Question

“China has experienced rapid economic growth owing to the introduction of economic reforms in 1978.”

Elaborate any two economic reforms introduced by China.

Hint:

China started reforms in 1978 in two phases. Explain one reform from agriculture and one from industry in two marks each.

Answer 1

Step 1: Understand the question:
The question says China grew fast because of reforms made in 1978.
We must elaborate any two reforms. Each reform carries 2 marks, so each needs a clear explanation.

Step 2: Background:
Before 1978 China ran a command economy with state control.
In 1978 it began reforms in phases. The first phase covered agriculture, foreign trade and investment. The second phase covered industry.

Step 3: Reform 1: Agriculture:
In the first phase, commune lands were divided into small plots.
These plots were given to individual households for use, but not for ownership.
The households could keep all the income from the land after paying the fixed taxes.
This gave farmers a direct reward for effort, so farm output and rural incomes rose.

Step 4: Reform 2: Industry:
In the next phase, reforms moved to the industrial sector.
Private firms, and especially township and village enterprises, were allowed to produce goods.
State Owned Enterprises had to face competition from these firms.
This improved efficiency and raised industrial output.

Final Answer:
Two reforms of China: (1) land from communes split into household plots with retained income, and (2) private firms and village enterprises allowed in industry, with state firms facing competition.