Victories of socialist revolution and construction in China from 1949-1976
Response to the economic crisis: Revolution and socialist construction
(Second part)

Basahin ang artikulong ito sa Pilipino

Let us now present certain aspects of Chinese economy and society from 1949 to 1976 that feature the great strides made under the banner of socialism. They clearly show the victories achieved in various fields after the backward semicolonial and semifeudal system was ended.

Transportation. Semicolonial and semifeudal China suffered from backward transportation and communication systems. The railways and roads were inadequate to reach various parts of the extensive country. By 1949, more than half of all railways and roads could hardly be used because they were in ruin. The transportation system in rivers and seas was also quite limited. There was hardly any air transportation system. Even some cities did not have airports.

With the establishment of the people�s democratic government, the Chinese people rapidly repaired the railways. By 1973, the total length of railways was already several times that of what the reactionaries had left behind in 1949. They traversed hundreds of tall mountains and crossed wide rivers. They connected provinces and regions that had previous been unconnected, including northwest and southeast China, which were hitherto cut off from the country�s other centers.

Until 1949, not a single bridge spanned the Yangzi River, a 5,800-kilometer stretch that nearly divides the whole of China from the mountains in the northeast to the southeast. At the close of 1973, the Yangzi was spanned by four large bridges. Meanwhile, 10 railways and over 20 bridges spanned the Yellow River where previously only two railways crossed it.

Even bigger successes were achieved in the construction of highways. By the end of 1973, the total length of road was nine times bigger compared to that before revolutionary victory in 1949. The highways reached the Qinghai-Tibetan Plateau, among the highest places in the entire world. The Sichuan-Tibetan Highway is almost 2,000 kilometers long, tunnels through 14 mountains, crosses ten large rivers, and winds through slopes and ravines. Because of the establishment of these highways, the Tibetan people and other nationalities forged closer relations with other parts of China.

Since 1949, the types of aircraft used in China have multiplied several times. Airports were established even in the Tibetan Plateau, and regular flights scheduled to this area. Routes of domestic flights in 1973 reflected a sixfold increase compared to the figure in the first year after victory.

From nothing, the Chinese people began to produce trains. The production of large trains and modern freight and passenger coaches had become extensive by the 1960s. The construction of large ships, like the 10,000-ton ocean liner, was also begun in 1959. By 1957, from nothing, China began to produce small- and medium-sized airplanes.

The development of modern transportation in China was attendant to the development of industrial and agricultural production. The need to transport goods grew. Likewise, together with the development of the people�s livelihood came the growth in the number of passengers.

Finance. Like the present bankrupt Philippine government, the reactionary Guomindang government was always short of funds. Its finances depended on taxing the people, constant mendicancy to imperialism and printing money. The prices of goods rose and the value of money plummeted without letup.

With the establishment of the people�s government, it immediately junked onerous taxes and various charges that were a burden to the people. Imperialist financial control was ended, bureaucrat-capitalist financial institutions brought under control and private banks subjected to socialist planning. A new currency was issued and a new socialist financial system established.

The principle of �developing the economy and ensuring supply� was upheld. Together with rapidly developing production, China was able to accumulate funds continuously from socialist enterprises. Through central planning of the economy, state funds were balanced, and a surplus accumulated.

Bonds issued by the government beginning in 1950 to accumulate the necessary funds needed at the onset were all redeemed in full by 1968. Loans from the Soviet Union were all paid for by 1965. By 1973, China was a debt-free country.

The value of the currency was strong. For two decades, the prices of the people�s basic needs remained stable. (See table above) Because of the enhancement of supply, the prices of manufactured goods, such as fertilizer, machinery and medicine, among others slowly went down.

Under socialist China, no income taxes were imposed on workers. State funds came from socialist enterprises controlled by the state. The latter allocated funds in accordance with the objective of rapidly carrying out socialist construction�ensuring large funds for irrigation projects and the mechanization of agriculture. There were also support funds for people�s communes and production brigades that were experiencing difficulty.

At the same time, the state allocated funds for education, public health, science and culture. Funds were likewise allocated for workers� insurance and welfare and to improve the people�s livelihood. The state also allocated funds for areas where minority peoples live in order to meet their special needs.

21 November 2004
English Edition

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