Reforms Undertaken by China

Great Leap Forward campaign was initiated in 1958.

Industrialization of the country was started on large scale

People were asked to set up factories in their backyards

In Rural Areas, Commune System was launched where people collectively culltivated lands

In 1958, there were around 26,000 communes covering the farm population.

GLF Campaign faced a lot of problems due to drought which killed 39 million people

There were conflict with Russia.

During these confict, Russia withdrew its professionals which were sent to China to help in industrialisation process

Yes, the given statement is correct.

In 1978, China launched its reforms in different phases:

1. In Initial phases, reforms were introduced in agriculture and investment sector

Reforms in Agriculture

Commune lands were divided and allocated to individual households for use

However, ownership remain with government

These farm owners were allowed to keep all profit after paying taxes to govt.

Reforms in Investment Sector

Govt Promoted foreign investment by allowing Special Economic Zones(SEZ) to be set up

Govt gave tax concessions to foreign companies who estabished there units in these SEZ

2. In the later phase, reforms were initiated in industrial sector

Investment in Infrastructure

Massive Investment in Infrastructure was undertaken like Building of roads, bridges, electricity supply, new cities, extension of basic health services

These not only provided jobs but also boosted the industrial sector

Reforms in Private Sector

Private Sector was allowed to produce goods and compete with Public Sector Enterprises (called SOE-State Owned Enterprises)

3. Also the dual pricing scheme was followed:

Agriculture and private Sector had to buy and sell goods at 2 Prices

A certain fixed Quantity at Govt determined Prices

Balance Quantity at Market Prices

Note

In earlier years, production was more at Govt prices

In later years, as production increased, goods at market determined prices increased

The important implication of the 'one child norm' in China is that it helped reduce the growth rate of the population.

This allowed better health services for women and reduced the risk of infant deaths associated with pregnancy.

However, because of this policy the old population will outnumber the younger population, so there will be fewer people to serve as workers.

In 1978, China launched its reforms in different phases:

1. In Initial phases, reforms were introduced in agriculture and investment sector

Reforms in Agriculture

Commune lands were divided and allocated to individual households for use

However, ownership remain with government

These farm owners were allowed to keep all profit after paying taxes to govt.

Reforms in Investment Sector

Govt Promoted foreign investment by allowing Special Economic Zones(SEZ) to be set up

Govt gave tax concessions to foreign companies who estabished there units in these SEZ

2. In the later phase, reforms were initiated in industrial sector

Investment in Infrastructure

Massive Investment in Infrastructure was undertaken like Building of roads, bridges, electricity supply, new cities, extension of basic health services

These not only provided jobs but also boosted the industrial sector

Reforms in Private Sector

Private Sector was allowed to produce goods and compete with Public Sector Enterprises (called SOE-State Owned Enterprises)

3. Also the dual pricing scheme was followed:

Agriculture and private Sector had to buy and sell goods at 2 Prices

A certain fixed Quantity at Govt determined Prices

Balance Quantity at Market Prices

Note

In earlier years, production was more at Govt prices

In later years, as production increased, goods at market determined prices increased