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Credits - nytimes |
Cultural Revolution is also known by the name of “The Great Proletarian Cultural Revolution”. It was a long period of social and political disorganization caused by leader Mao to use his authority/power to certify his control over the communist party.
History:
The revolution was started in China by leader Mao Zedong in May 1966, who was the chairman of the Chinese Communist Party (CCP) and founder of the People’s Republic of China (PRC).
It is said, that he launched the revolution to destroy his rivals with the help of a group of radicals, including his wife and defense minister by unloosing the people on the party and forced them to purify its ranks that had led to victory in the Civil War 20years earlier. The Great Revolution continued in various forms until his death in 1976.
Under this revolution, professionals and students were sent to the countryside to learn and work. However, when Russia had conflicts with China, it withdrew its professionals, who had earlier been sent to China to help in the Industrialization Process.
What happened after the death of Mao? Did that change anything?
After the death of Mao Zedong on 9 September 1976, the CCP changed to Market-Oriented Reforms to salvage the failing economy. The CCP authorities carried out the reforms in 2 stages:
1. The Late 1970s and Early 1980s:
This period includes de-collectivization of agriculture, freedom to the country for foreign investment, and permission for entrepreneurs to start businesses but a huge number of industries and businesses remained state-owned. At this stage, enterprises owned by the government were also known as State-Owned Enterprises (SOEs), were made to face competition.
In De-collectivization System, Grain Production kept up with population growth, and the rural population was guaranteed a secure/safe but low level of living, and it seemed to invite few possibilities for rapid economic growth.
During the starting of the 1980s, de-collectivization led to be the foremost significant aspect of the country’s transition to capitalism. Deng Xiaoping, who was the statesman of China, praised it as an “Innovation”. Individuals and small groups of workers were more often portrayed in mainstream accounts as political stars for initiating the process, but it causes deep resistance to it in many locales.
By 1975, China was in an economically better position to attract huge amounts of foreign investments. Opening up foreign investment in China has played an important role in raising the growth of the economy. It also led to a decrease in the rate of poverty. Special Economic Zones (SEZ) were established to draw in foreign investors.
Foreign Investment helps China in many ways such as:
1. The Late 1980s and 1990s:
It includes the Contracting Out of much state-owned industry and Privatization.
What is Privatization? How did it affect China? Privatization means the “transfer of ownership” of property or businesses which are previously in control of the Government to the Private Sector. It has raised Chinese firms’ productivity in the short-run as well as in the long run. Retail oriented industries experienced more gains than any other industries.
During 1985, the lifting of price controls was a major reform that leads to Dual Pricing which means fixing prices in 2 ways:
Conclusion:
As a result, Now China has made miraculous progress. It is having a one-party system and not only this; it entered into the WTO (World Trade Organization) in 2001. It is the 2nd richest nation in the World and the World’s largest Exporter and Manufacturer.
Under this revolution, professionals and students were sent to the countryside to learn and work. However, when Russia had conflicts with China, it withdrew its professionals, who had earlier been sent to China to help in the Industrialization Process.
What happened after the death of Mao? Did that change anything?
Image Credits - theguardian
After the death of Mao Zedong on 9 September 1976, the CCP changed to Market-Oriented Reforms to salvage the failing economy. The CCP authorities carried out the reforms in 2 stages:
1. The Late 1970s and Early 1980s:
This period includes de-collectivization of agriculture, freedom to the country for foreign investment, and permission for entrepreneurs to start businesses but a huge number of industries and businesses remained state-owned. At this stage, enterprises owned by the government were also known as State-Owned Enterprises (SOEs), were made to face competition.
In De-collectivization System, Grain Production kept up with population growth, and the rural population was guaranteed a secure/safe but low level of living, and it seemed to invite few possibilities for rapid economic growth.
During the starting of the 1980s, de-collectivization led to be the foremost significant aspect of the country’s transition to capitalism. Deng Xiaoping, who was the statesman of China, praised it as an “Innovation”. Individuals and small groups of workers were more often portrayed in mainstream accounts as political stars for initiating the process, but it causes deep resistance to it in many locales.
By 1975, China was in an economically better position to attract huge amounts of foreign investments. Opening up foreign investment in China has played an important role in raising the growth of the economy. It also led to a decrease in the rate of poverty. Special Economic Zones (SEZ) were established to draw in foreign investors.
Foreign Investment helps China in many ways such as:
- Increase in employment opportunities.
- Built a dynamic and competitive manufacturing sector for Exports.
- Growth in GDP (Gross Domestic Product) through its positive impact on TFP (Total Factor Productivity).
1. The Late 1980s and 1990s:
It includes the Contracting Out of much state-owned industry and Privatization.
What is Privatization? How did it affect China? Privatization means the “transfer of ownership” of property or businesses which are previously in control of the Government to the Private Sector. It has raised Chinese firms’ productivity in the short-run as well as in the long run. Retail oriented industries experienced more gains than any other industries.
During 1985, the lifting of price controls was a major reform that leads to Dual Pricing which means fixing prices in 2 ways:
- Farmers and industrial units were required to purchase and sell fixed quantities of Inputs and Outputs on the idea of costs fixed by the govt.
- For other transactions, the inputs and outputs were bought and sold at market price.
Conclusion:
As a result, Now China has made miraculous progress. It is having a one-party system and not only this; it entered into the WTO (World Trade Organization) in 2001. It is the 2nd richest nation in the World and the World’s largest Exporter and Manufacturer.
Written By - Priyanka Jain
Edited By - Daniel Deepak Charles
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