China’s Agricultural and Industrial Policies in 1971*

The performance of the agricultural and industrial sectors during 1971 acquires an added significance as 1971 happens to be the first year of China’s ambitious Fourth Five-Year Plan. This Plan visualized new dimensions for the policies in these two basic sectors. This policy has aimed at optimum utilization of all factors of productions increasing the operational efficiency of both peasants and industrial labour through material incentives like private plots; and reinstalling technocrats in the respective industries. During 1970 the pragmatic economic policies of the Chinese Communist Party (CCP) leadership enabled the economy to attain a certain amount of stability. All this resulted in increased savings, a balanced budget, greater supply of consumer goods, and a rapid development in agricultural and industrial production as reported in early 1971. The policy of ‘taking agriculture as the key link and industry as the leading factor’ pursued by the Chinese leadership vigorously since 1961, paid dividends in terms of continuously increased production in these two key sectors.