5.2 - Economic changes under Deng Flashcards
Why did Deng want to change China?
Deng was a realist in economic planning. he had gained experience from his work to overcome Great Famine in early 60s and managing economic planning in early 70s He refused to be tied to communism if it didn’t work
His aims were :
To modernise the Chinese economy
To develop trade with the outside world
To encourage foreign investment into China
Under Mao Deng’s ideas would be seen as revisionist and therefore suspect now he was gone though he could put them into practice with considerable success
What changes did Deng make to agriculture?
The reform of agriculture under Mao had removed the oppressive landlords of the imperial and nationalist eras, but the programme of collectivisation failed to increase food production to allow the shift of population from countryside to the city. Without profit motive the communes had tended to produce only what they needed to to feed members this changed under Deng.
Commune was replaced by Xiang which was the original village or township. The land was rented by state to farmers for a period of 15 years. Each Xiang had a quota of produce that it had to supply to state ndividual farmers were allowed to sell ay extra produce and any good that they produced by setting up family crat buisnesses for profits at markets. New systems called the household responsibility system. Was popular with farmers because now rewarded for own work and skills, could become richer than before. Provided incentive that had been missing and agriculutural production increased to record levels. By 1984, 98 per cent of agriculutural households part of responsibility system. Farmers were allowed to concentrate on growing type of crop grew best in their area
What changes in education occurred during Deng’s control?
Development of a highly educated workforce one of key elements in Deng’s modernisation programme. Brought new approach to education. Although reforms been introduced in 1950s the cultural revolution undid this progress. By 1970, less than 6 percent of the population had been educated to degree level Deng’s policy to change this industrial progress required technical expertise and a major change in China’s higher education system. From 1978 following policies were put into place.
University entrance exams reintroduced
Private universities were allowed
Chinese students encouraged to travel to the west for university education
Research institutes had been closed during CR were reopened and technical staff reinstated
Purpose of these reforms to train millions of technical students who would use their skills to modernise industrial progress in China. Students who studied abroad would bring back their knowledge of Western tech and methods of manufacture
What changes in industry happened under Deng’s control?
Deng believed China’s economy would benefit by adopting number of capitalist practices such as allowing private profit and co-operating with foreign investors
However did not entirely abandon central planning and kept state owned enterprises. Managers an experts more freedom to make decisions about targets and profits. Deng adopted open door policy for trade. Encouraged competition with foreign companies as a way of helping Chinese buisnesses to produce goods of high quality compete with west.
Deng introduced new Special economic zones, firstly in costal areas where they could access market in HK and Taiwan, At first foreign investment was encouraged but it was so sucessful that from 1984 Deng allowed foreign investment in home industries and especially in developing high tech industries they were very sucessful. By 1990s China’s export trade had grown by 500 percent this was helped by giving exporters special tax concessions and freedom from financial restriction. Deng impressed by new skills of the young managerial class taking advantages of freedoms. People were working allowing them introduce incentives such as bonuses to workers above targets.
What were the problems with modernisation?
Industrialisation had its problems. Some workers in the SOEs were unhappy with changing their work practices. Under Mao’s system they were guaranteed a wage regardless of their output. They knew that they would be able to feed their family Deng wanted incomes to be based on performance. He reduced the subsidies to SOEs because they were supposed to make profit and fun themseleves. Workers resisted the new demands and it was not until 1986 that new working contract based on performance was introduced and even this meant that progress was sometimes slow, and production remained inefficient in SOEs
What was the emergence of privatisation and westernisation?
The changes in economic policy meant that China increasingly began to adopt western ideas and behaviour. The SEZs were based on a system that Chinese officals had witnessed in travels to Taiwan and South Korea. SEZs relied on foreign tech and on western buisness practices. Unlike the SOEs, the firms in the SEZs were really private and run to make profit. This spread inland to buisnesses producing for the domestic market. Small scale buisnesses were established in the countryside with few restriction’s placed on production and distribution meaning could sell goods for a profit outside area. Well known as town and village enterprises. By 1990 TVEs employed 100 million people.
Western influences were brought back to China via returning students and businessmen. Complaints voiced that younger generation were getting western styles and clothes. Furthermore they listened to western music and seemed obsessed with making money. Some party members thought that the closer ties with the west were weakening the fundamental ideas of communism.
How did Birth control change under Deng’s control?
By 1979, China’s population had grown to nearly 974 million. Fears rapid expansion would make it impossible for economic policies to provide resources for the whole population. Therefore, the CCP introduced ‘One Child’ policy. Intended to limit the expansion of the population reducing the size
New marriage law was passed:
The minimum age for marriage was set at 22 years for men and 20 for women
Married couples only allowed one child
Financial penalties for going ova this limit.
A couple had to get a permit to give birth. State could order late-term abortions and sterilisations for women who has one child. At first the policy applied in towns; second child allowed to peasants as long as a 5 year gap between children.
What were the problems with the ‘One Child’ policy?
significant issues with the policy increase in female infanticide. Peasant families continued to value a male child more than female girls were less able to do heavy work in the fields and they married outside the family. Whereas a male child has responsibility to look after his parents at old age
Consequence of female infanticide, legal abortion of female foetuses, was gender imbalance in younger population. By 1985 114 boys for every 100 girls born. One child policy enforced in propagandas campaigns, ‘Struggle sessions’ against parents of more than one child and compulsory fitting of contraceptive devices. Couples limited to one child were rewarded receiving cash bonuses and extra rations. Received better healthcare and education system those who did not abide lost that privileges policy slowed growth of China’s population.
