ABSTRACT

Deng Xiaoping and his comrades were far from alone in their surprise at the explosive growth of rural industry in China. It was equally puzzling to those Western observers who held that the only way to rescue command economies was to privatise the economy as quickly as possible. Only by wrestling enterprises from the dead hand of the government bureaucracy could there be any hope of instilling dynamism into the economy. For such observers, a thorough movement to capitalism appeared the only answer, as gradual moves away from communism merely prolonged the agony through allowing officials to continue with their interference in matters beyond their competence. Local opposition to such plans was to be expected and consequently a clear national policy was required to push it forward.