In our quickly changing world, authors who are analyzing the so­ cial, economic, and political processes going on in different countries often find themselves in a situation where the deve­ lopment of processes they have already described take a turn in another direction before their work is in final form or appears in print. As a consequence, some of their statements are no lon­ ger valid. More rarely it occurs that after the writing of a book presenting a reform process covering 10 years (the writing itself taking one and a half years), exceptional events take place in the given country (within 1 or 2 months of the delivery of the manuscript) that indicate a sharp break in this process, one that makes it doubtful whether the process can continue along the same channel. This is what has happened to this text and to its author at the beginning of June, 1989, when in Beijing - after the brutal suppression of student demonstrations and of protests lasting several weeks - the General Secretary of the Communist Party of China, Zhao Ziyang, was relieved of his office and arrested, along with several other prominent repre­ sentatives of reform policy and reform endeavors of the past decade. The manuscript of this book was handed over to the pub­ lisher on May 4, 1989, for editing. Immediately thereafter I left for nearly 2 months in the United States; consequently, I did not receive the manuscript again until in early July.

Inhalt

One.- One Brief Historical Review.- The Chinese People's Revolution and Socioeconomic Situation of China in 1949.- Economic Restoration and Accomplishment of the New Democratic Revolution (1949-1952).- Launching the Socialist Transformation: The First 5-Year Plan (1953-1957).- The Great Leap Forward and the Period of Readjustment (1958-1960 and 1961-1965).- Ten Years of Turmoil (1966-1976).- "Seeking Ways and Means" (1977-1978).- Footnotes to Chapter One.- Two Formation and Announcement of the Reform and Opening Policy (1978-1979).- Situation of the Economy in 1978.- The Domestic and External Political Situation in 1978.- Third Plenary Session of the 11th Central Committee of the CPC: Turning Point in Chinese Internal Politics.- Emergence of the Outlines of the New Economic Policy.- The "Four-Word Directive": Announcement of the Reform and Opening Policy.- Footnotes to Chapter Two.- Three Development of the Reform and Opening Policy in the Period of Readjustment (1979-1982).- Establishment of an Ideological-Political Platform for the Reform and Opening Policy.- Theoretical Foundation of the Reform and Opening Policy.- Rapid Reform of the Rural Economy.- Reform and Opening in Other Areas of the Economy.- First Results of Political Reform.- Result of the "Readjustment Policy".- Footnotes to Chapter Three.- Four Stabilization of the Reform and Opening Policy During Preparation of the Comprehensive Economic Reform (1982-1984).- 12th National Congress of the CPC: Approval of Reform and Opening Policy, Turn in Chinese Foreign Policy.- Further Development of Reform and Opening Policy.- Organizational and legal foundations of the reform process.- Rural economic reform.- Reform of the turnover sphere.- Attempts to develop economic regions centered around cities.- Further broadening of entrepreneurial independence.- Elaboration of the Complex Draft on Comprehensive Economic Reform.- Third Plenary Session of the 12th CC of the CPC: Resolution on Reform of the Economic System.- Strengthening Extensive Growth Tendencies.- Footnotes to Chapter Four.- Five Problems of Equilibrium in the Introductory Stage of Comprehensive Economic Reform (1985-1986).- Preliminary Measures to Ease Introduction.- Circumstances of Introduction in 1985.- Slowdown in Growth Rate of Agricultural Production.- National Conference of the CPC in 1985: First Manifestations of Differences in Views on Basic Reform Issues Among Highest Party Leaders.- 1986: Attempts to Establish Macroeconomic Equilibrium and to Increase Independence of Enterprises.- Footnotes to Chapter Five.- Six Slowdown of the Reform Process (1987-1988).- Hidden Attack on the Reform and Opening Policy Under the Pretext of Struggle Against "Bourgeois Liberalization" 188 Strengthening of Reform and Opening Policy at the 13th National Congress of the CPC.- 1988: The Critical Year of the Reform.- Slowing Down of the Reform Process Beginning in the Autumn of 1988.- Footnotes to Chapter Six.- Seven The Reform Process Comes to a Sudden Halt (1989).- Situation in China, Spring, 1989.- Sudden Halt in the Summer of 1989.- The character of the student demonstrations in April and May.- Factors giving rise to the student demonstrations.- Students' demands.- Organizers and supporters of the student demonstrations.- Could the bloodshed have been avoided?.- What happened' Tienanmen Square?.- Prospect for the Reform Process on the Eve of the 40th Anniversary of the Establishment of the PRC.- Footnotes to Chapter Seven.- Two.- Eight Theoretical Bases of Chinese Economic Reform.- Choice of the Target Model.- Theoretical Basis.- Issues Under Discussion.- Present stage of Chinese social devolopment.- Target model of the economic reform.- Phases of the economic reform.- Keystone of the economic reform.- Reform of the ownership system.- Debates about the system of shares.- The contractual responsibility system.- Labor as a commodity.- On the nature of wage work.- Focal points of macroeconomic regulation.- Formation of the Target System for Economic Reform.- Footnotes to Chapter Eight.- Nine Instruments of Economic Reform in China.- Means of Political and Economic Leaders for Realizing Reform Goals.- Instruments of Administrative Regulation.- Economic Regulators.- The price system.- The wage system.- Financial Regulators.- Regulation of the issue of money.- The state budget.- Credit policy and interest rates.- Policy on foreign exchange and exchange rates.- Reform of Foreign Capital Investments and Trade.- Administrative regulation of foreign economic activity.- Indirect regulation through economic and financial regulators.- Instruments for regulating the inflow of foreign capital.- Other methods of opening to foreign economic activities.- Footnote to Chapter Nine.- Ten Two Key Issues of Chinese Economic Reform: Market Building and Forms of Ownership.- Position of Certain Market Elements in China Today.- The commodity markets.- The money and capital markets.- The land and estate market.- The labor market.- Reform of the Ownership System.- Transformation of the ownership structure.- Development of diversified forms of ownership.- Establishment of an adequate government policy on ownership.- Footnotes to Chapter Ten.- Eleven Concepts for Reforming the Political System.- Main Deficiencies of Existing Political System.- Standpoint and Resolution of the 13th Congress of the CPC in Connection with Political Reform.- Separation of party and state.- Delegation of power to lower levels.- Reform of governmental organs.- Reform of personnel and cadre work.- Developing a system of social consultation and dialogue.- Expanding democracy.- Strengthening socialist law and order.- Interdependence and Mutual Conditionality of Political and Economic Reforms.- Footnotes to Chapter Eleven.- Summary.- Basic Indicators of Economic Growth in the People's Republic of China, 1952-1988.- Main Structural Proportions of the Chinese National Economy, 1952-1988 (percent).