The Communist leadership that came to power in 1949 has launched China on the path of modern economic growth within a socialist framework. Seen from the vantage point of 1975, the objectives postulated by the new leadership were not confined to rapid industrialization and economic growth. Rather, economic growth was combined with a commitment to improve income distribution, assure full employment free of inflation, and promote development with honor through a policy of self-reliance, that is, by minimizing or obviating China's dependence on foreign countries.

The pursuit of these objectives posed a number of dilemmas, both as to ends and means. Some of the objectives may be competitive rather than complementary at particular points in time. Decisions thus had to be made on which goals are more important and which less important, and trade-offs had to be defined. Different leaders and groups in Chinese society and polity attached differing weights and priorities to particular goals, and this then became a source of policy tensions within the top ranks of the Chinese Communist leadership. Similar differences arose as to the methods by which these goals should be pursued, particularly as to how much reliance should be placed on material rewards and incentives as compared to normative and psychic appeals. These issues are explored in some detail in Chapter 2.

The extent to which these objectives were actually attained in the past twenty or twenty-five years is assessed in the last four chapters of this book.