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Abstract
Economic development aims at building a healthy community which in turn strengthens institutions of a state. Economic Development can also be reflected through soft power, which is not only a diplomatic tool but also a booster for a state's economy. Chinese economic development is a synthesis of two ideologies□ one attributed to Mao Zedong and the other to Deng Xiaoping. Mao and Deng have contributed to Chinese economic development by initiating compatible economic policies in their respective eras. Their economic policies are influenced by Karl Marx and Adam Smith respectively. Mao□ a staunch supporter of centralization of economy □ opted for the theory of Marxism; choosing Marxism enabled him to strengthen the economy of China at the domestic level. On the other hand, Deng Xiaoping is associated with liberalizing of Chinese economy. The ideas of free trade and facilitation of foreign investors is the mainstay of Deng's economic policy. In the process of liberalizing the Chinese economy, Deng initiated a paradigm shift from curtailed to liberal approach; he followed the footsteps of Adam Smith, the pioneer of free market economy. Privatization, establishment of exclusive economic zones, introduction of new flexible economic policies are the reforms introduced by Deng under the theory of free market economy. Hence, the modern China we see today is a product of the economic policies envisioned by these two great Chinese leaders. This descriptive research looks into the contribution and implication of these economic policies on the Chinese economic system.
Keywords: Economic development, globalization, Long March, Great Famine, Open Door Policy, Great Leap Forward, Marxism, Chinese Imperialism, Lysenkoism, Chinese Economic System, Great Sparrow Campaign
Introduction
Imperialism remained an important feature of 18th century, where the power of a state was determined on the basis of its territorial boundaries. For this purpose, different European states started focusing upon establishing their hegemony upon numerous small or big states that were economically fragile or were plagued with internal power struggle. But before discussing imperialism and its effects on Chinese economy, it is pertinent to mention two main theories given by Karl Marx and Adam Smith. Both of these economists came up with economic theories of their own, diametrically opposite from each other. These theories, later on, played a great role in shaping...