Title: conomical China
1 conomicalChina
E
2The Maoist Economy
- Starting out
- Awful economy when the PRC was founded
- Switched to command economy,
- First Five Year Plan (1953-1957)
- Government control of all goods and services
- Led to inequalities between cities and rural
areas - The Great Leap Forward (1958-1960)
- Industrial drive
- Backyard furnaces produced inferior steel
- The Cultural Revolution (1966-1976)
- Industry run by village committee rather than
managers - Overall A mixed batch.
- Squandered resources, industry more interested in
policy than production. - Created a good base for further industrial
improvements
Soviet model
3Deng Xiaoping
- U-TURN!!
- Less politics, more development
- It doesnt matter whether a cat is white or
black as long as it catches mice. - Instigated sweeping economic reform Chinas
second revolution - Details
- Now a
- Chinas economy now contains both socialism and
capitalism - Market still subordinate to the government
- Most areas became decentralized
- GNP Way better off than most of Asia after
financial crisis in late 1990s
Socialistic Market Economy
4Rural Areas
5Rural Areas
Redistribution -turned into collective
farms following socialist ideals Collectivization
-agriculture one of the weakest parts of
Maoist economy -didnt provide for enough
people People Communes -uber big farms
-poorly managed, little incentive to work
hard Household Responsibility System -still
in place today -peasants allowed to plant
what crops they wish -land is rented out
by the government (30 year contracts) Township
and Village Enterprises (TVEs) -Rural
factories and businesses -Run by
individuals for personal gain
Redistribution-gtCollectivization-gtPeoples
Communes-gtHousehold Responsibility
6CONSEQUENCE!!
- Industrial
- Unemployment
- WAY up, factories firing excess people
- Corruption
- Individuals are still in charge of vast
store-houses of materials - Rural
- Social Services
- Now limited education and health care
- TVEs
- Profit vs. civic duty
- Individual farming
- One-Child Policy conflicts
7CONSEQUENC!! (cont)
- Decentralization
- Economic warlordism
- Different regions competing
- Making tariffs
- DEFIANCE!
- Local governments defy or ignore the big gov.
- Change
- You Question the Party?
8International Interaction
9International Interaction
- Reforms require China to open to the world
- Copied South Korea and Japans Industrial models
- Foreign investment much, much higher
- Special Economic Zones
- Greater China
- China, Taiwan, Hong Kong
- Economic Repercussions?
- Human Rights Activists (MFN)
- Tiananmen Square
- Yeah right
- Weapons Sale
- Smaller market than Russia, sells to enemies of
the West
10Coming soon!!!
11So its not China but its Still cool