Building a new China Dan Xiaoping’s raise to

Building a new China Dan Xiaoping’s raise to power and four modernization program

Subject to change After Mao’s death it was obvious that country should look for less drastical means of change. Hua Guafeng, new chairman, was devoted to Mao’s thoughts and it was clear that in his perspective China should go on communist way based on the Soviets model Deng Xiaoping’s idea was more of “economical” revolution and he himself as well as his followers didn’t trust in Soviet model of communism

Four modernization plan The plan of reforms wasn’t new, 2 years earlier in 1975 Zhou Enlai first had came with idea that in order for China to develop and prosper major changes needed to be done in following Agriculture Industry Technology Defence Both Hua and Deng followed this plan. It’s only that their means differed

11th Party Congress (august 1978) Hua insisted on continuing with building communist state. Mao was praised and all his mistakes were cast as those of Gang of Four Den was officially re-elect to all his previous posts and became third person in party hierarchy Officially stated was an idea that people might join a party regardless of their past. Thus many small business owners were able to receive benefits of party membership

Socialism with Chinese characteristics First wave of reforms started in late fall 1978 The main idea was to combine open market economy with state control. Way to economical development was seen through effectively stimulate peasants and workers’ labor China’s connection with West was reassured Process to transfer state property to private sector had begun

AGRICULTURE Even in Mao’s time peasants were allowed to grow their own crop, but they need to return a certain amount of this to a state. SHIFT occurred when this quotas were reduced and peasants were encouraged to focus more on personal gardens then on collective fields. This effectively turned peasant into farmer and led to organized household responsibility system In short while the land belongs to the state, farmers are renting it and in exchange they pay a certain amount of their crop. The rest stays in family and sells on market for no regulating price

results In 5 years (1979-1984) household responsibility system became dominant form of agriculture. More free time and available crop led to dynamical growth

Industry and technology Alike system of quotes was introduced in factories and plants. Surplus was sold on open market and was used for either improving an enterprise or raising wages As China opened herself to the rest of the world and specifically the West, new joint-stock companies were organized. They brought long-needed technical developments (SEZ – special economic zones) Many young Chinese were encouraged to study abroad thus adding to closing gap in technology

results Results were mixed. SHIFT was harder for cities and industries since by that time China was primarily agricultural state. Many state factories and plants didn’t know what to do with surplus. Ineffective management proved a big problem The difference between SEZ and the rest of country is dramatical. YET industrial development changed rapidly and country was able to close gaps in industry

Foreign trade Became a fourth modernization instead of defense development China effectively opened a borders and by mid-80es most parts of a country was open for foreingers to visit

Riding a tiger While early ‘80es witnessed emerge of free market China’s economy stayed government controlled and central planned. Ties were loosen but still no one was uncertain of how this all would eventually worked out

Rising from the ashes In short 5-6 years China changed more then in previous 50-60. Wisely using the most precious resource country has – her people – Dan gave a jump-start to a modern superpower country. For the first time in century people gained prosperity and rest. Even though through mid 80es country stayed preferably agrarian dynamic changes were made to build up new industrial superpower

the fundamental task for the socialist stage is to develop the productive forces. The superiority of the socialist system is demonstrated, in the final analysis, by faster and greater development of those forces than under the capitalist system. As they develop, the people's material and cultural life will constantly improve. One of our shortcomings after the founding of the People's Republic was that we didn't pay enough attention to developing the productive forces. Socialism means eliminating poverty. Dan Xiaoping