In 1949, China officially became a “People’s Republic” in which all resources were owned by the government. For nearly 30 years, the Chinese government made all decisions concerning the production and distribution of goods and services. Beginning in the 1980s, the Chinese government embarked on a gradual program of business privatization. This policy resulted in an increase in economic growth. Nevertheless, government and business leaders eventually recognized that China’s economy would be unable to obtain its full potential in the absence of a formal declaration of private property rights. An amendment to the Chinese constitution officially guaranteeing the right to private property was adopted in 2004. How might the establishment of private property rights have contributed to a burst of Chinese economic growth in the past few years?