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Twenty years ago, Deng Xiaoping made a famous speech during his southern tour, in which two points impressed people most: First, Deng Xiaoping promoted a great reform across China; Secondly, this reform has so far made great progress, but has not yet succeeded.
China’s reform has achieved extraordinary result. More than one billion Chinese people have been lifted out of poverty, enjoying plentiful food and colorful clothing; China’s economy as a share of the world economy has seen substantial increase, becoming the world’s second-largest economy. All these achievements have demonstrated the progress of the reform and opening up endeavor.
If we want to know why reform can bring about so much prosperity, we need to understand what changes it has made to our system. Prior to reform, China’s economic system is characterized by “Yi Da Er Gong” that is to maximize the elimination of private ownership of the production means and centralize the planning and decision making of all economic activities. Land reform, the confiscation of bureaucrat-capitalism, the three major reforms, centralized purchase and sale, the household registration system, Five-Year Plan, the Great Leap Forward, the people’s communes as well as other major initiatives all revolve around this goal of “Yi Da Er Gong”.
When you take a look back at the past 3 decades of reform and opening up, it is not hard to find there are two major changes: First, the development of market economy, the highly centralized economic system has been reformed; Secondly, the development of non-public economy, the dominance of public economy has been overhauled. Just like what Deng Xiaoping commented during his southern tour, “the market economy is not exclusive to capitalism, socialism also has market,” “Don’t be afraid of privately-funded joint ventures”.
Do not underestimate these two transformations. In the era of “class struggle”, the “leftist” ideology is deep-rooted, market economy and private ownership is synonymous with capitalism. Beginning with agricultural reform in eastern Anhui province, Deng Xiaoping’s attempt to revamp Chinese economic system is extremely hard, facing overwhelming resistance and risks.
How did Deng Xiaoping steer China throughout the process? Reinterpretation of the socialism ideology is crucial.“Southern speech” is a concentrated expression of Deng Xiaoping’s reform wisdom. In Deng Xiaoping’s words, the essence of socialism is to emancipate and develop productive forces, eliminate exploitation as well as polarization, and ultimately achieve common prosperity.
Compared with the classic works of Marxism, Deng Xiaoping separated public ownership and planned economy from the essence of socialism. Deng Xiaoping is not worried about being classified as a “deviant”. In his view, the real Marxist“should be encouraged to seek truth from facts, rather than stick to books.”
Deng Xiaoping’s “socialism with Chinese characteristics”freed Chinese people from the debate about whether market economy belongs to “Socialism” or “Capitalism”. It allows people to concentrate on economic development. People’s livelihood and overall national power has been put on a fast track ever since.
According to Marxism, there is only one criterion to weigh the pros and cons of social systems, that is, whether it can be beneficial to economic development. Over the past six decades, according to this criterion, it’s self-evident that reform and opening up is far more superior to class struggle.
Deng Xiaoping started China’s reform. However, he did not see it through in China. The goal of reform to lift Chinese people out of poverty has been achieved but we are still half way from the ultimate goal of “common prosperity”.
Deng Xiaoping clearly predicted that some people would get rich first and China is bound to face the problem of the “polarization”. Twenty years ago, his idea was to realize a welloff society in the late 20th century and eventually achieve common prosperity.
The reality of today’s China is just like what Deng Xiaoping was worried about, which is strained by widening wealth gap and rising social conflicts. In particular, corruption abounds when political power is entangled with market force, further exacerbating polarization and social discontent. Eliminating corruption, improving income distribution, narrowing gap between the rich and poor, promoting social equity and justice are of greatest concern to the public.
Continue to reform the political and economic system in China to achieve the goal of common prosperity, which is also the historical mission of the Chinese Communist Party. Deng Xiaoping Theory has been written into Party’s Charter and Constitution, so the Chinese Communist Party and the government officially accepted this mission, which has just been started rather than finished.
To complete the unfinished cause launched by Deng Xiaoping, China can’t waver or even flinch in the process of reform and opening-up. Confronted with a reality exacerbated by the gap between rich and poor, it was suggested that the economic system should be changed back. Solve the polarization problem through a planned economy and public ownership. However, practice has proved that this will only lead to “common poverty” instead of “common prosperity”.
Over 20 years ago, Deng Xiaoping pointed out that China would hit a “dead end” without reform and opening up, lessons can be drawn from those twists and turns China has experienced during 1950-1970. According to official statistics, the country’s total population decreased by 10 million in 1960. As an extreme example, 9 counties in Henan province have seen a mortality rate of more than 100‰. During the “Wasted 2 decades”, Deng Xiaoping himself has twice been labeled as“capitalist” and stripped of all party and government positions.
China’s reform and opening-up has no tolerance for any pause or slackness. Yet no new breakthroughs have been made due to the vested interests formed in the past 3 decades. Political and economic structural reforms have been stalled. With such a stalemate, polarization problem can not be solved, the achievement made by the past 3 decades is also put into jeopardy.
Generally speaking, Deng Xiaoping has successfully put China’s economy back on a fast track, but income disparity has become a prominent issue. He foresaw this problem but didn’t have time to address it. Income redistribution will incur even more resistance from veiled interests. Although Deng has past away, we can still draw some inspirations from his “Southern Speech” twenty years ago.
1. Be bolder in reform and opening up. Dare to experiment. Relentless in Reform and opening up. Don’t fear capitalism.
2.”Leftism” with the color of revolution seems more revolutionary but scarred this nation in the past. Socialism is almost ruined by it. We should firmly guard against it.
3. Should socialism gain an advantage compared with capitalism, we must boldly absorb and draw on the achievements of civilization created by various human societies including advanced management from developed capitalist countries which reflect law of modern production.
4. I also said at the end of May 1989, promote people who are recognized as reformists to the leading position. People will judge us on the basis of practice. Only if people are satisfied with our work, our cause can last forever!
Let’s keep our fingers crossed for a new breakthrough in our reform drive.
China’s reform has achieved extraordinary result. More than one billion Chinese people have been lifted out of poverty, enjoying plentiful food and colorful clothing; China’s economy as a share of the world economy has seen substantial increase, becoming the world’s second-largest economy. All these achievements have demonstrated the progress of the reform and opening up endeavor.
If we want to know why reform can bring about so much prosperity, we need to understand what changes it has made to our system. Prior to reform, China’s economic system is characterized by “Yi Da Er Gong” that is to maximize the elimination of private ownership of the production means and centralize the planning and decision making of all economic activities. Land reform, the confiscation of bureaucrat-capitalism, the three major reforms, centralized purchase and sale, the household registration system, Five-Year Plan, the Great Leap Forward, the people’s communes as well as other major initiatives all revolve around this goal of “Yi Da Er Gong”.
When you take a look back at the past 3 decades of reform and opening up, it is not hard to find there are two major changes: First, the development of market economy, the highly centralized economic system has been reformed; Secondly, the development of non-public economy, the dominance of public economy has been overhauled. Just like what Deng Xiaoping commented during his southern tour, “the market economy is not exclusive to capitalism, socialism also has market,” “Don’t be afraid of privately-funded joint ventures”.
Do not underestimate these two transformations. In the era of “class struggle”, the “leftist” ideology is deep-rooted, market economy and private ownership is synonymous with capitalism. Beginning with agricultural reform in eastern Anhui province, Deng Xiaoping’s attempt to revamp Chinese economic system is extremely hard, facing overwhelming resistance and risks.
How did Deng Xiaoping steer China throughout the process? Reinterpretation of the socialism ideology is crucial.“Southern speech” is a concentrated expression of Deng Xiaoping’s reform wisdom. In Deng Xiaoping’s words, the essence of socialism is to emancipate and develop productive forces, eliminate exploitation as well as polarization, and ultimately achieve common prosperity.
Compared with the classic works of Marxism, Deng Xiaoping separated public ownership and planned economy from the essence of socialism. Deng Xiaoping is not worried about being classified as a “deviant”. In his view, the real Marxist“should be encouraged to seek truth from facts, rather than stick to books.”
Deng Xiaoping’s “socialism with Chinese characteristics”freed Chinese people from the debate about whether market economy belongs to “Socialism” or “Capitalism”. It allows people to concentrate on economic development. People’s livelihood and overall national power has been put on a fast track ever since.
According to Marxism, there is only one criterion to weigh the pros and cons of social systems, that is, whether it can be beneficial to economic development. Over the past six decades, according to this criterion, it’s self-evident that reform and opening up is far more superior to class struggle.
Deng Xiaoping started China’s reform. However, he did not see it through in China. The goal of reform to lift Chinese people out of poverty has been achieved but we are still half way from the ultimate goal of “common prosperity”.
Deng Xiaoping clearly predicted that some people would get rich first and China is bound to face the problem of the “polarization”. Twenty years ago, his idea was to realize a welloff society in the late 20th century and eventually achieve common prosperity.
The reality of today’s China is just like what Deng Xiaoping was worried about, which is strained by widening wealth gap and rising social conflicts. In particular, corruption abounds when political power is entangled with market force, further exacerbating polarization and social discontent. Eliminating corruption, improving income distribution, narrowing gap between the rich and poor, promoting social equity and justice are of greatest concern to the public.
Continue to reform the political and economic system in China to achieve the goal of common prosperity, which is also the historical mission of the Chinese Communist Party. Deng Xiaoping Theory has been written into Party’s Charter and Constitution, so the Chinese Communist Party and the government officially accepted this mission, which has just been started rather than finished.
To complete the unfinished cause launched by Deng Xiaoping, China can’t waver or even flinch in the process of reform and opening-up. Confronted with a reality exacerbated by the gap between rich and poor, it was suggested that the economic system should be changed back. Solve the polarization problem through a planned economy and public ownership. However, practice has proved that this will only lead to “common poverty” instead of “common prosperity”.
Over 20 years ago, Deng Xiaoping pointed out that China would hit a “dead end” without reform and opening up, lessons can be drawn from those twists and turns China has experienced during 1950-1970. According to official statistics, the country’s total population decreased by 10 million in 1960. As an extreme example, 9 counties in Henan province have seen a mortality rate of more than 100‰. During the “Wasted 2 decades”, Deng Xiaoping himself has twice been labeled as“capitalist” and stripped of all party and government positions.
China’s reform and opening-up has no tolerance for any pause or slackness. Yet no new breakthroughs have been made due to the vested interests formed in the past 3 decades. Political and economic structural reforms have been stalled. With such a stalemate, polarization problem can not be solved, the achievement made by the past 3 decades is also put into jeopardy.
Generally speaking, Deng Xiaoping has successfully put China’s economy back on a fast track, but income disparity has become a prominent issue. He foresaw this problem but didn’t have time to address it. Income redistribution will incur even more resistance from veiled interests. Although Deng has past away, we can still draw some inspirations from his “Southern Speech” twenty years ago.
1. Be bolder in reform and opening up. Dare to experiment. Relentless in Reform and opening up. Don’t fear capitalism.
2.”Leftism” with the color of revolution seems more revolutionary but scarred this nation in the past. Socialism is almost ruined by it. We should firmly guard against it.
3. Should socialism gain an advantage compared with capitalism, we must boldly absorb and draw on the achievements of civilization created by various human societies including advanced management from developed capitalist countries which reflect law of modern production.
4. I also said at the end of May 1989, promote people who are recognized as reformists to the leading position. People will judge us on the basis of practice. Only if people are satisfied with our work, our cause can last forever!
Let’s keep our fingers crossed for a new breakthrough in our reform drive.