Apr 03 2006

Notes on China’s Political Economy

Published by Forager at 9:05 pm under China, economy, politics, uw-jsis

Book: China’s Political Economy by Riskin

There is evidence Mao intended to preserve national economy right after 1949. The scope of change is limited and degree modest. Still aligning urban property owners to isolate rural landlords. Extensive talk of national economy (in the sense of modernization) p39

During the 50s, the main tension was between the desire of control and development. p50

The success of the early years of the republic: central and physical control (arresting speculators)
(What does that do to re-enforcing behaviors?)

Influence from the Soviet: central planning, etc. Soviet factory director: inherited from scientific management.

p59 Heavy industry projects and administrative control (state discipline)–isn’t it addictive?

p60 the proximity and distance from the Soviets.

p63: Wage reform of 1956. Before that, wage span could be 5-7 times of the lower end. Piece rate system was widely adopted.

Agricultural policy: tax, compulsory purchase, stagnated growth during the 1st 5-year plan, Mao’s solution: total collectivitization in 1955. p70

The author characterises the Great Leap Forward as a decentralizing effort (as Mao’s reaction to central planning in the early 50s) . The central planning, idenified with Liu ShaoQi, was restored after the collapse of GLF. p82

Mao: Ultimately concerned about industrialization.
Mass line, walking on two legs: 2 tiered economy administration. p83
Uses slogans and took on a quality of messianic irrationality. Anti-elitest. p84
Mao’s crusade against specialization and advocacy of self-reliance, for fear of bureaucracy p206

In 1957, 740,000 collectives with 164 household on average. p91

The aftermath of GLF: from 1961 to 66, actual industrial production grew at 15% CAGR. p134

Three options: central planning, strengthening market/market socialism/Yugo-model, Mao’s commune style economy.

Sun YeFang: economic statistics.

Liu ShaoQi: Socialist Trust, specialization, professionalize, including sales and marketing.

GLF: prolonged after Lu Shan; a reversal of course.

Deng XiaoPing after Lin Biao; Mao’s counter acts in campaigns by Zhang and Yao

Writing in the US Marxist journal Monthly Review, Hinton accused the new Chinese leader Deng Xiaoping of having shifted “from the socialist road to the capitalist road”. (Guardian obituary)

1971年,卡玛随父亲5次见到周恩来。一次,周恩来对韩丁说,到农村考察,不但要看成绩,还要看阴暗面,中国农村还有很多落后陋习。”这年头谁敢考察阴暗面呀,回头再说你别有用心。”卡玛忍不住说。”卡玛,你太敏感了。” 周恩来笑道。
(from a fascinating interview of his Hinton’s daughter by Phoenix TV here)

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