetary miracle must have very important positive aspects: excessive source of revenue progress and a good distribution procedure in order that poverty might be eliminated.

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Extra resources for Economic Growth, Income Distribution and Poverty Reduction in Contemporary China (Routledge Studies on the Chinese Economy)

Sample text

For instance, the People’s Daily reports that the number of rural poor was only 26 million in 2000, declining from 270 million in 1978 (People’s Daily, 2000b). 5 million rural poor, but that if a relatively higher poverty line based on the international standard was used, the figure would be 85 million. This is the first time that a high ranking Chinese official has admitted such a high incidence of rural poverty. There have been few studies on urban poverty, because, as the World Bank has rightly pointed out, poverty in China was exclusively a rural phenomenon prior to economic reforms, because urban residents were heavily protected both in terms of their job security and the many social benefits available to them, which were unavailable to the farmers.

Deng also encouraged farmers to retain their private plots of land and relaxed the restriction on rural and urban free markets. However, shortly after Zhou died in early 1976, the Gang of Four forced Deng out of politics through 1 2 3 4 5 6 7 8 9 0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 6 Introduction the order of Mao, who was very frail and sick but clear-headed enough to keep Deng’s party membership, which was crucial for him to be restored to power one year later.

The higher education system was also seriously affected because formal university entry examination was abolished and all the universities were forced to recruit students from workers, peasants and soldiers who were selected without clear academic criteria. In retrospect, Mao’s political life was full of vicious political movements to remove his political contenders, because of his single-minded determination to make China powerful through collectivisation and common prosperity. The outcome, however, was totally different from what had been intended.

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