China, ‘the sleeping giant of Asia’ as Napoleon referred to it, stepped on to the road of modern nation-building through a series of political, economic and social transformations which began in 1949. But economic development has been interrupted time and again by political turmoil. However Deng Xiaoping’s economic reforms have brought drastic changes to the Chinese economy. One indicator of the success of these reforms was the annual 10 per cent growth rate of GNP in the 1980s and the substantial improvement in ordinary people’s standard of living. Despite these successes many problems persist, including a cycle of deflation followed by abrupt inflation, growing inequality in the distribution of income and an increasing amount of illegal economic activity by government officials. If these problems are not properly addressed all reform efforts will be jeopardised.
KeywordsMoney Supply Chinese Economy Political Turmoil Birth Control Policy Japanese Experience
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