China 2.4 The Second Five-Year Plan

Why did Mao launch the Second Five-Year Plan?

Confidence

Transform the PRC into an economic power

>'Walking on two legs'

Ideological reasons

What happened to private enterprises?

1956 - industrial enterprises were nationalised

State-owned enterprises were inefficient because workers had no incentive

They were guaranteed housing and wages

What were the successes of the Second Five-Year Plan?

Ideological - private property banned, people were living in communes

Irrigation projects - made land more fertile (but this did divert peasants from growing crops)

Up to half the peasants in a commune would work for weeks on water-conservancy projects, often far away from home

What were the agricultural failures of the Second Five-Year Plan?

Between 1958 and 1961, grain output fell by a quarter (200 million tonnes to 147.5 million tonnes)

Great Famine - 30 million to 50 million deaths

What were the industrial failures of the Second Five-Year Plan?

1962 - industrial output was 40% lower than the 1958-59 level

Factories closed due to shortages of raw materials

Famine meant that workers died of starvation

Even though backyard furnaces increased steel production, it was useless steel

What were targets like?

Unrealistic, not met

e.g. In January 1958, the Ministry of Metallurgy announced it would double steel output by 1962

What was the impact of the anti-rightist campaign?

Little to no experts left - reduced the quality of economic planning

Give an example of a failed project

Three Gate Gorge Dam

Poorly planned, caused environmental damage

When was the Lushan Conference? What happened?

July 1959

Peng Dehuai expressed doubts about reports of a record grain harvest (375 million tonnes)

Spoke of visiting Hunan and witnessing starvation

He was removed from the Politburo and his position as Minister of Defence

Who drew up the Third Five-Year Plan? When?

Chen Boda drew up the Third Five-Year Plan in 1962

It was more pragmatic

How did Liu and Deng reform agriculture? (1962 onwards)

Communes were broken down into smaller collectives of roughly 30 households

Peasants were given small private plots

Private trading was allowed

Peasants could claim and cultivate unused land

By the mid-1960s, private production made up a third of peasants' incomes

How did Liu and Deng reform industry?

Financial incentives were introduced

Profitabilty was emphasised

Industrial production was changed to support agriculture e.g. materials like wood, steel and bamboo were used to produce hand tools, carts and boats

Experts sent to the laogai during the anti-rightist campaign were returned to management positions

Under Liu and Deng, what did 'Walking on Two Legs' become?

'Agriculture as the Foundation of the Economy'

Agricultural recovery was prioritised

Industry would support agriculture (not the other way round)

What were the agricultural successes of Liu and Deng's reforms?

By the end of 1962, the availability of tools, boats and carts had been restored

1965 - agricultural output had returned to 1957 levels

What were the industrial successes of Liu and Deng's reforms?

1965 - industrial output was almost double that of 1957

Light industry grew at a rate of 27% per year

Heavy industry grew at a rate of 17% per year

Under the Plan, production of consumer goods was double the 1957 level