Industry: 1949-63 Flashcards
First Five Year Plan dates
1953-57
Why was the First Five Year Plan introduced?
> China was well behind in industrialisation.
Lacking in heavy industry and infrastructure.
Economic development had to be prioritised due to the exploding population.
What happened to China’s industrial output during the First Five Year Plan?
It doubled
Steel Production- First Five Year Plan
1.3 - 5.2 million tonnes between 1952-57
How much did coal production increase during the First Five Year Plan?
98%
Positives of the First Five Year Plan
> Living standards for workers increased, especially life expectancy.
Production levels grew.
Increased state ownership.
Negatives of the First Five Year Plan
> Most of the government’s investments were put into the cities, but most of the population lived in the countryside.
Light industry, such as cotton-making and food–processing, was neglected in favour of heavy industry. This meant there was a slow growth in the standard of living with a shortage of consumer goods, especially bicycles.
How did the USSR contribute to the First Five Year Plan?
> They supported them after the Treaty of Friendship, alliance and Mutual Assistance (1949).
$300 milllion
10,000 engineers.
Focus of the First Five Year Plan
Heavy Industry and the Economy
How did Mao combat Inflation?
> Fixed prices and wages.
> All banks were closed in favour of a new state bank.
How did Mao improve transport?
Built railways to transport essential goods.
Industrial problems with the GLF
> Steel factories were inefficient and wasteful.
Steel of low quality.
Too many resources taken away from other areas to fund it.
The peasants in rural communities did not know how to make steel.
