economy Flashcards
(22 cards)
what were tv soongs reforms under the gmd?
BBC
B: BANKS UNITED BEHIND THE BANK OF CHINA.
B: BALANCE THE BUDGET:
C: CHINA DEVELOPMENT FINANCE CORPORATION: encoruaged individuals to buy shares in the company who would invest in the chinese mining industry. good reputation and produced large dividends dor shareholdrs. most of the profit went to the underworld and corruption
how did the GMD develop the economy?
FICUSES
- foreign deals: agreed with the west to support the economy
- infrastructure: railways and airlines introduced throughout china. road building program. by 1949 had built 50,000 miles of road. wasnt the best quality of roads but it was an accomplishment because at least they has a servicable road network
BURMA ROAD was a 700 mile road - civil service: modernised by thhe creation of special administration departments and training colleges. moved away from confucianism
- urban: schemes to improve urban transport and communication. modern buses and trams in major cities
- shanghai stock exchange and banking: chinese banks broughht under control of the central bank. shanghai stock exchange became an international financial market
- education: measures to improve the quality and availability of education
- subsidies to help the chinese film industry: based in shanghai and would become internationally renowned. govt supported fashion houses to compete with paris and milan
how did the gmd fail?
inflation began to increase. this was because of japanese occupation, which would reduce chinses resources and cause inflation. furthermore costs of sino-jap war and paying the army would increase inflation
- jiang order dykes to be opened in 1938 to prevent spread of armies. (intentional flooding to prevent the spread of the army). led to 800,000 deaths and famine
- govt had to start heavily taxing and nationalise private banks and finance companies. removed incentives to spend to make companie sprofitbale and this made inflation worse.
- china borrowed heavily from abroad and printed more money to make inflation worse
- china got foreigners to pay higher import and export duties, this began to suppress trade
- in 1967, mid sino-jap war there was hyperinflation and by 1949 currency had completely collapsed and had to be replaced
- gmd couldnt help people and became even less popular
what reforms did li (qing) introduce? CIST
- commercial deals: arranged commercial deals with foreign companies and governments in ports, had power over this because he was the high commissioner for china’s northern ports
- investment and infrastructure: created joint stock companies, private and govt agencies could invest to help them grow. Telegraph: involved in imperial telegraph administration developed across mainly northern provinces and made connections between east coast ports and cities
- steamships: they sped up trading as they replaced cumbersome sailing barges
- textiles : developed shanghai textiles industry by establishing cotton mills in shanghai.
Li never embraced Western democracy or education, which meant it was harder to carry out capitalist reforms to the economy – which are based on freedom and skills. It did help the middle-class to grow
Because he was not a government representative, he could self-strengthen without facing repression from the government.
how did Sheng (qing) reform the economy? BASIC
- banking: created imperial bank of china in 1897 and tried to stabilise finances. bank had the power to issue its own currency in order to become independent of foreigners and linking it with HSBC. the bank wanted to act independently of foreign influence but ultimately it couldn’t because Chinese expertise lacked in the banking sector.
- army: cadres sent to study in japan, the navy bought new iron-clad warships and built dry docks to build new vessels, arsenals extended
- simplifying duties and levies for china’s commerce
- industry and infrastructure: merchant shipping, ship building, textiles production: built more. built more coal mines. expanded railways- but relied on American loans to do so. treated telegraph system.
- created a university dedicated to engineering
What was the economic impact of the 100 days?
- The 100 days abolished Confucius exams which modified the civil service. There was also some industrial reorganisation.
- Empress Dowager Cixi stopped it as she use the opportunity to launch a coup against Guangxu. She joined up with the Conservative
officials who opposed the reforms, and with their support removed Guangxu from power. This made her look very conservative –
however in reality she actually liked reforms. Once in power Cixi supported some reforms in the 1900s. However, she made some
mistakes. Once she spent the annual naval budget on building herself a beautiful marble boat in her palace.
What was the economic impact of the boxer protocol?
Made China pay £68 million in reparations
• It led to another period of reform by Cixi
• It increased the Western Treaty Ports and Concession Zones. These were both resented and admired
• Chinese workers worked for them, treated badly but better than under Chinese employers
• Treaty ports and concession areas continued to be very successful – encouraged indigenous Chinese business too
• More railway construction
What was the economic impact under yuan Shikai?
The revolution itself had little economic impact
• Yuan negotiated a loan of $100 million from the consortium in 1913 to develop China. He had to agree to harsh terms to accept this such as recognising British contro if Tibet, Russian control of Outer Mongolia anf pledging future tax revenues as security
- republicans accused yuan shikai of compromising china’s soverignty and attempted the Second Revolution and then impeachment.
What impact did the warlords have on the economy ?
The constant fighting and lack of unity caused economicdisaster and weakness. Some areas of China did better than others.
- the warlords would impose their own legal, financial and taxation systems
• Following the 4th May movement the Cult of Science began, which began a greater embracement of Western technology and ideas,
which helped the economy
What was the impact of the first five year plan on the economy?
Successful:
+ urban migration (doubled to 100 million) from GMD, NRC of GMD with managers and workforce, large potential work force).
+ managed to meet demands of Korean War and cope with its expenditure
+ 9% growth
Consequences:
Whilst it had really improved China, it wasn’t yet a modern industrial state, or at the same level as the West, had to catch up fast and overtake them to Communism, so did the Great Leap Forward,
- wanted to match USSR achievement without slavishly following them, finding their own way, like in their ideology
What was the causes of the Great Leap Forward? 1958-1962
Why did Mao’s Great Leap Forward occur?
- wanted to become more independent from Russia. The first five year plan had relied heavily on Russia for advice and china was following their way. China wanted to follow communism in their own way. Furthermore, Khrushchev had come to power and made Russia more moderate
- the first five year plan had allowed them to catch up with the west and now wanted to overtake the west.
- first five year plan was successful, hoped that the second five year plan would also be successful
What events took place under the Great Leap Forward?
- collectives introduced
- SOEs introduces
-agricultural reforms and famine caused as a result
What did Mao believe would drive the Great Leap Forward and why did he believe this?
- mao wanted to utilise chinas massive population to drive forward agriculture. Wanted to do this using traditional methods and manpower. People were called the empror’s blue ants
What successes were there of the Great Leap Forward?
Agriculture: successes: collectives became communes on a mass scale: 120 million households and private farming ended. In this way they were successful because they met their goal
Failure: famine in Tibet. There was no incentive to ,are extra produce as they couldn’t sell it and Lysenkoism was deeply flawed. Sparrowcide weakened Tibet and stopped the, growing barley: made the, grow wheat and maize instead. Mao didn’t accept the failure of the second five year plan and food piled at the side of the road, production targets were lied about and claimed it was due to bad weather or hoarding of grain or the mistakes of local officials
What were the successes of industry in the Great Leap Forward ?
Success: a lot of work done with little machinery and forced labour of prisoners
Failures: production trailed off in 1960 due to almost daily upwards revision of targets and backyard furnaces would create sub standard products that weren’t any use- they would end up being buried
The failures occurred because backyard furnaces were unsuitable, SOEs removed incentives of wages, no technical skills, managerial know-how, efficiently run factories and plants, inadequate transport, inaccurate figures from industry leaders and then officials sent to check them changed them too, emphasis on quantity, few detailed insurctions on how to do things – all threats, no integrated national plan, USSR withdrew technical assistance, Mao didn’t have practical or economic know how
How successful were liu, Chen and deng’s reforms after the second five year plan?
Introduces private far,ing and this created an inventive to produce excess crops to get out the famine, sell abroad and fund industrialisation
Successful: budget deficit of 8 billion turned into a surplus of 1 million by 1962, agricultural production restored to levels before the Great Leap Forward, industrial growth reach 20%, 10 fold increase in oil production
Failures: mao denounced it. Seen as going against communism and embracing capitalism
What was Dengs modernisation of agriculture?
Why?
- communes were abandoned and Xiangs used instead to meet food production and output quotas. This would provide the peasants with an incentive to increase agricultural output by allowing them to keep their profits
Success?
+ agricultural production increased by a lot. Index of 100 in 1952. 452.0 in 1989
Failures?
- tenancy on farms wasn’t guaranteed so there was no incentive to modernise or invest
- traditional methods of farming would continue to be used
What was dengs modernisation of education?
Why?
- aimed to promote industrial growth and scientific education so that industry would benefit from a trained and specialist workforce
Success?
+ universities expanded in size and number
+ 1 million technical students trained to be managers and administrators
+ thousands of students went overseas to gain western tech and industrial expertise
- this was limited to the upper class so these opportunities went available to everyone.
- students that went abroad had increased demands of democracy which would lead to problems for deng later on, tianammen square massacre
What was the economic impact of the cultural revolution
What was the purpose?
- to reverse ku, Chen and dengs economic reforms
+ collectives were restrengthened as was maos aim. Communism was also strengthened
- industrial output reduced by13%. red guards seized control of infrastructure, such as railways and they had a lack of experience in this, lead to decline from 555 tonnes to 421 tonnes. Construction fell by 33%
- govt introduced austerity as a result. Assets of state companies frozen. Travel permits required to go from one province to another. Purchase of cooking oil and rice restricted to those with permits
what was dengs third modernistaion of industry?
- introduced because deng wanted to schieve economic growth and open china up to world commerce
- introduced special economic zones
successes:
- international trade flourished between 1978-9. exports grew over 500%
- foreign investment quadrupled
- allowed younger managers to take the lead as they were increasing output
failures:
- workers no longer have guaranteed incomes
- labour contract schemes, loss of job security as it was now based on productivity and not on the iron rice bowl
- strong resistance from the SOEs which slowed down growth
what was dengs modernisation of defense?
- believed that having a compliant and cooperative army was essential politically because he had come to power because of the PLA. he also had to ensure that he was to up to date with the west
- suvvesses: streamlined army services to make them more efficient
- reduced number of workers by 1 million and these became the peoples armed police
- failures: priority expenditure to industry
- pla reduced by 1 million which may have made china weaker
what was the impact of dengs economic policies?
- construction boom: 1981-2000 economy grew by 9% every year. by 2000 USA was in financial debt to the PRC. y 2000 14% of USA’s imports were from china
- growth of the middle class: more people found work in the urban centre and earnt more money working in the city rather than on farms. deng encouraged people to create companies and enterprises
china became more of a consumer society. cars replaced bikes, therefore had to undergo massive road building project.
in 1980 barely 1% of households were middle class. by 1997 this increased to 12% and by 2012 it was 60%
What was the economy like during the Qing period?
- 1839 population was 300 million, this doubled by 1900 and again by the end of the 20th C
- agrarian problems: feudalism was illegal but peasants still dpeendent on their landlords. Mao later played on their hatred of their landlords
- food production was unreliable: depended on local soil and climate conditions. Peasants were not able to prepare the ground with speed and were inefficient in cultivating new crops because they didn’t have the equipment and knowledge, basic pattern of ploughing hadn’t changed in years
Trade:
- foreign commerce was increasing by an annual 4% during 19th C, growth in river and coastal ports
- particularly exported tobacco, porcelain, silk and furs. However the official view that china was zhoggou and self-sufficient, that they had no need for trade with the outside world
Rise of the middle class in the late Manchu period
- middle class by 1900 came to 1.5m
- became the rural gentry
- the middle class created due to the self- strengthening movement was comprised of urban businessmen, financiers, entrepreneurs etc. who accepted their success depended on cooperation with the foreign residents in china. Wary of supporting ideas of reform that may jeopardise their privileges
How was the self- strengthening movement limited?
- construction was limited to northern and eastern coastal provinces, leaving the inland and southern areas untouched
- progressive self-strengtheners made up a small proportion of the population
- needed far more reforms than the Manchu were willing to consider
- administrative reforms had been achieved in some areas but the traditional mandarin system dominated
- industrial expansion occurred in only a few provinces
- self-strengthened were a minority, outnumbered by the conservatives.
- too few young Chinese trained as industrial managers to constitute a managerial class
- the reform of infrastructure was not carried out with the attention to detail and integration required.
- didn’t encourage entrepreneuralism
The failure of the railways:
- 1895-1911 boom in railway construction which attracted considerable foreign investment
- however if significant capital went to the localities this would result in local control of provincial railways, challenge to central authority
- the government did the railway nationalisation programme which meant that owners of the land where compensated but not to the full value of their holdings. To raise money to meet the costs of the compensation the government would increase taxes and negotiate loans from the west
