Industrial successes and failures of the three plans

Failure of foreign policy - 1st plan

Sino-Soviet treaty 1950 was massively exploitative and put huge charges on the Chinese. All of the technical advisors had to be paid in full by the Chinese.

Failure of the party -1st plan

Party cadres in charge of reporting the industrial output of nationalised industry and individual danweis inflated the figures to further their careers.

Failure caused by Mao’s terror - 1st plan

The three antis campaign had attacked middle management in the party and the five antis campaign had attacked the intelligentsia, technocrats, and bourgeoisie increasing the reliance of Soviet help and reducing the efficiency of the plan.

Success of growth - 1st plan

The dying economy was now rapidly revived seeing growth rates of 9% in the years between 1952-57 pulling the country closer to pre-1940 levels

Success of monetary change - 1st plan

The renminbi (yuan) was introduced dropping the inflation rates from Weimaresque levels at 1000% to 15%

Success of output - 1st plan

Coal production doubled, electrical output tripled, and steel production quadrupled between 1952 and 57. 1,175,000 bicycles were produced. GDP reached 65,000,000 yuan by 1957

Success of construction - 1st plan

With the help of Soviet experts 70 projects were undertaken including the construction of the Wuhan Bridge.

Failure of famine - 2nd plan

Mao’s 2nd year plan led to 45 million deaths. Although the urban areas were mostly spared at the expense of the country, the entire nation was hit and production growth would not be able to sustain itself without the food the workers needed.

Failure of Sino-Soviet relations - 2nd plan

As the two countries broke all relations Soviet technocrats left in droves. China had built up a complete reliance on their knowledge and were now forced to cut dozens of unfinished construction projects.

Failure of output - 2nd plan

Without food from the country and advise from the Soviets urban centres were no longer able to move with the same speed. Output levels collapsed with steel dropping from 13 to 8 million tonnes between 1960-62 and coal from 270 to 180.

Failure of backyard furnaces - 2nd plan

The furnaces took up huge man hours and resources to feed and sustain to only produce 18% usable steel. Although, this number did grow slowly over time not enough to reverse the fact it was a huge, costly failure.

Failure of incentivisation - 2nd plan

In an ideological move similar to Lenin’s decree on workers 1917 Mao believed the workers could be compelled to work by revolutionary commitment and that remuneration was inconsequential for them. This was wrong. Heavy industry halved in production and light industry dropped to ¾ of the 1958 figure that was already mediocre at best.

Successes of construction - 2nd plan

As Beijing had now been adopted as the political hub of the CCP Tiananmen square was repaved in preparation for later political anarchy in the Cultural Revolution.

Success of the Iron Rice Bowl - 2nd plan

As Mao was striving to rapidly boost industrial output to overtake Britain in 7 years he confirmed food, housing and employment to a good number of urban families.

Failure to remove Mao completely - 3rd plan

With Deng and Liu now taking over for the disgraced Mao there was a chance he could have been retired politically forever. However, his influence remained strong and he frequently returned making attempts to water done the reforms being made. It would not be until the Cultural Revolution that Mao would regain full control again.

Success in returning from the chaos - 3rd plan

Ideological Maoism was removed from the parties central doctrine allowing for a more practical approach to solving the issues. The terror campaigns were ended and the free market was once again allowed

Successes of output - 2nd plan

Oil and chemical production levels rose slightly but still failed to hit targets.

Success of output - 3rd plan

Production levels returned to the pre GLF levels as incentives and free markets returned and grain production was aided by imports to keep urban workers fed.

Success of nuclear programme - 3rd plan

The 59/6 nuclear bomb test was conducted and Mao ‘thanked’ Khrushchev for letting the Chinese people develop it ‘independently’