ABSTRACT

Deng's policies were based on two wheels, economic reform and political authoritarianism—or, more directly put, open the door to market capitalism but slam it shut on any effort to liberalize the political system. This chapter looks at the economic reforms, their impacts, and some problems that stemmed from them. In the 1990s and the first decade of the twenty-first century, the party-state began to address the social, economic, and political challenges created by reforms. The economic reforms brought decentralization, a shift in economic decision making to the lower levels of the Chinese state. In the era of economic reforms, some farmers began abandoning their land for what they considered more profitable pursuits. The Fourteenth Party Congress, which met in October 1992, confirmed Deng's directions for rapid economic market reforms. The economic reforms brought decentralization, a shift in economic decision making to the lower levels of the Chinese state.