The First Five Year Plan in China
- Created by: evasophia
- Created on: 09-04-18 14:33
View mindmap
- The First Five Year Plan in China 1952-1956
- Was introduced for Industry
- Closely mirrored that of the Soviet Unions and the shift to centralisation.
- Market forces would not influence how much was produced so clear targets were produced and monitored.
- "The Communist Party of the SU is our best teacher and we must learn from it"
- "The SU's today is our tomorrow" - CPP SLOGAN
- According to CCP statistics, the CCP in 1949 was just 10-20% of its pre-Second WW peak.
- Closely mirrored that of the Soviet Unions and the shift to centralisation.
- A trade embargo meant China had limited trading partners
- The SU was China's only real ally after their involvement in the Korean War.
- This forced them to rely on economic help from the Soviet Union because no one in the West would trade with them,
- The USSR's support
- Sino-Soviet Mutual Assistance Treaty - FEB 1950.
- Rendered all economic help when it was necessary.
- Their support was extensive and essential.
- Constructed / reconstructed 156 major industrial enterprises including 7 iron and steel plants and some that were constructed in the USSR were even sent to China.
- Sent over around 11,000 industrial experts to supply the technical knowledge that the country had lacked in organising a centrally planned economy.
- Invited 28,000 Chinese technicians to study in Russia in order to learn from 'elder brothers'.
- Loaned them $30,000 over the next five years.
- Sino-Soviet Mutual Assistance Treaty - FEB 1950.
- The SU was China's only real ally after their involvement in the Korean War.
- The Plans Targets
- "Gradual realisation of the industrialisation of the state"
- A high rate of growth in heavy industry such as steel or coal.
- Investment in advanced technology.
- Construction of modern industrial sites.
- Stimulate the transformation of a Socialist society - "There is only one real foundation for a socialist society, and it is a large industry" - LENIN.
- The Plan's Successes
- Annual growth 16%.
- Industrial output grew 15.5% each year.
- Heavy industry output nearly tripled.
- Geological exploration discovered vital resources like oil and mineral in Xinjiang.
- Industrial working class grew from 6 million to 10 million.
- In 1953 the state began to convert private firms into joint state-private ownership. By 1956 private sector industry had been abolished, proving a closer step to socialism.
- Work was guaranteed all year round so standards of industrial workers living improved.
- The Plan's Failures
- Was dependent on loans from the USSR which had very high interest rates. Forced farmers to sell their crops at artificially low prices.
- Increases in factory production depended upon a co-operative and healthy working class, but not enough food was being imported into the cities to feed the people.
- The supply of consumer goods was very low and although this helped the Plan as people saved more money, there was little available to buy in the shops.
- Despite the budget being balanced as best as possible, there was little investment in healthcare or educational systems. The standards of living in China were very low.
- Was introduced for Industry
Comments
No comments have yet been made