By Nicholas R. Lardy
Explores the connection among the chinese language peasantry, who're the elemental base of help for the progressive chinese language Communist occasion, and the state-led economy verified by way of the get together after 1949.
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Additional resources for Agriculture in China's Modern Economic Development
8 Many of the collectives were no more than paper organizations, hurriedly created by local cadres in response to higher-level pressure to demonstrate success in the "socialist high tide" movement. In many provinces direct planning of sown area and the imposition of certain production techniques were attempted. In 1956, for example, the 38 Planning and allocative efficiency state forced cooperatives to purchase over a million of the infamous doublewheel, double-bladed ploughs (State Statistical Bureau 1960, 171).
As the cotton/grain price ratio was raised in 1950 and 1951, the cotton/grain sown area ratio, the absolute cotton sown area, the output of cotton, and the cotton marketing rate all rose. When the relative price of cotton was held unchanged in 1952 and reduced in 1953 the ratio of cotton to grain sown area fell. The sown area ratio recovered, however, when relative cotton prices were raised in 1954 and held stable in 1955. The state reinforced price incentives with favorable credit policy through advance purchase contracts that provided interest-free working capital to cotton producers.
In the summer of 1956 the state sanctioned the reopening of rural markets, most of which had been closed in the wake of collectivization and the transformation of private commercial activities (Ch'en Yiin 1956b, 29). In September the Eighth Party Congress discussed the desirability of reversing the trend of substituting direct for indirect methods of planning as well as specific improvements in procurement prices, discussed further below. Subsequently the Chinese Communist Party Central Committee and the State Council jointly issued a directive calling for a gradual move away from production planning toward purchase planning (1956).
Agriculture in China's Modern Economic Development by Nicholas R. Lardy