ASPECTS OF CHINA’S ECONOMIC DEVELOPMENT

Abstract

The 25 year period of transition in newly independent post-USSR states did not bring either of them to a desired target – mid-European level of economy. Against this sad background China represents a unique example of successful economic reforms, which lead to rapid economic development and accelerated increase of leaving standards. In spite of structural and legislative changes, the success of China’s economic reforms was determined by extensive industrialization based on downstream processing of national and imported primary commodities. Privatization in this sector and support of private businesses was expressed by creation of corresponding financial instruments and, first of all, by foundation of commodity exchanges of the global importance. The phase of extensive economic development has not been finished in China yet, however, such extensive development cannot be sustainable for more than 8-10 years, and the greatest challenge for China will be a step-by-step construction of a post-industrial economy and society in coming years. Example of China may show a guideline for the newly independent states: only synergetic amalgamation of, on one hand, a civil society and, on the other hand, sustainable exploitation of national natural resources and downstream processing of national primary commodities may ensure irreversible merging of newly independent states into the civilized world.