How China Became Capitalist

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• There is an extensive and growing literature on China’s decentralized political structure and its far-reaching impact on China’s market transformation. As we have discussed, the legacy of Mao’s repeated efforts at administrative decentralization persists. But Mao’s legacy is itself rooted in China’s long history, under which the so-called junxian system prevailed. As reflected by the well-known Chinese axiom, “the mountain is high and the emperor far away,” the de facto autonomy enjoyed by the xian or county government has long been a distinctive feature of Chinese political structure. But fiscal and administrative decentralization does not necessarily lead to regional competition. In Mao’s time, for example, regional competition did not arise. Instead, Mao’s repeated efforts at decentral... (查看原文)

  元非 1 回复 10赞 2012-08-21 17:31:29

• Regional competition has another important dimension that has so far eluded scholarly attention, which helps to reveal an important aspect of Chinese capitalism and sheds new light on the question raised at the beginning of this section: What exactly is competed for in regional competition? There is no doubt that investment has been the immediate target of competition between local governments. But as they compete, local governments also vie over different ideas of economic development. This subtle but critically important dimension of China’s regional competition will become clear if we put it into historical context. Under Mao, the decentralized Chinese economy inevitably opened up some room for local initiatives. But none of them lasted long before being hijacked by Mao’s political cam... (查看原文)

  元非 1 回复 10赞 2012-08-21 17:31:29

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