Section Two: Political Economy and Development
By Lauren Carruth, Fall 2005 [more below]

At CCP’s founding, the economy was suffering from more than a hundred years of rebellion, invasion and civil war

Command economy formed; state owns/controls most economic resources and govt drives economic activity

Economy industrialized and technology was formed under Maoist Economy, yet the economic growth rates did not keep up with population growth

Deng Xiaoping transformed the economy by reducing the role of the govt and allowing market mechanisms

Led to a booming economy

Called a Socialist Market Economy; the market is still under the Government’s control

2. Political Economy and Development -- notes by Chanley Rainey and Jon Lyons, Fall 2007

-Begins by giving some figures of China’s transformation into one of the most powerful economies in the world
-China now accounts for 12% of world GDP, with the average income of Chinese citizens increasing fifteen fold from 1980-2000

Maoism

-The Chinese Communist Party (CCP) gains control of China with Mao Zedong as their leader, founding the People’s Republic of China (PRC) in 1949.
-Chinese economy was devastated by civil war, poor government, invasions
-Mao institutes a command economy in which government planning and commands control most economic resources rather than market forces, poor relations and lack of faith in Soviet Communist leaders led Mao to institute new policy the Great Leap Forward in 1958
- Focused on moving Chinese citizens into industrial or agricultural communes where people worked/lived
-Though the economy did undergo industrialization during the G.L.F., political interference and poorly designed projects (setting up 1 million furnaces among communes but used too much coal on China’s growing rail system) wasted resources.

New Market Direction

-Zedong died in 1976 and opened the door for Deng Xiaopeng, who used market mechanisms such as the profit motive to open the door to private entrepreneurs to compete for earnings and passed economic decisions from bureaucrats to individual families
-Changes from the agricultural communes to the household responsibility system gave peasants more leeway in planting and selling their own crops, as agriculture was nearly stagnant at Xiaopeng’s arrival

Results

-Chinese government now encourages private business ownership, with private enterprises accounting for between 50 and 60% of China’s GDP, with 200+ million employees
-State-owned enterprises (SOEs) down from 100,000 10 years ago to less than half that-still employ 80 million workers
-Standard of living among people has greatly increased
-Industry expansion, though rapid and successful, has caused great pollution through burning of fossil fuels/unregulated toxic waste disposal “quest for economic development has superseded concern over environmental pollution”

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3: Governance and Policy-Making
by Chanley Rainey, Fall 2007 • Most important communist party-state in terms of size and power
• Chinese Communist Party is ultimately in charge of all aspects of governance
• Dual rule – vertical govt. supervision & horizontal party supervision
• Organization of the State

o Unitary, not federalist

? 4 main layers beneath central govt.  – provinces, cities, counties, & rural towns
? 4 very large centrally administered cities (Beijing, Shanghai, Tianjin, and Chongqing)
? 5 autonomous regions that hold the large minority populations

o Judiciary – 4-tierd People’s Court system from Supreme People’s Court down through higher, intermediary, and basic

? Supreme supervises lower courts & application of laws but has no judicial review
? “people’s procuratorate” serves as both public prosecutor & defender in courts as well as an investigator in criminal cases
? Citizen mediation committees settle most cases out of court
? Legal advisory offices now exist all over China to provide legal counsel
? Surge in # of lawsuits; swift and harsh justice (death penalty)

o Military & Police

? People’s Liberation Army – world’s largest; ground, air, & naval

• Run by the Chinese Communist Party (CCP) & the People’s Republic of China’s (PRC) Central Military Commissions (CMC)
• Provides support for CCP but remains under its control

? Ministry of State Security – internal security; combats espionage & gathers intelligence at home & abroad
? Ministry of Public Security – law & order, investigates crime, conducts surveillance of foreigners & Chinese citizens

• Maintains labor reform camps

? Local Public Security Bureaus – under command of central ministry authorities in Beijing
? Public Security Bureaus – can detain ppl indefinitely w/o charging them & can use penalties imposed outside the court system (administrative sanctions)
? People’s Armed Police – guards public officials & buildings, border patrol & protection, used to quell serious public disturbances

o Bureaucracy:  State Council (functions like parliamentary cabinet)

? Appointed by National People’s Congress
? Premier, vice premiers, heads of govt. ministries & commissions, & other senior officials
? Cadres are ppl. in positions of authority who are paid by the govt. or party
? There have been recent efforts to reduce its size, towards professionalization & civil service exams, & limits to terms

o Legislature:  National People’s Congress - constitutionally, most powerful

? Hierarchically arranged down through provincial, municipal, rural township, and people’s congresses
? Supervise the correlating “people’s governments”
? Elects President & Vice President (but CCP only offers 1 nominee for each office)
? Symbolically important, politically limited
? 5 yr terms, 2 term limit

o Executive:  Premier & President - administrative agency for party policies

? Hierarchically arranged down through provincial, municipal, rural township, and people’s governments
? 5 yr terms, 2 term limit
? President – ceremonial, head of state
? Premier – head of govt., authority over bureaucracy & policy implementation; appointed by President w/ approval from National People’s Congress

• Organization of the Party

o Executive:  General Secretary (formerly “Chairman”) who presides over the:

? Standing Committee – 9 members chosen by & from among the Central Committee
? Politiburo/Political Bureau – 24 chosen by & from among the Central Committee
? The Secretariat manages their day-to-day work

o Central Committee

? Annually for a week; party leaders from around country
? Elected by National Party Congress
o National Party Congress - unicameral
? 1 week every 5 yrs; over 2,100 delegates
? more symbolic than substantive; rubber-stamper

o Central Commission for Discipline Inspection

? Monitors compliance of party members with the CCP constitution and other rules

• Policy-Making Process – fragmented authoritarianism – policy the result of conflict, competition, & bargaining among party & govt. organizations in addition to the influence of nonparty experts who have entered politics via the national focus on economic development

o Still, the CCP has final say using organizational controls, party members that serve as government officials, and supervising govt. organizations
o Nomenklatura system (borrowed from Soviet Union) list of millions of govt. & other jobs that allows the party to monitor and control promotions, dismissals, transfers, and appointments

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Section 4 – Representation & Participation
By Chanley Rainey, Fall 2007

• Socialist democracy based on unquestioned leadership of the CCP
• Political Culture & Identity

o Official culture based on current version of Marxist-Leninism BUT it has lost credence w/ people
o Mao Zedong Thought considered panacea
o Deng Xiaoping Theory justified market economy to MZT by citing China’s infantile socialism (called “Building Socialism w/ Chinese Characteristics”) & presents his Four Cardinal Principles

? (1)Upholding socialist road, (2)people’s dictatorship, (3)leadership of Communist Party, & (4)Marxist-Leninism

o Jiang Zemin threw in his 2 cents w/ the Three Represents

? CCP represents (1) development of economy (2) values of Chinese culture (3) interests of majority

o No true freedom of the press, Chinese film industry flourishing but not always allowed to present work to home audience
o Internet access is a huge challenge to information control, despite spastic govt. attempts to prevent usage
o Education opportunities have expanded, primary school enrollment near 100%, though sharp decline in secondary ; political study is required but minor, new emphasis on training for career
o 80% b/w 7-14 are part of Young Pioneers (promotes good social behavior, patriotism, and loyalty to the party)
o In countryside, traditional worship and kinship ties are strong; in cities, popular culture is major influence; everywhere communism is challenged by consumerism and private economic ambition
o Religion (Buddhism & Christianity) is being revived after ruthless repression of Mao era; still, strictly controlled and subject to official approval
o CCP relies more & more on patriotism, portraying itself as best-suited to lead, citing 2008 Olympics for Beijing, economic progress, and retrieval of Hong Kong and Macao – possible aggressive foreign & military stance
o Vast majority are ethnic Chinese, Han, about 10% are from 55 other groups which differ in language, culture, & race
o Difficulties w/ Tibet & Muslim Uighur militants calling for separate “Turkestan”
o Minorities came under control through expansion and are concentrated in the 5 autonomous regions that have the right of self-rule in some matters but firmly under national party-state control

? Guangxi, Inner Mongolia, Ningxia, Tibet, and Xinjiang
? Freedom of religion, lax family planning policy, minority language encouraged, elected for minor govt. offices
? Among poorest in China

• Elections – saving face, direct & indirect (elected by lower representative bodies)

o held under strict conditions in order to appease populace while giving govt. legitimacy (“Republic”)
o nomination process becoming more open > group of 10 + can nominate
o direct & indirect elections w/ multiple candidates for each position
o Most Progress has been in rural villages where multicandidate, secret ballot direct elections of village representative assemblies and officials (latter normally appointed from above)

• Political Parties

o Chinese Communist Party – 66M members, largest political party in world

? Make up small % of China’s population
? Traditionally peasants but now include professionals, govt. officials, military personnel, retirees, and entrepreneurs
? Still, party membership remains a prerequisite for advancement in many careers, particularly in govt.

o Noncommunist/ “democratic” Parties – “a loyal non-opposition”

? Each has particular constituency, all founded before CCP came to power
? Do not contest for power or challenge CCP policy
? Provide advice & generate support for CCP policy

• Legislatures

o legislation & state leaders usually elected by overwhelming majority
o some debate & dissent do occur & a few govt. legislative initiatives have failed
o CCP monitors election process & supervises legislatures

• Interests, Social Movements, & Protests

o Extensive use of guanxi, or connections, in govt. and elsewhere
o Patron-client politics at local level allows local communities to resist state policies they find harmful
o Govt. tries to preempt formation of interest groups and social movements by offering a state-regulated alternative in official “mass organizations”
o Huge increase in # of NGOs since late 1990s; these are less directly subordinate to the CCP & receive considerably latitude if they steer clear of politics & do not challenge official politics
o Rural areas are conducive to control by local party & security organizations b/c of small-scale, closely-knit nature
o Urban areas are controlled via the unit/danwei system in which everyone belongs to a unit that is the center of their economic, social, & political life that cultivates a political dossier on all members that will follow them wherever they go
o Urban centers are also controlled through Resident’s committees, which combine service & surveillance
o There have been no large-scale political demonstrations since the Tiananmen Square massacre in 1989
o Pro-democracy groups have been driven abroad or underground
o Ethnic protests occur sporadically along the borders
o Labor unrest over end of iron rice bowl system, layoffs, nonpayment or delay of pensions or severance packages, and arrest of local leaders
o Countryside has seen farmers protest over taxes & extralegal fees, corruption, & govt.’s failure to pay for purchased agricultural products
o Falun Gong (Dharma Wheel Practice) a spiritual movement that combines philosophical and religious elements (Buddhist & Daoism) w/ traditional Chinese physical & mental exercises

? Crackdown followed by peaceful protest followed by
? Outlawed in 1999 as an “evil cult”

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Section 5:  Chinese Politics in Transition
By Chanley Rainey, Fall 2007 (another below)

• Disparities b/w urban and rural areas & among rural areas

• Guanqiao, Hubei Province - dismantling of communes in favor of household- based farming & agricultural production diversification led to prosperity
• Meishu, Yunnan Province – persistent poverty, no paved roads, minimal or nonexistent education, health care, etc
• Daolin, Hunan Province – farmers’ protests over taxes & corruption
• Beiwang, Hebei Province – one of 1st to hold democratic elections for a representative assembly to supervise the work of local govt. officials & successful in convincing state to go along w/ consolidated pear production

• China & the Democratic Idea

o Practices “market Leninism” by increasing economic openness while rigidly stifling politics
o Believe that Gorbachev’s mistake was in going too far in political reform & not enough in economic
o History of bureaucratic & authoritarian rule combine w/ Confucian values to make China suited to CCP’s govt.
o Some are apathetic or fearful when it comes to politics
o Trend of democratization around globe will be hard to ignore at international banquets, etc.
o Resurgence of civil society (independent sphere of public life and citizen association)
• Economic Management, Social Tension, & Political Legitimacy

o Ostensibly socialist regime must work to curb growing inequalities and must continue to provide opportunities for advancement for the less well off
o Create new jobs & counter growing regionalism
o Govt. Corruption is biggest source of discredit
o AIDS is spreading rapidly and the govt. has increased funding for prevention, support for awareness campaigns, access to cheaper drugs, punishment of blood dealers & new laws regulating blood supply

China as a Communist Party-State

 Won power through indigenous revolution w/ widespread public support & no dependence on foreign aid (lends historical legitimacy)

 Unique combination of political repression & economic liberalization (“riddle of China”)

 Totalitarianism has been moderated by evolution from Maoist era toward the less intrusive but dictatorial “consultative authoritarian regime”

 

China as a 3rd World State

 PRC has made remarkable economic progress through creation of a developmental state in which govt. power & policy are used effectibely to promote national economic growth

 Economic growth & development are likely to continue to create groups & processes for political expression

Section 5: Politics in Transition
by Amanda Spiegel, Fall 2005

• China’s history of authoritarian/bureaucratic rule with the hierarchical values of Confucian culture are counterweights to democracy
• The PRC’s low per capital standard of living, a largely rural population and vast areas of extreme poverty and state dominated media and communication slow down democratization.
• Most Chinese are apathetic to national politics or are fearful of the violence that protest brings.

• the success of the democratization in Taiwan with free and fair multiparty elections reveals that the values and processes of democracy are compatible with Confucian culture.
• China’s high literacy rate, industrialization and urbanization and its level of economic development are seen by some social scientists as favorable to democracy

• China differs from the Soviet Union because it believes in a strong economic reform and limited political reform. Many Chinese officials are convinced that Gorbachev went too far with political reform and not far enough with economic reform.
• China differs from many former Eastern and Central European communist parties because it did not depend on foreign military support for their victory.

• China believes in the totalitarianism: a system in which the ruling party prohibits all forms of meaningful political opposition and dissent, insists on obedience to a single state-determined ideology, and enforces its rule through coercion and terror.
• China believes that the totalitarian regimes in Russian and Eastern and Central Europe collapsed because of their inflexibility. The CCP has abandoned or moderated many of their totalitarian features to promote economic development.

• The PRC has made remarkable progress in improving the well-being of its citizens, building a strong state, and enhancing the country’s global role since the CCP’s founding in 1949 when China was a poor country with an economy devastate by war.
• China has been successful in creating a developmental state (a nation-state in which the government carries out policies that effectively promote national economic growth).
• China is following the course of very fast development without democracy, which differs from much of the Third World.
• The “riddle of China” is the contrast between the brutal political rule of the CCP and its accomplishments in improving the lives of many Chinese. The riddle makes it difficult to evaluate communist rule in China.
• CCP’s belief of limited political reform is based on its principle for self-preservation. The CCP believes that it is following the model of development that the newly industrialized countries (NIC) that South Korea, Taiwan and Singapore have.
• China is hesitant to acknowledge that economic development, social modernization, and global integration create pressure for political change from below and abroad.
• Overall, China has created various groups and processes that will amount to pressure for political change. The CCP will have to face the democratic idea in the future.