Mao Zedong: Founder and President of the People’s Republic of China
In 1949, after a great civil war, the Chinese Communist Party amounts to the power of Mao Zedong. This ended a long period of invasions, political dismissal and economic collapse.
As a result of the end of World War II, Chinese support to North Korea during its Civil War and understanding with the Soviet Union, the Popular Republic of China began to distance itself from the capitalist Western countries, in order to adapt an economy planned by the state. During the first years the main industries, financial institutions and large -scale trade were nationalized. Between 1953 and 1957 the first five -year plan was launched, whose objective was the agrarian collectivization and the prioritization of the heavy industry. This campaign gave rise to a period of rapid economic growth, despite guiding its trade only to communist countries.
Despite the good results, in 1958 the relations with the USSR began to deteriorate and the country submerged in a great crisis, which increased due to the revolutionary and communist policy of the "great leap forward". A project that intended to achieve forced industrialization, greater state controls for agriculture, forcing peasants to organize in communes, and greater understanding of household consumption. The results were disastrous and the country was submerged in a large famine. In addition, in the following three years, 50% of industrial GDP was lost.
To recover agricultural production and correct the failures, between 1961 and 1966 a readjustment policy was applied that spread a balanced growth between the primary and secondary sector. Mao Zedong decided to establish socialism in the country, continuing with economic planning and a heavy industry -oriented growth, but totally independent of the outside world. In 1966 China had already paid its debts to the Soviet Union for the help provided during the industrialization of the country in the first five -year plan.
During 1966 and 1976 the "Cultural Revolution" took place, a political and social movement that intended causing a fractionation within the Communist Party. All this generated great destabilization both socially and economic with serious consequences: persecutions, deaths, forced labor, decline of foreign trade, industrial and agricultural stagnation, cultural setback ..
Finally, in September 1976 Mao Zedong dies and two years later it would be when China’s future would open a door to changes.
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