The Economic Implications of Major Political Transformations

A Case Study of China Under Mao Zedong and Deng Xiaoping

Abstract

The research paper discusses the impact of major political transformations occurring in countries on national economies, through a case study of the People’s Republic of China, during the reigns of Mao Zedong 1949: 1976 AD, and Deng Xiaoping 1978: 1992 AD, Since the middle of the twentieth century, China has witnessed a series of political transformations that greatly affected its economic and social structure. During the era of Mao Zedong, radical socialist policies were implemented, such as the Great Leap Forward and the Cultural Revolution, which led to profound economic and social crises. After the death of Mao, Deng Xiaoping assumed leadership, and began implementing economic reforms aimed at moving from a centrally planned economy to a mixed, market-based economy. These reforms resulted in an unprecedented economic boom, as elements of the free market were integrated within the socialist system, which led to Improving living standards and enhancing social conditions, Through this study, an integrated vision is presented on how the major political changes that China has witnessed affect its national economy and its economic relations with the outside world.