By Nicholas R. Lardy
Explores the connection among the chinese language peasantry, who're the basic base of aid for the innovative chinese language Communist celebration, and the state-led economy tested by way of the get together after 1949.
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Extra resources for Agriculture in China's Modern Economic Development
The volume of interprovincial transfers typically rose in years of widespread national disasters, such as 1954, but was less in years of excellent harvests such as 1955. Although interprovincial transfers to meet famine relief needs rose in years of poor harvests, such transfers fell short of meeting all needs. As a result localized food shortages continued to stimulate rural-urban migration, despite the efforts of the Ministry of Internal Affairs to curtail and prohibit such migration. In the spring of 1957 a ministry report revealed that in the preceding half-year a half-million peasants had left famine-struck rural areas in favor of towns and cities in the hope of finding urban employment (Hoffman 1974, 88).
The producer is presumed able to meet a goal expressed in terms of physical units of output or to behave as a profit maximizer, producing up to the point where the marginal cost of production is equal to the price set by the state. 1, where the central planner knows with certainty both the firms production function and thus marginal cost schedule E(MC) and the social welfare function and thus the marginal benefit schedule MB, the choice between price and quantity controls is trivial. The central planner will maximize social welfare either by setting the output target q or by setting the price p.
He warned as early as 1942 against the mistake of what he called "draining the pond to catch the fish" (Mao Tse-tung 1942, 114), a theme to which he would return almost two decades later in his critique of Soviet agricultural development policy. After 1949 Mao's attitudes toward agriculture evolved considerably, primarily because of the elevation of the priority of the heavy industrial sector (Mao Tse-tung 1956, 285; 1957, 419). 'Yet in practice, Mao sought to achieve agricultural growth primarily through organizational changes and to accelerate industrial development through a high level of state investment expenditures, financed largely through direct and indirect taxes on agriculture (Mao Tse-tung 1955, 197).
Agriculture in China's Modern Economic Development by Nicholas R. Lardy