The First Five Year Plan

Question 1

When was the First Five Year Plan?

Answer 1

1953-57

Question 2

How was the USSR involved in the First Five Year Plan?

Answer 2

• Original plan was taken directly from 1928 Soviet model
  
  • was still an effective model in USSR
• Russian advisors poured into China at the time
  
  • advice based on command-style economic model characterised by state ownership and centralised economic planning
  • 1950 Treaty
• Loan from 1950 Treaty from USSR to help industrialisation
  
  • still had to be paid back in full + interest

Question 3

Why did they need to collectivise farming for the First Five Year Plan to be effective?

Answer 3

Focus on heavy industry was to be paid for by the peasants

Question 4

How did China get inflation under control from 1949-51?

Answer 4

• Slashing public expenditure
• Raising taxes on urban dwellers
• Replacing Chinese dollar with the Yuan ¥

Question 5

What was the goal of the First Five Year Plan?

Answer 5

To strive for a high rate of economic growth and emphasise development in heavy industry and technology.
- Mao wanted to transform China into a modern industrialised nation

Question 6

What areas were targeted for development in the First Five Year Plan?

Answer 6

• Mining
• Iron manufacturing
• Steel manufacturing
• Machine construction
• Petrochems
• Auto industry
• Major civil engineering works (road and rail bridges)

Question 7

What was the effect on industrialisation on urban populations?

Answer 7

Increase from 57 million in 1949 to 100 million in 1957

Question 8

What was the role of agriculture in industrialisation?

Answer 8

Agriculture was not a focus and was instead used as a means to supply/ support/ pay for industrialisation

Question 9

What was the effect on businesses in industrialisation?

Answer 9

Privately owned business owners were pressured to sell their companies or convert them to joint public-private companies
- 1956: No more fully privately owned companies

Question 10

What were the successes of the First Five Year Plan?

Answer 10

• Spending as a % of national budget increased in economic and industrial areas
  
  • indicates a slimming of bloated and corrupt administration of GMD
• Growth in workers income from in 1953-57 by 9%
• Industrial production grew by 19%
• Production in major target areas increased
  
  • 98% increase in coal production
  • Steel production doubled from 1953-57 compared to 1900-48
• Urban populations benefitted
• Urban and industrial workers workplaces subsidised housing, medical care and educational facilities
• Life expectancy rose from 36 to 57 years
• City housing standards improved

Question 11

What were the downfalls of the First Five Year Plan?

Answer 11

• State expanded their influence over citizens
  
  • life tightly regimented by danwei or work units
• Centralised state control increased
• Private ownership virtually impossible
• Rigid central planning and national demands meant local needs were neglected, esp. in countryside
  
  • 84% of population lived in rural areas, but 88% of government investment into towns and cities

Question 12

When was the Second Five Year Plan?

Answer 12

1958-62

Question 13

What were the goals of the Second Five Year Plan?

Answer 13

• Mao wanted PRC to become modern industrialised nation in shortest time possible
• Wanted to dissolve relationship with USSR to become truly independent
  
  • reliance on USSR model was annoying
• Quantities of steel and iron important but the people’s hearts and minds are more important