He was born in the waning years of the Qing Dynasty (1644-1911). In the 1930s, while China was in the grip of civil war, he carried out ground-breaking research into rural poverty. In the 50s he was an economic policy assistant to the country's highest decision-making body and in 1979 he published works widely regarded as the seminal guide to China's market-oriented transition.

Yesterday, the 101-year-old pioneering economist Xue Muqiao was named one of four "outstanding economists" for creating the open-door, trade-with-all policy and suggesting farmers own the land they till as well as work unfettered in the cities.

Now bed-ridden with Parkinson's disease, Xue's daughter yesterday accepted the award from Vice-Premier Zeng Peiyan on her father's behalf.

The other three award winners Ma Hong, 85, Liu Guoguang, 82; and Wu Jinglian, 75 were all key figures in helping China move away from a planned economy.The four each took home 300,000 yuan (US$36,000)in prize money.

Zeng said that partly due to the prizewinners' contributions, the previous 26 years had seen one of the most breathtaking economic transformations in history, praising Xue in particular as one of the fathers of China's economic research and a devoted and creative educator.

Ma Hong, also absent from the ceremony for health reasons, was cited for his suggestions to restructure China's economy at a stable pace.

The vice-premier spoke highly of Ma's contribution to China's economic reform and development, and the far-reaching effect of his academic achievements on research and policy-making.

He urged the country's current crop of economists to emulate the award winners and build on their research.

Wu, 75, the youngest of the quartet, was honoured for lending urgency and substance to State-sector reform by breaking the "iron rice bowl" a system which guaranteed life-long employment and perks like housing but led to inefficiency.

"I accepted the award as recognition of the efforts made by our generation of economists during China's reform process," said Wu, who still works as a researcher with the State Council Development and Research Centre.

Having won the gratitude and admiration of millions of small shareholders whose interests he has vociferously protected, Wu is also well-known for encouraging private investment and the entrepreneur culture.

He is not, however, resting on his laurels or tempted towards complacency with the dynamic economy.

"We have still have a long way to go to perfect the legal system in China's market economy," said Wu. "Only by matching the rule of law with the market economy can we achieve total success," he added.

The fourth award winner, Liu, is not fully convinced the free market has all the answers to the economy he received his award for a theory he put forward on government's role in the market economy.

"Only when the government performs its role correctly can we fully realize a socialist market economy," he said.

(China Daily 03/25/2005 page1)