Issues Facing China: Economic Reform 1978 until Present By Adam Farquhar Points of Discussion Decentralization Decentralization Government policies towards urban and rural workers Government policies towards urban and rural workers Public opinion of Chinese Citizens Public opinion of Chinese Citizens A Brief History After 1919, there was a power vacuum After 1919, there was a power vacuum The Treaty of Versailles was signed, giving land back to Japan. The Treaty of Versailles was signed, giving land back to Japan. Chiang Kai-shek took over much of the South. Chiang Kai-shek took over much of the South. A brutal war ensued between Mao Zedong and Chiang Kai-shek. A brutal war ensued between Mao Zedong and Chiang Kai-shek. Government Structure The top level of Government is organized under the Politburo. The top level of Government is organized under the Politburo. Jobs are divided up within the Politburo. Jobs are divided up within the Politburo. 1. Preeminent Leader 1. Preeminent Leader 2. Elders 2. Elders 3. Generalists 3. Generalists 4. Functional Specialists 4. Functional Specialists Deng Xiaoping Decentralization The death of Mao Zedong brought about the rise of Deng Xiaoping in The death of Mao Zedong brought about the rise of Deng Xiaoping in He began the process of Decentralization. He began the process of Decentralization. Eating in Separate Kitchens Eating in Separate Kitchens Decentralization (cont.) A strong central government is more capable of meeting basic needs of people. A strong central government is more capable of meeting basic needs of people. The Government does step in when needed. The Government does step in when needed. The political factor is not given enough weight. The political factor is not given enough weight. Deng Xiaoping and the Rural Workforce Initially, the peasant framers loved Deng Xiaoping. Initially, the peasant framers loved Deng Xiaoping. This changed when the CPC Central Committee passed Chinas Economic Structure Reform. This changed when the CPC Central Committee passed Chinas Economic Structure Reform. Rural farmers were left with a surplus of output. Rural farmers were left with a surplus of output. Jiang Zemin Deng Xiaoping and Jiang Zemins Policies Towards the Urban Unemployed Unemployment was originally unheard of. Unemployment was originally unheard of. The Government had to compensate for workers effected by the economic transition. The Government had to compensate for workers effected by the economic transition. They were divided into 3 categories: the Unemployed, the Xiagang, and the Newly Indigent They were divided into 3 categories: the Unemployed, the Xiagang, and the Newly Indigent Unemployed Workers started being hired only on limited term contracts. Workers started being hired only on limited term contracts. One percent of wages had o go to an unemployment fund. One percent of wages had o go to an unemployment fund. Unemployment insurance could only go to state enterprise workers. Unemployment insurance could only go to state enterprise workers. Xiagang This term refers to workers who were no longer needed but still associated with their firm. This term refers to workers who were no longer needed but still associated with their firm. Workers were retrained in this program, then redistributed. Workers were retrained in this program, then redistributed. Program was scrapped in Program was scrapped in 2001. Newly Indigent This was the name given to the urban poor who were unable to get a job. This was the name given to the urban poor who were unable to get a job. In this plan ties were severed with their former employer and they were given assistance. In this plan ties were severed with their former employer and they were given assistance. People who worked for firms not directly owned by cities were not receiving the aid. People who worked for firms not directly owned by cities were not receiving the aid. The Chinese People Public Opinion Collecting reliable public opinion data is not impossible in China. Collecting reliable public opinion data is not impossible in China. Average citizens were more willing to share their views than the wealthy and politically connected. Average citizens were more willing to share their views than the wealthy and politically connected. Results were published in Public Opinion and political Change in China, by Wenfang Tang. Results were published in Public Opinion and political Change in China, by Wenfang Tang. Public Opinion (Positive) Highest rated aspect of life was family life and social life. Highest rated aspect of life was family life and social life. Two-thirds of people interviewed were also happy with their freedom of speech. Two-thirds of people interviewed were also happy with their freedom of speech. The peoples understanding of freedom of speech did not have to do with government structure. The peoples understanding of freedom of speech did not have to do with government structure. Public Opinion (Negative) The two biggest problems the average person had with reform was with the environment and crime control. The two biggest problems the average person had with reform was with the environment and crime control. A little over half of people surveyed were disappointed with their job prospects. A little over half of people surveyed were disappointed with their job prospects. People were divided over the issue of housing. People were divided over the issue of housing. Conclusion China is growing at a rapid pace. China is growing at a rapid pace. The country is still in a stage of self-discovery. The country is still in a stage of self-discovery. There are some pressing issues that if not addressed could cause major problems for China. There are some pressing issues that if not addressed could cause major problems for China. Improving government structure and resilience on the part of the Chinese citizens make Chinas outlook seem more hopeful than not. Improving government structure and resilience on the part of the Chinese citizens make Chinas outlook seem more hopeful than not. The End