Thirty years ago was the Beginning of the so-called "Deng Xiaoping" Revolution or the new economic way or however you wish to call the new emphasis on Free Markets in the People's Republic of China.

Quite amazing really - there is a very nice article in the Economist magazine (and online) about the period since 1978.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“ENGELS never flew on an aeroplane; Stalin never wore Dacron.” Thus [spoke] China’s late leader, Deng Xiaoping, to a meeting 30 years ago that is now officially seen as the starting-point of his economic and political reforms. Deng’s words meant Maoist dogma was out and pragmatism was in.

The Chinese love to talk with hidden meanings, which proclaim extremely important values.  Much was the way one needed to talk, especially in those days.  Now business leaders tend to be much more plain and matter of fact, at least with "Westerners."

 

 

 

 

 

 

 

 

 

 

 

 

Next year the country will mark its 60th birthday as a people’s republic (in Confucian tradition, 60th birthdays are particularly significant). Reform and opening has thus taken up half of China’s communist life. But officials are being careful to manage expectations of further change. Deng once suggested that direct elections to national leadership posts could be held by 2050. No one mentions that now. On the economic side huge challenges loom, among them an ageing population and a blighted environment, both of which could drag down growth.

A very nice set of graphs is included.  My evaluation follows:
       
                
So we have a huge change - notice though, that the change was quite slow until 1992 or 1993.  Then there was a spurt of growth in income and Real GDP up to 1996 or so!  Rural incomes then flattened, poverty levels leveled off though Real GDP managed to continue.

(Though we note that the World Bank's numbers and government's numbers show different stories and therefore, Real GDP smoothing may also be occurring - who knows with such a vast economy and over 1 billion people - how can anyone expect a "good" statistic when the statistics are never revised as in most developed countries.  No malicious intent is necessary, development takes time as do statistical gathering techniques, etc.)

A final "HUGE" growth period is evident from 2000.  China obviously benefited from the Tech revolution as did the Indian sub-continent.  Rural growth, urban growth and a decline in poverty are all plainly obvious.  One only need travel the country - anywhere and everywhere - to see that growth, change, and consumer demand are openly visible and encouraged.

The article makes many great observations and as well as more political and economic points - some valuable and others more questionable.  Do take some time to read the article.  Evaluating the present is always tough and China is still very much in the midst of the "Deng Xiaoping" Era!!