Jiang Zemin propelled China’s economic rise but also massive inequality for his successors to deal with

In the summer of 1989 several issues threatened the stability of China. Inflation was soaring, threatening the country's economy as the way the government handled protests at Tiananmen Square protests made it as a shambles state.

However, within a short time after that, China rediscovered its strength and began with two decades of significant economic growth and participation in the biggest trading group in the world , and global acceptance on the international stage. This change was due to a largely unrecognized, Soviet-trained electrical engineer, who was also the former Chinese leader Jiang Zemin, who passed away this Wednesday (Nov 30, 1996)) at the age of 96..

I first visited and learned in China in the year 1992. The once-powerful ex-leader Deng Xiaoping was criticized for Jiang's less orthodox economic policies during a series and speeches he delivered during what came to be known the Deng's "Southern tour."

In the end, Jiang was able to follow suit and was a supporter of Deng's liberalisation plans as well as the notion of a transformation in the economy. However, while Jiang's later policies established a solid base for China's economic growth but they could also have sown the seeds of over-exuberance which set the stage for the current president Xi Jinping's rise to power,said by wallet casino malaysia.

JIANG ZEMIN'S GREAT ECONOMICAL PROJECT

Jiang was chosen to be the nation's the general secretary on June 29, 1989 following the removal of the former leader Zhao Ziyang due to Zhao's conciliation attitude towards Tiananmen Protesters in Tiananmen Square.

In just three years Jiang began a big experiment along with Deng and the then vice-premier Zhu Rongji in which Jiang to do something that others were unable or unwilling to do: Enforce the restructuring of state-owned companies that were inefficient across a variety of industries. This led to the lay away of many millions of employees who were expecting these jobs to last for a lifetime "iron rice bowls."

Between 1998 and 2002, more than 34 million were dismissed in the period when China privatized a number of state-owned enterprises as well as shutting thousands of other.

This coordinated effort was an essential and vital step towards making Chinese firms for more direct competition in the market and integration into the global economy before the end to the new century.

ASCENDING TO the world stage following DENG XIAOPING'S DEAD

Jiang's influence was felt most strongly after Deng's passing in February 1997. In the month of July He was in charge of the transfer to Hong Kong to the mainland. He later proved a competent leader in the macroeconomic storm that erupted during the Asian financial crisis that erupted in the same month.

China quickly recovered and by the year 2001, it had joined the World Trade Organization and won the opportunity to hold in 2008 the Summer Olympic Games. In 2002, China's economics had grown to account for more than 4 percent of the world economy.

Jiang was determined to increase this economic growth through more formal ways and reformed the constitution the following year to allow formal entry of the elite of private companies and entrepreneurs to join members of the Chinese Communist Party.

CHINA'S PROBLEM OF GROWING INEQUALITY

This liberalisation of the economy was coupled with the privatisation of housing policies. In combination, they led to the growth of a middle class as well as large-scale private wealth creation.

What was lacking, however was a sufficient regulation to keep a lid on the often uncontrollable results of growth. The gap in incomes widened dramatically during the 1990s, and continued to increase until 2005 which was the year that Jiang was forced to renounce his final position as the head for the army.

These rifts in society caused huge social discord and as corruption grew to engulf local and central authorities, while crime rates soared and the military too became involved in business-related schemes. Local governments began to employ a myriad of extra-budgetary and arbitrary taxes imposed on the citizens to fund crucial public services and goods, and infrastructure that had been degraded in time.

Return of the State under JINTAO JINTAO

Jiang's successors were required to respond to the issues that his policies had created. They did this by enhancing the state's role in the realm of economics and social and in favor of what they called an better "balanced and balanced" model.

Hu Jintao, who succeeded Jiang who was Jiang's successor, centered the policy and resources of his administration on the transfer of more resources to the regions that are less prosperous in China and strengthening a inadequate social and medical insurance system, and introducing more equitable measures in the context of an "putting individuals first" program.

In the span of just five years, the proportion of China's population insured by health insurance nearly doubled, going from 43 percent from 2006, to 95 percent in 2011.

Hu also helped moderate Jiang's growth at all costs and emphasized and pushed through policies that offered assistance to people who haven't benefited in the same way from China's reforms in the economy, including migrants, poor in the countryside, and urban workers who were laid off.

Xi has offered an even more direct response to what he believes are the consequences of Jiang's administration. As he continues to move towards greater centralisation, Jiang has expanded and deepened the role of the state in the economic sphere, but also other aspects that are part of Chinese life, including the military and society.

Powerful, SMOOTH TRANSITIONS MIGHT BE AVAILABLE In CHINA

But Jiang's legacy goes further than the exploding growth of his economy and the staggering levels of inequalities. It's also important to remember that the demise of his administration marked China's first transition of power in the political arena following the creation of the People's Republic of China in 1949.

The precedent set by Jiang was and continues to be important. Although he did not initially enjoy any influence for a few years after officially stepping down as secretary general Jiang's greatest legacy might be in being the first to show all of humanity - as well as the Chinese people that smooth transitions to power could be achieved. If they're still feasible is a matter of debate.

Edward Cunningham is the Director of the Ash Center China Programme and of the Asia Energy and Sustainability Initiative at Harvard Kennedy School. This article originally appeared in The Conversation.