COMMUNISM WITH A
CAPITALIST FLAVOUR
Mao's Programs
Programs
First Five Year Plan  1953 -1957
Quotas set for industrial output
Farmers encouraged to work
collectively
Great Leap Forward  1958 – 1962
‘Neglected modern technology in
favor of small scale industries
with “home made” equipment
Creation of communes
Results
• Industry grew 15% per year
•Agricultural output was
neglected and grew very slowly
•China suffered economic
disaster with mass decline in
industry and huge food
shortages
 COMMUNISM WITH A
CAPITALIST FLAVOUR
Mao's Programs

Programs
Cultural Revolution 1966-
1976
Designed to appeal to
Chinese Youth and a turning
point away from the Soviet
Model.
Idea of making education,
health care and cultural
system less elitist
It was also a period of mass
persecution as the students
formed themselves into
Results
• Thousands of intellectuals
verbally attacked and
physically abused
•The people start to lose
faith in the Communist Party
•Industrial production drops
by 12%
 COMMUNISM WITH A
CAPITALIST FLAVOUR

1979-
1989

Deng Xiaoping, the

new leader of China,
disbands communes,
allows farmers to
freely sell their
products and
introduces profit
incentives for
factories. It is called
"Socialism with
Chinese
characteristics“.
 COMMUNISM WITH A
CAPITALIST FLAVOUR
Decentralization of Chinese economy under the
government of Deng Xiaoping:

Food and industrial production grew by 6% GDP

per capita
 Price liberalization in the domestic market
 Relaxation of government control and central
planning
Privatization of state-owned enterprises
 COMMUNISM WITH A
CAPITALIST FLAVOUR
1992

The 14th Party

Congress comes up
with the formula:
"Socialist Market
Economy“. From
now on, making
profit is OK.
 COMMUNISM WITH A
CAPITALIST FLAVOUR

1997

The British
colony of Hong
Kong is
returned to
China.
And Taiwan
worries: «Will
we be next?»...
 COMMUNISM WITH A
CAPITALIST FLAVOUR
1997

The 15th Party Congress reveals its plan to sell most state-
owned industries. In a word: privatization!
Tens of millions of workers are to be laid off with no social
protection.
Is this socialism - or capitalism?
 COMMUNISM WITH A
CAPITALIST FLAVOUR
1999

China and the US

reach a deal on
trade, paving the
way for
Beijing's entry
into the Wolrd
Trade
Organization.
 COMMUNISM WITH A
CAPITALIST FLAVOUR
2000

The U.S. Senate passes a bill to remove

restraints on trade with China.
Hello WTO
COMMUNISM WITH A
CAPITALIST FLAVOUR
More than 70 per cent of
the commodities sold in
Wal-Mart are made in China
According to World Bank, by
2010 50% of clothes will
have the tag “Made in
China”