Mao's economic policies 1953-60

Question 1

What was the economic success of the economic policies between 1953-60?

Answer 1

• The annual growth rate averaged 16%.
• Industrial output grew 15.5% per year, outstripping the target of 14.7%.
• Heavy Industrial output nearly tripled.
• Railway freight volume more than doubled - enabling raw materials, equipment and machines to be moved around.
• Geological exploration discovered vital resources like oil, uranium and minerals in Xinjiang.
• The Second Year Plan: massive irrigation terracing helped make agricultural land more fertile, while construction projects changed the face of Chinese cities.

Question 2

What was the social success of the economic policies between 1953-60?

Answer 2

• The industrial working class grew from 6 million to 10 million. Investment was focused upon enormous industrial projects near cities.
• For example, the new steel centre at Anshan attracted 35,000 new workers.
• The standard of living of industrial workers improved. They had greater job security. Work was guarenteed all year round.
• Given that many workers were simply peasants who had recently fled rural poverty, this represented an escape from the precarious dependence on seasonal farm labouring.

Question 3

What was the political success of the economic policies between 1953-60?

Answer 3

• The regime wanted the Plan to accelerate the transformation towards socialism. In 1953 the state began to convert private firms into joint-state ownership.
• By 1956, private sector industry had been abolished.
• Large retail farms also came under the state ownership while small shops such as barbers and tailors were converted into co-operatives. Instead of competing for profit, they pooled their resources and labour.
• With greater urbanisation, the CCP was able to heighten its influence over the population. The large industrial plants could be organised on socialist lines, with committees of workers having an important say in how the factory was run.
• Workers were organised into Danwei, or work units, that controlled access to welfare support and provided permits for marriage and travel.

Question 4

What was the economic failures of the economic policies between 1953-60?

Answer 4

• The plan was too dependent on loans from the Soviet Union which had very high interest rates. In order to meet the very demanding repayment schedules farmers were forced to sell their crops to the state at artificially low prices.
• The value of agricultural output grew only an average of 2.1% per year, a sharp decline from the rate of 14.1 per cent achieved during 1949-52. - Increases in factory production depended on a healthy and productive working class but not enough food was being delivered into the cities to feed them.
• The supply of consumer goods was very low. This helped the Plan because the people saved more money and bought government bonds that further provided funds for the plan.

Question 5

What was the social failures of the economic policies between 1953-60?

Answer 5

• Although the government balanced the budget, there was little investment in improving the healthcare or education systems. The standard of living, especially among the poorest peasants in rural China, was still very low.
• There was still a huge shortage of trained doctors, particularly in rural areas, and many peasants received only a basic education.
• Second Five Year Plan: Mao’s overambitious policies caused the Great Famine, started in 1958.
• Approximately 30 to 50 million people died from starvation and malnutrition, due to Mao’s desire to have China ‘walking on two legs’ by increasing both agriculture and industry.

Question 6

What was the political failures of the economic policies between 1953-60?

Answer 6

• Mao let himself be convinced that the mobilisation of the masses could overcome all practical obstacles. He lost all sense of reality.
• He was overconfident and after the purges of his enemies in the early 1950s, no one would dare to challenge him and settle the truth.
• When reviewing the steel production target to raise steel production from 6 million to 9 million tonnes, he announced, “Make it snappy! Let’s just double it ! Why dilly-dally? Let’s make it 11 million tonnes!”