Download The Revival, Legitimization, and Development of Private by Zongshi Chen (auth.) PDF

By Zongshi Chen (auth.)

This publication illustrates the decline of the state-encouraged revival and legitimization of non-public businesses in Nineteen Eighties China. Chen argues that the quick progress of non-public organizations reinforced the financial energy of the country, top the chinese language govt to take an more and more interventionist stance.

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Extra info for The Revival, Legitimization, and Development of Private Enterprise in China: Empowering State Capitalism

Sample text

For the purposes of rapid industrialization and the strengthening of the defense industry in particular, Mao’s policy mostly targeted heavy industries that exploited the rural economy through the hukou (urban household registration) system, and the scissors price took the form of falling prices for agricultural produce and steady prices for industrial goods. The hukou system prohibited rural peasants from migrating to the urban areas, and the scissors price unfairly extracted profits from the agricultural sector to the industrial sector.

In 1980, as the party secretary of Shangyan village, Zheng started his household enterprise by utilizing his technical skills acquired in the military. 46 Private Enterprise in China Political Risk: Peasant Entrepreneurs’ Persistence and Local Leaders’ Support One of the central concerns for the peasant entrepreneurs was the political risks that existed during the early 1980s. Since 1978, the policies toward household enterprises had been ambiguous. The market camp implicitly allowed for private entrepreneurship and advocated for the general principle of getting people to become rich, whereas the planning camp still upheld the socialist banner and prohibited the practice of a private economy.

Entry into Private Entrepreneurship: Capable People Many studies on China’s transition examine the significance of the various forms of capital in the stratification. There are three accounts Taking Risks in Experimenting 43 regarding this subject: (1) the market transition account, (2) the power persistence account, and (3) the elite approach. Market transition theory asserts that marketization (measured by the presence of private entrepreneurship activities) nullifies the advantage of political power (Nee, 1989).

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