Week 2 - Reform Without Losers?

Institutional Change in Reform China ? Reform without Losers? (10/07/08) Increase Enthusiasm: Decollectivization of Agricultural Production -Existing System everyone farmed on communes, local party controlled production team leader assigned jobs and handed out ?work points? annually tallying up points for each worker thought that economies of scale would allow for greater production sought economic security through massive production Mao worried about re-emergence of classes because everyone isn?t created equal in terms of ability used administrative organization as a method of control collectives allowed for easier central government control cut down on administrative task of reform and oversight -Reasons for Change people aren?t motivated to work when they aren?t? personally responsible personally benefiting from their work no incentive to increase production beyond quotas free-rider issues because of communist system wanted to increase proficiency without creating classes coming from 30 years of anti-capitalistic propaganda -Changes to Status Quo households controlled a few farms, met quotas & sold off surplus decentralized and decollectivized all agricultural production began in small areas where it was effective national order came later to decollectivize entire process land distribution, quotas, etc. weren?t overwhelmed by what was gong on below wide-scale change came from the top state continued to own the land used in agriculture emergence of aid teams farming groups starting small then becoming larger created incentives for increased production 1.5 times the price for crops created beyond quotas land distributed but government ?leased? it to the peasants property rights = bundle of rights (profit, management, etc.) but they weren?t allowed to sell it -Resistance to Changes very contentious issue team leaders and heads of the commune loss of control over local community freeloaders (poor and weak) didn?t want redistribution of land/work some inequalities emerged people with small families that would become bigger land distribution was based on size of household ideological concerns backtracking from socialism? party members and officials land quality -Further Effects of Decollectivization urbanization movement led to massive surplus of crops farmers even had problems selling their grain distribution of production machinery (tractors) created many specialized households = ?zhuanyehu? the tractor man would contract his services people also disliked to share their specialized goods ownership of machinery and animals cause of many conflicts within communities property much more valued than labor due to scarcity overuse of property led to breakdowns and deaths restructured the economy led to the creation of light industry and consumer goods led to the revelation of surplus labor in rural areas people could now leave community in search of work -Reform Without Losers? team leaders and officials in previous system lost their influence weak/poor weren?t able to compete in the new market economy especially the ?old cadres? farmers were hesitant to embrace new land distribution distrust of stability of policies whomever shaped the pattern of change had greater power the state continues to own the land in decollectivization process privatization of land is the cornerstone of capitalism which would lead to private control of the MoP MoP = means of productoin party didn?t want this to occur in any form stays within socialist framework therefore everyone gets something -Single Party Reformation impossible for reformers to renounce collective ownership of MoP Deng XiaoPing stressed the continuity of socialism very much a question of regime legitimacy changing within the fold of socialism -Rise of Individualism personal incentives for increasing production rising mistrust between exploiters and entrepreneurs villages vs officials becomes villagers vs villagers -Political and Social Consequences of Decollectivization relationships between villagers and officials before reform, officials dominated resources and people could influence behavior and production after reform, acted as mediators between villages cadres went from beating to being beaten Yan YunXiang had insider?s view of this relationship went from being responsible to officials government now responsible to local population Parish talked about difference between? economic markets this is what the decollectivization changed political markets same cadres stayed in power didn?t relinquish total control were corrupt because they were in power changes in one doesn?t lead to change in the other cadres became economically rather than politically motivated everyone becomes busy trying to get ahead w/ $$$ previously, they didn?t have a lot to give under Mao who gets what jobs and where do work points go an economy of scarcity now, favoritism plays a very large role gatekeeper to opportunities from the state an economy of surplus some villages with rural industry allowed cadres to maintain their power and influence because they could still decide who gets what jobs relationship between households and villages the collective (village) became broke households now had the money needed an alternative to create collective power relationship between entrepreneurs and cadres money vs official prestige two sources of major power same governmental and political system businessmen attracted to cadre positions if elected or appointed, their priorities were? maintain economic power use their political power to gain economic power passed on political power to people? time was now the scarce issue still a system ran by the CCP (socialist ideology) created a social pressure to look down on businessmen business people were the oppressors in previous system many left or were killed during the CR CR = cultural revolution CCP represents the farmers and laborers businesspeople became the lowest of the low political and economic power still differentiated continued until the late 1990s now capitalists can be allowed into the party government still kept businesses at 7 max laborers political backing allowed for business reform Paper Remarks -need to bring in all of the required readings not just the ones in your section -need a strong introduction presented the big picture fit your article into the big picture have a strong POV and articulate it in the intro -watch out for a misreading of the article academic journal papers will summarize a position in order to critique it your POV can be very different or in opposition to the author(s) especially the required readings supplementary readings will often bring up alternate POVs