- Created by: jaydene5
- Created on: 27-11-18 15:05
Controlling the Economy
(Collectivisation,1st five year plan & 100 Flowers Campaign)
Collectivisation of agriculture [1953-57]
Mao and the peasants :
Mao’s long term aim = Transform China into Socialist – society
He wanted to group together small, privately owned farms into much larger, collective farms.
He knew peasants showed a ‘spontaneous tendency towards capitalism.’ -> Mao needed their support.
However Mao believed collectivisation would have to wait:
èHe thought in their political and economic situation they were not ready.
èHowever Mao generally favoured a rapid rate of change
Steps Towards Collectivisation:
· In 1951, was a step towards a more cooperative form of agriculture. Groups of 10 peasant households were grouped together to share resources. This was only for the poorer peasants, isolating the wealthier.
· In 1952-3, the first Agricultural Producers’ Cooperatives (APCs) grouped together 30-50 households. Any profit was shared.
· In 1953-5,period of confusing and contradicting directive by Mao. To meet target, peasant were often forced in cooperative that ran in debt.
· In 1953, Mao slowed things -> In 1954 he sped it up after ‘spontaneous capitalism’ was present.
· In 1955, Mao decided to push for rapid collectivisation
The Consequences of Collectivisation:
CPC control in countryside was strengthened
Collectivisation put the pace of change into question
Mao was convinced that material condition didn’t need to be the decisive factor in dictating the pace of change. [Caused catastrophic results later on]
The impact of agricultural production was disappointing. From 1953 to 1957(5 year plan) agricultural production grew only 3.8%. Grain production only increased 1%.
Peasants living standards are debatable
èBelieves peasants were better fed in 1956-57 than early 1950s.
èSaid peasants experienced severe hardship as result of collectivisation.
Industry and the First Five Year Plan
China had seen considerable industrialdevelopment before communist took control in 1949.
· In late 19th century foreign capitalist exploited China’s coal and mineral reserves. Cities like Beijing and Shanghai had become important industrial centres.
· Under GMD control in 1920s and 1930s, miles of roads and railways were built with an increase in coal, iron and steel production.
· In 1922, 78% of Chinese coal mines were in foreign hands.
Balance of payments:
Difference between what a country earns by exports and what it pays for imports
Under GMD rule, China’s foreign trading account (balance of payments) k was consistently in deficit
Despite growth, imports of foreign manufactured goods increased.
Mao and the CCP wanted China to be self-sufficient.
Under Communist Rule:
· Foreign-owned businesses were nationalised
· Foreign trade kept to a minimum
· Balance of payments kept in credit
Industrial development was absolute priority, Mao believe it would take 15 years…