Please enable JavaScript.
Coggle requires JavaScript to display documents.
Industry and Agriculture - Coggle Diagram
Industry and Agriculture
-
-
First Five Year Plan
USSR advice
-
Sino-Soviet Treaty 1950
soviet advisers to China -- 100,000 civilian technicians specialised in civil engineering, industry, governmental organisation and higher education
employed with high salaries from Chinese, housed in China's expense
Plan's targets
-
problem: targets set above by econ planners than in response to consumer demand but heavy industry prioritised
not all industries nationalised -- only those belonging to foreigners and those in banking, gas, electricity and transport under state control -- fear from 5 antis made it possible to end private ownership
Successes and failures
-
-
low literacy skills of Chinese workers (needed to improve education) -- end of 1 FYP, less than half of children in full time education (only 6% of GDP went to education and culture, rest spent on military and industry esp during korean war)
countryside: food requisisioned to feed Russia for invaluable Soviet advice, sold cheaply to Chinese cities
GREAT LEAP FORWARD
Reasons
econ -- industrialisation dependent on agriculture, communes will free up peasants to become workers (limited by conservatives like Zhou Enlai and Chen Yun who wanted more consumer goods and higher food prices) Mao objected, industry not good enough to afford to pay generous prices for food
personal -- Mao's confidence at a high, after success of water conservancy and 1957 provincial tour, Mao believed it was possible to push forward GLF
political -- Mao determined to show USSR China could thrive without them, wanted China to be next leader of Communism
-
Features
decentralisation
decentralised econ activity -- give more freedom to local party officials to harness energy from masses, Mao believedd state bureaucrats would hold back change
backyard furnaces
-
steel target for 1958 raised from 6M->8M, then to 10,7M by Sept
-
families to have backyard furnace and to produce 'steel' -- responded well, by Sept 1958, 14% of China's steel from local furnaces, by Oct it was 49%
-
-
State-owned enterprises
private enterprises nationalised early in 1956 -- now state-owned enterprises (SOEs) -- prices, output targets and wages set by the state, no more bargaining
workers had guaranteed jobs and wages and medical and educational benefits -- but inefficient because it removed incentives to work harder, brought demotivation
Construction projects
Three gate gorge dam -- within a year 2x mud was deposited, foreign visitors banned from going near the dam
all over China, hundreds of smaller projects were instigated, some were relatively successful -- but at the cost of lives and labour taken away from farming
-
Lushan conference, July 1959
-
econ -- GLF would contine, China embarked on 'the second leap', agricultural policies on full speed
politically -- significant, became clear that no one could criticise Mao, Mao became more dictatorial later
Outcomes
-
-
-
failure: continued to lack levels of technical and managerial knowledge, bad quality control (caused bad trading reputation)
Liu and Deng's economic reform, 1962-65
shift back to centralised control, production targets reviewed annually and made more realistic
-
7000 cadre conference
called by Mao to stop any further drift away from communist principles, put Liu and Deng in danger