deng's economic reforms 1976-81

deng's economic plan centered away from centrally planned economy to re-introduction of market forces and trade

agricultural policies:

communes/collectivisation abandoned

household responsibility system introduced

land owned collectively as long as peasants paid taxes/contributed to local targets(were allowed to keep excess to sell for profit)

entrepreneural spirit created

growing crops suitable for local terrains encouraged

peasant families farmed same land for generations-this was successful(98% farming households adopted this system by 1984)

farm output rose by 8-10% a year

grain yields 2.5 tonnes/per hectare-3.5 tonnes/per hectare

state said it would extend leases but peasants were wary of this promise

natural disasters were also still a threat

industrial policy:

plan was to decentralise economic planning and…