A Study Of The Wartime Controlled Economy Of The National Government

The War of Resistance Against Japan during the period from 1937 to 1945 was a war that Chinese Nation overall opposed Japan imperialism's aggression. After through experiencing 8-years'countless difficulties and setbacks in the war, China achieved this war's victory in the end. The success put an end to a passive state of affairs in the war between China and the Imperialism after 1840. So it became an important revolving event in Chinese modern history. The War between China and Japan that broke out in the 1930s was a product of the disequilibria of capitalism political and economic development in the world. It not only was an important step that the fascist of Japan dominated the world, but also an important component part in the World Warâ…¡. So it had modern war's nature and feature, for example, large scale, wide range, long period and huge consumption. These factors changed war into a complicated problem. It not only was military affairs, but also the whole state matter. It demanded that the country organized and coordinated finance, army, industry, transportation, etc., from different quarters, and together supported the war. Therefore, this war not only was a trial of the military strength, but also a trial of the overall strength of the country, especially economic strength, between the two countries. However, because of powerful enemy and our weakness, Japan occupied more than half of China in the early days of the war, including the greater area of North china, East China, Middle China, South China. In our country the east and coastal economic developed area and almost all the important big and middle cities were occupied by Japan. The National Government had to move the Capital to Chong Qing towards the west and withdrew to the Southwest.During the war, the Southwest and Northwest areas being dominated by the Kuomintang (KMT) and the National Government were backward areas in China, where the level of productive forces and economic basis were very weak. In order to uphold the war and strengthen economy, the Kuomintang (KMT) and the National Government practiced the Controlled Economy. In this period, the National Government in pace with situation of the war developing and changing, gradually transformed the Peacetime Economy to the Wartime Economy, established the wartime system of the controlled economy, implemented economic control in finance, industry, agriculture and grain, commerce and trade aspects, and achieved quite good successes, met basically the need of the war, really played a positive role in keeping wartime production and supporting the War Resistance Against Japan.The Controlled Economy was the primary feature of economy in the National Government among the war. In order to implement the controlled economy, the National Government established the system of controlled economy, set up all sorts of controlled economy organization, formulated all kinds of statutes, policies, and measures about the controlled economy, and made it run through all the various aspects of the wartime national economy.This dissertation's aim would make a monographic study on the wartime controlled economy of the National Government. The introduction told briefly the significance of choosing subject, the academic history, train of thought and viewpoint in the main, as essential foreshadowing of the whole article. The text is divided into six chapters and four units.The first chapter and the second chapter are unit 1. This unit mainly analyses the historical background of production of thought of controlled economy and the cognition and practice of the controlled economy in China prewar. The first chapter analyses nature and characteristics of the modern war, has pointed out the necessity of practicing wartime controlled economy and its'main content and mission when one country would be wartime state, and proved thereby a convention of controlled economy being adopted by every country in wartime. In the 1930s along with the big crisis of world economy outburst and the need in preparation for war in every country, the controlled economy was on the rise within world range, had produced extremely large effect to China. The second chapter discusses on understanding and practice of the Controlled Economy in China before the War, has analyzed the similarities and differences of two kinds of controlled economy forms-------peaceful controlled economy and wartime controlled economy, has pointed out that a few controlled economy policies and measures adopted by the National Government to prepare against war not only had reinforced state control to the whole national financial and economic lifeblood, had established the first step basis of state monopoly capital; but also had established a certain basis of condition that our country was prompt to enter wartime state after the Anti-Japanese War broke out and put the controlled economy into effect all round. The third chapter and the fourth chapter are unit 2. This unit is the main body of the article priority and the core part. It mainly puts thorough investigation and discussion on establishing wartime controlled economic system of the national government and practicing wartime controlled economy. The third chapter discusses the National Government gradually established and strengthened the process of controlled economy system in pace with change of the Anti-Japanese War circumstances, and analyses the characteristics in the different stages. It points out, facing to the austere economic situation and financial straits after the war broke out, the National Government had carried out adjustment on economic urgency, set up and adjusted economic management, promulgated a measure of stabilizing finance and moved the littoral factories to the interior of our country. Though these economic measures had the essence of "control", as the National Government was busy dealing with military affairs, didn't think carefully the whole economic guiding principle and policy of the Anti-Japanese War period in time yet, therefore obviously with the characteristics of "remedy" and "emergency".The Provisional National Convention of the Kuomintang (KMT) formulated guiding principle of wartime economy which called "planned economy" in 1938, made economy shift to wartime economic orbit, and met the need of the war. On this momentary although the government did not bring forward the slogan and concept of "controlled economy " in an open manner, it brought forward "planned economy" and carried out this general and specific policies. Its'aim was to make national economy come into planning and militarization, adapt to the need of the war through adjusting and managing all round the economy of the whole nation, according to wartime principle and demand, whose essence was economic control. The Kuomintang (KMT) formally put forward "controlled economy " in 1939, established system of controlled economy in 1941, and was put into effect all round. Along with promulgation of the law "the general mobilization models of the country" after the Pacific War broke out in December 1941, the wartime controlled economy of national government entered a strengthening stage.The fourth chapter mainly discusses on the financial and banking control, the industrial and mining control, the agriculture and grain control, the commerce and trade control in the controlled economy, and concretely inspects the main content and practicing process of different economic control, analyses the effect and significance of implementation, then has more systematic and all-round cognition and assurance of wartime economy of the national government. It points out the National Government by setting up"four-bank union", imposed the banking control and carried out the wartime reform of finance and tax revenue, controlled the whole national finance, concentrated the state finance, ensured disbursement of the military expenditure and need of industrial and agricultural production. The National Government by controlling industry and mine and moving the littoral factories to the interior of our country, promoted the construction of the rear industrial base, guaranteed wartime main productive conditions, ensured the continuation of wartime production, basically satisfied supply of the military and civil use during the Anti-Japanese War for 8 years, had made contribution to the victory of the war of resistance against Japan. The National Government through the wartime agriculture and grain control, improved production conditions of agriculture in the rear area, promoted the increase of agricultural productivity, caused agriculture and grain yield get a big rise in the rear provinces. In the later stage of the war, especially by collecting land tax paid in kind and practicing ration system of food, it maintained soldiers and civilians'fundamental need, stabilized soldiers'morale and the popular feelings, kept the stability of rear, guaranteed national government regularly work well, had established a certain material base and had importance for Chinese insisting on 8-year of Anti-Japanese War and getting victory ultimately. By controlling wartime commerce and trade, the National Government had grasped and controlled the necessary critical materials and supply of military and civil-use goods, played an important role in ensuring goods and materials supply and exporting to earn foreign currency and pay external debt, made our country gain a large number of military goods and industrial equipment and materials unceasingly during the war, had an active significance to ensure demand of the war and construction of the rear area.The fifth chapter is unit 3.This unit has carried out comparison mainly to the controlled economy of the National Government and the controlled economy of Japan, the controlled economy of Wang puppet government during the period of the war of Resistance Against Japan, analyses their respective diversity and characteristic, points out the wartime controlled economy of Japan was one kind of peculiar form of state monopoly capitalism at heart, had intense wartime and mandatory feature, as industry in Japan was flourishing, the development of organization and system of the controlled economy was comparatively complete, its'organization and mobilization and control efficiency were more ceaseless than high, and supported the expanding invasive war.The controlled economy of Wang puppet government was that puppet national government of Wang Jingwei controlled by Japan practiced the economic control and plunder in the enemy-occupied area. As the puppet national government of Wang Jingwei was colonial puppet regime built by Japan in Chinese enemy-occupied area, the controlled economy was asked to obey and serve the need of the imperialism war of Japan. It was an outcome of the policy of"governing China with China","supporting war with war"and"self-contained economy"; therefore, it had intense colonial feature, military feature, predatory nature and fraudulent nature. It seriously destroyed the economy of Chinese enemy-occupied area. In the period of the War of Resistance Against Japan the controlled economy of the national government had dual natures. During the war, the National Government persevered in fighting the invading army for the maximum benefits of our country and nation, formulated and practiced a few policies and measures of the controlled economy that were beneficial to the Anti-Japanese War, increased the impact and momentum of the rear economic construction, and ensured supply of military and civil use. At the same time because of class limitation of the Kuomintang (KMT)'s regime, the wartime controlled economy of the national government promoted development of wartime state monopoly capitalism, inhibited development of national capital, strengthened the monopoly of state capital to economy. Therefore, the wartime controlled economy of the national government had nation and class character, military and constructive character, reasonableness and irrationality characteristic coexistent. The sixth chapter is unit 4. This unit mainly makes appropriate valuation on the effect of the national government's wartime controlled economy. On the basis of examination of implementation of wartime controlled economy of the national government in the preceding several chapters, it totally points out that the national government's controlled economy basically adapted to the need of the Anti-Japanese War, played an important role in maintaining the wartime production and supporting the war. Its'effect was notable, so this policy should be successful on the whole and be affirmed as fully as possible. At another aspect the wartime controlled economy of the national government promoted development of wartime state monopoly capitalism that had double effect, so it should not be negated totally. On the one hand the development of state monopoly capitalism provided condition and guarantee of implementation of wartime controlled economic policies, had brought the important effect in maintaining wartime economy and supporting the long-term war. On the other hand the unprecedented development of state monopoly capitalism gravely stroke private enterprises, hindered healthy development of Chinese capitalism. It was one of important reasons that caused economy in the area dominated by the Kuomintang (KMT) overall recession during the later stage of Anti-Japanese War. At the same time it also established a basis of rapid expansion of state monopoly capital in the postwar period, and became a reason of the economic collapse of the national government afterwards.Finally in the concluding part it makes one summarization of the whole text. It points out that the controlled economy was a special product under the environment of the War of Resistance Against Japan; its maximum aim was in the service of the war. From the war point of view, the wartime controlled economy of the national government was successful basically.