Bell Ringer Read the article on the growth of Transparency in China and answer the questions Please turn in: 1. Russia HW (pink sheet)
Dec 25, 2015
Bell Ringer
Read the article on the growth of Transparency in China and answer the questions
Please turn in:1. Russia HW (pink sheet)
Transparency
A transparent gov. is one that operates openly by keeping citizens informed about how the government operates (including the economy) & political issues.
A transparent gov. responds to the questions & opinions/advice of its citizens.
How might a government limit transparency? Brainstorm 3 ideas with your partner.
Objectives Agenda
Discuss China in a comparative context: geography, history, economic culture
Explain how the economies of Russia and China have changed with democratization
Slide/Notes Geography History Political economy
“Commanding Heights” video
Closure: Quiz
Today we will …
Geography
3rd largest land surfaceAccess to oceans/no iceLong, navigable rivers
& good harborsClimate & terrain differ
btwn north/southWest is isolated China is separated from
other countries by mountains, deserts & oceans
Thinking About China
• The world’s largest population
• Ethnic homogeneity (Han Chinese)
• The Middle Kingdom• Poverty & growing
prosperity
The Evolution of the Chinese State
The broad sweep of Chinese history – dynastic rule 1921 – founding of Communist Party of China (CCP) 1949 – People Republic of China (PRC) under Mao
Zedong 1966 - Cultural Revolution (failed?)
Cleansing of Western values/ anti-capitalism, revising education, purging political enemies, reinforcing political legitimacy, affirming revolutionary ideals, promoting ideological conformity, attacking intelligentsia/ middle class, elevating status of leader
1976 – Mao dies, gov. opens borders in 1978 1987 – 1st KFC! 1989 – Tiananmen Square 1997 – Hong Kong returned to Chinese rule after 156
years under British Crown
Maoism
Influenced by Lenin & Marx but distinctly Chinese version of communism
Strength of the peasantCollectivism – value the good of the
community above the individualStruggle, activism & devotion“Mass Line” of communication between
leaders & the people
Check for understanding
Mao’s Mass Line concept sounds very much like Lenin’s theory in which ideas rise from the people to the elite decision makers?
The ____________ have a superior understanding of what the ______________ want. (people, elite)
What is the “vanguard party”?
Chinese Economic Culture
Still technically a Communist state, but slow transition to free market
Gov. retains control of some industries while opening up others, especially in east and south to private ownership & international investmentBegan under Deng Xiaoping
Creation of Special Economic Zones (SEZs) in places like Shenzhen, an edge city outside of Hong Kong, whose population has skyrocketed
As China has become more capitalist, wages, food & healthcare aren't guaranteed. Vs. Mao’s “iron rice bowl” – cradle to grave health care, work
and retirement
Status of Private Property
Constitution of the PRC prohibited private property Confiscated private property Property was collectivized,
“owned by the people” Property redistributed to the
poor Communes
State is the primary owner of property and means of production, people had right of use but no ownership
De-collectivization of landDisbanding of communesPrivate production
allowedPrivately owned
businessesConstitutional reforms for
rights of ownershipEnforcing the rule of law
for private ownership
Under Mao Now
Should there be privatization?
EfficiencyAttract domestic and
foreign investmentAddresses market/
consumer needsIncentives for work/
innovationState industries not
performing well
Loss of state controlCreation of oligarchsHigher unemploymentIdeological
inconsistency- loss of legitimacy of the CCP
Creates economic inequality (regional or societal)
Loss of safety net
For Against
Deng’s Plan How
Disciplined savings Open to foreign investment Experimented with free trade
in SEZs Emphasis on exports Open to technology Local planning SLOW, much more stable
economy than Russia Free Markets, NOT free
people Little political reform- oppression
Reform:Agriculture –
de-collectivize/ ”house hold responsibility system”
State enterprises – down size
Collective enterprises – focus on export goods
Private enterprise – individual ownership & foreign investment
China’s Economic Reforms
1955 1965 1975 1980 1985 1990 1995 2000 2004 20080
500
1000
1500
2000
2500
3000
Annual Foreign Trade, Canada and China (US$ Billion), 1955-2008
Canada
China
Check for understanding
State Enterprises
Collective Enterprises
SEZ’s
Private Enterprises
a. Shanghai (SE China)b. Increasing individual
and foreign ownershipc. operate according to
central government plan
d. local government control
e. Low growth & downsizing
f. Low-end export manufacturing
g. Big industries
Closure
China Quiz
Homework: 1. Read article on China’s economic policies and
answer the questions2. UK /EU Retake – handwritten, short answers due
4/29 (late submission will NOT be accepted)
Political Systems vs. Economic Systems
Integration of political & economic systems Capitalism & communism are economic systems,
but hard to separate from the political systems which support each
Attitudes & behaviors of citizens and how they respond to economic policies, economic inefficiencies, economic inequality and economic decision-making influence the actions of the government & policy-making
Democratization/ Liberalization
“It has been said that democracy is the worst form of government except for all the others that have been tried.” – Churchill
aka – Liberalism – the expansion of both individual rights and the market economy- DO NOT think “liberal” as in US Democrats
Market economy = free trade, less regulation, profit goes to people and not government
Economic Systems
Command Economy: Government owns almost all industrial enterprises and retail sales outlets. Production goals set by a central government (party-dominated), values equality, quotas and plans/ directs production and distribution.
Economic Liberalism: Free markets, freedom of the press, freedom of religion, low or now tariffs on trade.
Free-Market Capitalism: Relies on profit motive and competition. Mixed Economies: Market Economy with significant control from
the government. Social Welfare Capitalist System (UK) Socialism Market Economy (China)
Gradual infusion of market economy while still retaining state control IN Europe: team oriented and emphasis on cooperation between management and
organized labor. Government is economic safety net. Government subsidies, universal health care, day care, pensions.
State Capitalism (Russia)
Relator 2013