Socialist Market Economy
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High Quality Content by WIKIPEDIA articles! The socialist market economy is a concept first proposed by Deng Xiaoping in order to incorporate the market into the then planned economy in the People's Republic of China. Following its implementation, this economic system has supplemented the centrally planned economy in the People's Republic of China and has been attributed to the high growth rates in GDP during the past decades. Within this model, privately owned enterprises are the back bone of the economic system. Most of the economic growth in China is attributed to the private sector, which…mehr

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High Quality Content by WIKIPEDIA articles! The socialist market economy is a concept first proposed by Deng Xiaoping in order to incorporate the market into the then planned economy in the People's Republic of China. Following its implementation, this economic system has supplemented the centrally planned economy in the People's Republic of China and has been attributed to the high growth rates in GDP during the past decades. Within this model, privately owned enterprises are the back bone of the economic system. Most of the economic growth in China is attributed to the private sector, which grows at twice the official rate of increase and is continually expanding. However, the size of the private sector is notoriously difficult to pin down as the private sector is likely underestimated by state officials in calculation of GDP due to its propensity to ignore small entrepreneurs and private enterprises being not registered. In addition, private entrepreneurs have a propensity to claim to be collectives and under-report the size of their business.