Today

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Today Creating a New Political Economic Order

• Founding of the Peoples 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

3
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

4
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 ?? (Late 1951) ? officialdom
• Five-Anti ?? (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

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In-class exercise

• Try this quiz
• See what you know!
• I dont 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 commoditieslike 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

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Video clip

• Video clip (7, 3727-4901) 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

• Maos 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
• Famineenormous human cost
• Estimated 30 million famine-related deaths
• Declines in agricultural and industrial
  production
• Growth in Agricultural Output (percent)
• 1960 -25.0
• 1961 - 2.4
• Growth in Light Industrial Output (percent)
• 1960 - 9.8
• 1961 - 8.4
• Growth in Heavy Industrial Output (percent)
• 1960 -46.6
• 1961 -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

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Danwei (work units)

• Element of
• New economic order
• New political order

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Danwei (work unit)

• State-run enterprises
• Most elite part of industrial workforce

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Reading Naughton

• QUESTION What did SOE work units encompass?

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Danwei (work units)

• State-run enterprises
• Little societies ???
• Lifetime employment
• Production/output
• Housing
• Health care
• Education of youth
• Political control (personnel dossiers)

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Danwei (work units)

• Implications of work units for political control
  of the urban population