Mao's Five Year Plans

When was Mao’s First Five year plan?

1951-56

Why was the first plan not immediately introduced?

• Foreign owned businesses were nationalised therefore foreign trade was to be kept at a minimum

• Mao met Stalin in Moscow (1950) and secured Soviet assistance for the recovery (interest rates heavily favoured the USSR)

• A new currency was introduced

• Delayed due to Korean War & dealing with Nationalist threat and the communist government did not make the mistake of overprinting money

What was the pact that secured Soviet assistance for the recovery in 1950 called?

What was the disadvantage of this?

• Sino- Soviet Treaty

• Interest rates heavily favoured the USSR

What was the rate of inflation at 1949 compared to 1951?

1949- 1000%

1951- 15%