Mao’s next reform was the Agrarian Land Reform; this saw great advances in the poor agriculture of China. It also saw members of the Communist party going into the countryside and starting a revolt among peasants against landowners. Proprietors were beaten and humiliated, in order for the peasants to gain larger plots of land. Despite peasants receiving more land they were discontented, as they had no tools to farm the land, hence many peasants joined work units. This reform saw harvests of crops increase greatly and the start of an agricultural revolution was nigh.
In line with advances in farming, the Communists had to make changes in the economy so that it could be sustained. The first major change the Communists made in this field was to take major banks, railways and a proportion of heavy industry back into public control. All the profits were taken from private owners and put into the State Treasury. In 1951, A People’s Bank was opened to replace private banks, and to remove inflation (such inflation that had been seen sky-rocketing before the Communists came to power). In addition, as farmers were producing more grain, to avoid food shortages they had to sell the Government 15-20% of their produce at a low price.
China needed investment to fund their ever-growing country’s needs. Mao went to the USSR to receive aid. Unfortunately, China received just $300M but more importantly a vital 10,100 engineers to fund their first five-year plan. China used this money to develop heavy industry, which was necessary to save the country from future turmoil. 700 new production plants helped China to double their output of coal, oil and cement and quadruple the amount of pig iron, steel and fertilizer produced. These types of advances had never been seen before in China, yet they did not come without a cost. Light industry, such as cotton making, was neglected whilst this heavy industry was developed, therefore people had to live without consumer goods.
There was now many more mouths to feed in industrialised areas, consequently different stage farming co-operatives were implemented to make peasants farm more effectively. In some villages, ‘lower-stage co-operatives’ were made; up to fifty families pooled their land and farmed it together in a more efficient manner. Still more advantageous was that families still owned the land and were paid rent by the Communists for its use. However, the Communists realised that the ‘lower-stage co-operatives’ would not produce enough food for the considerable workforce. Therefore, Communist Party officials went to the countryside and almost forced families to join ‘higher-stage co-operatives’, which consisted of 200-300 families clubbing together their land and farming it even more effectively. However, the growth and development of agriculture also came at a price. Some 95% of families joined ‘higher-stage co-operatives’, where they had to seize the deeds for their land (keeping just a few square metres), and only receive a small wage, rather than rent on their land.
This first five-year plan was a harsh struggle for both Mao and his people. He realised that the Communist Party was losing some of its original popularity (especially with the peasants) so he told the people, using a saying from Ancient Chinese History, “Let a hundred flowers bloom”. This meant the people could speak freely even if their words were against the Government. Mao, it is believed, wanted to see how China could be improved through the people’s suggestions, and in the process lifted a ban on free speech that had lasted for as long as some people had lived. Mao was angry with what many of his critics said, so he sent many to ‘thought reform’ and many others were executed. A year after free speech had been introduced it was banned again.
Under the banner of “The Great Leap Forward” all types of industry: heavy, agricultural and light, were developed at the same time. To improve the farming of China (to prevent famine etc.) communes were established. Communes were groups of villages, containing an average of 5000 families, where villagers gave up all their land and tools. People were not allowed to be distracted by anything and had to be 100% focussed on their work. Everybody in the commune ate together so no time could be wasted in the preparation of food. The old and infirm were put into ‘houses of happiness’ so their family did not have to take time of work to care for them, as previously happened. All children were put into nurseries or schools so both their parents could work full time. Communes were not just where the peasants worked but also where the people did everything.
Propaganda played a massively important role in the “Great Leap Forward”. The Chinese had experienced it seldom before, but now loudspeakers played speeches and music whilst people worked and it is down to this, it could be said, that huge projects were completed ahead of schedule. One such example being when a dam outside Beijing was built without great machinery and people dug the materials with their bare hands.
The final major reform the Communists made was in the form of the “Backyard Steel Campaign”. Steel furnaces were placed in towns, and people with little experiences of how to operate them attempted to make steel with them. Against all odds, the amount of steel produced in 1957 rose by 65% on the year prior.
The Communist Party made many social and economic changes after they came to power; some good, some bad but all had an impact on the success of modern day China.