Describe China’s experience with central planning since 1949. Recently, China is shifting from a centrally planned to a market based economy. What are the outcomes/achievements and the challenges it faces
Describe China’s experience with central planning since 1949. Recently, China is shifting from a centrally planned to a market based economy. What are the outcomes/achievements and the challenges it faces.
A centrally planned economy is an economy in which there is a central authority mainly government that makes economic decisions regarding the manufacturing and distribution of goods and services. On the other hand, a market based economy is an economy in which all the decisions are solely taken by the businesses and the consumers, there is no involvement of any central authority.
With reference to above question, China was following central planning since 1949 but lately China is shifting from a centrally planned economy to a market based economy.
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