Today— Creating a New Political & Economic Order Founding of the People’s Republic of China October 1, 1949

2 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

5 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

6 Campaigns and Growth of the CCP million party members million party members

7 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.

9 The Search for a Chinese Development Strategy  Adoption of Soviet-style planned economy Contrast with market economy

10 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.

11 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

12 The Search for a Chinese Development Strategy  Little reliance on trade  Planned economy as an extreme “import substituting industrialization” strategy

13 The Search for a Chinese Development Strategy  Adoption of Soviet-style planned economy  Problems with the Soviet model “relative backwardness”

14 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

15 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, produced in 1994

17 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”)

18 Making Sense of the Great Leap Forward  Reflection of Maoist ideals Voluntarism Mass mobilization Egalitarianism Self-reliance “Red” vs. “Expert”  Unorthodox in Marxist terms

19 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

20 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)  Growth in Light Industrial Output (percent)  Growth in Heavy Industrial Output (percent)

21 Making Sense of the Great Leap Forward  Road to recovery ( ) 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