ABSTRACT
In a previous essay (Gray 1969) I have suggested that Mao's ideas concerning economic growth included the following cardinal points:
Economic growth is, to Mao, an important end in itself; much of his social and political theory, which appears at first sight to militate against rapid economic growth, is, in fact, designed to secure it.
In seeking growth, Mao stresses:
that production must take priority over procurement;
that material incentives are of decisive importance in the successful inducement of economic and social change;
that rapid economic growth must depend to a considerable extent on the fostering of entrepreneurial abilities, albeit in a context of collectivized communities, such as, the ability to innovate, foresight, and willingness to take risks. Growth cannot wholly depend upon bureaucratic decision-makers at the higher levels.
Adverse social and psychological attitudes are the major obstacles to rapid economic growth, rather than are the scarcity of resources or capital. The primary problem is to make the community aware of the possibilities of modern technology and social organization and to provide them with an education, through participation, in these possibilities.
Finally, and more specifically, Mao sees China's vast and underemployed population as China's 'greatest resource' - the chief source of capital. Labour-intensive development, especially in the rural areas, is the keystone of his economic policies.
