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China's Industrialization Policy   Term Paper ID:42821 Click to get this paper

Essay Subject: This paper provides an analysis of China's industrialization strategies enacted during the first five ...... More...

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Paper Abstract: This paper provides an analysis of China's industrialization strategies enacted during the first five Five-Year Plans in the period 1953-1978. The analysis also discusses the impact of these strategies on economic growth, industrialization, and the industrialization of rural regions and the development of the agricultural sector. Paper Introduction: China\'s Industrialization Strategy The industrialization strategy of China in the period - laida foundation for the industrial and economic juggernaut that characterizesmodern Chinese industry and the economy Industrialization strategygreatly impacted urban areas but it also ultimately developed rural areasand brought industry to farming enterprises that also play an importantrole in the modern industry and the economy Industrialization strategylargely unfolded through a series of economic development initiatives knownas Five-Year Plans Industrial These plans experienced varyinglevels of success in developing industry and spurring economic Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. 2) There were many goals involved in the implementation of industrialstrategies in the period 1953-1978. SOEs were responsible for employing millions of Chinese andtransforming China's economy and industry in the period 1953-1978. Shanghai was the largest industrial center but other significanturban centers of industry included Anshan, Fushun, Shenyang, Qingdao, andTianjin (Industrialization, 2 9). This Plan really represented one aspect of a Ten Year Planfor national development that included enormous expenditures to build andrefurbish infrastructure in order to increase industrial capacity andoutput. Today China is poised as a world power in industry and its economy continues to grow at an amazing pace. Geographically, the First-Five YearPlan "specifically emphasized development of the northeast and areas otherthan Shanghai" (Industrialization, 2 9, p. 47). It is the three ofthese combined that served to forge what Bramall (2 7) calls the "ThirdFront" industrial program in China. As one economist notes,"Industrial priorities were transferred from production of industrial goodsto agricultural inputs and consumer goods" (Industrialization, 2 9, p. 4). Bramall's (2 7) other theory is thatthe millions of peasants in rural areas were largely unskilled before theimplementation of industrial and agricultural strategies under Zedong.While Bramall (2 7) does admit that "documenting rural industrializationwith any degree of precision" is an elusive task, he maintains thatZedong's policies led to the creation of a skilled labor force by the timemodernization reforms began in the 198 s (p. All of the investment in infrastructure did help increaseoutput and lower unemployment. What was known as StateOwned Enterprises were responsible for the majority of China's industrialoutput during the 195 s, 6 s, and 7 s, but ultimately their enormoussuccess would become a limitation on future growth. Ownership wasmuch less centralized. The agricultural collective "owned the land, as well asnonagricultural rural enterprises" (Naughton, 2 7, p. For instance, initial Five-Year Plans weretoo focused on heavy industry and neglected rural development. These plans experienced varyinglevels of success in developing industry and spurring economic growth inChina in the period 1953-1978. This doomed many rural dwellers to poverty and lower livingstandards than those in the city. 271). Gradually, theFive-Year Plans, of which there were 5 in the period 1953-1978, began tofocus on light industry and opening up rural areas to industry. As Bramall (2 7) asserts, the industrial and agriculturalpolicies put into place by Mao Zedong created a rural area of skilledworkers that laid "the foundations for the expansion of industrialproduction in the decades ahead" and paved the way "for long run ruralprosperity" (p. Naughton (2 7) maintains TVEs helped narrow the urban-rural gapin standard of living and, more significantly, ultimately played a"catalytic role in transforming the Chinese economy from a command economyto a market economy" (p. 4). The TVEs helped break the monopoly on powerand resources in industry traditionally held by China's SOEs. Retrieved February 6, 2 9, from http://en.wikipedia.org/wiki/Industrial_history_of_the_People's_Republi c_of_ChinaNaughton, B. Anera of industrial growth and reforms ended with the death of Mao Zedong. Without the investment in infrastructure and industry wrought by the Five-Year Plans and without the transformation of rural areas into industrial centers with trained labor forces, it is highly unlikely such impressive or rapid growth in industry and the economy would have occurred in China. As Zhuoyong (2 7) points out, "China's accelerated urbanization over the last two decades and in the future will not only have significant implications for the largest developing nation itself but also be the key to influencing human development in the globalizing world" (p. 119). The industrialization of rural China. China's Five-Year Plans, beginning with the FirstFive-Year Plan (1953-57), are a reflection of this (Industrialization,2 9). Subsequent Five-Year Plans were modified to include industrial expansion into rural areasand later ones adopted a new focus on light industry in the 197 s. As Zhuoyong (2 8) explains, "The Hukou,adopted in 1958, restricted rural-urban mobility. 119). The First Five-Year Plan focused on heavyindustry and targeted the east-coast cities and those in the northeastgeographically, largely ignoring the country's vast rural regions and theagricultural sector. & Dolan, R. The winds of globalizationwere about to blow east, but the strategies enacted in China up to nowwould serve future growth plans well. New York: Oxford Univ. Industrialization strategylargely unfolded through a series of economic development initiatives knownas "Five-Year Plans" (Industrial, 2 9). The first theory is that ruralindustry in China during the period 1953-1978 included county-level andSOEs that were designed to develop the agricultural sector and defense-related business in inland regions (Bramall, 2 7). (2 8). Initially the Five-Year Plans focused on heavy industry and urbanareas in east coast cities and those in northeast China. Yet another goal was to put industry and commercein synch with state capitalism to help transform private industry andcommerce. Retrieved February 6, 2 9, from http://www.ide.go.jp/English/ Publish/Download/Vrf/pdf/439.pdf The First Five-Year Plan focused on the development of industry,planning approximately 7 large and medium-sized industrial projects(Industrialization, 2 9). Urban areas became leading centers ofindustry. As one economistnotes, in 1978 the 3rd Plenary Session of the 11th Communist Part CentralCommittee (CPCC) "shifted the focus of the Communist Party tomodernization" (Five, 2 9, p. ThoughSOEs would ultimately become a liability and witnessed privatization after2 , in The Chinese Economy: Transitions and Growth Barry Naughton (2 7)maintains "SOEs produced 77% of industrial output" in the years between195 and 198 (p. (2 9). The Cultural Revolution during 1966-1976 included the Third, Fourth,and Fifth Five-Year Plans. 1). The lofty goals of the Fifth Five-Year Plan, some of which manyviewed as impossible to achieve, ultimately led to mistakes and the failureof the Fifth Five-Year Plan to realize its goals. Despite these flaws, rural enterprises often thrived without statesystem constraints, like higher taxes, and a skilled labor force developedin rural areas that served the needs well of industrial expansion in theregion after 1978. One of the most significantchanges involved a switch in industrial strategy from focusing on heavyindustry to agriculture and light industry. In the period 1953-1978, China's industrial strategies wereinstrumental in helping achieve these basic goals. Mao Zedong died the year the Fifth Five-Year Plan (1976-198 ) wasimplemented. Rural property was never integrated into the system of nationalownership. Primarily,agriculture became a focus on industrial expansion and it was designed tohelp bolster the lack of technical expertise in Chinese industry. One of these was to provide afoundation for China's industrialization. China's Industrialization Strategy The industrialization strategy of China in the period 1953-1978 laida foundation for the industrial and economic juggernaut that characterizesmodern Chinese industry and the economy. China: A country study, (Excerpt). Many benefits for urban dwellers, like healthcare and education, were not provided to those in rural areas and manyinstitutions limiting migration or employment opportunities for ruraldwellers were still in existence. Industrial expansion andconstruction occurred in the northeast in places like Baotou, InnerMongolia, Wuhan and Hubei to take advantage of a number of newlyconstructed steel mills in these areas. Overall, the industrial strategies implemented by Mao Zedong in theperiod 1953-1978 were instrumental in laying the foundation for modernChina's industrial and economic success in both urban and rural areas.However, despite the economic and industrial success of these policies,urban residents fared much better during this period in Chinese developmentthan did most rural dwellers. Urbanization and spatial structure evolution of urban system in China. China'sThird Five-Year Plan focused on three primary goals that are enumeratedbelow: 1) To spare no efforts to develop agriculture, solve problems concerning food, clothing and other basic necessities; 2) To strengthen national defense and endeavor to make breakthroughs in technology; 3) In order to support agriculture and strengthen national defense, to enhance infrastructure, continue to improve production quality, variety, and quantity, and build an economy of self-reliance. While the more than twenty million peasants in ruralregions were scarcely capable of transforming rural operations intoefficient enterprises during the early years of Zedong's leadership, by hisdeath they represented a valuable resource that served as the foundationfor modern reform and growth. The Fifth Five-Year Planoutlined development of a "complete industrial system and national economicsystem" for China by the end of 198 , but these goals were not realized(Five, 2 9). 5). Uncertainty overpolitical activities, succession struggles and the death of Mao Zedong in1976 saw growth fall to 4.4% in 1974, recover to 1 .3% in 1975, and thenfell to zero on the news of Zedong's death (Industrialization, 2 9). While many scholars view 1978 as the year real reforms began thatare responsible for modern China's impressive rural industry, in TheIndustrialization of Rural China Chris Bramall (2 7) argues that modernChina's rural success story stems from the industrial policies put in placeby Mao Zedong. In the period 1959-1962, the flaws in the industrial strategies ofthe Second Five-Year Plan rapidly emerged. The Fourth Plan sought to improve on industrial output inboth urban and rural areas. Township and Village Enterprises (TVEs) alsoplayed a significant role in rural industry and China's economy during theperiod. Cambridge, MA: The MIT Press.Worden, R., Savada, A. In 1962 production began to take an upswingbecause of better planning and coordination. DuringMao Zedong's Great Leap Forward, China embarked on an ambitious industrialexpansion plan that included the opening of a number of new plants andgreat numbers of small local plants that witnessed a leap in production by45% in 1958 (Industrialization, 2 9). 439. Industrialization strategygreatly impacted urban areas, but it also ultimately developed rural areasand brought industry to farming enterprises that also play an importantrole in the modern industry and the economy. ReferencesBramall, C. Instead, the failures ofthis Plan helped galvanize the push toward modernization. This change in strategy proved to be effective, as by 1965 most sectors ofthe Chinese economy had risen to production levels witnessed in 1957. Press.Five-year plans of China. He Third Five-Year Plan was designed toeliminate some of the limitations and flaws in previous Plans. The work force was exhausted.Factors like misallocated resources, intense food shortages, and thedeparture of Soviet technicians helped caused the economy to collapse. Geography played a major role in the shape of the First Five-YearPlan and those that would follow it. Washington, D.C.: Federal Research Division of the Library of Congress, 1-18.Zhuoyong, C. During the 195 s, two-thirds of all industrial output came from theindustrial centers in east and northeast China (Industrialization, 2 9).Concentration on heavy industry was insufficient to help offset high levelsor unemployment and did not help satisfy consumer demands. In lightof China's enormous success in industry and economic growth in moderntimes, this analysis will demonstrate that industrial strategies that wereimplemented during the Mao era laid the foundation for industrial expansionand rural economic growth in the decades since 1978. During this phase of strategyimplementation, factories operated beyond capacity, enormous expenditureswere made in resources, and the workforce was pushed beyond physicallimits. (2 9). (1987). Another was to developagricultural cooperatives in order to help transform the agricultural andhandicraft industries. Compared to 1976, growth in Gross DomesticProduct (GDP) was 12.3% higher, followed by 19.4% in 1978 (Five, 2 9).Despite these achievements, the standard of living gap between rural andurban dwellers continued, while SOEs began to become a liability to furtherindustrial development and economic growth. It is this pool ofworkers Bramall maintains is responsible for China's rural prosperity overthe past three decades. Wikipedia. In1959 growth fell to 22 percent and output dropped significantly in 1961(Industrialization, 2 9). Unlike urban dwellers, in thecountryside there was not effort to "integrate rural areas into thehierarchical system of national state ownership that prevailed in cities"(Naughton, 2 7, p. During thisperiod output grew by more than 1 percent in 1971 and 1972 and by 13percent in 1973 (Industrialization, 2 9). During the period 195 -198 , China's urbanization level increased from 11.2% to a scanty 19.4%,compared to the world level average of 28.4% to 41.3% in the same period"(p. Retrieved February 6, 2 9, from http://en.wikipedia.org/wiki/Five-Year_Plans_of_ChinaIndustrial history of the People's Republic of China. China's industry and economy were largely developed by the ChineseCommunist Party. 1). Bramall (2 7) theorizes that there are two reasons that many of theindustrial policies set forth under Mao Zedong's leadership laid thefoundation for modern China's success. (2 7). Regardless of where the credit lies, today's economy and industry in China are global powerhouses that seem to have just begun to tap into the potential of the nation for success. (Five, 2 9, p. Migration for those in rural areas was severelyconstrained, since obtaining a "hukou" or urban residence permit wasrequired for a farmer to gain employment in the city (Naughton, 2 7, p.116). Others wereslowed on disrupted due to civil strife. More resources were budgeted to be spent on this goal than all theexpenditures of the previous three decades. Industrial capacity wasincreased from investment in new plants and equipment. 14). (2 7). An era of numerous reforms aimed atmodernization that would greatly impact China's industry, agriculturalsector and economy began with this declaration. During this period there were vastdistinctions in trends per capita consumption, living standards, and otherfactors of urban-rural existence. A conclusion willdiscuss China's emergence as an industrial and economic leader in theglobal marketplace, especially as it relates to industrial strategiesimplemented in the period 1953-1978. As such, planning is a common feature of centralized,communist economies. 165). Collectivization of agriculture had occurred by the 196 s, with people'scommunes that involved many villages serving as "multipurposeorganizations, combining economic and local administrative functions"primarily in agriculture and handicraft industries (Worden, Savada & Dolan,1987, p. The Chinese economy: Transitions and growth. While some of Mao's rural reforms were less than efficient, reform policies over the past three decades that have witnessed enormous success in China's rural industrialization clearly owe a debt to expansion of rural industry begun under Mao's leadership. Wikipedia. The Fourth Five-Year Plan (1971-75) extended the Third Plan in thatit set new productivity and output goals for both industry and agriculture. In conclusion, while there were some flaws with implementation andstrategy during the execution of the various Five-Year Plans in the period1953-1978, it is readily clear that China's industrial strategy of thisperiod laid the foundation for the industrial expansion and rural economicgrowth in the decades since. One of the main goals of this Plan was toboost production levels that fell during civil disturbances. Nevertheless, modification ofthese plans to encompass light industry and industrial expansion in ruralareas helped to lay the foundation for China's impressive and rapid growthin the decades following 1978. Unpublished papers, No. 299). If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.