China's economic growth over the period 1966-1976. Economics Essay

Chinese Economic
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Chinese Economic
Introduction
Before 1979, China had a centrally commanded economy where a significant share of the nation’s economic output was controlled and managed by the state, which was responsible for setting the production objectives, had the control of the prices, and was also responsible for resource allocation throughout the economy. To promote rapid industrialization, the government of China implemented large-scale investments in both human as well as physical capital. This took place between the 1960s and 1970s. It is approximated that by 1978, over seventy-five percent of the industrial production in China was in control of the state-owned and managed enterprises. During this period, private and foreign firms were significantly blocked, and the goal of the Chinese government was to ensure that the economy became self-sufficient. The literature evaluates and analyzes China’s economic growth between 1966 and 1976.
It is important to note that before 1949, China had not launched its rapid economic growth, and by the eighteenth century, its economic performance was inferior. Additionally, as a result of the increasing pressure from the West, the government of the Republic of China disintegrated politically. However, after 1949, the country began registering strong economic growth, which helped the economy of the country to rebound back quickly even after threatening policy mistakes.
The Cultural Revolution was launched by Mao Zedong in 1966, and it was intended to last until 1976. It was during this period that the Red Guards, who mainly comprised of the students, were primarily encouraged by Mao to overthrow the Communist Party leadership sparing him. This is normally seen as a strategy that Mao used to revitalize the revolutionary spirit. Economically, this period has no significant importance; however, investments were reduced in an orderly fashion, and agricultural production was slightly impacted. It is vital to comprehend that the decline of industrial production recorded, although the production of essential commodities continued.
High Tide- 1966-1969
This time marked a period of political instability in China and did not guarantee effective economic policies. It is crucial comprehending that the effects of the Cultural Revolution were witnessed in urban society, and it also significantly impacted the modern sectors of the China economy. The agricultural sectors were left stagnated while production in other sectors, such as industries, was significantly impacted. The disruption of the industrial output was attributed to the inadequacy of raw materials.
Regions
Between 1966 and 1969, the different urban centers in China experienced different rates of economic and industrial growth. The introduction of investments in the urban center promoted industrialization, which facilitated infrastructural development, which had a huge impact on living standards. On the other side, the economic development, as well as life in the rural areas, developed slowly, and the urban-rural economic differences were certainly visible. The socio-economic gap, which was witnessed between the two regions, facilitated urban migration (Cheremukhin, 2015). It is essential to note that the state-owned enterprises mainly obtained labor from individuals in rural areas; most institutions established would acquire the workforce from the rural areas, this hampered economic developed from the local areas as most people moved to the urban centers where the obtained employment.
Geography
Between 1966 and 1969, different geographical locations obtained different economic development. The centralization of the economic activities in China insinuated that the infrastructural investments which were implemented would be mainly aligned with the big industries which were mainly managed and run by the government. In this regard, economic growth and development were mainly witnessed in areas where the industries were located. For instance, proper transport systems were established in the North-Eastern part of the country where the heavy industries were situated.
Sectors
Between 1966 and 1969, when the Cultural Revolution was taking place, there were no major issues that were encountered in the disruptions that were recorded in the agricultural sector; this period is not considered as being detrimental to the Chinese agricultural practices. However, the impact was relatively huge in industrial production. This was the case because all the economic gen...