Ideologies and Individuals behind economic growth Flashcards
What was chinese ideology prior to the 1860s
China was the most superior power in the world and anything foreign was barbaric and intolerable, based on traditional Confucian beliefs
How did Traditional chinese ideology stifle economic growth
Very stark beliefs at maintaining the status quo and not adopting any western ideas. Qing government as authoritative meant if they didn’t want to grow then china wouldn’t
What beliefs started to infiltrate china in the 1860s
Western beliefs of industrialisation, trade and commerce, revitalised banking system, new religious beliefs
What really held back Chinas economic growth compared to Europe in 1860
China had not industrialised due mainly to Feng shui and confucian beliefs, so were incredibly far behind European powers economically
What was the prevailing ideology among western powers especially Britain in the 19th century
Free Trade
What was the main premise of the self strengthening movement
China must first be economically powerful to force foreigners from their land, they must be patient and build industry and military whilst maintaining dynastic and politcal stability
Who in the Qing government were enthusiastic towards the self strengthening movement
Prince Gong
Who first proposed the self strengthening movement and when
1861 Feng Guifen, proposed that western technology should be employed in china to solve their problems whist maintaining confucian order
When was the first phase of the self strengthening movement and what did it focus
1861-72, Focused on military and scientific ideas.
What did things did they develop military and science in the first self strengthening movement
- Purchased battleships
- established shipyards
- established munitions factories
- translated scientific texts into chinese
- sent officers to be trained in Europe
- Hired western advisers and engineers
What were the factors holding back the first phase self strengthening movement
- conservative elements in the Qing government
- corruption as officials would divert funds
What was the change in the 1870s in the self strengthening movements focus
Until economic sufficiency had been achieved military modernisation would have no effect
What parts of the economy were developed in the second phase of the self strengthening movement
- Coal
- Cotton
- Steam
Why weren’t steamships profitable
Sailed the unprofitable routes as foreigners controlled the profitable ones
How did lack of economic liberalism hinder chinas economic growth in the 1800s
Government held too much control over economic projects and didn’t allow chinese businessmen and entrepnerus to operate efficiently and profitably
When ddi heavy backlash towards the self strengthening movement occur
third phase in 1880s and 1890s
How did defeat to Japan affect the self strengthening movement
Evidence that it had failed so there were increased demands for modernisation especially military
How did demand for modernisation change after war with Japan
Intstead of just progressive government officials and businessmen, many students and peasant classes supported need for change, openly criticised the government
What two political ideas emerged in the 1890s as it became more accepted to talk about modern reform
- Political liberalisation
- Industrial Modernisation
How many new schools were established in china from 1895-98
183
When did new interest in western science and technology develop among chinese educated classes, and criticisms of traditional Confucian beliefs begin and what was it called
May 4th Movement, 1915-24
What event caused chinese values to be rejected by modernising educated classes
1911 revolution failure as modernised republic was overthrown by traditional warlords views
Paris Peace conference when and what
1818, Meeting of many nations after WW1 which awarded Japan Germanys possessions in china
Being government
Post revolution government under Yuan Shikai
What caused the 4th May protests in 1818
Chinese were happy after the First World War as they believed it would cause the end of imperialism and they would be autonomous, This was crushed when the Paris peace conference supported japans claim in china
What ideology was 4th may movement
nationalist
Events of the 4th may protests 1818
- Began with students in Tianamne square
- Turned into violent rioting and sacking Japanese embassy
- ## All sorts of chinese people joined not just students
What was the main focus of the 4th may idea
Emergence of new political and intellectual ideas and rejection of traditional chinese beliefs
Who was Chen Duxui and what did he write in 1815
Founder of the communist party who wrote about a magazine of new intellectual ideas in china
Cai Yuanpei
Encouraged students to travel to the west to absorb modern scientific and economic ideas
New Culture Movement
1910s and 20s when generation of chinese intellectuals and writers could write freely about their new ideas and ideas criticising old chinese beliefs in the protection of treaty ports
What did chinese middle class merchants in treaty ports protest for
Abolition of extraterritoriality as they felt foreigners limited their economic potential
Shanghai Commercial Association 1919
Political organisation to represent chinese businessmen in the city. Organised complete boycotts of Japanese goods, spread across all class groups in Shanghai
What happened to the new culture movement in 1922
It began to drift into two directions of western ideas, one of marxism, and the other being pragmatism focusing on not fixing on an ideology but using the best for the moment to help china, essentially basis of GMD and CCP
How did Mao believe economic growth should happen
Follow the marxist soviet model by using propaganda and state coercion to focus heavy industry growth
Who’s instructions did Mao follow
Stalin
1950 Treaty of Friendship alliance and mutual assistance impact on economic growth
Russia sent over large amounts of economic advisers, many raw materials to be shipped back to USSR and USSR control over port Arthur
—–> exploitation meant Maos attitude to Russia started to sour
How did Korean War impact economic growth
China were blockaded so only trading partner was the ussr who they sent large amounts of agricultural prodcuts to in return for industrial equipment
What percentage of chinese industry was heavy in 1949 compared to 1952
26% compared to 42%
Why did Mao focus heavy industry
Wanted to develop a powerful military so first needed powerful heavy industry
Maoism
primary difference from Marxism was he believed the peasant classes in china rather than industrial working class would overthrow capitalism
What were Maos disillusions
He was the world leader of communism after Stalins death, he could implement his second five year plan that within a decade would make china the biggest economic power In the world
Walking on two legs
Maos idea of chinas self sufficiency , mainly focusing on agricultural efficiency would allow many peasants to move to urban areas and so industrial growth would then occur, big focus on peasants which soviets disagreed with
Landlordism
Maos term to denounce any chinese peasants who owned land as they were accused of exploitation
Self denunciation sessions
Those accused of landlordism were forced to stand in front of large crowds and admit to hundreds of crimes invented by communism, Cadres then forced the public to become angry and violent so that the landlord may be executed or imprisoned.
Cadres
The CCP activist in a village who became the ultimate authority and spread communist doctrines and enforced them
How many former landlords were executed from 1950-54
1 million
Agrarian Reform Law 1950
Maos order of the redistribution of land between peasants.
Why did Mao believe land reform was necessary
It was necessary in creating a socialist economy by creating equality in society
How did Land reform disrupt agricultural production
Full time large scale knowledgeable chinese farmers had lost their land or been murdered, not less knowledgeable peasants were in control of larger amounts of land with insufficient tools
Soviet collectivisation
resulted in 3-5million deaths but Mao saw this as necessary for revolution
Problems with Collectivisation in china
- People refusing to share were treated with violence
- Tools were broken and not taken care of due to no ownership
- Caused famine in 1953
- Caused many peasants to trade land amongst themselves
Collectivisation
Village cooperatives owned everything equally and no one had private property.
Government Monopoly on grain
Mao believed collectivisation wasn’t having good results because of those refusing to obey, so implemented an amount that villages would have to supply the government with which was unrealistic and caused famines and black markets.
1978 how many lived in poverty in china
1/4
What did Deng realise in 1978
He was purely concerned with economic prosperity and not attached to one model, realised they needed a state ran capitalism in order to achieve economic growth
What did Mao always accused Deng of
Being a capitalist roader, suspected of supporting western ideas and deviating from the communist model
What was the opportunity Deng saw for chinas economic growth
Western countries looked to import cheap goods from overseas so Mao saw an opportunity to create a large manufacturing industry that could export to all the western powers
Dengs reforms of Maos policies
by 1981 45% of agricultural collective work teams had been broken up, by 1983 98%, He allowed farmers to produce whatever they wanted without quotas which greatly increased agricultural output
TVE
Town village enterprise - Allowed china to become industrialised as private enterprises would bring light industry to villages like small electrical goods
SEZ
Special Economic Zones - Created areas where businesses could operate with much lower taxes and regulation, rapidly generating jobs and economic growth, also generated FDI
Why did Deng situate SEZs away from political centres in china
He was still wary of the western influence that increasing capitalism would bring to those areas
Negative impact of Dengs reforms
- Corruption as party officials used the SEZ to import 1.5 billion dollars of cars without paying taxes
- Opposition from conservative maoists in the party
- Caused major social inequality in china as so many left the countryside to travel to SEZs
Shenzhen population in 1979
300,000 poor infrastructure
When did Shenzhen become an SEZ and why
1980 because it was a rural backwater town, built steel fences around it
How much did Shenzhen economy grow by each year between 1981-84
75%
Chinese annual growth from 1981-1993
9.6%
How many workers were there in Shenzhen by 1992
3 million
What did Capitalism bring and why did Deng oppose it
Brought democracy into western investment areas but Deng believed chinese population was chaotic and anarchic and needed a socialist structure to maintain order
Pro Democracy Movement
1989 student movement and protests for democracy, culminated in tianamen square massacre
Financial Liberalisation
1992 Deng reduced government control over Banks and allowed stockbrokers to buy sell and borrow
What was the international view of Li Hongzhang
Foreigners liked him a lot as he was open to European trade and wanted to modernise
What was Li Hongzhang appointed as in 1871
Viceroy of Zhili, area around Beijing, showed he had a lot of power in imperial china
What did Li Build in Zhili in the 1870s and 1880s
Coal mine, railway, cotton mill, steamship company
How did Li Hongzhang improve the communications in china
Introduced the telegraph aswell as a postal service modelled of the British system
How was Li a realist and pragmatist
He realised that the west was far superior to china and that confucian order no longer applied, he realised the need for adoption of western techniques in order to become more powerful
Why was Li Hongzhang mostly ineffective
There was a lot of resistance to his modernisations from the imperial court in cixi
What was Li Hongzhangs reputation after his death in 1901
He was condemned by the may 4th movement for accommodating foreign powers, Mao also condemned him as a bourgeois capitalist
What was Sheng Xuanhais understanding and how did he develop this
Had a great understanding of western capitalism and learn this through serving as Li adviser.
How did Shengs understanding differ from Li Hongzhang
He had a greater understanding of the importance of banking and bank lending to develop business and industry
What was Chinas moneylending like prior to 1890s and western infleunce
Aimed only to exploit peasants for personal benefit and not for the good of business
What was Banking like in china prior to 1897
Only western owned banks in Hong Kong and Shanghai, so all chinas investment had to be funded by europeans and came with other pressures.
What did Shang do in 1897
Established the imperial bank of china
Imperial Bank of China
Chinese bank based on European ideas that served to strengthen and stabilise the chinese government by stopping the need for European funds
What did Li Hongzhang and Sheng do in the boxer rebellion
They formed the The mutual protection of Southeast china which refused to support and tried to block Cixis declaration of war on European powers
Where did TV Song get his education
Harvard and worked in the international banking corporation in New York
When and why did TV Song return to china
1917 Sun yatsen enticed him to return to help salvage chinese financial systems and work with the GMD
What reforms did TV Song introduce in Canton in the 1920s
- Simplified tax system that doubled gov revenue
- Regulated Banks making them safer for deposits so savings rose by 600%
- Created a National Debt which is useful for borrowing
- Cracked down on corruption and smuggling which increased tax rev
What did TV Song introduce in 1931
- Established the National Economic Council for loans for investment projects
- Opened Bond and Stock market in Shanghai
What did TV Songs economic growth exclude
Was very uneven as it only focused cities and large economic ones, no economic development for the rural population
What was the problem with TV Songs taxes
His taxes aimed to tax an emerging middle class by taxing consumer imports, but the middle class was very small as many were still farmers or artisan workers, economic growth was very low so taxes weren’t generating a lot of rev
Why weren’t TV Songs economic reforms prioritised
Chiang prioritised military spending in his campaign against the communists - This caused TV to resign in 1933
What happened after Song resigned
The GMD started printing money to pay for the military causing inflation and depreciation, economy and living standards had barely improved
What was Maos economic ideology
In his five year plans it is clear he wanted complete eradication of capitalist land owning values in exchange for communes and collectivisation
What was Maos economic ideology so flawed
He had no economic knowledge and it was based on a hatred for capitalism, he also ignored the views of his economic advisers as he thought they were all too rightist
How did Mao hinder economic and living standard development in the late 1960s
He inspired the cultural revolution which purged many skilled workers and intellectuals china had, took most students out of education, opposed modern scientific thinking.
What did Mao do in 1972 and what was the reasoning
He met with Nixon to arrange a technology transfer to develop chinas scientific industry
What were the economic effects of the cultural revolution
- Steel production fell by 75%
- National income fell 3%
- electricity production fell 30%
- Lack of low level business trading due to red guard oppression
What was the economic outcome of Mao
Created so much chaos and violence and widespread famine, devastated chinese agriculture and industry leaving people very impoverished
How did Deng allow capitalism but stop a capitalist Democratic Party forming
He put strict limits on MNC and FDI into SEZs
How many peasants left agriculture for cities by 2000
100 milioin
What was the problem emerging in Dengs china
expanding industry and manufacturing aswell as newly introduced property ownership was widening the gap between rich and poor as peasants living in SEZs had very low wages and low living standards, privatisation of many state provisions like schools and healthcare
What was the imperial bank of china a product of
- Self strengthening movement
- Need for large long term loans for infrastructure projects
What were the two types of chinese banks prior to the imperial bank
Piaohao - Government relied on to pay wages
Qinzhung - Small moneylender who offered loans to farmers and small businesses
Why was there such a big need for the imperial bank in the 1890s
- Many Banks were refusing to lend to the Qing or imposed huge interest rates, due to their instability
- Banks were too small for large scale loans the Qing needed for infrastructure
When did Li Hongzhang first propose a Sino-American Bank
1876 –> was opposed and never taken up due yo conservative Qing elements
Why was the idea of the imperial bank taken up in 1897
Prince Gong support
How many loans had the imperial bank issued by 1899
8 million dollars
How was the Imperial bank a clear product of the self strengthening movement
It was modelled off of western models in Shanghai and Hong Kong, it also rejected all tradition chinese moneylending structures, rejected merging offers from foreign powers
Why did the Bank collapse in 1899
- Branches were destroyed and looted as symbols of western influence in the boxer rebellion
- Counterfeit notes circulating in Shanghai also caused a loss in confidence and run on the bank
What did TV Song create to try and succeed where the IBC had failed
China Development Finance Corporation
When did Chiang write to the League of Nations asking for financial development assistance
1931
Why did the GMD want financial development
To be able to fund infrastructure development without relying on foreign loans
Who came to China in 1832 to encourage joint business ventures with chinese banks to foreign investors to collaborate on projects
Jean Monet
Why was the China development Finance Corporation valuable and important
It helped to introduce FDI into china to develop infrastructure but in a. way that wouldn’t exploit and over exert foreign political control over china
What did Mao believe was chinas biggest strength
Its was population
How did the second fiver year plan differ form the first
Second diverged from USSR Leninist ideals and shifted focus to mobilising the peasant class
What was money replaced by in communes in second five year plan
Work points that could be exchanged for food
How many died from the famine following the second five year plan
40 million
How did Mao encourage steel production
He promoted backyard steel smelting furnaces, that peasants smelting scrap steel could be turned into high quality steel for industrial growth
—> He demanded steel production double in a year
What was Maos reaction when he found out the backyard steel furnace didn’t work
he allowed it to keep happening to preserve public opinion and communist morale
Hundred Flowers Campaign when and what
1956 Mao ecncouraged critics to speak out and then arrested them all, therefore no one spoke out on the wrongs and ineffectiveness of Maos second five year plan
1959 Lushan conference
Review of the second five year plan many criticisms of Mao which continued leading to his sidelining in 1962
Why were many of Maos plans ineffective
He dismissed experts ideas as he saw them as modernised and counter revolutionary
Four modernisations
Defence, agriculture, industry, science and tech
1975 National peoples Congress
Zhou and Deng and other modernisers were elected to take control of china to correct the aftermath of the cultural revolution
How did Deng and Zhou push through reform
They pretended to be loyal to Maos vision but ignored all elements that hampered economic reform, they also convinced people they had dying Maos support
Dengs military modernisation
He advocated for improved efficiency in the army and less factions and independent loyalties instead to only be loyal to the CCP
Dengs Industrial modernisation
- Set up the iron and steel leading group to attempt to revive industry
- Also redeveloped railways and transport after cultural revolution
Science and education modernisation
devastated by the cultural revolution, Deng condemned and stopped all attacks to intellectuals and pushed students to return to schooling
What were Maos three principles that Deng manipulated to his use to maintain maoist and public support
- Opposing revisionism
- Stability and Unity
- Improving national economy
