to
increase production, in all sectors of the economy. Though the easiest
way to increase production was to increase capital inputs, China could
only afford a limited amount of capital construction. In accordance to
this, China went on a construction binge. Whole factories were
purchased from abroad while others were built with local resources. By
1978, the frenzy for new projects reached a level that reminded some
people of the Great Leap Forward. In an effort to promote agricultural
production, the government released many of the restrictions on the
'spontaneous capitalist tendencies' of the peasantry. (173) In the
late 1980's, the government decided to expand the scope of private
marketing. Then the next step was to increase the amount land assigned
to the peasants. The peasants were now not responsible to the
government for the use they made to the private plots. They simply
could grow what the wished, for the sale to the government or to
private markets. This led to furious rebuilding and inflow of foreign
investments. All this enabled China to remake itself into Asian's hub
By 1984, they were producing more than $1 million worth of rice
and a range of side products, including rice wine. Their residential
earning was up to about $200 a year. ( Prager 52 ) This meant that
they could begin replacing their mud-and-straw hats with solid brick
houses. Shanghai today is a vast construction site with more
...