Agriculture and Industry - The First Five Year Plan

Question 1

Why did Mao launch the First Five Year Plan?

Answer 1

• Saw success of Soviet plans under Stalin in the 1930’s
• “Soviet Union is our best teacher and we must learn from it “
• Mao hoped to develop into a modern industrial superpower
• Soviet Union was China’s only key economic partner

Question 2

USSR’s support

Answer 2

• Mutual Assistance treaty of 1950
• Construction of 156 major industrial enterprises
• 11,000 Soviet and European industrial experts helped design, train and construct
• 28,000 Chinese technicians to study in Russia
• £300 billion loan over 5 years

Question 3

Plan’s targets

Answer 3

• High rate of growth
• Investment in technology
• Construction of modern industrial plants
• Self sufficiency
• High grain procurement
• Transformation into a Socialist society

Question 4

Plan’s successes

Answer 4

• Growth averaged 16%
• Industrial output grew by 15.5%
• Heavy industry tripled
• Industrial working class grew to 10 million
• Standard of living improved with development of socialist society - job security
• Greater urbanisation - heightened CCP control

Question 5

Plan’s Failures

Answer 5

• Dependent on loans from the USSR - high interest rates
• Growth in agricultural output declined to 2.1% from 14% in 1952
• Low supply of consumer goods
• Chinese management lacked organisation and skill - central planning
• Little investment in healthcare and education - S.O.L low

Question 6

Conclusion of First Five Year Plan

Answer 6

• Great success for the CCP as urbanisation increased their power over the people
• Loss of personal freedoms
• Increased tension between China and the USSR - high costs from supposed ‘ally’
• S.O.L rural peasants very poor