2- First Plan Flashcards
First Plan 1952-56: Reasons for Launching
- Success of Soviets, transforming from a peasant country into an industrial power in 20 years.
- The Korean War made China’s leaders worried about foreign invasion. Military needed to be stronger.
- Maoism and Marxism both taught that socialism and communism could only be achieved in a fully industrialised society.
1st More reasons for launching
Mao regarded the establishment of a much stronger industrial base vital if China was to develop as a world power. - Aim to make PRC as self-sufficient in food and manufactured goods as possible to protect China in a potentially hostile capitalist world.
1st Successes- ideological
- Centrally planned economy fit with political agenda and private industry was abolished, making China more socialist. The last private factories were nationalised in 1956.
1st plan coal and steel
- Coal: 68.5. 1957: 130. Exceeded the target
- Steel: 1.35. 5.35
First Plan- The annual growth rate
about 9 percent per year during the plan, comparing favourably with the Russian experience.
First Plan-Urban living standards
Urban living standards improved in terms of wages and job security. Wages increased by nearly 40 percent
First plan successes- urbanisation
More migration to the cities. Urbanisation- the number of people living in cities increased by four million. Urbanised countries have strong economies because there are more people to buy things, generating more money for manufacturing.
1st plan successes- Major improvements to China’s infrastructure-
6000km of railway lines were built, connecting China’s major cities. The Wuhan bridge across the Yangtze was completed in 1957.
1st Plan- Industry growth rate
Industry grew at around 16 percent per year 1953-57
1st Plan industrial production
Heavy industrial production tripled in size 1953-57. Coal, steel and electricity production all exceeded targets
1st Plan successes- Mao’s power
The successes of the first plan were very important for Mao’s leadership. They convinced the CCP and the Chinese people that Mao knew exactly how to make China a powerful, modern, socialist country. Confident Chinese people now believed in communism so launched 100 flowers.
1st Failures
- Soviet borrowing.
Had to pay salaries for over 10,000 civilian technicians and housed at China’s expense. $300 mil lent by Russia had to be repaid with interest. Soviet Union began to gain large influence: new office blocks in ‘Soviet brutalist’ style, language penetrated education. TASS, the official Soviet news agency, became the main source from which the Chinese newspapers gathered their information. Lysenkoism. Exposed shortcomings in the skill and literacy levels of Chinese workers. Had to send gold as security for the loan.
1st F. Figures
Unreliable figures, officials exaggerated. The emphasis on reaching targets put the emphasis on quantity over quality.
1st F. Lack of experts
- The antis campaign had driven out economic planners at managerial level because they had worked for Nationalists so the standard of bureaucratic administration suffered.
1st F Competition
- Competition for resources between private and state-owned enterprises.