Anhui Industrial Adjustment In The Early 1960s

Because of "the Great Leap Forward" and "Commune campaign", in 1961, the central government decided to adjust the national economy, draft policy "adjust, consolidate, enrich and improve" been called "the eight-character principle". According to central government arrangement, Anhui Province began adjusting the national economy based on own condition. From 1961 to 1965, Anhui Province got out of trouble by streamlining the urban population, compressing costly infrastructure projects, adjusting the industrial internal ratio, adjusting the handicraft industry, and the developing supported agro industry. Since 1959, Anhui Province had started to streamline excessive expansion of the urban population caused by "Great Leap Forward". In 1961, after central government orders, Anhui Province mitigated the urban life and production pressure successfully by making streamlining plans, identifying and advising streamlining staff, determining place. To compress basic construction, central, important, mineral industry would take priority than others. Through the compression, reducing the state's financial burden, relieving the pressure on material supply, increasing the supply of commodities. To adjusting internal industrial proportion, Anhui Province reversed the proportion of light and heavy industries by closing and incorporating industrial enterprises, strengthening light manufacturing, improving mining and logging industry and so on. In addition, it established new firm management system based on "industrial seventy" and "handicraft thirty-five". Anhui Province also developed industry supporting agro, tested and promoted new products, summarized and promoted the supporting agro experience, stepped up produce and repair agricultural machinery, produce chemical fertilizers, pesticides and so on. Through the adjusted industry of Anhui Province, the proportion of the national economy returned to normal, the layout of the industrial system was better, improved industrial enterprises and economic management significantly. However, success in adjusting national economy in Anhui Province, problems remained. The adjustment was too fast; unilateral understanding of the industrialization never changed; planned economy did not reform; it never resolved the situation economic development serving for the politics.