| Abstract: | After describing the economic institutions to be reformed, including the production sectors of agriculture and state industry, consumer demand under rationing, price control and centralized distribution, capital formation, foreign trade and investment, and the economic planning system, this paper outlines seven major steps in the reform process: the responsibility system in agriculture, fostering rural markets and private and collective enterprises, reform of state enterprises, price reform, decontrol of consumer goods, the open-door policy, and change in the role of government planning. The characteristics of the reform process contributing to its success are the strong support of the population and government officials, the absence of a blueprint to begin with, the extensive use of experiments, the pragmatic attitude of the reformers, the stability of the political system and the attempt to maintain a fairly stable price level. |
