At the end of the 1970s, China was a poor country with a huge
population, ruled by the Chinese Communist Party. The domestic
economy was organized through direct administrative instructions
and was isolated from the international economy. After a quarter of
a century, China has been transformed beyond imagination. In the
course of this transformation, China's policymakers have faced
enormous challenges.
The essays in this book address different aspects of those
challenges. The 'development' challenge involved devising policies
that would raise the mass of the Chinese people out of poverty and
avoid the disasters that had, in the worst cases, caused millions
of deaths through famine. The 'transition' challenge involved,
firstly, resolving the relationship between changes in the economic
and political systems; and secondly, finding the correct sequence
and nature of reforms necessary to improve economic performance.
The 'globalization' challenge involved identifying the best way in
which to integrate China's economic system with the international
economy at a time of revolutionary change in the global business
system. These essays seek both to enhance understanding of China's
immense success in meeting these challenges in the past and to
provide an indication of the challenges that still lie ahead.
China's system reforms have been described as 'groping for stones
to cross the river'. The journey across the river is far from over,
and the other bank is only dimly visible.
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