A Study Of Guizhou's Corporations (1939-1949)

The issue of the economic development and construction of Western China has become the hot concern of Chinese government and Chinese people, as well as one of the most interesting subject of academic community. In this paper the author tried to provide a reference to the present economic development of Western China by citing an example of the enterprise of Guizhou Province in Anti-Japanese War. The analysis of the example expanded in background of foundation of this corporation, overview of development, channels of funds, profile of investment, mechanism of operation and strategy of management. And the author tried to reveal following facts: One. The internal operational characters of those enterprises ran by local provincial government; Two. In the serious situation of national crisis, how did Kuomintang government utilize the national capital to organize and carry out the construction in Guizhou province and other western provinces, and where her success and failure lied; Three. From the end of the Anti-Japanese War to the collapse of the Kuomintang authority in mainland, how did those manufactories and mine factories go to their ends.The analysis are laid out at following points:First. The establishment of the corporation is a special product of the age of Anti-Japanese War and related to Wu Ding-chang' s economicthoughts.Guizhou province had not attracted central government' s attention since ancient time. At later years of 1930s, the Kuomintang Central government had taken the political control of Guizhou province. Because of the further expansion of Japanese invasion, the deepening of the national crises and the important strategical status of Guizhou promoted the Kuomintang central government realize the importance of developing the economic in Guizhou. Soon after the outbreak of the overall Anti-Japanese War, Wu ding chang, an economic talent, was appointed as the leader of Guizhou economic construction. He claimed to make use of Anti-Japanese War to develop Guizhou. After a series of preparation and in the wartime economic environment of Chinese and Guizhou, the first province government-running corporation in Guizhou was established, which followed Wu' s economic principles and was titled with the historic mission — "Exploit Guizhou, Construct West-south" . The corporation soon became the all-powerful hands of Guizhou government in construction of the local economic. Thus, her principle was to helping and guiding the development of local economy.Second. According to different character of development stages, the author divided the corporation' s duration of ten and more years into two main stages: earlier period of prosperity, later period of decline. Or it could be divided into five small stages: foundation, adjustment, prosperity, decline and end. The author gave a brief review and comment in every stage on her operation at business and the establishment of branch companies. The reason for earlier prosperity lies on the promotion of Anti-Japanese and Save The Nation Campaign, the solidarity and the cooperation in work force and outer relatively favorable condition. The reason for later downfall lies on disregard and corruption of Kuomintang government and the huge disturbance of commodity price. However, the downfall of the corporation is gradual but doomed. Qiannan Event, the sudden coming of success of Anti-Japanese War and the so-calledreformation of Kuomintang government' s currency gave the corporation the vital strikes.Third. The corporation possessed following features in capital structure, channel of funds, factory investment, mechanism and detailed strategy in operation. The nation' s capital preponderated in the whole capital structure. But for avoiding the shortcoming the government running corporation has, the corporation also adopted the operation form run by both the government and other investors. The funds channels varied in many ways and corperation regarded it very important that to draw the reservation funds to fulfill the needs of production and schedule. In the aspect of factory investment, the corporation attached importance to researching, guiding, transportation construction of factories and mines, as well as the accordance of social condition and local resources. In the aspect of operation mechanism, the general company and the branch companies were in a good corporative situation. Also, the operation department and the sales department located in Guiyang became central institutes and the rotation hinges of operation in every subordinate branches, which were under the direction and help of the general company. Further more, the corporation adopted many effective and concrete methods in practical operation such as holding conversazione, enhancing operational exchange, introducing product competition, improving efficiency, sending visiting group, absorbing other' s managerial experience, holing trade meeting, promoting the sales, inputting information, and utilizing the advertisements.Last. The accounting and personnel systems of the corporation. Her comprehensive and rigorous organization system ensured the operations working in gear of this huge several-thousand-people machine. Her leading and executive level was vivid, and was basically controlled by directorate, supervised by supervisor board. General manager was in charge of production and operation under the suggestion from the commissioners andthe supervision from the supervisors. And the subordinate branches also followed the instruction of experts. As what we could see, her rights of decision-making, administration and supervision were established separately. The corporation combined the knowledge with power organically, and fully bought all the useful minds into play. The corporation adopted the principle of "making overall plans and taking all factors into consideration and adjusting measures to local conditions" , and based on this principle many powerful accounting systems were established, which accented in the training, promotion, and appointment of accountant, especially in their corporative ability and ethic. To adapt the production in wartime, she also carried out "bills" -charged accounting principle, and attached importance to preservation and maintenance of raw material, the Costs checking and the maintaining of facticity of the accounting documents. The personnel system took "choosing the morality and ability, advocating the loyalty and harmony" as the principle, which accented responsibieity administration, achievement evaluation, talents discovery and fostering talents in local area. Additionally, she used good welfare to attract and keep the technical and managerial experts. Using slogans, antithetical couplets and songs, the corporation always advocated patriotism, colletivism, hardworking and solidarity in the staffs to enhance the cohesion of the corporation. The corporation had once absorbed a great deal of talent people and resources form other provinces, which made her strong and thrive at the time. All of these closely related to her wonderful systems.In the early stage of the corporation, she received a lot of government funds. But in the later stage, she was troubled by lack of funds. Despite many remidies and measures, there seemed no way out. Such situation was lasted to the beginning of the Liberation. Following the downfall trend of herself, and the contest between Kuomintang and Communist Party in the controlling of subordinate branches, thecorporation was faced with abruption. In the dawn light of liberation battle of Guiyan City, staffs in Guiyan power plant, and Guiyan match manufactory struggled bravely against the Kuomintang reactionary and saved the factories form their destroying. In early 1950s, the government of people took over all unites of the corporation. According to relative policy of the new nation and the market situation of Guiyan City, the government put many modification and reform to the old corporation and gave birth to a new corporation.At the end of this paper, the author concluded that the corporation had given promotive influences on the exploitation and development of both local resources and technology in Guizhou, as well as the construction of infrastructure in Guizhou. The existence of this corporation not only changed the way people view Guizhou, but also brought and promoted the development of every aspect in economic of Guizhou. Her operation mode, which was rather successful both in theories and practice, had profound effect on the whole nation. And her rise-fall history gives us a useful reference on our development of today.