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Emancipation
“Reform and opening” started from the top with the seminal leadership transition from Mao to Deng. Deng Xiaoping heralded China’s boom in late 1978 when he called for experiments with “economic democracy” and “emancipation” from orthodox ideas. But the boom was not simply a top-down, state-orchestrated phenomenon. In fact, the biggest contribution of the state, especially in the first phase of growth, was to get out of the way. Farmers were liberated from collectives, sparking a wildfire of capitalism in the countryside. Urban markets and industry were freed to “grow out of the plan,” making profits on surplus production and creating powerful incentives for rapid growth. |
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Eating from One Rice BowlPeriod: Emancipation (1978-84) | Capitalism in the Countryside
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Click to expand There are a few reasons why reform occurred in Xiangyang with regard to the bureaucracy system. There were three factors as a commune. First, wealth was equally distributed without giving consideration to how much one had worked. The second factor was blind command. For example, the cadres issued confused orders, taking actions that did not suit local circumstances like planting double cropping rice instead of single-crop rice which suited this area. Finally, the people didn't have an incentive to work hard because the equal-income paying system would not calculate how hard you worked. It is also called "Da Guo Fan" (eating from one rice bowl).
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