Topic 12 - An Overview of the Mao Period

Question 1

What did Mao declare on October 1st, 1949 at Tiananmen Square?

Answer 1

“Chinese people have stood up”

Question 2

When was the Mao era?

Answer 2

1952-1978

Question 3

Describe China’s condition at the end of the Mao era.

Answer 3

Although a major political and nuclear power, China at the end of Mao era was internationally isolated, technologically backward and economically destitute

Question 4

What is the timeline of the Mao era?

Answer 4

1949-52: Recovery and stabilization.

1952-57: Growth of a mixed (state and private) economy and the beginning of collectivization.

1958-61: The Great Leap Forward and The Great Famine.
- 1960: Break-off with Soviet Union.

1962-65: Temporary retreat from radicalism.

1966-76: Cultural Revolution
- Nixon visit in 1972

Question 5

At face value, what do economic statistics indicate about the performance of China during the Mao era?

Answer 5

The country was performing well. economic growth on aggregate remained positive.

Question 6

Why could economic statistics be said to be misleading during the Mao era?

Answer 6

Much of growth in output came from heavy industrialization, often in the form of enormous waste, unused inventories, unfinished construction projects and most importantly defence related projects

Question 7

Why were TFP growth statistics negative during the Mao era? (Perkins and Rawski, 2008)

Answer 7

Because of the large increase in capital and investment

Question 8

What statistics during the Mao era could be used to indicate that living standards had improved?

Answer 8

Increased life expectancy, increased years of primary education

Question 9

What forms off infrastructure improved during the Mao era?

Answer 9

Irrigation and transport

Question 10

What was the caveat of the improvements in physical infrastructure in the Mao era?

Answer 10

75% of the railways that were built were in Western China

Question 11

What economic strategy did the CCP choose to develop China after it came to power?

Answer 11

A planned economy with heavy industry being the development priority

Question 12

Why did the CCP use the economic strategy that they did?

Answer 12

They were essentially copying the Soviets. The CCP’s leaders held the economic vision that the market economy is the source of exploitation, which is against Marxism.

Question 13

What were the 4 primary Maoist objectives?

Answer 13

Maddison:
1) Property rights away from landlords, national bourgeoisie, and foreign interests

2) Consumption squeezed, huge influx of spending on heavy industry and administrative mechanisms
3) Prices, wages, labour movement fixed in large central planning mechanism, commitment to full employment
4) Foreign trade become state monopoly, almost all trade with other communist countries

Question 14

What happened to the agricultural sector in the Mao era?

Answer 14

It was sacrificed (by cutting prices) to control factor prices

Question 15

What were some of the social failures in the Mao era?

Answer 15

Political campaigns leading to crude political suppression. Also there was a lack of property rights or human rights.

Question 16

Why did China focus on heavy industry specifically after 1950?

Answer 16

1) International environment: Cold War, fear of Western nations’ attack, preparation for attacks from nationalist government who fled to Taiwan
2) Chinese context: One century’s humiliation, people were calling for strong leadership and a sense of strong state and therefore heavy industry and military power was the priority (Heavy industry is the foundation for military industry)

Question 17

What are the main disadvantages of the economic system implanted in China during Mao Era?

Answer 17

1) A fixed wage + no private ownership meant no incentive to work harder or over-fulfil targets. There were free riders and no innovation.
2) Sacrificed some booming industries and regions (manufacturing and coastal areas)

Question 18

What explained the relative success of the first decade in Mao’s period?

Answer 18

They established a mechanism to increase saving and investment and used effective polices to allocate that investment

Question 19

What are Five-Year Plans?

Answer 19

A series of social and economic development initiatives. The economy was shaped by the Communist Party of China through the plenary sessions of the Central Committee and national congresses.