Chinese Social Welfare: Policies and Outcomes

Abstract

China in the 1980s is in the midst of a social revolution as far–reaching as either Land Reform or the early years of the Cultural Revolution. After four decades of championing the superiority of state monopolies and the evils of private ownership, the leaders of the Politburo have decollectivized agriculture, advocated commodification of land values, encouraged private trade and investment, and explicitly agreed that it is good if a few get rich first. Rural citizens in particular have responded with alacrity to this privatization of work and the retreat of the Party and the state from the daily management of agriculture. The household farm has become the basic unit of production for the first time since 1952, and private entrepreneurs have transformed the structure of rural commerce and manufacturing. Average incomes in rural areas trebled in the decade after 1977 and the economic gap between rural and urban citizens noticeably narrowed.