Economy of China

The great leap forward was China’s mistake. The great leap forward was a plan to help develop agriculture and industry to improve economy. Mao Zedong made a plan, which the goal was to modernise China. The goal was to have China’s economy rivalled America. It started around 1958 and the plan was to make it succeed in 1988. Though things went to oblivion since politicians made decisions that took over precedence over their common sense, doing things that they know they were incapable of achieving. This caused 9 million people to starve to death and millions were ill because of the lack of food. Between 1959 and 1962, 20 million people died because there were limited amount of food that cause starvation around china and diseases that were related to starvation.

Deng Xiaoping then took over China. He raised China’s economy by reforming it. He implemented an urban industry that would help reform China’s economy to increase productivity. He also made China open up to the world so that entrepreneurs all over the world are able to open businesses in China. This helped raise China’s economy since they are increasing production more businesses were interested on it. China was able to surpass Japan as the largest economy in Asia, despite Deng’s death in 1997.

China

In 1920 Mao Zedong found the communist party, he believed that a revolutionary elite would be found in the peasantry and not among the people who worked in towns. Throughout the years the Chinese communist party grew larger because they went up against GMD. The GMD concentrated on helping the poor, which was the majority of the Chinese population. Then the war between Japan happened, which China took back as a success. It helped on solidifying the Chinese communist in Northwest China, but the Nationalist Chinese had their hands full trying to fight the Japanese. Over the years after Mao took control he made a decision to move forward with the great leap forward that caused China a lot of losses.

Years later in 1977 Deng Xiao Ping took over control of China. He saw that China needed to increase the production, he then encourage peasants and workers to produce more. He encouraged them by giving bonus payment and profit sharing. Prices were paid by the state for the peasants for the grain and crops. Peasants’ were also allowed to grow more cash by producing more crops and sell them at surplus market values. Overtime Deng Xiao Ping made a policy to reduce family size. He made this policy so that it reduce the rate of population growth. The policy was not popular. This encourage people to have late and compulsory abortion.

Economy of Poland

Time has past, 45 years later after the communist ruling, the polish economy changed. It completely unsuited into an integration into a capitalist world market. The inflation rate of the Poland economy was constantly rising, the wages were low and the economy led to shops to have the most basic food. The communist government in the elections were a failure on June 4th 1989. It made it clear that the previous authority wasn't reasonable anymore. In September 1989 a commission of experts was formed under president Leszek Balcerowicz. The commission effected the president to create a plan of extensive reforms that could help change and help improve Poland's economy from 0 to an ineffective central planning to capitalism. The program was presented on public television on October 6th. The acts that were done are the ones that were listed below:

• Act on Financial Economy Within State-owned Companies. It allowed for state-owned businesses to declare bankruptcy.
• Act on Banking Law. Forbid financing the state budget deficit by the national central bank and forbade the issue of new currency.
• Act on Credits. It abolished the preferential laws on credits for state-owned companies and tied interest rates to inflation.
• Act on Taxation of Excessive Wage Rise. Introduced the so-called popiwek tax limiting the wage increase in state-owned companies in order to limit hyperinflation.
• Act on New Rules of Taxation. Introduced common taxation for all companies and abolishing special taxes that could previously have been applied to private companies through means of administrative decision.
• Act on Economic Activity of Foreign Investors. Allows foreign companies and private people to invest in Poland and export their profits abroad.
• Act on Foreign Currencies. Introduced internal exchangeability of the złoty and abolishing the state monopoly in international trade.
• Act on Customs Law. Created a uniform customs rate for all companies.
• Act on Employment. Regulated the duties of unemployment agencies.
• Act on Special Circumstances Under Which a Worker Could be Laid Off. Protected the workers of state firms from being fired in large numbers and guaranteeing unemployment grants and severance pay.