*

*He was born in Guang’an, Sichuan on 22sd

August 1904. He was a prominent leader in

China. He was Chinese politician, statesman,

theorist, and diplomat. He was the first leader

as the reformation leader who created China

towards market economist. He led China from

1978 to the early 1990s.

* In 1920, Deng Xiaoping went to France, he studied and worked in France. In France the Marxism influenced him. In 1923 he joined into the communist party of China. After he returned to China he worked as a political commissar in rural regions and was considered a revolutionary veteran of the Long March Movement. In 1949 China became the People’s Republic of China, he worked in Tibet to consolidate Communist Control. In the early 1960s he was also the instrumental in China’s economic reconstruction creator following the Great Leap Forward. But during Cultural Revolution of the era of Mao Zedong he purged for twice to the prison.

*After the cultural revolution was ended. Deng Xiaoping became the core of the revolution in China of Chinese leadership. He was the second generation of Chinese leadership. He was called as the architect for reformation in China. He created a new brand of socialist thinking it called Socialism with Chinese Characteristics and led opening Socialist Market Economy.

*His concept influenced by his young time from his teacher and truth from the West in order to save China. Deng Xiaoping had been taught that China was weak and poor, and that the Chinese people must have a modern, Western education to save their country. Deng believed that the students of China should be allowed to study in other countries to help a more perfect China, this plan lead to economic reforms but also called for democracy.

*When he became the leader of the People’s Republic of China he made relation with the West leaders. Deng traveled abroad and visited to many West countries. In 1979 he became the first Chinese leader to visit to America meeting President Jimmy Carter at White House. He opened China to see the West countries as friend and asking them to invest in China in industry sector sustaining China economic market system. Deng visited to Japan as a good example as rapidly progressing economic power.

*On 19th December 1984. Deng Visited to

England and made the agreement that Hong

Kong was to be handed over to China in 1997.

And also similar agreement signed with

Portugal for the returning of colony Macau

Island.

*China to be implemented a new

system calling as one country-two

system for Hong Kong and Portugal.

For politics system China holds

directing to two countries but for

economy China gives full authority to

two countries as the centre for

business. Hong Kong has given the

good image for business world for

years. Macau Island has become the

gambling place for years. These

countries have given an image for

their characteristic as a nation.

*Deng’s program of reform calling Gaige Kaifang

(Reforms and Openess). Its goal improving

relations with outside world. Deng did

reformation in domestic social, political, and

economic system. The goals of Deng’s reform

were summed up by the four modernization.

*The Four Modernization

*1. Agriculture

*2. Industry

*3. Science and technology

*4. Military

*Deng is having goal. The strategy for achieving

these aims of becoming a modern, industrial

nation was the socialist market economy. Deng

argued that China was in the primary stage of

socialism and that the duty of the party was to

perfect so-called Socialism with Chinese

characteristics and seeking truth from fact.

*This interpretation of Chinese Marxism reduced

the role of ideology in economic-making and

deciding policies of proven effectiveness. Deng

emphasized that socialism does not mean

shared poverty.

*Deng theoretical:

*Planning and market forces are not the essential difference between socialism and capitalism. A planned economy is not the definition of socialism, because there is planning under capitalism, the market economy happens under socialism, too. Planning and market forces are both ways of controlling economic activity.

*This political flexibilty towards the foundations of socialism is strongly supported by quotes such as:

*We mustn’t fear to adopt the advanced management methods applied in capitalist countries…the very essence of socialism is the liberation and development of the productive system…Socialism and market economy are not incompatible…We should be concerned about right-wing deviations, but most of all, We must be concerned about left-wing deviations.

*Deng’s reforms actually included the

introduction of planned, centralized

management of the macro-economy by

technically proficient bureaucrats, and

abandoning Mao’s mass campaign style of

economic construction.

*Deng Xiaoping Reformation of Economy:

*1. The Planning

*2. The Centralized Management of the Macro-

Economy supported by effective bureaucrats.

*3. The New Concept of Economic Construction.

*Actually this concept was introduced by Deng Xiaoping himself. He learned many combinations between Socialism and Capitalism creating a new concept as socialism with Chinese characteristic. Deng’s concept was also supported by the political support to allow economic reform to occur. This successful and promising these reforms would be adopted by larger and larger and ultimately introduced nationally. Deng’s concept to be national planning for China economy under his leading.

*At the level local, material incentives, rather

than political appeals, were to be used to

motivate the labor force, including allowing

peasants to earn extra income by selling the

produce of their private at free market.

*This policy is having a clear goal local

municipalities and provinces were allowed to

invest in industries that they considered most

profitable, which encouraged investment in

light manufacturing. Deng’s strategy to develop

China to an emphasis on light industry and

export-led growth.

*For Deng Xiaoping if China could develop its technology-industry it would give a huge contribution for China economy growth. Light industrial output was vital for a developing country coming from a low capital base. With the short gestation period, low capital requirements, and high foreign exchange export earnings, revenues generated by light manufacturing were able to be reinvested in more technologically-advanced production and further capital expenditures and investments.

*The capital invested heavy industry largely come from the banking system, and most capital came from consumer deposits. One of the first items of Deng reforms was to prevent reallocation of profits excepts through taxation or through the banking system. Hence, the reallocation in state-owned industries was somewhat indirect, thus making them more or less independent from government interference. In short, Deng’s reforms sparked an industrial revolution in China.

*In Deng era. China decided to accelerate the modernization process by stepping up the volume of foreign trade. China bought the machine from Japan and the West countries. The goal was foreign market. China was able to step up the four modernization by attaining certain foreign funds, market, advanced technologies and management experiences, thus accelerating its economic development.

*The reforms centered on improving labor productivity as well. New material incentives and bonus systems were introduced Rural Markets selling peasants homegrown products and the surplus products of communes were revived. Not only did rural markets increase agricultural output, they stimulated industrial development as well. With peasants able to sell surplus agricultural yields on the open market, domestic consumption stimulated industrialization as well as and also created political support for more difficult economic reforms.

*Deng was recognized officially as the chief

architect of China’s economic reforms and

China’s socialist modernization.

*He stressed the importance of economic

construction in China, and criticized those who

were against further economic and openness

reforms,. Although there is debate on whether

or not Deng actually said it, his perceived

catchphrase, to get Rich is Glorious, unleashed

a wave personal entrepreneurship that

continues to drive China’s economy today.

*Deng was instrumental in the opening of

Shanghai’s Pudong new era, revitalizing the

city as china’s economic hub.

*Deng is known to change China from

a country with mass political

movements to a country focused on

economic construction. Deng’s socio-

economic model of a socialist market

economy was a largely book-writing

concept. Deng Xiaoping’s policies are

among some of the most successful

industrialization in human history,

comparable to only the rapid

industrialization of other East Asia

countries.

*Deng was an able diplomat, and he was largely credited with the success of China in foreign affairs. Deng’s time as China’s leader saw agreement signed to revert both Hong Kong and Macau Island to Chinese sovereignty. Deng’s era, set under the backdrop of the cold war, saw the best Sino-American relations in history. Some Chinese nationalists assert, how ever, that Deng’s foreign policy was one of appeasement, and past wrong such as war Crimes committed by Japan during the world war II were forgotten to make way for economic partnership.