Chapter 19.4, Problem 1R

To determine

To evaluate: The importance of five year plan.

Explanation of Solution

Five-year plans have had a major impact on China's national and social economy. They provide direction for new initiatives, and help achieve the priorities of the government. A significant aim of five-year plans is to frame guidelines for different sectors, that is to say industrial policies.

It is to ensure that the government and people are on the same page about the value and the intent of public initiatives. By announcing to the people the major strategic goals of the government, the party is trying to give the nation a sense of direction and unity.

Economics Concept Introduction

Introduction: in 1953, the Chinese communist government started an economic system based on five year plans, which emphasized central planning. However, in 1957 it reformed the system to give some decision-making powers to local government.