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andreas, a shanghai model

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new left review 65 sept oct 2010 63 joel andreas A SHANGHAI MODEL? A mong those who muster the most righteous indignation against governments that stifle private enterprise are free- market advocates claiming to speak on behalf of the poor. In their works, the poverty of peasants and of rural migrants who eke out a living in the global South ’s growing cities is caused by gov- ernment bureaucrats, who provide privileges for crony capitalists and other favoured elites while smothering the entrepreneurial energies of the less fortunate. Give the poor clearly defined rights to their meagre properties, provide them with opportunities to obtain credit and stop subjecting them to onerous taxes and regulations, and they will not only find entrepreneurial solutions to their own poverty , but they will become a powerful engine for economic development. This is the message of Capitalism with Chinese Characteristics, the widely acclaimed book by Huang Yasheng. 1 In contrast to many mainstream economists, who praise China for steadily advancing toward Western capitalist practi ces over the last three decades, Huang argues that China started retreating from true economic liberalization in the 1990s. In the 1980s, he writes, China was developing a type of entrepreneurial capitalism in which small rural entrepreneurs played the leading role. But in the 1990s it moved toward a state-led capitalism, which favours big government-connected urban enterprises. Huang’s book, which has received considerable attention in academic and policy circles both inside and outside China and was named by the Economist as Book of the Year, has broken new ground in combining free-market doctrines with populist claims. On Capitalis m with Chinese Characteristics

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