Small Industry and the Chinese Model of Development

Abstract

In the shadow of the industrialization programme directly carried out by the Central Government of the Chinese People's Republic over the past two decades, there has occurred a less visible effort at industrial development under the auspices of the provincial governments and other local authorities. Widely dispersed throughout China, yet the origin of over half the nation's gross industrial output in the 1950s, local industries must have significantly affected popular understanding of the development process and popular reaction to it. At times they have even been the focus of debate over alternative approaches to the problem of achieving rapid industrialization in Chinese conditions. More intimately associated with the process of industrialization than individual handicrafts, they are capable, because of their relatively simple technology and small scale, of providing a medium for alleviating a number of problems left unsolved by large-scale and technologically advanced industries. Over a period of 20 years, such problems have run the gamut from shortages of high-grade materials required by the technologically demanding large-scale sector, to the inequalities in living standards, cultural levels and life styles created or aggravated by the development of large-scale industries concentrated in urban areas.