This book studies the nature and depth of stagnation of the Chinese economy under central planning, which compelled them to embrace market mechanism. Putting together pieces of information from original Chinese sources, it summarizes the growth and development strategy in the central plan era (1952-78). It illustrates how the policies in agriculture and rural development retarded economic growth and adversely affected the levels of living and quality of life. Measuring incidence of poverty and inequality in the class distribution of income and consumption, the book reveals startling facts about epicurean life style of a few behind the iron curtain. Evaluating China’s transition from central planning to market-based economy, it supports its step-by-step approach to the implementation of the economic reform programmes. It also argues for state intervention in the market to ensure its expansion, competitiveness and accessibility.
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