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.

Objectives Agenda

Discuss China in a comparative context: geography, history, economic culture

Explain how the economies of Russia and China have changed with democratization

Slide/Notes Geography History Political economy

“Commanding Heights” video

Closure: Quiz

Today we will …

CHINA

Geography

3rd largest land surfaceAccess to oceans/no iceLong, navigable rivers

& good harborsClimate & terrain differ

btwn north/southWest is isolated China is separated from

other countries by mountains, deserts & oceans

Thinking About China

• The world’s 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 peasantCollectivism – value the good of the

community above the individualStruggle, activism & devotion“Mass Line” of communication between

leaders & the people

Check for understanding

Mao’s Mass Line concept sounds very much like Lenin’s 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 investmentBegan 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. Mao’s “iron rice bowl” – cradle to grave health care, work

and retirement

Status of Private Property

Constitution of the PRC 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

De-collectivization of landDisbanding of communesPrivate production

allowedPrivately owned

businessesConstitutional reforms for

rights of ownershipEnforcing the rule of law

for private ownership

Under Mao Now

Should there be privatization?

EfficiencyAttract domestic and

foreign investmentAddresses market/

consumer needsIncentives for work/

innovationState industries not

performing well

Loss of state controlCreation of oligarchsHigher unemploymentIdeological

inconsistency- loss of legitimacy of the CCP

Creates economic inequality (regional or societal)

Loss of safety net

For Against

Deng’s Plan How

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

Reform:Agriculture –

de-collectivize/ ”house hold responsibility system”

State enterprises – down size

Collective enterprises – focus on export goods

Private enterprise – individual ownership & foreign investment

China’s Economic Reforms

1955 1965 1975 1980 1985 1990 1995 2000 2004 20080

500

1000

1500

2000

2500

3000

Annual Foreign Trade, Canada and China (US$ Billion), 1955-2008

Canada

China

China AT LEAST61.6

Check for understanding

State Enterprises

Collective Enterprises

SEZ’s

Private Enterprises

a. Shanghai (SE China)b. Increasing individual

and foreign ownershipc. operate according to

central government plan

d. local government control

e. Low growth & downsizing

f. Low-end export manufacturing

g. Big industries

Commanding Heights

Closure

China Quiz

Homework: 1. Read article on China’s economic policies and

answer the questions2. 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 (party-dominated), 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

MORE CENTRALIZATION

LESS CENTRALIZATION

Command Economy

Mixed Economy Market Economy

Private Property?Role of Government?Competition & Profit?

Private Property?Role of Government?Competition & Profit?