The Initial Emergence of Reform in 1956
The Initial Emergence of Reform in 1956
The original economic institution in China, initially implemented in 1949, was unlike the centrally planned economy in the Soviet Union. It was a system with state control of all “commanding heights,” or “economic lifelines,” but it was accompanied by the coexistence of various ownerships. However, the 1953 General Line for the Transition Period sought to turn private ownership into collective and state ownership, and by 1956 China had become a command economy. Nevertheless, within economic and academic circles, there was much criticism of the mandatory planning. The first reform of China’s economic administration took place in 1956. Mao’s speech “On the Ten Major Relationships,” in which he critiqued the Soviet model and advocated administrative decentralization, set the tone for the 1956 reforms. The central government attempted to delegate power to and to share profits with local governments. Such efforts, however, eventually failed to produce real reform.
Keywords: Chapter command economy in the 1950s, General Line for the Transition Period, On the Ten Major Relationships, 1956 reforms, administrative decentralization, delegation of power
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