J. M. BERGER. ECONOMIC STRATEGY OF CHINA, Moscow: Forum PUBL., 2009, 560 p.

A monographic study by Y. M. Berger, a well-known Russian expert on the socio-economic and political development of China, examines a wide range of issues: from the driving forces and conditions of the country's economic growth to the impact of the global crisis on various areas of its economic complex; from the role of foreign, state and non-state national capital on the formation of market relations from the situation in the agricultural sector to the structure of foreign investment, from the relations between exports and imports in foreign trade to the place of the public sector in the economy; from analyzing the discussions of Chinese economists regarding the reform of the country's economy to considering the views of Western experts on this issue, etc.

In the first and third chapters, the author examines the Chinese model of economic and social development, focusing in detail on the process of forming the country's development strategy by the country's leadership. One cannot but agree with the author's observation that " the practical implementation of a strategy cannot be guided by a priori knowledge of a certain only true and correct theory that would allow us to suggest the right decisions and correct the course at all stages and turns of the implementation of a strategic course. Simply because there is no such theory. China is following its own path, which has no adequate precedent in history. And that is why the approach was adopted, which prescribes "wading through the river, feeling for stones under you" (p. 41).

Until 1979, the Chinese leadership followed the traditional model of socialism that then existed in the Soviet Union and other countries of the so-called socialist camp. The profound socio-economic crisis that engulfed the country at the end of the cultural revolution forced the Chinese leadership to begin a gradual departure from the traditional model of development. Deng Xiaoping, who had outstanding personal qualities, vast political experience and deep intuition, played a primary role in the transformation that began. The most surprising thing is that Deng Xiaoping did not receive a serious education, but only studied for a few years in high school and a few months at the Communist University named after him. Sun Yat-sen in Moscow (in the 1920s), but managed to find the right way to revive the Chinese nation in the then difficult conditions of political chaos and economic ruin.

In keeping with the tradition of the Sinicization of Marxism, initiated by Mao Zedong in the 1930s, Deng Xiaoping in the 1980s and 1990s put forward a number of propositions that later became known as the "theory of socialism with Chinese characteristics" or "Deng Xiaoping theory". Its essence lies in the recognition of market relations as equal elements of the socialist economy, the illegality of identifying the market with capitalism, and the plan with socialism, since both are only economic means. Deng Xiaoping, 88, made a significant contribution to the reform of the Chinese economy during his trip to the south of the country in early 1992. According to J. M. Berger, they represent a holistic program that has defined the main focus of reforms and important methods of their implementation for decades. Deng Xiaoping strongly condemned those who repeatedly raised the issue of the socialist or communist party.

the capitalist nature of reforms, who insisted that Chinese reforms follow the capitalist path. Judging their essence, in his opinion, should be based on one single criterion-how much they favor the development of productive forces, strengthening the overall power of the socialist state, improving the standard of living of the people: "Deng called for assimilating and adopting all the advanced economic methods and management methods created in the modern world, including in developed capitalist countries reflecting the laws of modern socialization of production" (p. 122).

As you know, globalization brings not only benefits, but also losses for the national state. For example, the economic crisis in Latin America, the financial crisis in Eastern Europe, and "shock therapy" in Russia indicate the danger of implementing its negative scenarios. Therefore, the Chinese leadership, writes J. M. Berger, firmly following the path bequeathed by Deng Xiaoping, sees globalization not as a line leading to the erosion of historical specifics, but as a means for reviving the Chinese nation and strengthening its influence in the world. The third generation of Chinese leaders, led by Jiang Zemin, put forward the "idea of triple representation", which made it possible to unite all sectors of society, including entrepreneurs, around the Communist Party and its policies. The current fourth generation, led by Hu Jintao, is implementing the "concept of scientific development", which provides for the harmonious development of all social relations, as well as people. Both the "idea of triple representation" and the "concept of scientific development" are extensions of the theory of socialism with Chinese characteristics, that is, the legacy of Deng Xiaoping. As the prominent Chinese scholar Hu Angang writes, the origins of modern modernization in China "lie not in Western Marxism and Soviet socialism, not in Western capitalism and social democracy, but in classical traditional Chinese culture, modernized by the Chinese Communists" (p. 38). This highlights the national and at the same time unique nature of the Chinese development model.

In the more than three decades that have passed since the historic 3rd Plenum of the 11th CPC Central Committee (December 1978), which marks the beginning of the reform and opening-up policy, the country has undergone tremendous changes that are of historical significance not only for China, but for the world as a whole: From 1978 to 2007, the Chinese economy grew at an average annual rate of 9.8%, more than triple the global growth rate, moving it from tenth place in the world to second after the United States. In dollar terms, China's GDP is already more than a third of that of the United States, and its share of global GDP has increased from 1.8% to 8.56%. By many production indicators (steel, coal, cement, mineral fertilizers, cotton fabrics, grain, meat, cotton, tea, fruit), by the volume of gold and foreign exchange resources ($2.7 trillion). the country came out on top in the world and took the first position in global commodity trade, becoming the third space power (along with the United States and Russia). At the turn of the millennium, the task of building a "low-income society" (xiaokang) was completed, which was determined by the GDP per capita indicator of 7 thousand people. RMB. The 16th CPC National Congress (2002) set the goal of building a comprehensive Xiaokang society by 2020, which meant quadrupling GDP within two decades. The 17th Party Congress (2007) modified the goal of increasing GDP per capita to 28,000 yuan by 2020 (pp. 24-25).

A large part of the book is devoted to the reform of state-owned enterprises. For many years after the start of modernization, most of them were unprofitable: in 1998 - two-thirds, by the end of 2002 - almost half. The author describes in detail all the measures taken by the authorities to transform state-owned enterprises into real subjects of the market economy and the difficulties that have arisen along the way.

Non-State national capital and private entrepreneurs are playing an increasingly important role in the development of the national economy. The book provides impressive figures on the role of private capital in the country's economy. Private enterprises, which currently employ about 400 million people, produce over 70% of food and paper products, over 80% of clothing, footwear, plastic and metal products, over 90% of materials and furniture. Total non-state capital in China today accounts for about 65% of GDP (pp. 388-389).

China's policy of reform and openness is associated with the widespread attraction of foreign capital to the country's economy. To this end, various special preferences have been created for its successful operation, they are "expressed in the benefits provided by the fiscal Service of the Russian Federation".-

monetary and credit policy of the state" (p. 353). As a result, according to the figures given in the book, the total amount of accumulated foreign direct investment from 1979 to the end of 2007 was $ 760.2 billion (p. 345). It can be assumed that at the end of 2010 it could amount to more than 800-820 billion dollars. There is no doubt that such a large-scale volume of foreign investments is due to their high profitability with minimal risk, which, for example, cannot be said about Russia.

J. M. Berger writes not only about the success achieved by the Chinese economy, but also about the problems, often very serious, that have a negative impact on its development. He rightly emphasizes that without using the mechanism of domestic consumption, it will be impossible to achieve real and sustainable economic growth, because otherwise it will be based only on exports, which largely depend on the external market. Based on Chinese data, the author concludes that the engines of economic growth in China are still investment and exports, not innovation. The production of high-tech products is still carried out by screwdriver assembly of imported technologies: "The implementation in practice of the idea of providing a vast Chinese market in exchange for receiving advanced technologies, which was the basis of the policy of broad attraction of foreign investors, turned out to be quite far from the original idea. This course has contributed to the creation of a significant number of new jobs, which, of course, is important for the country. It opened up the markets of all countries and continents of the world for Chinese exports, and turned China into the largest holder of gold and foreign exchange reserves. But it has not eliminated China's technological gap with developed countries. Western key technologies still remain inaccessible to Beijing" (p. 222). According to the author, this is due to the fact that, due to the national cultural tradition, fundamental science has not yet managed to take root on Chinese soil. However, in recent years, realizing this fact, the Chinese authorities have begun to pay great attention to the development of science and technology. In terms of R & D funding, the country has already reached the fifth place in the world, it is second only to the United States in terms of the number of researchers, it has reached the fourth position in the world in terms of the number of patents for inventions, and it is far superior to Russia in all these indicators.

The reform of the national economy took place in China gradually, in several stages with great difficulties and costs, accompanied by heated discussions in the circles of the party and scientific community, which is described in detail in the book. Representatives of the neoliberal direction of economic thought insisted that "the smaller the government, the better", while anti-market conservatives, on the contrary, believed that the ownership of state-owned enterprises should not be changed, since with good management they can be quite efficient and competitive. In their opinion, the privatization of state-owned enterprises is beneficial only to their managers, private entrepreneurs and officials in collusion with them, since they seek to bring them to bankruptcy, and then buy them up on the cheap.

I would like to point out that this point of view was justified: private property in post-reform China did not arise as a result of the privatization of state property, as in Russia; at first it was created by rich peasants, individual merchants, artisans, ¹ and then their owners increasingly became party and state functionaries or their relatives. This circumstance, the author points out, "naturally created a favorable environment for corruption, which in China, contrary to some popular beliefs, is slightly less than in Russia" (p.387).

On the way to reforming the national economy, the Chinese society had to face a number of very unfavorable factors. A special section is devoted to them in the book "Resource, environmental and demographic constraints on growth", where first of all there is a shortage of natural resources, which is expressed in the fact that China lags significantly behind the world average in terms of the provision of most of them per capita. This is combined with an unsustainable economic growth model: China accounts for 7.4% of global oil consumption, 31% of coal, 30% of iron ore, 37% of rolled steel, 25% of aluminum raw materials,and 40% of cement. If in half a century GDP was taken away-

¹ In the late 1990s, in Hangzhou, I had the opportunity to meet a large entrepreneur, the owner of a company specializing in the production of mineral water and baby food, who came from a peasant background.

the consumption of mineral resources increased by 10 times, while the consumption of mineral resources increased by more than 40 times. According to the author of the book, "the destruction of the natural environment in China has reached the point where the continued use of the mechanism of economic growth based on the imaginary advantages of "cheap" or even "free" natural resources becomes incompatible with the health and very life of not only future generations, but also people who now live in China, especially those who live in the in economically developed regions and cities" (p. 290).

An equally serious problem that China has to face is the demographic one. Thanks to the "planned parenthood policy" adopted in the early 1970s (one family-one child), as well as a number of socio-economic factors (improving the standard of living, developing education and health care, changing the social role of women), it was possible to stop the rapid growth of the population. Otherwise, the author writes, by now its number would exceed the current (1 billion). 300 million) per 400 million people, which would pose a serious threat to the country's existence. However, such a favorable prospect is accompanied by a number of negative phenomena - an aging population and a reduction in the future labor force, an imbalance of the sexes. "Changes in the demographic structure of Chinese society lead to significant shifts in the aspirations, values, and preferences of all age groups. The time when the main burden of caring for the older generation lay on children is gradually disappearing into the past, " the author notes (p. 293). Naturally, now caring for the elderly is beginning to become a social function of the state, which inevitably increases the burden on the budget.

As J. M. Berger rightly points out, one of the most serious problems of China's socio-economic development is the significant gap between the city, which is in the process of rapid modernization, and the countryside, where small-scale family farming prevails. Therefore, non-agricultural labor at construction sites and industrial enterprises plays an increasingly important role in the income of rural residents. An increase in the productivity of agricultural labor is inevitably associated with the enlargement of agricultural farms and, as a consequence, with a decrease in the number of rural population. Naturally, the question of his future employment arises. A quick solution to this problem is impossible, since it affects the fate of hundreds of millions of people, for whom a plot of land is the only material guarantee in case of lack of other employment opportunities, illness and old age. The author examines in detail the various scenarios of getting out of this situation proposed by Chinese experts. He is on the side of those among them who oppose the privatization of land, rightly believing that such an event can lead to its concentration in the hands of a few and de-landization of the majority. They believe that it is necessary to expand farms without allowing the polarization of land owners. In this regard, the most optimal method is a gradual, long - term transformation of hundreds of millions of people from rural residents to urban residents, calculated for more than one decade.

The widespread and rapid introduction of market relations in such social spheres as education, healthcare, and housing has also caused a number of serious problems in them. In the field of education, there is a lack of appropriations, which means that students and their families mostly bear the cost of education. According to the author, "the high cost of education prevents young people from obtaining the necessary general education and vocational training and condemns them to low social status and low earnings, which, in turn, exacerbates social differentiation and undermines social stability" (p. 405). In the healthcare sector, there is a high cost of medical services and social inequality in access to them (a few years ago, reputable institutions recognized that the health care reform in China mainly failed due to excessive market orientation and insufficient role of the state). In the housing sector, there is an emphasis on economic efficiency at the expense of social justice, which is reflected in a sharp increase in prices for apartments that are becoming inaccessible to low-and middle-income families, while at the same time huge fortunes are being made on the sale of real estate. "Today, 81.6% of China's housing stock is privately owned, significantly more than in the United States and Great Britain, and almost twice as much as in Germany" (p. 426).

Aware of the serious problems that exist in the social sphere, the Chinese leadership has taken a number of measures in recent years to improve the situation in education, health care, and housing construction. As the author writes, "the framework of interaction between the state and the market is established with the leading role of the state" (p. 423).

The global financial and economic crisis has exacerbated the existing problems in the Chinese economy. In the chapter "Strategy for overcoming the crisis", J. M. Berger examines in detail the impact of various factors on it, which manifested themselves in a reduction in exports, an increase in unemployment, a fall in the exchange rates of securities on the stock markets, a bad situation in the real estate market, an increase in risks in the banking sector, and a reduction in budget revenues. Up to the end of 2010, 4 trillion yuan (about $ 700 billion) was spent on the anti-crisis program. According to the author, "we should not forget that the current economic power of the Chinese state and Chinese enterprises is achieved to a large extent due to the underconsumption of social and individual benefits by a very large part of Chinese society, especially in the countryside. Rapid economic growth is based in no small part on low wages and low social security. And the state must gradually repay this huge debt" (p.459). In other words, the current economic policy of the Chinese state should be focused on the domestic market, on meeting its needs. But here, as the author notes, an equally serious problem arises-determining the structure of domestic consumption, because thoughtless copying of a Western-style consumer society is fraught with long-term dangers. It will inevitably create a shortage of both global and Chinese resources. The most important thing is that such an approach doesoms the country to a constant lag and following a dead-end path. Recent activities of the Chinese Government show that it is aware of this fact. I will point out at least a limit on the number of car sales in large metropolitan areas, primarily in Beijing.

The author of the book has a firm belief that the Chinese leadership will be able to continue moving the country along the path of economic growth, since its " reforms really correspond to the fundamental national interests, and are not dictated by the narrow self-interest of those in power. A strong government is also a government that is authoritative, responsible, and sovereign. They have the freedom to make strategic choices and set their own system of priorities. It has the necessary means and resources to implement this choice, and it is able to defend it, resisting any pressure from inside or outside" (p. 311).

The author not only analyzes the process of forming a strategy for modernizing Chinese society and its main modern parameters, but also considers scenarios for the future development of China, expresses his opinion on their possible positive and negative aspects. The main problem, in his opinion, is the need to ensure a painless transition from the old paradigm of economic growth to a new one, which "should extend market price regulation to factors of production, while leaving the state with sufficient control over the most socially and environmentally sensitive areas. Moreover, this cannot be done without creating a sufficiently broad and reliable social security system" (p. 161). As the practice of many countries, including Russia, shows, establishing a fair and adequate balance between the market and social responsibility of the state is extremely difficult, because in many cases market relations get out of control.

Time will tell whether China will be able to find the best solution to this difficult problem. In any case, the author emphasizes that the choice of a new paradigm of economic growth and further ways of market reforms should take into account the interests of all social groups in Chinese society. Therefore, China's future strategy cannot be limited only to the economic sphere, but should also include the development of problems in politics, science, education, and culture. "China will not be able to do without learning from other people's experience. It will have to create its own spiritual and institutional substratum, similar to that which underlies the progress of modern developed countries" (p.165).

Judging by the latest theoretical and political attitudes of the current Chinese leadership, it is aware of this fact. This is eloquently demonstrated by the slogan "building a harmonious society" (Goujia Hexe Shehui), which includes the entire sum of public relations in the city and village, in the family and collective, in institutions and microdistricts. At the same time, the ideas of Confucianism are being widely propagated, and the cult of Confucius is being revived. In fact, a new stage of Sinicization of Marxism is taking place - its connection with the maxims of Confucian teaching.

The last (eighth) chapter of the book "Chinese Strategy and Russia"has a serious methodological and practical significance. In the recent past, the two countries have had many

what they have in common is a similar political system, a planned economy, and being closed to the outside world. Noting that it would be wrong to copy the Chinese experience, as well as the Western one, the author at the same time emphasizes that "the position of those who refuse to recognize the significance of the Chinese experience, believing that it is far inferior in its ultimate effectiveness to the only correct, namely, the Western path, the path of development" cannot be fruitful. abandoning state regulation of the economy in favor of market freedom. Any intention to modify this approach in relation to the specifics of historical conditions is declared unpromising. Based on this presumption, China has been consistently predicted to suffer an imminent economic collapse year after year" (p. 494). So, in Gordon Chan's book " The Coming Collapse "(2001)² China was predicted to fail within the next 5 to 6 years, but 10 years have passed, and the collapse of the Chinese economic and political system has not occurred. The same pessimistic forecasts were expressed by the American analyst Tim Kane in the article "China's coming deceleration: solving the paradox of freedom and growth "(2007): the Chinese state ship has magnificent sails, but a paper hull that is not able to withstand headwinds (downturns in the national economy). "A hapless prophet would know that in less than a year, the US financial system will collapse, where, according to liberals, everything seems to be in order with freedoms, and the financial system of authoritarian China will just stand," J. M. Berger ironically notes (p.495).

While agreeing with the specifics of the implementation of reforms in China, the author also points out nine features of Chinese reforms that, in his opinion, are of ideological and methodological significance for developers of similar reforms in Russia: 1) their harmonious integral unity, closely linked to historical, cultural, civilizational, geopolitical, socio-economic conditions and factors; 2) the presence of a long-term general strategy of reforms; 3) the pragmatism of reforms, their de-ideologization; 4) changing the relationship between politics and economics in favor of the latter; 5) complexity and complementarity reforms; 6) their extreme prudence, consistency and continuity; 7) the use of intermediate models for economic growth; 8) the combination of market transformations with external openness; 9) the ability of reformers to see the negative consequences of reforms, learn from their mistakes, correct them and overcome partial crises.

The book concludes with the author's deep reflections on the Russian-Chinese strategic partnership at the global and regional levels. According to him, "the basis of partnership between China and Russia at the bilateral level is a large degree of convergence of medium-and long-term goals, complementarity and high dynamics of economies. Moreover, there is also a certain convergence of benchmarks and models of economic development" (pp. 508-509).

At the same time, the author points out factors that may complicate the Russian-Chinese strategic partnership: the difference in economic, demographic, domestic political and ideological potentials. As for the first one, "one-sided raw material exports and huge imports in terms of nomenclature make the Russian economy, in a certain sense, a hostage of the external market, including the Chinese one, for a long time" (p. 512). This is evident in the structure and volume of Russian-Chinese foreign trade turnover, when its balance in recent years has not been in favor of Russia, not to mention the low level of mutual investment. As for the second factor, the author points out the territorial aspect of the problem, which is becoming increasingly important due to the outflow of population from the Russian Far East. This not only increases the difference in regional potentials, but also has a psychological impact, fueling fears about Russia's ability to "retain the vast and richest, but sparsely populated and poorly used territories of the Far East and Siberia" (p.513). The third factor is also important, since China's political regime allows it to pursue a single line towards Russia at all levels and in all areas of interaction. Our country has fewer such opportunities, as the political, intellectual and business elite has multidirectional and sometimes opposing interests, which obviously puts Russia at a disadvantage.

² For my review of this book, see: Problems of the Far East. 2003. N 1.

Concluding my review of J. M. Berger's book, I would like to note the author's high professional level, excellent knowledge of not only the realities of the Chinese economy, but also the complex vicissitudes of China's history and culture, and its foreign policy strategy. The reviewed monograph is the result of his many years of fruitful research. Of course, there are certain shortcomings in it, in particular repetitions of a meaningful nature, there are provisions that I want to argue with. For example, speaking about "the thousand-year-old Confucian tradition of neglecting commerce as a low sphere of human activity" (p. 5), the author seems to share the opinion of Max Weber, who put forward the idea of the dependence of social ethics and economic development trends on the system of religious beliefs: in his work on Confucianism and Taoism, he argued that in China and other Asian countries there is no "economic ethics" compatible with capitalism and economic development. Currently, many Chinese and Western scholars reject this view as untenable.

Today, Confucian values make an important contribution to the development of discipline and respect for work, which are so necessary in the process of modernization for both entrepreneurs and workers, since they are characterized by traditions of labor austerity, self-restraint, and law-abiding. Confucian ethics asserts a positive ideal of social responsibility, which implies working hard for oneself and one's loved ones, strict business ethics, initiative, entrepreneurship, loyalty to the goal set, etc.Therefore, it is not surprising that the socio-economic achievements of the countries and territories of "Confucian capitalism" - Singapore, South Korea, Japan, Taiwan and Hong Kong-are achieved.

The monograph impresses with the abundance of sources used - Russian, Western, and especially Chinese. It is felt that the author is aware of all the latest research of Chinese scientists, materials of its periodicals and the Internet. In my opinion, this is the best work on the economy of modern China in recent decades, a fundamental work that should be recommended not only to Sinologists, but also to all those who work on the problems of the world economy and socio-economic modernization, as well as to political decision makers.

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