Deng's southern tour

Wednesday, May 23, 2012

Historical review

Twenty years ago, with the total collapse of the former Soviet Union and the socialist bloc in East Europe, as well as the euphoric claims by some people in the West about the end of history, China was at a crucial historic crossroads. Should China retrench backward into socialism, or keep moving forward into the unchartered terrain of deeper reform and greater opening-up?

At that critical juncture, Deng Xiaoping saved China and emancipated the Chinese nation with his bold vision, courage and wisdom. In one stroke, Deng Xiaoping cut through the debate about socialism versus capitalism in the abstract by revealing the ultimate truth to the Chinese nation.

# Southern tour photos

The late Chinese leader Deng Xiaoping met with Guan Guangfu, the former secretary of the Hubei Provincial Party committee, and Guo Shuyan, the former Hubei provincial governor, at Wuchang of Hubei Province, on January 18, 1992. Photo: people.com.cn

The late Chinese leader Deng Xiaoping arrived at the Wuchang Railway Station, Hubei Province, during his inspection tour of the south in January 1992. Photo: Hou Genshui

The late Chinese leader Deng Xiaoping visited Shenzhen in Guangdong Province on January 19, 1992 during his southern China inspection tour. Photo: ifeng.com

The late Chinese leader Deng Xiaoping posed with members of his family at a park called Splendid China in Shenzhen in 1992 during his southern China inspection tour. Photo: ifeng.com

Pictured above is the late Chinese leader Deng Xiaoping with the Party and government leaders of Guangdong Province at the Shenzhen Guest House in 1992. Photo: people.com.cn

The late Chinese leader Deng Xiaoping enjoyed the view of Hong Kong from the Huanggang Port in Shenzhen in 1992. Photo: ifeng.com

The late Chinese leader Deng Xiaoping inspected the Zhuhai Biochemical Pharmaceutical Factory in 1992. Photo: People.com.cn

The late Chinese leader Deng Xiaoping visited Yingtan in Jiangxi Province, and encouraged local leaders there to develop greater and bolder steps. Photo: ifeng.com

The late Chinese leader Deng Xiaoping paid a visit to the Shanghai Belling Microelectronics Manufacturing Co. Ltd. on February 10, 1992. Photo: ifeng.com

The late Chinese leader Deng Xiaoping (second from right), with Yang Shangkun (second from left), Wu Bangguo (first from right) and Huang Ju (first from left), saluted the construction workers of the Yangpu Bridge on February 7，1992. Photo: Zhang Weifei

The late Chinese leader Deng Xiaoping and his wife Zhuo Lin (second from left in the second row) during his inspection tour of southern China in 1992. Photo: ifeng.com

The late Chinese leader Deng Xiaoping used maps to familiarize himself with the development of the Shenzhen Special Economic Zone during his inspection tour of southern China in 1992. Photo: ifeng.com

Pause

# Reforms introduced, challenges and achievements

Reforms introduced	The household contract responsibility system What initially started in Anhui Province, the household contract responsibility system removed the unified management and distribution rule within agriculture production teams.
	Special Economic Zone Since the entire domestic market was not mature enough to carry out the reforms, it was a good idea to put into practice small-scale reforms by establishing a Special Economic Zone (SEZ).
	Fiscal system decentralization The central government transferred its partial resources distribution right and decision-making power of financial revenues and expenditures to the local governments.
	Two-tier price system unveiled The government carried out a duel-price system for the circulation and price-fixing of production means.
Challenged encountered	State debt increases due to the decentralization of fiscal rights China suffered a severe economic crisis in mid 1990s. China's foreign debt ratio hit 146 percent in 1993, much higher than the current average debt of the EU.
Challenged encountered	Ideological challenges during the reform In 1989, China was still not open enough to the world. Domestic reform also encountered many challenges.
Achievements attained	Property rights with Chinese characteristics As private property accumulated via contracts or other means, those who adhered to public ownership gradually enlarged their client base, acquiring more private property and entering into a more diversified market contract network.
	Inviting entrepreneurs back to China After Deng Xiaoping came into power, he spoke highly of Rong Yiren, a representative of the “national bourgeoisie” and made a bold decision to allocate a substantial sum of state funds to Rong, a pilot move that started a new economic mode by placing state funds under the management of an entrepreneur.
	A new idea of the "invisible hand" Deng was in favor of giving full scope to the pricing system because he realized that the nation's macro-control wasn’t prepared to cope with the new challenges of how to coordinate China's economy after the reforms and opening-up.

# I have a voice: people who experienced the reforms


Pan Shiyi We would not have made so many achievements had it not been for Deng's speeches	Feng Lun Deng's speeches reset the starting point of China's development	Deng Lin We will feel guilty if we do not seize the chance

# Experts' voices

China has already become the second largest economy in the world. In the years and decades ahead, China will continue to draw inspiration from the bold vision, courage and wisdom of Deng, continue to build upon his legacy of "maintaining stability at home and keeping peace in the world," and continue to focus on promoting development and increasing productivity through greater reform and globalization. Rather than being complacent, China will continue to innovate and develop.

Victor Zhikai Gao, director of the China National Association of International Studies, and a former English interpreter for Deng in the 1980s.

China's development needs a new authoritarianism. The government has a firm foundation, and the new authoritarian politics should be strongly adapted to the times and have greater flexibility. They must better respond to social demands and institutional changes.

Xiao Gongqin, a history professor at Shanghai Normal University.

In today's globalized world, some have preconceived ideas that reform relates to privatization. I think the core of reform we need is not about opening coastal cities to boost the economy but about paying more attention to people's social welfare.

Cui Zhiyuan, professor from the School of Public Administration, Tsinghua University.

# Major topics for future reforms

Political reform	Govt needs new authoritarianism to advance reform The government should inherit Deng's spirit of reform. Political reform is not untouchable. Enhancing supervision on power, developing democracy in the system and constructing civil society are the directions of further reform. >>>
Economic reform	Deng gave me confidence to risk building a global business We don't necessarily expect another southern tour to restore our confidence. All we want is a level playing field, and a better business environment. That takes just as much political skill and decisiveness from the top as it did 20 years ago. >>>
Social reform	Seeking the right path for future reform By now, China has reached a consensus over social reform, but does not give enough attention to promoting it. Social reform seeks to improve welfare system, promote consumption and provide material guarantees for people's freedom and happiness. >>>
China model	China model unfinished without social solutions The goal of development is not only economic prosperity, but also to ensure our citizens have justice, dignity and freedom. We haven't achieved this goal yet, so the "China model" is incomplete. >>>
Corruption	Naked and corrupt Anti-corruption officers are on heightened lookout for officials who implement a conniving and devious scheme to get their families abroad before they too flee with their ill-begotten gains already safely stashed in overseas banks.>>>

# Southern tour diagram

Illustration: Globaltimes.cn

GT Editorial

Seeking the right path for future reform

The most controversial topic in today's public opinion is political reform. Some believe political reform is equivalent to a reform of the country's administrative system and should aim for more supervision on power, while others think the core of political reform is to change the source of that power and aim to see Western-style elections in China.
...

The rise of populism is a reality in China. Promoting reforms must win grass roots support rather than overlook their interests. This is a lesson drawn from past reforms in rural and urban areas and is also vitally important to decision-makers.

More>>>

Deng's speeches

Pictured above is the fourth version of a poster of Deng Xiaoping's inspection tour of Shenzhen in 1992. Photo: Xinhua

1. If we did not adhere to socialism, implement the policies of reform and opening-up to the outside world, develop the economy and raise living standards, we will find ourselves in a blind alley.

2. We should be bolder than previously in the past in carrying out reform and our opening-up policies. We must not act like women with bound feet. Once we are sure that something should be done, we should dare experiment with it and create a new path.

3. The reason why some people hesitate to carry out the reforms and the opening-up policy and dare not break new ground is, in essence, they're afraid it would mean introducing too many elements of capitalism and, indeed, taking the capitalist road.

The crux of the matter is whether the road to take should be capitalist or socialist. The chief criterion for making that judgment lies at whether it promotes the growth of the productive forces in a socialist society, increases the overall strength of the socialist nation and raises people’s living standards.

4. The proportion of planning to market forces is not the essential difference between socialism and capitalism. A planned economy is not equivalent to socialism, because there is planning under capitalism too. A market economy is not capitalism, because there are markets under socialism too.

5. Development is the absolute principle. We must be clear about it. If we fail to analyze it properly or to understand it correctly, we shall become overcautious, not daring to emancipate our minds and act freely.

Consequently, we shall lose opportunities. Like a boat sailing against the current, we must forge ahead or be swept downstream.

6. Rapid development of the economy can only be based on science, technology and education. I have said that science and technology are the primary productive forces.

Full text of speeches by Deng Xiaoping during his southern tour in 1992 (in Chinese)

Selected Chinese reports

1. To commemorate the 20th anniversary of Deng's southern tour
纪念邓小平南巡讲话20年来源：半月谈

2. Qiu Zhenhai: Deng's southern tour promoted China's 20-year fast development
邱震海：邓小平南巡造就了中国20年高速发展来源：凤凰卫视

3. Looking back to Deng's southern tour in 1992
邓小平南巡二十年回望来源：中国经营报

4. Only reform can find a way out for China
邓小平同志南方谈话20周年启示：何以解忧唯有改革来源：财经网

5. Reform becomes social common sense once again
让改革再次成为社会共识来源：金羊网-新快报

6. Xu Xiaonian: What China needs is Deng Xiaoping rather than Keynes
许小年：中国不需要凯恩斯更需要邓小平来源：凤凰财经

The epilogue

Winning the support of most intellectuals is key to reducing obstacles to reforms. Though their support is not a guarantee of success, without it, reforms are doomed to failure.

It is hard for China to make reforms, however, this is no excuse to abandon reform. This requires wisdom. As long as social reforms are advanced carefully and adjusted along the way, they will be successful.

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