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Dialogue 10 Overall Promotion of Reform: A New Phase
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Published:May 2016
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Abstract
The negative economic phenomena following the turbulence of 1989 were not caused by mistakes in the direction of the reforms. Rather, the problems can be attributed to the lack of a firm resolve to undertake market-oriented reforms and to half-baked reform measures. During the 1980s, there had been two opposing views about the reforms, resulting in debates about whether reform should be aimed at “maintaining the dominance of the planned economy and enabling a supportive market” or whether the command economy should be transformed into a market economy. Because agreement could not be reached, there were many twists and turns in the implementation of the reforms. Deng Xiaoping’s 1992 trip to Southern China eliminated the ideological rigidities regarding whether a market economy was socialist or capitalist, and paved the way for an acceleration of the market-oriented reforms by establishing a “socialist market economy.”
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