1. Introduction
Many scholars and observers have dubbed the economic growth in China over the past three decades as phenomenal. This growth is virtually synonymous with the Economic Reform that started in the late 1970s. The word reform is defined as a transformation or improvement. The Chinese Economic Reform refers to a number of economic changes known as “Socialism with Chinese Characteristics” in the People’s Republic of China (PRC), led by the Communist Party of China (CPC) under the leadership of Deng Xiaoping. After the Great Leap Forward famine, during which between 30 and 40 million people died, and the very unpopular Cultural Revolution of 1996-1976, the death of Mao Zedong offered the CPC a much needed opportunity to change …show more content…
No farmer earned more for working harder because all farmers within its collective would benefit from his additional labour, as all extra output was shared equally. (Chow: 2004) Farmers realized if they farmed separately they would be able to achieve the quotas set by government and more depending on their own productivity. Deng identified the potential in this initiative and responded by dividing the land of the people’s communes into private plots. Under his “Household Responsibility System” each farmer had to continue delivering a fixed output to government procurement agencies, once these quotas are achieved the farmer could continue farming and selling the excess at a profit. This system immediately improved agricultural output in China. According to Chow (2004) the Chinese farmers deserve credit for the initiation of this reform as they realized the potential of farming outside the …show more content…
2.6 Banking and Financial Sectors
In 1978, when the reforms started the People’s Bank of China (PBoC) functioned as the central bank but was also involved in day-to-day commercial banking. This changed in September 1983 when the PBoC was reconstituted as the Chinese Central Bank. Four state owned specialized banks were established soon after and they began lending activities in different markets. These banks were privatized in 1994 and became responsible for their own profits and losses. (Tung 2005).
China made a commitment to the WTO to liberize financial markets. (Chow: 2004). In an effort to achieve such commitments, the Chinese Governed fast tracked such reforms from the end of 2003. Further to this the domestic insurance business was given the green light to start up again, this after being suspended for over 20 years. This includes participation by foreign insurance
Many scholars and observers have dubbed the economic growth in China over the past three decades as phenomenal. This growth is virtually synonymous with the Economic Reform that started in the late 1970s. The word reform is defined as a transformation or improvement. The Chinese Economic Reform refers to a number of economic changes known as “Socialism with Chinese Characteristics” in the People’s Republic of China (PRC), led by the Communist Party of China (CPC) under the leadership of Deng Xiaoping. After the Great Leap Forward famine, during which between 30 and 40 million people died, and the very unpopular Cultural Revolution of 1996-1976, the death of Mao Zedong offered the CPC a much needed opportunity to change …show more content…
No farmer earned more for working harder because all farmers within its collective would benefit from his additional labour, as all extra output was shared equally. (Chow: 2004) Farmers realized if they farmed separately they would be able to achieve the quotas set by government and more depending on their own productivity. Deng identified the potential in this initiative and responded by dividing the land of the people’s communes into private plots. Under his “Household Responsibility System” each farmer had to continue delivering a fixed output to government procurement agencies, once these quotas are achieved the farmer could continue farming and selling the excess at a profit. This system immediately improved agricultural output in China. According to Chow (2004) the Chinese farmers deserve credit for the initiation of this reform as they realized the potential of farming outside the …show more content…
2.6 Banking and Financial Sectors
In 1978, when the reforms started the People’s Bank of China (PBoC) functioned as the central bank but was also involved in day-to-day commercial banking. This changed in September 1983 when the PBoC was reconstituted as the Chinese Central Bank. Four state owned specialized banks were established soon after and they began lending activities in different markets. These banks were privatized in 1994 and became responsible for their own profits and losses. (Tung 2005).
China made a commitment to the WTO to liberize financial markets. (Chow: 2004). In an effort to achieve such commitments, the Chinese Governed fast tracked such reforms from the end of 2003. Further to this the domestic insurance business was given the green light to start up again, this after being suspended for over 20 years. This includes participation by foreign insurance