Executive Summary

The transition to a market economy in the People’s Republic of China is among the great economic success stories of modern times. Since the beginning of economic reforms in 1978, real GDP growth has averaged almost 10% annually, a performance that compares favourably to that of the prior growth champions – Japan and Korea. China has become the world’s third largest economy, its number two exporter, and its leading manufacturer. Living standards of all segments of the population have risen markedly over the past three decades and poverty has fallen from over 50% at the beginning of reforms to below 10%. 