From Commune to Capitalism

From Commune to Capitalism
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In the early 1980s, China undertook a massive reform that dismantled its socialist rural collectives and divided the land among millions of small peasant families. Known as the decollectivization campaign, it is one of the most significant reforms in China's transition to a market economy. From the beginning, the official Chinese accounts, and many academic writings, uncritically portray this campaign as a huge success, both for the peasants and the economy as a whole. This mainstream history argues that the rural communes, suffering from inefficiency, greatly improved agricultural productivity under the decollectivization reform. It also describes how the peasants, due to their dissatisfaction with the rural regime, spontaneously organized and collectively dismantled the collective system. A closer examination suggests a much different and more nuanced story. By combining historical archives, field work, and critical statistical examinations, From Commune to Capitalism argues that the decollectivization campaign was neither a bottom-up, spontaneous peasant movement, nor necessarily efficiency-improving. On the contrary, the reform was mainly a top-down, coercive campaign, and most of the efficiency gains came from simply increasing the usage of inputs, such as land and labor, rather than institutional changes. The book also asks an important question: Why did most of the peasants peacefully accept this reform? Zhun Xu answers that the problems of the communes contributed to the passiveness of the peasantry; that decollectivization, by depoliticizing the peasantry and freeing massive rural labor to compete with the urban workers, served as both the political and economic basis for consequent Chinese neoliberal reforms and a massive increase in all forms of economic, political, and social inequality. Decollectivization was, indeed, a huge success, although far from the sort suggested by mainstream accounts.

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Zhun Xu. From Commune to Capitalism

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From Commune to Capitalism

How China’s Peasants Lost Collective Farming and Gained Urban Poverty

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Mao defended the rural collectives. First, he argued, grain production under the collectives began to recover in 1962, which was much sooner than the pessimistic expectations. Second, Mao pointed out the growing polarization in several poor provinces that had adopted decollectivization, with some peasants becoming landless and others becoming usurers. It was in this context that Mao later commented: “Why do I regard baochandaohu [decollectivization] as a serious threat? China is an agricultural state. Once agrarian relations change, our socialist industrial base will shake. Urban production relations will change inevitably and polarization will grow rapidly. How could we communists defend workers and peasants?”30

In the end, China pursued the socialist path like many other countries, despite the strong support of the nonsocialist path among the leadership. This was due to socialist politics and ideology (plus direct influence from the socialist bloc), the need for industrialization, and, finally, Mao’s unquestionable authority. At one point, it seemed that “only socialism could save China.” However, as in other countries, the nonsocialist path eventually ruled, and the Chinese proverb was ironically twisted to read “only China could save socialism.”

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