The First Five Year Plan - 1953-1957
- Created by: sammilaw
- Created on: 02-01-15 12:14
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- The First Five Year Plan - 1953-1957
- Aims:
- To industrialise China
- To catch up with the West (i.e. UK, USA) in production of coal, steel and petrochemicals
- To use Communist/centrally planned methods
- To make China a Superpower
- The Help of the USSR:
- Mao was impressed by Stalin's previous five-year-plans
- USSR was the only country after the 1949 revolution to offer China economic aid
- Achievements:
- Construction of large infrastructure projects i.e. at Nanjing
- Increased production of:
- Coal (doubled), machine tools (tripled) and steel (quadrupled)
- Increase in trucks and bicycles
- Sino-Soviet Pact (1950):
- 10,000 soviet economic advisers (helped build 200 public buildings)
- $300 million credit from USSR
- 9% growth rate
- Inflation reduced from 1000% to 15%
- Failures:
- Sino-Soviet Pact (1950):
- Only 5% of the capital sent to China was genuine industrial investment
- The rest was in the form of loans and had to be paid back with high interest rates
- The Chinese had been exploited (souring of Sino-Soviet relations)
- The rest was in the form of loans and had to be paid back with high interest rates
- Dependant on the USSR - China not a superpower
- China had to pay for adviser upkeep
- Suggestions that Stalin deliberately prevented an early armistice in Korea to exhaust the Chinese
- Only 5% of the capital sent to China was genuine industrial investment
- Increased PRC expenditure:
- 1950: 6810 million yuan - 1957: 29,020 million yuan
- All businesses were state controlled by 1956: little room for initiative/creativity
- Officials exaggerated figures to keep CCP happy
- Sino-Soviet Pact (1950):
- Aims:
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