economy Flashcards
what were tv soongs reforms under the gmd?
BBC
B: BANKS UNITED BEHIND THE BANK OF CHINA.
B: BALANCE THE BUDGET:
C: CHINA DEVELOPMENT FINANCE CORPORATION: encoruaged individuals to buy shares in the company who would invest in the chinese mining industry. good reputation and produced large dividends dor shareholdrs. most of the profit went to the underworld and corruption
how did the GMD develop the economy?
FICUSES
- foreign deals: agreed with the west to support the economy
- infrastructure: railways and airlines introduced throughout china. road building program. by 1949 had built 50,000 miles of road. wasnt the best quality of roads but it was an accomplishment because at least they has a servicable road network
BURMA ROAD was a 700 mile road - civil service: modernised by thhe creation of special administration departments and training colleges. moved away from confucianism
- urban: schemes to improve urban transport and communication. modern buses and trams in major cities
- shanghai stock exchange and banking: chinese banks broughht under control of the central bank. shanghai stock exchange became an international financial market
- education: measures to improve the quality and availability of education
- subsidies to help the chinese film industry: based in shanghai and would become internationally renowned. govt supported fashion houses to compete with paris and milan
how did the gmd fail?
inflation began to increase. this was because of japanese occupation, which would reduce chinses resources and cause inflation. furthermore costs of sino-jap war and paying the army would increase inflation
- jiang order dykes to be opened in 1938 to prevent spread of armies. (intentional flooding to prevent the spread of the army). led to 800,000 deaths and famine
- govt had to start heavily taxing and nationalise private banks and finance companies. removed incentives to spend to make companie sprofitbale and this made inflation worse.
- china borrowed heavily from abroad and printed more money to make inflation worse
- china got foreigners to pay higher import and export duties, this began to suppress trade
- in 1967, mid sino-jap war there was hyperinflation and by 1949 currency had completely collapsed and had to be replaced
- gmd couldnt help people and became even less popular
what reforms did li (qing) introduce? CIST
- commercial deals: arrangec ommercial deals with foreign companies and governments in ports
- investment and infrastructure: created joint stock companies, private and govt agencies could invest to help them grow
- steamships: made sure they were used to help trading
- textiles: developed shanghai textiles industry
Li never embraced Western democracy or education, which meant it was harder to carry out capitalist reforms to the economy – which are based on freedom and skills. It did help the middle-class to grow
how did shenf (qing) reform the economy? BASIS
- banking: created imperial bank of china in 1897 and tried to stabilise finances. bank had the power to issue its own currency in order to become independent of foreigners and linking it with HSBC. the bank wanted to act independently of foreign influence but ultimately it couldn’t
- army: cadres sent ti study in japan, the navy bought new warships and built dry docks to build new vessels, arsenals extended
- simplifying duties and levies for china’s commerce
- industry and infrastructure: merchant shipping, ship building, textiles production: built more. built more coal mines. expanded railways- but relied on American loans to do so. treated telegraph system.
- created a university dedicated to engineering
What was the economic impact of the 100 days?
- The 100 days abolished Confucius exams which modified the civil service. There was also some industrial reorganisation.
- Empress Dowager Cixi stopped it as she use the opportunity to launch a coup against Guangxu. She joined up with the Conservative
officials who opposed the reforms, and with their support removed Guangxu from power. This made her look very conservative –
however in reality she actually liked reforms. Once in power Cixi supported some reforms in the 1900s. However, she made some
mistakes. Once she spent the annual naval budget on building herself a beautiful marble boat in her palace.
What was the economic impact of the boxer protocol?
Made China pay £68 million in reparations
• It led to another period of reform by Cixi
• It increased the Western Treaty Ports and Concession Zones. These were both resented and admired
• Chinese workers worked for them, treated badly but better than under Chinese employers
• Treaty ports and concession areas continued to be very successful – encouraged indigenous Chinese business too
• More railway construction
What was the economic impact under yuan Shikai?
The revolution itself had little economic impact
• Yuan negotiated a loan of $100 million from the consortium in 1913 to develop China. He had to agree to harsh terms to accept this.
What impact did the warlords have on the economy ?
The constant fighting and lack of unity caused economic
disaster and weakness. Some areas of China did better than others.
• Following the 4th May movement the Cult of Science began, which began a greater embracement of Western technology and ideas,
which helped the economy
What was the impact of the first five year plan on the economy?
Successful:
+ urban migration (doubled to 100 million) from GMD, NRC of GMD with managers and workforce, large potential work force).
+ managed to meet demands of Korean War and cope with its expenditure
+ 9% growth
Consequences:
Whilst it had really improved China, it wasn’t yet a modern industrial state, or at the same level as the West, had to catch up fast and overtake them to Communism, so did the Great Leap Forward,
- wanted to match USSR achievement without slavishly following them, finding their own way, like in their ideology
What was the causes of the Great Leap Forward? 1958-1962
Why did Mao’s Great Leap Forward occur?
- wanted to become more independent from Russia. The first five year plan had relied heavily on Russia for advice and china was following their way. China wanted to follow communism in their own way. Furthermore, Khrushchev had come to power and made Russia more moderate
- the first five year plan had allowed them to catch up with the west and now wanted to overtake the west.
- first five year plan was successful, hoped that the second five year plan would also be successful
What events took place under the Great Leap Forward?
- collectives introduced
- SOEs introduces
-agricultural reforms and famine caused as a result
What did Mao believe would drive the Great Leap Forward and why did he believe this?
- mao wanted to utilise chinas massive population to drive forward agriculture. Wanted to do this using traditional methods and manpower. People were called the empror’s blue ants
What successes were there of the Great Leap Forward?
Agriculture: successes: collectives became communes on a mass scale: 120 million households and private farming ended. In this way they were successful because they met their goal
Failure: famine in Tibet. There was no incentive to ,are extra produce as they couldn’t sell it and Lysenkoism was deeply flawed. Sparrowcide weakened Tibet and stopped the, growing barley: made the, grow wheat and maize instead. Mao didn’t accept the failure of the second five year plan and food piled at the side of the road, production targets were lied about and claimed it was due to bad weather or hoarding of grain or the mistakes of local officials
What were the successes of industry in the Great Leap Forward ?
Success: a lot of work done with little machinery and forced labour of prisoners
Failures: production trailed off in 1960 due to almost daily upwards revision of targets and backyard furnaces would create sub standard products that weren’t any use- they would end up being buried
The failures occurred because backyard furnaces were unsuitable, SOEs removed incentives of wages, no technical skills, managerial know-how, efficiently run factories and plants, inadequate transport, inaccurate figures from industry leaders and then officials sent to check them changed them too, emphasis on quantity, few detailed insurctions on how to do things – all threats, no integrated national plan, USSR withdrew technical assistance, Mao didn’t have practical or economic know how
How successful were liu, Chen and deng’s reforms after the second five year plan?
Introduces private far,ing and this created an inventive to produce excess crops to get out the famine, sell abroad and fund industrialisation
Successful: budget deficit of 8 billion turned into a surplus of 1 million by 1962, agricultural production restored to levels before the Great Leap Forward, industrial growth reach 20%, 10 fold increase in oil production
Failures: mao denounced it. Seen as going against communism and embracing capitalism
What was Dengs modernisation of agriculture?
Why?
- communes were abandoned and Xiangs used instead to meet food production and output quotas. This would provide the peasants with an incentive to increase agricultural output by allowing them to keep their profits
Success?
+ agricultural production increased by a lot. Index of 100 in 1952. 452.0 in 1989
Failures?
- tenancy on farms wasn’t guaranteed so there was no incentive to modernise or invest
- traditional methods of farming would continue to be used
