Economic

br ECONOMIC

2005 The development of Chinese economy became one of the most astonishing among the rest of economic systems of the world . In a quite short period of time the economy of China grew up in a very considerable way while the phenomenon of its fast development was called the miracle growth . The People 's Republic of China (PRC ) has made a fantastic jump in its economic life through realization of reforms which began in 1979

Since 1978 the PRC began the transformation of its economy from the Soviet-style centrally

planned economy to a market-oriented economy but still under the rigid control of Communist Party of China Were determined then the main aims of future economic system of China to raise the personal income and consumption , to increase productivity with the help of new management systems . Also , great attention was paid to a foreign trade . The result has been a quadrupling of GDP since 1978 According to the data of the World Bank in 1992 China occupied the 8th place in the world by its GDP (it consisted 506 .1 billions . In 1996 it shifted to the 7th place being of 896 .8 billions . So , on condition of continuing China its economic boom , in the nearest future it is going to challenge to compete the USA and other powerful states of the planet . Of course , such a significant upswing is due to the deep transformations in the life of the country

Today the Chinese economy is represented as the new socialistic market economy being the junction between State and Market its main specific characteristic . The Market is ruled by the State . The State is the owner of the most important and strategic branches . One of the experts in Chinese question , the scientist Oleg Arin in his book The Asian-Pacific region- myths , illusions and reality . East Asia economy , policy , safety ' Gives the next reasons of Chinese success

-political stability

- hard control of budget deficit

- efficient ruling of external debt

- Open Doors ' politics which stimulates the export of goods integration into the world market along with the defense of national producer

- necessary participation of the State in all economical activities

- realized great investments into human resources (Oleg Arin 1997 : part 2 , chapter 1 ,web page

The main features of the transformation of Chinese economy were complexity and radicalism . On the 26 of February ,1978 the head of the Chinese Communist Party Chua Gofen proclaimed the program of 4-leveled modernization which was to be completed in 10 years . The next most important changes had been made

-agriculture : communes were dismissed and the land was given to peasants the State raised prices for rice and some other agricultural products . The result is that agriculture experienced a considerable ascent , food cards had been canceled today China occupies one of the first places in the world by the quantity of grain harvest

-industry : the control of prices for many kinds of products was weakened , some enterprises were permitted to be owned...