Qiu Heng: Difference between revisions

The new President and the military establishment despite allowing it to run in elections, still saw the [[Communist Party of Daxia|CPD]] with its radical ideas on wealth and land redistribution, world revolution and its 'massification' of the army, as its main internal enemy. With a strong public mandate secured and with the communists revealing part of their underground networks during the presidential campaign to try and amp up their political mobilization, the government organs began to take aim at them. While [[Communist Party of Daxia|CPD]] parliamentarians were booed and drowned out every day by the NRF majority in the National Assembly, their associates on the outside began to be arrested, assassinated and abducted in plain daylight. In the face of government repressive tactics, the [[Communist Party of Daxia|CPD]]'s internal consensus to participate in electoral politics began to crumble and the party withdrew entirely from the Assembly a year before the 1956 election to 'pursue the interests of the people in other fronts', an euphemism for armed struggle. The struggle to rebuild an exhausted organization bled dry by killings and arrests during its three year dalliance with electoral politics was to be a fraught one, the [[Communist Party of Daxia|CPD]] would not be a serious foe at all during all of Qiu Heng's three presidential terms. The party mostly fled the cities other than its birthplace of [[Khov]], preferring to concentrate its cadres in hidden bases in rural locales and this mostly in the far west of the country. Most of the second genertion of communist party leaders were killed during Qiu Heng's first term and the third generation of leaders were mostly from peasant origins; the Red Peasant faction would become dominant in the 1960's and 1970's and were fairly disconnected from the industrial urban worker class.  

===Stabilizing growth===

During Qiu Heng's presidency the country saw sustained economic growth, a period known as the ''Stablizing Growth'' that was fueled by import substitution and low rates of inflation. An important factor helping the sustained growth in the period was the reduction of political turmoil, particularly around national elections, with the creation of a single, overly dominant party. Qiu Heng nationalized all of the oil fields, the railroads, the telephone companies  and the ports; many of these companies had been owned by members of the Qian elites and now passed into the hands of the state which created vast and byzantine hierarchies of bureaucrats to manage these massive state companies. And of course the [[Central Confederation of Daxian Trade Unions|All-Daxian Workers Central Union]] made sure new syndicates were created to go with the new shiny state companies, new dutiful 'soldiers' of the NRF system. In 1956 the National Development Bank was founded to fund the expansion of the industrial sector and the building of massive infrastructure projects such as improving the road networks and electricity generating hydroelectric dams. A fully fledged  import-substitution program which stimulated output by boosting internal demand was put in place. The government raised import controls on foreign consumer goods but relaxed them on capital goods (such as machinery for domestic production of consumer goods), which it purchased with accumulated international reserves. This period also saw massive investment in education, enrollment at the primary and secondary levels quintupled from the levels reached in 1945. The higher employability and earning power of this growing skilled labor pool stimulated the internal consumer market and the expansion of the middle class. Daxian strong economic performance continued into the 1960s, when GDP growth averaged about 8 percent overall and about 3 percent per capita. Consumer price inflation averaged only 4 percent per year. Manufacturing remained the country's dominant growth sector, expanding 12 percent annually and attracting considerable foreign investment. Mining grew at an annual rate of nearly 5 percent, trade at 6 percent, and agriculture at 6 percent. By 1970 [[Daxia]] had diversified its export base and become largely self-sufficient in food crops, steel, and most consumer goods. Although its imports remained high, most were capital goods used to expand its own domestic production.

===The Little Incursion===