Deng Xiaoping Theory

Ken Moak and Miles W. N. Lee

Chapter Chapter 5 in China’s Economic Rise and Its Global Impact, 2015, pp 91-115 from Palgrave Macmillan

Abstract: Abstract China’s post—Cultural Revolution economic reforms were based on Deng Xiaoping’s “Socialism with Chinese characteristics,” a theory of incorporating capitalism into central planning co increase productivity, advance Chinese culture, and enhance the interests of the people. Deng realized that in order to attain his goals, a new development path must be established, to wit Chinas scare capitalism. He argued chat socialism and capitalism are “peas in the same pod” because both require planning. The only difference between the two, Deng claimed, was that socialism relied on central planning whereas capitalist planning was determined by marker forces of supply and demand. Since central and market planning were designed to influence economic outcomes, botti are consistent with socialism. In accepting that markets could play a positive role in economic modernization, Deng implicidy admitted thac capitalism could be more efficient in the productive process because the system dwelled on competition and the fulfillment of self-interest. To achieve socialism, Deng hinted that China must go through capitalism, but its usage must be controlled by the state. Thus he insisted that incorporating capitalist ideas into reforms was not violating the Four Cardinal Principles, consisting of upholding the following: (1) the socialist path, (2) the people’s democratic dictatorship, (3) the leadership of the Chinese Communist Party (CCP), and (4) Maoist thought and Marxism-Leninism. Implicit in the Four Cardinal Principles was a relaxation on ideology (au least in Deng’s mind), allowing a more liberal interpretation of socialism. Planning, production, and distribution in accordance with market forces, for example, could be interpreted as socialism.

Keywords: Economic Reform; Chinese Communist Party; Global Impact; Rural Economy; Asian Development Bank (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1057/9781137535580_6

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