China's Road to Development by Neville Maxwell

By Neville Maxwell

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Sample text

Even since the Great Leap Forward had dismantled the machinery of Soviet style, vertically integrated planning, which was implemented widely but unevenly during the First Five Year Plan, the role of economic "trusts" and central ministries vis-a-vis local political authorities had been a core element of debate among the Chinese leadership. After the Cultural Revolution this debate was, at least temporarily, settled in favour of a distinctly Chinese approach to planning. Characteristic of this approach was a balance between centralized planning and decentralized operations.

To this extent, China has learned from others, and RURAL DEVELOPMENT 23 there are, of course, no reasons why other countries cannot take advantage of the same information. I refer to policies of raising capital formation relative to consumption to attain higher growth rates, of encouraging saving for this purpose through taxation, financial institutions, and in other ways, of using relative factor supplies to good advantage, of aiming for developmental government budgets and moderate growth rates of the money supply, of utilizing aid and trade efficiently, and so on.

The factory level of authority made up of a revolutionary committee and a core of Communist Party members could rotate assignments in the office with those on the shop floor. This approach to management was summed up in what the Chinese called the "Anshan Constitution", a series of five broad principles concerning participation and leadership in factory management enunciated by Mao in the early 1960s. In addition to managing and coordinating the factory's overall production operations, while promoting the "two participations", factory level authorities provided the CHINA'S INDUSTRIALIZATION 31 key links between the factory and the wider society.

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