Economic Planning in China

Abstract

This chapter discusses the economic planning in China. When the Chinese communists took over the country in 1949, they had behind them many years of experience of rural organization, of land reform, and of agriculture in north-west China but little knowledge of industry, the running of cities and over-all economic planning. In carrying through the First Five-year Plan, which started in 1953, the two contrasting trends—the stress on heavy industry and the successful agrarian reform and collectivization policies—could hardly fail to pose problems if not actually to conflict. China has achieved much success in creating a harmonious relationship between industry and agriculture and in the proportionate development of heavy and light industry. She has considerably reduced the gap in the standard of living between town and country. She has devised, or is well on the way to devising, planning methods that avoid an inhibiting rigidity and eschew over centralization. Above all, she is pursuing a policy in which workers and peasants increasingly play an active and meaningful part.