주룽지 총리가 누린 네 가지, 놓친 네 가지 [세상읽기]

Prime Minister Zhu Rongji passed away on the 12th of last month. His achievements were impressive. During his tenure, China achieved the ideal economic conditions that economists dream of, with high growth rates and stable prices. While his personal abilities may have contributed to these accomplishments, the unique circumstances China faced at the time also played a significant role.

This includes the so-called "Four Bonuses" reform, opening up, population, and land. The first bonus, reform, involved allowing market autonomy for state-owned enterprises while maintaining state ownership, and integrating domestic and foreign exchange markets. Additionally, the state transitioned from managing everything to delegating management to the market, which facilitated relatively smooth economic growth.

The second bonus, opening up, entailed lifting export restrictions imposed by Western countries on the communist bloc in 1994, actively attracting foreign investment, and joining the World Trade Organization (WTO) in late 2001. This decision propelled China into becoming a production hub for nearly all global companies and boosted China's growth.

China's population was relatively young and the largest in the world during this period, providing a plentiful supply of low-cost labor, referred to as the "cheap labor paradise." This factor, along with the distinct urban-rural dual-housing system, further contributed to the country's economic growth. The fourth bonus, land, involved consolidating state-owned land into manageable units, allowing for easy deployment for production.

The process effectively increased the fixed amount of arable land. Moreover, as local governments generated revenue from selling land-use rights, regional income surged. This lucrative arrangement led to a 30% contribution of the real estate sector to overall economic growth in 1998. However, the four bonuses did not come without drawbacks.

While reform led to the dismissal of 30 million workers, a social safety net for the affected individuals was lacking. Furthermore, the government neglected the issue of improving living conditions for the rural labor force, known as the "migrant worker class," and ignored the consequences of excessively subsidized land sales, resulting in overdevelopment issues.