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. Today we will Objectives Agenda Discuss China in a Slide/Notes comparative context: geography, history, economic culture Explain how the economies of Russia and China have
changed with democratization Geography History Political economy Commanding Heights video Closure: Quiz CHINA
Geography 3rd largest land surface Access to oceans/no ice Long, navigable rivers & good harbors Climate & terrain differ btwn north/south West is isolated China is separated from other countries by mountains, deserts & oceans Thinking About China
The worlds 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 peasant Collectivism value the good of the community above the individual Struggle, activism & devotion Mass Line of communication between leaders & the people Check for understanding Maos Mass Line concept sounds very much
like Lenins 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 investment Began 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. Maos iron rice bowl cradle to grave health care, work and retirement Status of Private Property Under Mao Now Constitution of the PRC De-collectivization of land Disbanding of communes 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 Private production allowed Privately owned businesses Constitutional reforms for rights of ownership Enforcing the rule of law for private ownership Should there be privatization? For
Against Efficiency Attract domestic and Loss of state control Creation of oligarchs foreign investment Addresses market/ consumer needs Incentives for work/ innovation State industries not performing well
inconsistency- loss of legitimacy of the CCP Creates economic inequality (regional or societal) Loss of safety net Higher unemployment Ideological Chinas Economic Reforms Dengs Plan How Reform: Agriculture
de-collectivize/ house hold responsibility system State enterprises down size Collective enterprises focus on export goods Private enterprise individual ownership & foreign investment 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 Annual Foreign Trade, Canada and China (US$ Billion), 1955-2008 3000 2500 Canada 2000
China 1500 1000 500 0 1955 1965 1975 1980
1985 1990 1995 2000 2004 2008 China AT LEAST 61.6 Check for understanding
State Enterprises a. b. Collective Enterprises SEZs c. d. e. Private Enterprises f. g.
Shanghai (SE China) Increasing individual and foreign ownership operate according to central government plan local government control Low growth & downsizing Low-end export manufacturing Big industries Commanding Heights Closure China Quiz Homework:
1. 2. Read article on Chinas economic policies and answer the questions 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 (partydominated), 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 Command Economy Private Property? Role of Government?
Competition & Profit? MORE CENTRALIZATION Mixed Economy Market Economy Private Property? Role of Government? Competition & Profit? LESS CENTRALIZATION
