Correct Option
The correct option is 1 and 2 only.
Explanation
China's economic development strategy involved a unique approach to central planning. Unlike the rigid centralization observed in the Soviet Union, the Chinese system incorporated significant elements of administrative decentralization, even prior to the major market reforms.
Statement-wise Analysis
- Statement 1 is Correct: The decentralized nature of Chinese planning allowed local governments and units to engage in experimentation. This structure enabled authorities to assess the economic, social, and political implications (costs and benefits) of specific policies before adopting them widely.
- Statement 2 is Correct: A hallmark of China's reform strategy (often described as "crossing the river by feeling the stones") was the implementation of measures at a smaller, local level first. For example, Special Economic Zones (SEZs) and the Household Responsibility System were tested in specific regions. Once proven successful, these reforms were scaled up to the national level.
- Statement 3 is Incorrect: Decentralized planning was not introduced only after the 1978 reforms. The Chinese planning system exhibited a high degree of decentralization even during the Maoist era (e.g., during the Great Leap Forward in 1958). This pre-existing decentralized structure is often cited by economists as a key factor that facilitated the successful implementation of the post-1978 market reforms.
Key Takeaway: China's economic success is partly attributed to its decentralized planning structure, which existed prior to 1978 and allowed for local experimentation and the gradual scaling of successful reforms.