JC History Tuition Singapore - What are Special Economic Zones of China - Economic Transformation Notes

What are Special Economic Zones of China?

/in , /by

Topic of Study [For H2 History 9174 Students]: 
Paper 1: The Development of the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 2: Transformation of East Asian Economies (China, 1978-2000)

Learn more about the Special Economic Zones like Shenzhen, Zhuhai and Xiamen [Video by CGTN].

Vanguards and forerunners: Introducing the SEZs
Between 18 and 22 December 1978, the 3rd Plenary Session of the 11th Central Committee of the Chinese Communist Party was held. During this session, the Chinese government began its pivotal journey in undergoing ambitious economic reforms to correct the errors of the Maoist economic system.

As part of Deng Xiaoping‘s economic reform that began in 1979, the government designated four Special Economic Zones (SEZs): Shenzhen (深圳), Zhuhai (珠海), Shantou (汕头) and Xiamen (厦门).

These SEZs were economically open areas that promoted technology transfer, foreign investment and export activities. China sought to harness its large pool of labour to produce labour-intensive goods for export. By doing so, it can accumulate foreign exchange earnings to meet the demands of its capital-starving economy.

In addition, SEZs were important in accessing foreign technology to stimulate growth. With the influx of foreign direct investment, these SEZs could then utilise foreign technology and production techniques to enhance the processes of domestic enterprises.

The designation of the above-mentioned four SEZs was intentional. Their locations were identified given their proximity to external economies, namely Taiwan, Macau and Hong Kong. There were contemplations of using these SEZs to integrate with these external economies that may eventually lead to ‘political reunification’. Besides, there was limited capital investment, thus the open-door policy could not be implemented nation-wide from the outset.

Case Study: Shenzhen
Among the four SEZs, Shenzhen became the largest and most successful zone (see Table 1.1). Its success could be attributed to its unique geographic location, given that it functioned as a channel between the mainland and Hong Kong. Furthermore, Shenzhen has abundant land resources that gave it much potential for industrial development.

Source: Pioneering Economic Reform in China’s Special Economic Zones: The Promotion of Foreign Investment and Technology Transfer in Shenzhen (Weiping Wu, 1999)

Three major work conferences were held to finetune the development strategies for Shenzhen (1981, 1985 and 1990). For example, the 1990 work conference emphasised the importance of the SEZs as the core of the coastal development strategy as well as the generation of foreign exchange. At that time, the central government directly supervised policymaking and appointments for Shenzhen.

Since the 1990s, Shenzhen’s industrial growth contributed to half of the growth in Gross Domestic Product. In 1994, contribution by the industry was 43 percent compared 11.8 percent in 1979 (see Table 2.2).

Source: Building Engines for Growth and Competitiveness in China: Experience with Special Economic Zones and Industrial Clusters (Directions in Development – Countries and Regions) by Douglas Zhihua Zeng.

In fact, Shenzhen has become one of the political battlefields between the reform and conservative factions in the central government. Its success or failure, at least in the early 1980s, would determine the fate of the reform. The SEZ promoters hoped to use Shenzhen not only to promote foreign investment and technology transfer, but also to learn how to adopt selected features of a market system into the socialist reform. Shenzhen, as well as other SEZs, represented in miniature the very essence of the new reforms.

An excerpt taken from “Pioneering Economic Reform in China’s Special Economic Zones: The Promotion of Foreign Investment and Technology Transfer in Shenzhen” by Weiping Wu.

In 1984, fourteen more coastal cities were designed as SEZs, such as Yantai (烟台), Tianjin (天津) and Shanghai (上海). These SEZs prioritised the promotion of foreign investment.

Join our JC History Tuition to learn more about the economic transformation of China and Japan under the theme of The Global Economy. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.

JC History Singapore - What is the Four Pests Campaign - China Economic Transformation Notes

What was the Four Pests campaign?

/in , /by

Topic of Study [For H2 History 9174 Students]: 
Paper 1: The Development of the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 2: Transformation of East Asian Economies (China, 1978-2000)

Explore the historical significance of the Four Pests Campaign during Mao Zedong’s Great Leap Forward [Video by CNA Insider]

The second Five Year Plan: Great Leap Forward
In 1958, the Chairman of the Chinese Communist Party Mao Zedong (毛澤東) introduced the second Five Year Plan (1958-1962), also known as the Great Leap Forward. The ambitions Mao aspired to transform China from an agrarian society to a modern, industrial society. Mao even believed that China could outproduce Great Britain, the nation that experienced the Industrial Revolution.

Com[rade] Khrushchev told us that the Soviet Union will overtake America in fifteen years. Well, then, I can also say in a preliminary way that in fifteen years we, too, possibly, will overtake England.

[…] And what will China have in fifteen years’ time? China, possibly, will have 40 million tons. Calculate: doesn’t it show that the advantage is on our side? In this case, our camp already has two such countries: the Soviet Union, which will overtake America in fifteen years, and China, which will overtake England in fifteen years.

In the end, what is the bottom line of the speech? We need to have a fifteen year period of peace. Whatever one says, the aim is to use all means to strive for the fifteen year peaceful period. In this case, we’ll really be undefeatable in the whole world, and no one will dare to fight against us.

Excerpt from the unedited translation of Mao Zedong’s Speech at the Moscow Conference of Communist and Workers’ Parties, 18 November 1957.

Accelerated agricultural development and the ‘Four Pests’
Between 1958 and 1960, millions of Chinese citizens moved onto communes. The communes would function in a self-sufficient manner, covering key aspects like industry, agriculture, governance, education and even healthcare. The rural Chinese toiled day and night, in hopes of raising crop yield to impress their leaders.

As the Great Leap Forward was underway, Mao launched the ‘Four Pests’ campaign, also known as the ‘Four Evils’. It was a hygiene campaign to exterminate rats, mosquitoes, flies and sparrows. By doing so, the Chinese leader believed that the grains produced would be kept safe. The extermination of these ‘pests’ was also meant to keep out infectious diseases.

Four Pests Campaign - Poster 2 - JC History Tuition Singapore - China's Economic Transformation Notes
A poster calling for the Chinese youths to kill the sparrows and protect the grains.
https://www.theworldofchinese.com/2017/09/chinas-serial-sparrow-sorrows/
A poster that showed the four specific species targeted during the ‘Four Pests Campaign’, namely mosquitoes, flies, sparrows and rats.

For instance, the Chinese shot the sparrows and destroyed their nests. The farmers were asked to make as much noise as they could so that the sparrows were chased away. In doing so, these birds were forced to take flight for a sustained duration till they died of exhaustion. They also armed themselves with fly swatters, guns and gongs to kill these vermin. By the end of the Campaign, about 1.5 billion rats and 1 billion sparrows were decimated.

In 1958, the Chinese government established a bureau for the extermination of sparrows in Beijing and started a war on sparrows. Sticks, slingshots, and poison cookies were prepared, after which a large parade was held celebrating the extermination of the sparrows. As a result, over two thousand million sparrows were killed. This cull nearly annihilated the total sparrow population.

Did this campaign result in a successful rice harvest? No. As sparrows disappeared, as of 1959, the number of insects in China increased. In 1960, an attack of locusts caused half of the expected rice harvest to disappear.

An excerpt taken from “Platform Strategy: A New Paradigm For A Changing World” by Ki-chan Kim, Chang-seok Song and Il Im.

A disastrous consequence: Collapse of the ecosystem and Widespread Famine
Yet, there were serious repercussions as a result of this Campaign. Given the essential role of the sparrow in feeding on the locusts, the severe decline of the sparrow population allowed the locusts to thrive, devouring fields of grain. In addition to the use of questionable farming techniques, a mass famine hit China. An estimated of 30 million people died during the Great Leap Forward.

Join our JC History Tuition to learn more about the economic transformation of China and Japan under the theme of The Global Economy. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.

JC History Tuition Singapore - What was the Income Doubling Plan in Japan 1960 - Japan Notes

What was the Income Doubling Plan in Japan?

/in , /by

Topic of Study [For H2 History 9174 Students]: 
Paper 1: The Development of the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 2: Transformation of East Asian Economies (Japan, 1947-1991)

Learn more about the economic transformation of Japan after the end of World War Two [Video by International Economics]

A political crisis: The Anpo protests
After Japan restored industrial production to pre-war levels in the 1950s, the Japanese government made thorough plans to embark on trade liberalisation. The leaders knew that reintegrating Japan into the world economy was next step forward.

However, the government was beset by socio-political unrest, particularly the Anpo protests (安保闘争) in 1959-1960. These protests were staged in opposition to the revised United States-Japan Security Treaty of 1952. This Treaty allowed the Americans to maintain military bases in Japan that allowed them to defend the nation in the event of an attack.

Although the protests had failed to prevent the Treaty from being revised, the Cabinet under Nobusuke Kishi (岸 信介) resigned on 15 July 1960. Even President Eisenhower’s planned visit to Japan was cancelled. The protests had far-reaching implications on Japan’s political landscape.

The protests were so extensive, and the issues at stake so deeply felt because actors on all sides – the U.S. government, Japanese conservatives and government leaders, and the expansive antitreaty movement – elevated the new security treaty as the key to enshrining or resisting visions of a Cold War democracy in Japan. Anpo became the ultimate clash between competing visions of Japanese democracy, which seemed irreconcilable.

An excerpt taken from “Cold War Democracy: The United States and Japan” by Jennifer M. Miller.

Economic renewal: Enter Ikeda
Kishi was succeeded by Hayato Ikeda (池田 勇人). As Prime Minister, Ikeda assumed a more conciliatory stance towards the political opposition, placing more focus on advancing the Japanese economy instead. On 27 December 1960, the Ikeda Cabinet reached a decision to launch the ‘Income Doubling Plan‘.

The Plan aimed to double the national income of Japan in ten years. To do so, several targets had to be reached. For instance, Japan had to reach 26 trillion yen in Gross National Product (GNP) [at the fiscal year 1958 price] within the next ten years. Also, Ikeda sought to attain full employment and raise the living standards of the Japanese population.

In summary, the ‘Income Doubling Plan’ was a long-term economic development plan to coordinate and systematise policies to facilitate industrial rationalisation, so as to achieve rapid economic growth.

The [Income Doubling Plan] was designed explicitly to quiet political protest after mass demonstrations against the government’s foreign policy. The Income Doubling Plan reaffirmed government responsibility for social welfare, vocational training, and education and increased spending considerably in these areas. It sought to eliminate low-wage jobs and regional income disparities. Yet the plan’s greatest innovation was to redefine growth and to include Japanese consumers as well as producers.

An excerpt taken from “Postwar Japan as History” by Andrew Gordon.

A force to be reckoned with: Japan as an economic powerhouse
True enough, the Ikeda Cabinet’s ambitions were realised. In the 1960s, Japan’s GNP grew at an annual rate of 10.6 percent in real terms. Evidently, Japan had surpassed the United States, which grew at an annual rate of 4.1 percent. In 1970, 30 percent of Japan’s GNP was attributed to the manufacturing sector, which was largely driven by the rise of the heavy and chemical industries. By the late 1960s, Japan became the world’s second largest economy, outpacing West Germany.

From being about a third of the American economy, measured in terms of GDP, in 1973 (and just over a tenth in 1950), the Japanese economy had become 40 percent as large by 1989. Japan first emerged as an industrial giant, with particular strength in electronic products, cameras, motorcycles and later motor cars, iron and steel, and shipbuilding; and a huge surplus in its manufactured goods trade balance, overtaking West Germany in the 1970s. The rise of Japan as a financial power, and of Tokyo as an international financial centre, was thus above all due to Japan’s rise to the rank of economic superpower.

An excerpt taken from “Crises and Opportunities: The Shaping of Modern Finance” by Youssef Cassis.

Join our JC History Tuition to learn more about the economic transformation of Japan and China under the theme of The Global Economy. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.