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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Campaigns and Growth of the CCP

1947 2.7 million party members

1953 6.1 million party members

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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

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The Search for a Chinese Development Strategy

Maoist possibilities? Great Leap Forward

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)

Element of New economic order New political order

Danwei (work unit)

State-run enterprises Most elite part of industrial workforce

Reading: Naughton

QUESTION: What did SOE work units encompass?

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)

Danwei (work units)

Implications of work units for political control of the urban population