Notes for Aims and results of policies: Mao's domestic policies - economic policies - IB | RevisionDojo
Aims and results of policies: Mao's domestic policies - economic policies Notes
The First Five-Year Plan focused on heavy industry and Soviet-style development, helping Mao centralise control and showcase early economic progress under Communist rule.
Aims of Mao’s Economic Policies
Mao aimed to transform China into a modern, self-sufficient socialist economy through state-led industrialisation and collectivised agriculture.
He wanted to break the power of landlords and private businesses, replacing them with state and collective ownership to align with Marxist principles.
A major goal was to surpass Western economies and prove that China could succeed without relying on capitalist models or Soviet-style bureaucracy.
Economic policy was also designed to mobilise the masses, especially peasants, into political and physical labour campaigns that would strengthen loyalty to the CCP.
The First Five-Year Plan (1953–1957)
The plan focused on heavy industry, following the Soviet model. It aimed to build steel, coal, and machinery output, and was supported by Soviet loans and advisors.
Urban industrial output grew rapidly, especially in the northeast, with targets in coal, steel, and electricity often met or exceeded.
Private businesses were nationalised, and the state took control over banking, foreign trade, and large enterprises, helping centralise economic power.
While industrial growth was impressive, rural areas saw limited improvement, and peasants were pressured to meet grain quotas to fund industrialisation.
Agricultural Collectivisation (1950s)
Mao began by organising peasants into mutual aid teams, which gradually evolved into higher-level agricultural cooperatives by 1956.
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