Policy Making & Political Economy Flashcards
What are the 10 most important facts to know concerning China’s one child policy ?
- Motive and Rationale: The policy was introduced to curb China’s rapid population growth, which was seen as a threat to the country’s economic development and resource sustainability.
- Limitation on Childbirth: Under the policy, most urban couples were restricted to having only one child. Rural couples were allowed to have a second child if their first child was a girl or if they were part of an ethnic minority.
- Enforcement and Penalties: The policy was enforced through a system of permits, and couples who violated the policy faced fines, loss of government benefits, and, in some cases, forced abortions or sterilizations.
- Exceptions and Variations: There were variations in the implementation of the policy across different regions of China. Some provinces had more relaxed rules, while others had stricter enforcement.
- Demographic Consequences: The policy led to a significant demographic shift, resulting in an aging population and a gender imbalance, as families preferred having male children. This has had long-term implications for China’s economy and social structure.
- Social and Psychological Impact: The policy had profound social and psychological effects on Chinese society. It altered traditional family structures, led to a generation of “only children,” and influenced cultural attitudes towards family and children.
- Relaxation and Reform: In the early 2010s, China began to relax the One Child Policy, allowing couples where at least one parent was an only child to have a second child. In 2016, the policy was officially replaced with a Two Child Policy.
- Implementation Challenges: The policy faced challenges in its implementation, including issues of corruption, forced sterilizations, and difficulties in accurately tracking the population.
- Legacy and Long-Term Effects: The long-term effects of the policy continue to be felt in China, with an aging population and a smaller workforce to support retirees. The government has since implemented policies to encourage childbirth.
- Global Significance: China’s One Child Policy remains a significant case study in population control and demographic policy. It has influenced discussions on population growth and policy implementation worldwide.
What are the 10 most important points from the “China’s Political Economy” reading by Arthur R. Kroeber ?
- Socialism with Chinese Characteristics (SWCC): Kroeber acknowledges SWCC as the guiding principle of China’s economic development. He emphasizes how this approach combines socialist ideology with pragmatic economic policies, allowing for both state intervention and market forces to coexist.
- State-Owned Enterprises (SOEs): Kroeber recognizes the pivotal role of SOEs in China’s political economy. He emphasizes that while they have undergone reforms to become more market-oriented, they still play a crucial role in key industries and remain an essential tool for the government to implement its policies.
- Market Socialism: Kroeber’s analysis aligns with the idea of China practicing market socialism. He underscores that while market forces play a significant role, the state maintains control over strategic sectors and continues to exert influence on economic outcomes.
- Dual-Track Pricing System: Kroeber discusses how China’s dual-track pricing system has evolved over time. He points out that it has been a means for the government to balance economic efficiency with social stability, particularly in sensitive sectors like energy and agriculture.
- Reform and Opening Up: Kroeber places great importance on the Reform and Opening Up policy. He highlights how this initiative transformed China from a centrally planned economy to a more market-oriented one, unleashing rapid economic growth and enabling China to become a global economic powerhouse.
- Huawei and Technonationalism: Kroeber acknowledges the rise of companies like Huawei as part of China’s broader strategy to promote domestic champions in critical industries. He explores how technonationalism serves as a driving force behind China’s push for self-reliance and technological innovation.
- One Belt, One Road Initiative (OBOR): Kroeber provides nuanced insights into the OBOR initiative, emphasizing its potential to reshape regional and global economic dynamics. He analyzes how OBOR reflects China’s ambition to enhance connectivity, trade, and geopolitical influence.
- Financial Repression: Kroeber delves into China’s financial repression policies, emphasizing their role in maintaining stability and managing risks. He discusses how the government’s control over the financial sector is a deliberate choice to mitigate potential financial vulnerabilities.
- Shadow Banking: Kroeber examines the role of shadow banking in China’s financial landscape. He highlights how it has been both a source of credit expansion and a concern for financial stability, offering a balanced perspective on its impact.
- State-Led Industrial Policy: Kroeber provides a comprehensive analysis of China’s state-led industrial policies. He assesses how initiatives like “Made in China 2025” fit into the broader framework of China’s economic development goals and their implications for global competition.
What is the first factor that explains China’s rapid economic growth ?
The East-Asian economic model.
Through exportation, heavy state involvement and exchanges between public and private realm, China can uphold this quick development rate.
Another characteristic of this model is the highly educated workforce (almost 100% literacy rate)
The last characteristic is repressed labour rights: long hours, low benefits.
What is the second factor that explains China’s rapid economic growth ?
The strategy of having low economic control, but high political control.
Helps the state avoid distancing from the party, avoiding the fate of the USSR for example.
What is the third factor that explains China’s rapid economic growth ?
China’s political structure.
Local authorities can experiment with lots of autonomy for policy makers.
This allows for infrastructure such as highway to be built, though it also lacks systems to protect private property.
What is the fourth factor that explains China’s rapid economic growth ?
Population.
Through its baby boom and then population control measure, China was able to maximize workers and minimize dependants.
However, now there is a downward pressure on growth, there is not enough youth to care for the aging population. The state has begun encouraging people to have more children.
What is the fifth factor that explains China’s rapid economic growth ?
Geographic location and luck.
Geography and also China opened its markets when the supply logistics changed world wide. Production was not conducted worldwide for different pieces, so that was lucky.
Explain the basics of the Chinese institutional set up.
Essentially localities do well financially through funding from bureaucracies, they then work to attract various investments, granting everyone a part / stake in the economic system.
Indeed, provinces and below do not have any flexibility concerning tax policies, meaning they must find a different way to generate revenu.
Most of the companies are state owned (60 % of GBP and 80 % of the workforce) - the Chinese state owns 5 of the 25 most successful companies in the world.
The state also developed infrastructures to support these businesses and companies : state owned banks, give out loans (instead of having the companies turn to a private investor or stock market)
What is the process of the government to allocate funds and support the development of industries ?
The party’s central committee 5 year plan comes into play. The terms are quite vague, but get more specific as it trickles down the hierarchy (at the provincial or local level for example)
Then there are more details, though they still reflect the national plan. Through this the party decides what to prioritize and how to prioritize it.
How does the National Security Commisson work ?
The National Security Commission also participates : this process in non-democratic, but takes feedback from within the system (lobbying the system)
State council who sits on top of the ministries and the National Peoples Congress pass the required legislation (no law has ever been voted down)
Members meet with state owned entreprises and other organs and make decisions concerning the content of the plan.
Public consultation for urban planning for example is taken into account.
Explore the concept of experimentation and what it means for Chinese economic development.
The party will try policies out in smaller areas before applying it to a national level.
This is what Deng Xiaoping did with the “liberal” and economic strategies in coastal cities during the 1980s.
What does the current five-year plan look like ?
It is :
1 - Domestically oriented : reduces the relance on foreign technologies and products.
2 - Prioritizes digitalization
3 - disregards sustainability
How is corruption continually promoted within the party ?
It has been identified as an issue by the party itself, but remains because of the following :
Wealth is hidden behind family members of the people in power. Close kin are often found to be influencing politics to their own advantage.
Furthermore, officials need to declare their wealth, but families do not, making this more difficult.
After NY Times published Xi’s family’s wealth, it was banned in China.
There are four different categories of corruption.
Petty theft (theft that does not involve elites), Grand theft (involves elites), Speed money (exchange which does not involve elite) and Access money (exchange which does involve elite)
Access money is most popular in China : People pay big families to get their projects done.
