First 5 year plan (jan 1, 1953 – dec 1, 1957)

Description:

- Modelled on Stalin's 5 year plans

- The goal was to make China self sufficient and develop its heavy industry

- The aid given in the Treaty of Friendship (money and experts) aided the implementation of the 5 year plan

- Through Soviet experts, China was able to build modern constructions (e.g. electric power stations, steel plants, bridges with steel, etc.)

- Scaffold of previous economic reform already in place (the National Resource Committee (NRC) set up by the GMD)
- E.g. inflation controlled (1000% in 1949 to 15% in 1951)

- Plan produced considerable results; large increases in select sectors of production

- Collectivisation of farms began in 1956

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