Revolutionary Chinese leader Deng Xiaoping who died in 1997
is the main mastermind behind China’s reform and free market policy. He was born in 1904 in Sichuan and was from a modest family background. As he studied abroad, he had a broad mindset as well as he joined Chinese Communist Party when he was in Europe. After returning, his political activities accelerated, and he contributed in various ways from various positions. He fought with all other communist leaders in order to create a socialist country. When Chairman Mao Zedong died in 1976, he gradually climbed the ladder to power and eventually made some groundbreaking policy reforms such as free enterprise, family planning, nine year mandatory education etc. He is considered as one of the most influential leaders of 20th century. He was and still is famous for his realistic speech such as: “It doesn’t matter if a cat is black or white, as long as it catches mice, it’s a good cat”- which signifies how practical and goal-driven he was. Because of his farsighted vision and effective decision-making, the development of China skyrocketed and China transformed itself as an economic powerhouse. Overall Contribution:
Deng Xiaoping was greatly concerned pertaining to poverty
of China and he was determined to boost living standard of Chinese people. In 1981, when he initiated reform project, around 90% of Chinese people were suffering from massive poverty. Since then because of his change in economical policies, he successfully directed the nation in the right notion. Poverty rate took a massive nosedive year by year, and by 2013, it was accounted for merely 2%.
Table 1: Poverty Reduction Over the Years
Income level rocketed over the years owing to good
financial regulations. Existing businesses expanded and new enterprises started operating under the great Deng Xiaoping’s leadership. The success of the China is regarded as “Rags to Riches” as GDP has been boosted around 24 times higher in 2017 compared to 1978. Table 2: Increase in Income Over the Years
In 1980, agriculture was more prevalent among Chinese
society, but because of economic reform facilitated by Deng Xiaoping, industries such as construction and manufacturing industries boomed. Furthermore, the contribution of service industry (e.g. health care and education) towards Chinese economy has been increasing steadily. Nowadays, agriculture is solely accounted for less than ten percent contribution on overall GDP which clearly signifies the China is no longer dependent on agricultural production. Table 3: Rise of Other Industries except Agriculture
During 1980s, Shenzhen became first special economic
zone which allowed foreign direct investment (FDI) due to free market policy taken by Deng Xiaoping . Nowadays, Shenzhen has transformed itself as one of the cutting-edge coastal cities in the world. In fact, it is so modern that it has more skyscrappers comparing to other big cities in the world. Today, China has several modern cities as manufacturing and production hubs which have been generating millions of jobs over the years. Table 4: Financial Boom Due to Special Economic Zones
Deng Xiaoping welcomed globalization, and as a
consequence, the amount of exports rose sharply which was the output of Shenzhen and other Chinese manufacturing centers. In 2005, exports as a share of China’s GDP rocketed seven times higher compared to 1980. Table 5: Massive Surge in Exports
Overpopulation was a huge issue, and the great leader Deng
Xiaoping realized that without proper family planning, financial prosperity will remain a distant dream. That is why, he enforced one-child policy which substantially reduced birth rates and steered monetary development. After establishing itself as an affluent nation and a manufacturing giant, the Chinese Government eased this policy by making it two-child policy. Table 6: Decrease in Fertility
Conclusion:
As a result of bold decisions taken by Deng Xiaoping at that
time, the China has been enjoying a magnificent period of monetary and social advancement. The level of success which China achieved in a short period is unmatched in history and praiseworthy. This country will soon become the most powerful country in the world which is also predicted by many economists in the past.