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Dorothy J. Solinger - Chinas Transition from Socialism?: Statist Legacies and Market Reforms, 1980-90

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The essays in this volume address the industrial, commercial, urban and regional reforms of Chinas planned economy during the 1980s. The emphasis is on the dominating institutional and bureaucratic presence of the state even as it sought to loosen the pre-1979 vertically structured centralised command system and to introduce some market principles to stimulate economic activity. The essays fall into four categories: theoretical and policy discussions and debates at the central leadership level; reform of the urban economy and of inter-regional relations; industrial and commercial reforms; and the rise and position of the new entrepreneurial class. Many of the essays draw on interviews with Chinese economic officials in the Central China city of Wuhan and therefore this is the only study that uses local data on actual operations of reforms from a Chinese city; the other sources are the Chinese press and Chinese official and scholarly journals. In each of the categories there are pieces from different points in the chronological process of reform. This study begins with the first theoretical discussions among Chinas economists and top political leaders in the late 1970s and concludes with experiments with bankruptcy and stock markets in the late 1980s. The countervailing heavy presence of the state at both the policy and the practical levels throughout the reform decade is its unifying theme.

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CHINAS TRANSITION FROM SOCIALISM Studies of the East Asian Institute - photo 1
CHINA'S TRANSITION FROM SOCIALISM
Studies of the East Asian Institute, Columbia University
THE EAST ASIAN INSTITUTE OF COLUMBIA UNIVERSITY
The East Asian Institute is Columbia University's center for research, publication, and teaching on modern East Asia. The Studies of the East Asian Institute were inaugurated in 1962 to bring to a wider public the results of significant new research on Japan, China, and Korea.
Socialism arid Social Movements
China's Transition from Socialism
Statist Legacies and Market Reforms 1980-1990
Dorothy J. Solinger
An East Gate Book First published 1993 by ME Sharpe Published 2015 by - photo 2
An East Gate Book First published 1993 by ME Sharpe Published 2015 by - photo 3
Picture 4
An East Gate Book
First published 1993 by M.E. Sharpe
Published 2015 by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
711 Third Avenue, New York, NY 10017, USA
Routledge is an imprint of the Taylor & Francis Group, an informa business
Copyright 1993 Taylor & Francis. All rights reserved.
No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.
Notices
No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use of operation of any methods, products, instructions or ideas contained in the material herein.
Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility.
Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.
Library of Congress Cataloging-in-Publication Data
Solinger, Dorothy J.
China's transition from socialism: statist legacies and market reforms, 19801990/Dorothy J. Solinger.
p. cm.(The Political economy of socialism)
Includes bibliographical references and index.
ISBN 1-56324-067-X (cloth)
ISBN 1-56324-068-8 (pbk)
1. ChinaEconomic policy1976 2. Central planningChina. 3. SocialismChina.
I. Title.
II. Series.
HC427.92.S63 1993
338.951dc20
92-43250
CIP
ISBN 13: 9781563240683 (pbk)
Table of Contents
The pieces that make up this volume were written over the course of a decade. Most of them were originally presented at conferences; all of them were previously published, either in journals or in conference volumes. In some cases the papers benefited from readers' comments before the meetings were held or the volumes published, and in those cases I thank those readers on the title page of each individual essay. I am also glad to take this opportunity to express my gratitude to the conveners of these various meetings for giving me a chance to prepare a paper.
Despite attributions in a few of the chapters for the help given me by the Wuhan City Foreign Affairs Bureau in arranging interviews with city officials and enterprise managers, I would like to restate my thanks again here, especially for assistance in collecting the material that appears in . The office of the U.S. Consulate in Shenyang was very helpful during my time in that city in 1988.
The funds for making these various trips to China (in 1983,1984,1985,1987, and 1988) were generously provided by the University of Pittsburgh's University Center for International Studies (its Contemporary China Program and its Asian Studies Program) and by its Research Development Fund, and by the School of Social Sciences at the University of California, Irvine.
For the idea to bring all these pieces together between two covers I feel a particular sense of appreciation. On separate occasions in early 1990 both Rick Baum and Tom Bernstein suggested that I undertake this project. And a special thanks to Doug Merwin and Mark Selden for allowing me to bring Rick and Tom's suggestion to fruition. Finally, without Ziggy Bates's tireless and efficient word processing this project could not have been completed.
D.J.S.
CHINA'S TRANSITION FROM SOCIALISM
The 1980s were the decade of economic reform in China. The reform campaign was launched at the end of the 1970s with the contracting of agricultural production to households and the subsequent dissolution of the communes in the countryside, modest experiments in enterprise autonomy in the cities, the legitimation of petty private sectoral trading, and a sudden surge in China's participation in the global economy. The use of market mechanisms to supplement the state plan that lay at the core of these initiatives seemed to promise that the country had embarked on a process that, with time, would result in China's economic system eventually evolving into one in which the plan had been totally overtaken by the market. Indeed, in many ways, the results and achievements were remarkable, the changes startling.
In fact, the increasingly extensive application of market tools over the decade an application that became even more dramatic with preeminent leader Deng Xiaoping's much-celebrated southern inspection tour in early 1992convinced many observers that the Chinese people would soon be living under a capitalist system. This volume seeks to demonstrate that that capitalism, when it emerges, will be distinctive. It does so by documenting the specific content and kind of capitalistic measures undertaken in China's urban economic reforms of the 1980s, and by explicating the concerns that lay behind them.
Accordingly, this collection of essays begins from a particular assumption: its guiding theme is the statism behind the reform effort. Starting from this statist perspective, this work, unlike much of the literature on the first decade of the Chinese reforms, does not envision reform of the economyand the predominance of market-oriented institutions and behavior that this would usher inas a goal in itself at that time. Rather, the picture here is one of reform as merely a means, a set of tools to be manipulated in the service of a few fundamental and overarching statist ends: the modernization, invigoration, and enhanced efficiency of the national economy and its consequent heightened capacity to boost both productivity and returns to the central state treasury.
A related goal was to raise living standards, to improve the state's ability to address social needs, and to ensure social stability. These goals, and not marketization per se, constituted the "project" of the decade of economic reform in China. And it is against these aims that the political elite consistently assessedand periodically curtailed or revampedits program of urban reforms.
In this view, reform was not an objective to which a wavering commitment obtained; it represented instead a package of measures valued for their potential to improve the workings of and to increase the state's receipts from the national economy. The fundamental commitment supporting reform, then, was a contingent and not an absolute one. In fact, the critical October 1984 decision on the reform of the urban economy reached at the Third Plenum of the Twelfth Party Congress attests to this interpretation. As explicated in the mid-1980s by a top Chinese economist who was one of the leading proponents of reform, that resolution underlined the continuing prominence of the system of state ownership and of the core purposes of the political elite:
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