Scientific Development and Domestic Demand (2003–2011)

Abstract

In the initial period of reforms, China’s economy experienced rapid growth. However, the amalgamation of centralized bureaucratic administration and market regulation induced excessive demands for investment and unproductive use of capital. As a result, the pattern of development was markedly volatile. Periods of rapid growth were persistently accompanied by inflation and were therefore generally succeeded by the reinstatement of central controls on capital. After some 15 years of oscillating between conservative and progressive templates, by the end of the 1990s Chinese leadership appeared to have formulated an alternative mode of economic governance that finally achieved the long-pursued twin objectives of