To what extent did authoritarian leaders use economic policy to

transform country according to aims/outcomes?

A successful economy is necessary for the success of an authoritarian leader. After coming into power in
1949, Mao served to revolutionize China and he planned to achieve this by enhancing producing a thriving
economy. He primarily targeted 3 sectors, agriculture, industry and the living standards of the people.
China was already a primarily agrarian country, therefore the initial phase of economic policies focused
on various agricultural policies in order to enhance the economic power as well as nuclear development
to make military power stronger.

Agriculture:
In agriculture, Mao aimed to collectivize farming based on the Soviet model and boost Chinese agricultural
exports in order to finance industrial expansion, but it proved a dismal failure. The poorly planned
execution of agricultural policy had horrific consequences.

Evidence:
 Stubborn relentless pursuit of target=famine 20-50 million by 1961
 Grain production falls 35 million tonnes in 5 year
 Collectivization: Over the period of the Five-Year Plan, from 1953-1957, agricultural production
grew by only 3.8%. In the last year of the plan, grain production increased by only 1%.

Counterclaim:
However, Zhou Enlai and Deng Xiaoping= revival eg. Small private plots reappeared
20% of arable land farmed (1962)

Industry:
Mao made substantial success in the industrial sphere, however this was made at the considerable
expense of agriculture and heavily reliant on loans provided by the Soviet. The withdrawal of these loans
added on to the effects of the Cultural revolution led to extreme repercussions as factories shut down or
stopped mid-production.
Evidence:
 Before 1953: 20% heavy industry and 60% light industry-privately owned: Value of industrial
output doubled (1949-52)
 By 1957: all industry: state owned: intro of 5-year plan: Targets exceeded by 20%: Heavy industry
output 3X and light industry increased 70%
 Peasants raised capital for industrial expansion. Poorly planned clash of policies as peasants left
fields for "backyard furnace"- "produce more, faster, better"-steel production doubled between
1957 and 1960.
 Iron and Steel mills- Lanzhou
 Rural: organized like communes

Counterclaim:
Following Soviet split,1960, loans ceased, and Soviet advisors left China were repaid mainly through food
exports to the USSR, putting further strain on peasants.
Poor quality steel produced due to absence of modern tech: only 1% of steel produced was usable
Additionally, following Mao's Cultural revolution, industry doubled by 1965. However, due to the
restrictions of foreign help placed by the CR, overall production declined in 1960s, leading to a 14% decline
in industrial production in 1967.

Standard of living:
Followed by an initial rise in the living standards, was followed by a sharp decline due to the failure of the
agriculture and industrial spheres. The standards of living raised based on the
The living standards were heavily influenced by the

Pre Mao: Before 1949, healthcare uneven and lacking proper infrastructure (eg. hospitals), Countryside
suffered from endemic diseases and high mortality rates

Post-Mao:
 Launch of Patriotic Health Campaign
 Improve quality of drinking water
 Death rates declined
 Improve sanitation and hygiene
 However, Facilities were expensive, and with health care taking a mere 1.3% of the total State
investment in 1952, it took time before many rural areas saw much improvement.

 Most citizens gained job security and stable income

 Each employed citizen in an urban area was required to belong to a Danwei (work unit): Led by
Party cadres who controlled allocations of housing, grain, cooking oil and cloth
 Inflation and corruption were curbed
 More doctors and nurses were trained
 Conflict with the Maoist ideology, which regarded doctors as ‘bourgeois intellectuals’ in the
1960s
o Expected them to subordinate medical duties to factory work
 Replaced by the ‘barefoot doctors’, who underwent short practical training sessions of six
months and worked among the peasants, giving inoculations and basic treatments.
Counterclaim:
Famine: killed between 20-50 million by 1961
A study of Shanghai showed that in 1956 workers there enjoyed a higher standard of living than had been
the norm in 1930. However, living standards for Chinese workers were still not high by international
comparison. The peasants’ standard of living, meanwhile, was deliberately held down in order to finance
industrial investment.

Position as dictators, failure of economy puts them in direct threat-lead to downfall

Economy
Funding expeditions such as war, without a successful and thriving economy the leader will not be able to
achieve their aims. Crucial to leaders
To what extent did authoritarian leaders use economic policy to
transform country according to aims/outcomes?
Hitler:

A strong economy was a necessity for Hitler to achieve his ideological aims for the future Germany. of
Lebensraum and revision of Treaty of Versailles. Hitler came to power in a state in crisis, and it
became his duty as an authoritarian leader to bring the country back up. In 1933, unemployment was
at a peak 6 million, and Hitler had promised an economic miracle. However, there was no consistent
economic plan as Hitler left economic policies to the hands of his ministers.

Unemployment:
Hitler was successful in fulfilling his promise of reducing unemployment, however he carried out this
promise through an inefficient plan which would later negatively affect the economy. According to
historian, Noakes and Pridham that the economic policies introduced “would result in a serious
economic crisis.”
 Employment decreased from 6 mil in 1933 to 1.6 million in 1936
Schact: Deficit financing Mefo Bills allowed govt
fund expenditure on rearmament to delay
 unemployment began to fall after July 1932: (Bruning’s work creation schemes)
 Govt. investment increased by 70%: Public work schemes e.g. motorways
 Destruction of independent unions to restore business confidence
 Increase in govt income

Counterclaim:
 Government reduced unemployment figures without increasing employment: Women and Jews
excluded
 1935 Conscription for 18-25 y/o males
 New Plan 1934 aimed to tackle balance of trade deficit

Germany’s deficit financing to finance the Wehrwirtschaft negatively affected Germany’s plan of
achieving autarchy. Autarky was necessary for achieving demographic goals. Despite an increase in the
industry production, it was limited to those which would aid the military and industrialists, as Germany
continued to rely on Foreign imports.
Four-year plan (1939): Goring replaces Schacht: Begins a policy of autarchy:
 Increased production of key commodities e.g. iron and food
 Ersatz substitute rubber and coal to produce oil to replace imports
 Emphasis on chemical industry and heavy machinery
Counterclaim:
 Germany’ expenditure was 2X revenue
 Inefficiency : 6 tons of coal to produce 1 ton of oil
 Failure of autarchy: 1939 Germany still dependent on foreign imports for 33% of raw materials
 Four Year target for oil and butter not met
 Balance of payments difficulties and inflationary tendencies
  Shortages: foreign exchange, raw materials and labour

Hitler’s aim to create a war economy was interlinked with the aim of autarchy, and thereby was also a
failure. Massive amounts of money poured into the production and development of armaments, but the
result did not match with the expectation.
Evidence:
 By 1941, German economy was failing to meet it’s military requirements
 Fuel production dropped by 86% in eight months,
 explosive output reduced by 42%
 the loss of tank output =35%.
 Invasion of USSR: 1/3 of troops had inadequate equipment
 Blitzkrieg Period: Conquered countries, however economy exploited: Nazi armies
stopped at Moscow: economic drain
 From 1944, Allied bombings destroying German factories and cities at a rapid
pace ~ final collapse of the German war economy in 1945

Counterclaim:
 Restraints and controls on industry were relaxed
 Central planning board was established – supported by committees representing
manufacturers
 6,000 administrators responsible for a great increase in productions
 Use of forced labor and a plunder economy

Hitler’s economic policies were a failure, with some small successes along the way. Hitler came to
power when the worst of the Great Depression was over and in a time of total despair, the smallest
unremarkable achievements were welcomed and exaggerated to portray Hitler as a messiah. This led
to Hitler rebuilding national pride through the success of his economic policies, however by 1940 the
repercussions of the unplanned and ineffective nature of these policies caught up with the regime.
The over stretched economy was pushed to its limit by Hitler’s aim of establishing an autarchy and
war economy, which ultimately led to a disastrous failure. He failed to make efficient use of the
population and living standards declined, ultimately leading to an angered public and his fall as a
dictator.