ABSTRACT
This chapter discusses the major programs of the reform, to evaluate its social and economic consequences, to compare its main features with those in Yugoslavia and Hungary. The economic system in mainland China has undergone substantial reform. The mainstay of the reform is the devolution of greater authority to enterprises. There is a consensus among Chinese economists that the power of enterprises was too small to carry on their functions. The Chinese economic reforms outlined are analogous, to a certain extent, to those experienced in Yugoslavia and Hungary, two distinctive models of economic reform in Eastern Europe. In view of the growing conflict among economic groups, two new instruments-the "social contracts" and the "self-management agreements"-were introduced. Under the new system, economic plans drawn up by enterprises and government agencies must be "harmonized" by mutual consultation and adjustment.
