1. Economic Development 16-2 Haley W.

2. Lesson Questions 1.What obstacles stood in the way of the modernization of China? 2.What were the Great Leap Forward and the Cultural Revolution? 3.How did economic policies change after Mao’s leadership ended?

3. Vocabulary Collective Farm- farm operated and managed under government direction Commune- Community in which all property is held in common, living quarters are shared, and physical needs are provided for in exchange for work at assigned jobs Capitalism- Free-market economic system in which the means of production are owned and operated by individuals for profit

4. Revolutionary Goals Mao proclaimed 3 main goals for China’s Revolution -Promised a better life for the poor -called for development of a modern economy -Pledged to restore China’s position as a major world power The communists took over and prevented them from achieving these goals Years of war destroyed their land for farming and industries China lacked technology and capital to industrialize To build a strong economy, they believed they had to destroy the old class system Communists wanted to place means of production under central government control to end inequality and increase output

5. Reorganizing Agriculture Communists quickly introduced land reform They took land from large landowners and divided it among families with less land The government forced peasants to pool their land, tools, and labor to form collective farms The government believed collective farms would be more efficient and result in bigger food production In 1958 Mao call on Chinese to make a superhuman effort to achieve modernization through one “Great Leap Forward” He divided China into communes which included villages, thousands of acres of land and as many as 20,000 people These communes controlled the land and peasants This was a way to mobilize the Chinese people to build bridges, farms, irrigation systems and other projects needed to modernize China The Great Leap led to disaster- workers did not work hard because they were guaranteed jobs and peasants were destroying crops Floods and droughts did not help farming and many people died in the famine that hit China from 1959 to 1961

6. Cultural Revolution Mao launched the “Great Proletarian Cultural Revolution” to renew the revolutionary spirit in 1966 He stressed the class struggle and urged people to root out “capitalist roaders” or followers of capitalism Students responded by organizing the Red Guards-held mass rallies to support Mao They traveled around China attacking government officials and others who did not fully support him The Cultural Revolution created chaos in China -Schools closed -disputes between rival factions slowed production in factories In 1969 the Chinese Army restored order Many people had been tortured, imprisoned, or killed because of the Cultural Revolution

7. Four Modernizations After Mao’s death there was a huge power struggle between his widow, Juang Qing and her supporters who favored the radical policies of the Cultural Revolution. The other side were moderate leaders who won In 1978 Deng Xiaoping was China’s leader and his goals were similar to Mao’s He called for modernizing agriculture, expanding industry, developing science and technology and upgrading China’s defense forces which was known as the Four Modernizations He introduced the responsibility system- Every farming family was responsible for making its own living Each family raised crops and had to sell a portion of them to the government which made farming output grow

8. Building Industry Deng shifted emphasis to light industry He wanted to make factories more efficient He extended the responsibility system to Industry which made China’s economy boom and industrial output rise. Although this is good for China’s economy, this causes population problems in cities Along with population, air and water pollution has increased as well as the crime rate These problems create a big gap between the rich and the poor

9. Expanding Trade Deng and Jiang realized that China needed foreign technology and capital in order to modernize Deng opened the door to foreign trade and investment He set up Special Economic Zones(SEZ) which is where free-enterprise thrives Trade has brought great wealth to china