Chinese Economic Reform

Chinese Economic Reform

Two years after the death of Mao Zedong in 1976, it became apparent to many of China's leaders that economic reform was necessary. During his tenure as China's premier, Mao had encouraged social movements such as the "Great Leap Forward" and the "Cultural Revolution" which had had as their bases ideas such as serving the people and maintaining the class struggle. By 1978, China’s leaders were searching for a solution to serious economic problems.

Hua Guofeng, the man who had succeeded Mao Zedong as CCP (Chinese Communist Party) leader after Mao's death, had demonstrated a desire to continue the ideologically based movements of Mao. Unfortunately, these movements had left China in a state where agriculture was stagnant, industrial production was low, and the people's living standards had not increased in twenty years (Nathan 200). While the gross output value of industry and agriculture increased by 810 percent and national income grew by 420 percent [between 1952 and 1980] ... average individual income increased by only 100 percent (Shirk 28). However, attempts at economic reform in China were not solely due to generosity on the part of the Chinese Communist Party to increase living standards. It had become clear to members of the CCP that economic reform would fulfill a political purpose as well since the party felt that it had suffered a loss of support. (Shirk 23)

This movement "from virtue to competence" seemed to mark a serious departure from orthodox Chinese political theory. Confucius himself had said that those individuals who best demonstrated what he referred to as moral force should lead the nation. Using this principle as a guide, China had for centuries attempted to choose its leaders by administering a test to determine their moral force. After the Communist takeover of the country, Mao continued this emphasis on moral force by demanding that Chinese citizens demonstrate what he referred to as "correct consciousness." This correct consciousness could be exhibited by the way people lived. Thus, by demonstrating their expertise in a more practical area of competence, the leaders of the CCP felt they could demonstrate how they were serving the people. Economic reform came about as a result of an attempt by CCP leaders to demonstrate, in a more practical way than Mao had done, their moral force.