China’s Transition From The Mao Era To Post-Mao Neoliberal Reforms

China Today Student Name Institution Course Instructor Date When Deng Xiaoping got into power, he started the process of reassessing a majority of the principles that governed the Maoist economics especially collectivities and the allocation of resources from a central point. Deng held that the biggest challenge facing the Chinese society was not about classes, rather it was holding to backward means of production. Hence, Deng did not mind that the new reforms would end up creating social inequality. He instead legitimized the reform on the basis of making market reforms according to particular “natural laws” of the market. The transition from the Mao era to post-Mao market reforms has resulted in privatization and social stratification.[Osburg, John. Anxious wealth: Money and morality among China's new rich. Stanford University Press, 2013. Pg. 4] The shift from a collectivist economy has increased rent-seeking activities in China. The desire for personal progress has causes more individuals to ignore the public good while concentrating on personal gain. The need to gain more wealth has caused more Chinese to emphasize on forming personal relationships and networks. The members of the elite have in particular this approach to build their political and economic projects. Through privatization and neoliberalism, the elite has organized the market to their advantage. While there is no doubt that post-Mao economic reform created wealth and economic growth, the fact remains that it has led to an increase in income gap and social polarization. A small group, consisting of private entrepreneurs and politicians is having the largest share of the new wealth. The remaining share is left to the middle class and the immigrant workers, whereby the middle class takes the largest share living little to the immigrant workers who are the majority. Polarization and the emergence of social classes have caused a sense of exclusion and uneasiness, especially to immigrant workers. The inability of the immigrant workers to access resources including descent housing hence further pushing them to the lower-social class[Zhang, Li, and Aihwa Ong, eds. Privatizing China: socialism from afar. Cornell University Press, 2008.] [Ibid Pg. 23.] The post-Mao Chinese has done little to regulate socio-class stratifications. The reorganization of state power has been instrumental in post-Mao China. Deng Xiaoping, in particular, worked towards dislodging the Communist apparatus. The intense politicization which was a major component of the Cultural Revolution in China became less evident in the operation pf the government. The role of the Party is the formulation of goals and agendas as the government implements policies aimed at achieving these goals. The decentralization of the distribution of resources has been critical in the market reforms. However, it has led to the consolidation of power and the appropriation of resources to a few elites. The privatization of state enterprises and land has not caused the liberation from “self” initially anticipated. Instead, it has created an avenue for the transfer of state assets to the hands of the elite. Making a fortune post-Mao independent of state connections has been almost impossible. Entrepreneurs have res...