First Five-Year Plan (1953-1957)

objective

accomplish ‘1 transformation and 3 changes‘

1 transformation

socialist industrialization

3 changes

undergo socialist transformation of agriculture, handicraft industry, and private industry and business

characteristic (1)

focusing on the development of heavy industry

focus on the development of heavy industry

prioritized heavy industry, then light industry and agriculture; 694 industrial construction projects, 156 of them were carried out w/ Soviet aid

result of focus on the development of heavy industry

industries new to China, such as aircraft, car, machine building, electricity generation and coal mining were developed

laying a solid foundation for industrialization

many construction projects were set; gross value of industrial output increased by 128.6% (1957/1952); a sharp increase in output of heavy industry, such as steel manufacturing and coal mining

increased agricultural production

gross output value from agriculture increased by 25% (1957/1952); grain production and cotton output surpassed the targets set in the Plan

Widening the gap between agricultural and industrial development (limitation (1))

First Five-Year Plan over-emphasized industrial development; agricultural investment only accounted for 7.6% of total value of national investment; an imbalance development b/w agriculture and industry

false optimism

set targets were over-fulfilled; remarkable achievements gave rise to false optimism among CCP leaders, who expected rapid progress and instant success from subsequent economic development; Great Leap Forward brought about serious economic disasters to China

characteristic (2)

leaning to one side (USSR)

characteristic (3)

following Soviet's examples (Soviet's Five-Year Plan)

characteristic (4)

building economic construction w/ Soviet aid