WORLD HISTORY

Detailed explanation-1: -Economists generally attribute much of China’s rapid economic growth to two main factors: large-scale capital investment (financed by large domestic savings and foreign investment) and rapid productivity growth. These two factors appear to have gone together hand in hand.

Detailed explanation-2: -The success of China’s economic policies and the manner of their implementation resulted in immense changes in Chinese society in the last 40 years, including greatly decreased poverty while both average incomes and income inequality have increased, leading to a backlash led by the more ideologically pure New Left.

Detailed explanation-3: -Since China began to open up and reform its economy in 1978, GDP growth has averaged over 9 percent a year, and more than 800 million people have lifted themselves out of poverty. There have also been significant improvements in access to health, education, and other services over the same period.

Detailed explanation-4: -The introduction of the market system, first in the rural area, and then in the urban area, must be regarded as the primary reason for the success of the economic reform.