After the establishment of the People's Republic in 1949, the uncertainty and risks facing small-scale socioeconomic units were replaced by an increase in the scale of organization and bureaucratization, with a consequent increase in predictability and personal security. The tens of millions of small enterprises were replaced by a much smaller number of larger enterprises, which were organized in a bureaucratic and hierarchical manner. Collectivization of land and nationalization of most private businesses meant that families no longer had estates to pass along. Long-term interests for families resided primarily with the work unit (collective farm, office, or factory) to which they belonged.

Mobility in most cases consisted of gaining administrative promotions within such work units. Many of the alternate routes to social mobility were closed off, and formal education continued to be the primary avenue of upward mobility. In villages the army offered the only reasonable alternative to a lifetime spent in the fields, and demobilized soldiers staffed much of the local administrative structure in rural areas. For the first time in Chinese history, the peasant masses were brought into direct contact with the national government and the ruling party, and national-level politics came to have a direct impact on the lives of ordinary people. The formerly local, small-scale, and fragmented power structure was replaced by a national and well-integrated structure, operating by bureaucratic norms. The unpredictable consequences of market forces were replaced by administrative allocation and changing economic policies enforced by the government bureaucracy.

The principal transformation of society took place during the 1950s in a series of major campaigns carried out by the party. In the countryside, an initial land reform redistributed some land from those families with an excess to those with none. This was quickly followed by a series of reforms that increased the scale of organization, from seasonal mutual aid teams (groups of jointsupport laborers from individual farming households), to permanent mutual aid teams, to voluntary agricultural cooperatives, to compulsory agricultural cooperatives, and finally to large people's communes. In each step, which came at roughly two-year intervals, the size of the unit was increased, and the role of inherited land or private ownership was decreased. By the early 1960s, an estimated 90 million family farms had been replaced by about 74,000 communes. During the same period, local governments took over commerce, and private traders, shops, and markets were replaced by supply and marketing cooperatives and the commercial bureaus of local government. In the cities, large industries were nationalized and craft enterprises were organized into large-scale cooperatives that became branches of local government. Many small shops and restaurants were closed down, and those that remained were under municipal management.

In both city and countryside, the 1950s saw a major expansion of the party and state bureaucracies, and many young people with relatively scarce secondary or college educations found secure white-collar jobs in the new organizations. The old society's set of formal associations--everything from lineages (clans), to irrigation cooperatives, to urban guilds and associations of persons from the same place of origin, all of which were private, small-scale, and usually devoted to a single purpose--were closed down. They were replaced by government bureaus or state-sponsored mass associations, and their parochial leaders were replaced by party members. The new institutions were run by party members and served as channels of information, communication, and political influence.

The basic pattern of contemporary society was established by 1960, and all changes since then, including the reforms of the early and mid-1980s, have represented only modifications and adjustments to the pattern. The pattern is cellular; most people belong to one large, all-embracing unit, such as a factory, government office, or village. The unit is run by party branch, operates (or should operate) under common administrative rules and procedures, and reflects the current policies of the party. The consequence has been that most aspects of social differentiation, stratification, mobility, and tensions are now played out within an institutional framework. Most of the questions about any individual's life and prospects can be answered by specifying the unit--the social cell--with which that individual is associated.

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Source: U.S. Library of Congress