Today— Creating a New Political & Economic Order
Founding of the People’s Republic of China October 1, 1949
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Creating a New Political & Economic Order
“State building” issues still very much present around the world today
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Creating a New Political & Economic Order
Initial Period of “New Democracy “ to attract broad support United-front doctrine
Embraced all people who would subscribe to CCP leadership
Put forward by Mao as early as 1940 essay “On New Democracy”
Reemphasized in 1948 as sought to unify country
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End of “New Democracy”
Korean War, 1950 CCP Use of political campaigns
Assert political control Eliminate enemies Identify and recruit new party activists
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Campaigns
Nationwide Suppression of Counter-Revolutionaries
against KMT remnants (Feb. 1951) Rural
Land Reform landlords Urban
Thought Reform of Intellectuals (Oct. 1951) “Three-Anti” 三反 (Late 1951) officialdom “Five-Anti” 五反 (Early 1952) business
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Movements to Establish Economic Control
Rural Agricultural cooperativization
Lower APCs (agricultural producers’ cooperatives)
Higher APCs Urban
“Socialist Transformation” industry and commerce
Private ownership abolished by 1956
In-class exercise
Try this quiz See what you know! I don’t expect you to be able to
answer all the questions now, but you should be able to by the end of class.
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The Search for a Chinese Development Strategy
Adoption of Soviet-style planned economy Contrast with market economy
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Planned vs. Market Economy
Planned economy Goal
rapid industrialization
Key features Planners’ preferences State-set prices
State owned industry Collectivized agric.
Market economy Goal
Profits efficiency
Key features Consumer preferences Prices free to allow
supply = demand Private owned industry Private owned agric.
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Planned vs. Market Economy
State-set prices “price scissors”
Farms Cheap outputs
agricultural commodities—like grain extracted at below market prices
Factories Cheap inputs Expensive outputs
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The Search for a Chinese Development Strategy
Little reliance on trade Planned economy as an extreme
“import substituting industrialization” strategy
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The Search for a Chinese Development Strategy
Adoption of Soviet-style planned economy Problems with the Soviet model
“relative backwardness”
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The Search for a Chinese Development Strategy
Liberal possibilities? Agricultural development
Small private plots Rural free markets for some ag products
Role of Intellectuals “Let a Hundred Flowers Bloom”
Rejected Too slow Too capitalist
Video clip
Video clip (7, 37:27-49:01) Great Leap Forward
China: A Century of Revolution Part II: The Mao Years, 1949-1976
produced in 1994
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Making Sense of the Great Leap Forward
Mao’s attempt to grapple with the problems of implementing the Soviet model in Chinese context
Chinese agricultural sector too weak to support rapid industrialization
Therefore, attempt to develop agriculture and industry simultaneously (“walking on two legs”)
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Making Sense of the Great Leap Forward
Reflection of Maoist ideals Voluntarism Mass mobilization Egalitarianism Self-reliance “Red” vs. “Expert”
Unorthodox in Marxist terms
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Making Sense of the Great Leap Forward
Extreme policies reflected suppression of dissent
1957 Anti-Rightist Campaign
1959 Lushan Plenum Peng Dehuai, Minister of Defense, removed
breakdown of norms of debate inside the party
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Making Sense of the Great Leap Forward
Disastrous consequences for population and economy Famine—enormous human cost
Estimated 30 million famine-related deaths Declines in agricultural and industrial production
Growth in Agricultural Output (percent)1960 -25.01961 - 2.4
Growth in Light Industrial Output (percent) 1960 - 9.81961 - 8.4
Growth in Heavy Industrial Output (percent)1960 -46.61961 -22.2
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Making Sense of the Great Leap Forward Road to recovery (1962-1965)
Mao retreats to “second line” Revival of
Private plots Rural free markets Household responsibility system (in some places)
Emphasis on Material incentives “Experts” vs. “Reds”
Note parallels to post-’78 reforms
“Capitalist Road” setting the stage for the Cultural Revolution Continuing struggle over the what the “new economic
order” should be
Danwei (work units)
State-run enterprises “Little societies” 小社会
Lifetime employment Production/output Housing Health care Education of youth Political control (personnel dossiers)