The Four Modernizations

Untitled Slide

The Objectives

• Political: Assert Deng's triumph and will
• Implement Zhou's vision
• Economic: Adopt Policies to modernize and industrialize China
• Open Chinese Economy to the West
• Long term: Guarantee Party's dominance and existence

"Economics in Command"

• Economic pragmatism at its best
• Competitive and Self-Suffiencency
• A New Economic Policy for agriculture
• Science/Tech at the service of problem solving
• Steel Industry
• Oil/Petroleum/ Gas Production
• Infrastructure Development

Agriculture

• National Stability Interest
• Population Growth = Demands Higher agricultural output
• 80% Population lived in the countryside
• Goal: Increase production by 5% each year
• Reach 400 million ton of food produced by 1985
• Modernize farms

Instruments

• Introduced mechanized farming: Tractors
• Irrigation Systems
• Chemical fertilizer
• Do not set unrealistic quotas over people without technical instruments

New Economic Policy

• Families Received a piece of land to labour it
• They could sell or retain the surplus
• Incentive for community work

Industry

• Goal: Compete with the West
• Heavy Industries: Iron, Coal, Steel and Oil Production
• 54 million Yuan were invested
• 10 Iron and Steel Complexes
• 8 coal mines
• 6 oil gas fields
• 5 harbors

Phase 1

• Industrial Responsibility System
• Industrial Workers incentive: Surplus and Profits were given to workers
• Improve quality of products by keeping workers competitive and well payed
• Phase 2:
• "Reform of the Economic System" State-Owned-Entreprises received private investment

Instruments

• Foreign Investment
• Japan/ Germany Invested in Chinese Steel Industry. Over $16 million in less than 2 years
• British Banks provided a loan of $10 billion in 1981