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Planned Economy's Flaws
- The planned economy in mid-1970s China involved state ownership and control over all production and pricing.
- This system caused significant shortages and limited consumer choice due to execution failures.
Farmers Undermine Collectivization
- From 1971, farmers quietly undermined the collective economy by reclaiming tools and land and running underground markets.
- This grassroots shift helped lift many out of poverty before official reforms began.
Villagers Drive Economic Reform
- The collapse of the people's communes by 1982 resulted from villagers taking control of land and decisions themselves.
- This bottom-up change doubled rural incomes and marked a profound economic shift.