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China ECONOMIC POLICIES, 1949-80
When the Chinese Communist Party came to power in 1949, its
leaders' fundamental long-range goals were to transform China into
a modern, powerful, socialist nation. In economic terms these
objectives meant industrialization, improvement of living
standards, narrowing of income differences, and production of
modern military equipment. As the years passed, the leadership
continued to subscribe to these goals. But the economic policies
formulated to achieve them were dramatically altered on several
occasions in response to major changes in the economy, internal
politics, and international political and economic developments.
An important distinction emerged between leaders who felt that
the socialist goals of income equalization and heightened political
consciousness should take priority over material progress and those
who believed that industrialization and general economic
modernization were prerequisites for the attainment of a successful
socialist order. Among the prominent leaders who considered
politics the prime consideration were Mao Zedong, Lin Biao, and the
members of the
Gang of Four (see Glossary).
Leaders who more often
stressed practical economic considerations included Liu Shaoqi,
Zhou Enlai, and Deng Xiaoping. For the most part, important policy
shifts reflected the alternating emphasis on political and economic
goals and were accompanied by major changes in the positions of
individuals in the political power structure. An important
characteristic in the development of economic policies and the
underlying economic model was that each new policy period, while
differing significantly from its predecessor, nonetheless retained
most of the existing economic organization. Thus the form of the
economic model and the policies that expressed it at any given
point in Chinese history reflected both the current policy emphasis
and a structural foundation built up during the earlier periods.
Data as of July 1987
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