conomical China

1
conomicalChina
E

• Communism to Capitalism

2
The 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
3
Deng 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
4
Rural Areas
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Rural 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
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CONSEQUENCE!!

• 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

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CONSEQUENC!! (cont)

• Decentralization
• Economic warlordism
• Different regions competing
• Making tariffs
• DEFIANCE!
• Local governments defy or ignore the big gov.
• Change
• You Question the Party?

8
International Interaction
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International 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

10
Coming soon!!!
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So its not China but its Still cool