Bell Ringer

Describe a Command Economy. Private property? Role of Gov.? Competition and profit?

Describe a Market Economy. Private property? Role of Gov.? Competition and profit?

Describe China’s socialist market economy.

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.

Free-Market Capitalism: Relies on profit motive and competition.

Mixed Economies: Market Economy with significant control from the government. Socialist Market Economy (China)

Gradual infusion of market economy while still retaining state control State Capitalism (Russia) Social Welfare Capitalist System (UK)

Economic Liberalism

Economic Liberalism: the process of reducing state intervention in the economy

What is it? Increase or decrease w/liberalization?1. Subsidies2. Tariffs3. State Owned Enterprises (SOEs)4. Foreign Direct Investment (FDI)

Liberalism – the expansion of both individual rights and the market economy

- Freedom of religion, freedom of the press- DO NOT think “liberal” as in US Democrats

Considerations

Which international organizations push for economic liberalization?

Pros and Cons to liberalizing?

Collective Enterprises

Collective Enterprises (China) – rural factories and businesses that vary greatly in size and are run by local government & private entrepreneurs Make their own decisions & are responsible for their

profits/loses Since 1970s under (Deng Xiaopeng) Slowed rural migration to cities

Collectivism (China) – Mao’s philosophy the good of the community should be valued above that of the individual

What was the Collective Consensus (UK) ?

Objectives Agenda

Discuss China in a comparative context: institutions, socialization, rule of law and judicial independence

Compare the electoral systems of Russia and Mexico

1. Slide/Notes2. Closure3. Activity Mexico v

Russia electoral systems

HW: Study for Unit Test on Wednesday

Today we will …

China’s Government

NationalProvinceCityCountyLocal/ Rural towns

Autonomous: Beijing, Shangjai, Tianjin, Chongquing

Decision Making in China

Authoritarian Regime

Political decisions are made by political elites without much input from citizens

Changing slowly as economic policies devolve power

Chinese Communist Party (CCP)

Organizing principle of the CCP is democratic centralism The idea that there should be open discussion within the

party. After discussion, the “Truest of the true believers” organize

the disparate and disorganized ideas of the masses into a party line which is harmonious with the official ideology.

The true believers then go back and teach that party line to the masses.

Top most leaders: standing committee of the politburo, or central committee eventually tell those below them in the hierarchy what the policy is. Then this group tells the next group below.

Executive: President/VP & Premier

Top leaders of CCPIncludes Standing Committee & Politburo Power over all foreign & domestic policy

How do these differences influence economic policy?

During Mao, leaders were:• Less educated• From military• Ideological• Revolutionary• Worked their way up

through the party

Today’s leaders are:• Educated• Technocrats• Pragmatic & business

oriented• Technical expertise• Groomed for leadership

positions or family connections

China’s Current Leadership

President of PRC (formerly called “Chairman”)Head of State: Two 5-year termsElected by National People’s CongressGen’l Secretary of CCPXi Jinping

PremierHead of Government (Bureaucrat)Politburo Standing CommitteeFormally appointed by Pres

Always a member of the Standing CommitteeLi Keqiang (economist by training)

Political Structure

Party, state and party-state CCP “leading role”; setting of policy/law agenda Personnel—nomenklatura 70 million+ Party Members - high % of govt

“a dictatorship of ever-expanding elites within a self-selecting elite”

Party hierarchy: on paper bottom-up, in practice top-down (w/ some checks/choice)

Party Congress, Central Committee, Politburo, Standing Committee, General Secretary

Party Secretaries: Provincial and below

Legislative: National People’s Congress

UnicameralPower to: enact &

amend the country’s laws

Approve and monitor the state budget

Declare & end warMeet for 2 weeks in

March3000 delegates5 year term

Elect (or recall) By secret ballot from

a list of limited candidates members of the CCP Central Committee

President & VP “elected” - one nominee from the party

Symbolic: approve and showcase party decisions

Legislative Institutions

On paper: indirect democracy

In practice: managed contests & centralized power National People’s Congress and

Standing Committee; provincial, lower congresses

Roles in legislation and in government / judicial oversight

Rise of staff and specialized committees

Changing interest representation, membership

Check for understanding

Which of the following best provides the political authority and power for Chinese leaders?

a. Winner of popular electionb. Previous position as General Secretary of

CCPc. Close ties with former Soviet leadersd. Strength of ideology

Linkage Institutions

China Linkage Institutions

One Party System: China Communist Party Organizing principle is democratic centralism Legislation Executive Elite Recruitment

Elections Unelected Legislature Direct Election of Local

Interest Groups Mass Organizations

Electoral Systems

People are free to get elected into minor village positions, but entrance into high positions of the national government requires connections and appointments.

Villages have become experiments with democracy, for free elections are allowed, where the Communist candidate sometimes loses.

Why would an authoritarian state allow for local elections? What do they really want to accomplish?

Democracy?20

Village Elections’ mixed record No longer appointed from above Chosen in direct, secret ballot

elections 610,000 villagers committees Incumbent / orthodox candidates

have the advantageNot extended to higher levels

Selected from and by lower levels, not directly by people

Local “deliberative” government? Budgets and other matters Corruption Incompetence

Buyun Township, 1998

Check for understanding

In the last part of the 20th century, Mexico and China both did the following, EXCEPT:

a. Suppressed student protestsb. Had weak legislative assemblies relative to

the executivec. Had a presidentd. Outlawed all opposition parties from

competing in electionse. Produced oil

Civil Society

Formal and informal organizations that are not part of the state but operate in public Voluntary Autonomous, self-governing created to advance it’s

own cause Groups that bring people together with common

interests Social, charitable, religious, community or political

concerns to articulate and advance their own causes

Civil Society in China

CCP supports “mass organizations” for interest groups to express views All-China’s Women’s Federation All China Federation of Trade Unions – official state

organization that collectively bargains for wages & benefit

What about Farmers? How are they heard, or not?

NGO’s OK, as long as they steer clear of political issues

Statism

Strong state/central government + protection against enemies Often has little transparency Weak civil liberties

Guanxi

China’s “good old boy network”Personal and bureaucratic tiesLink village leaders with lower party officials

What did we call a similar kind of network in Mexico?What is a big problem with this kind of network?

Rule of Law (or Rule By Law)

During revolution, the law was seen as political, how the bourgeoisie kept the proletariat suppressed

Mao’s revolution destroyed old legal codesChinese justice system is harsh

Death penalty for smuggling, rape, theftNo independent judiciary – under control of the CCPNew economic growth requires consistent

regulations be in place that allow China to trade internationally and attract foreign investment Commercial law, contract law & property rights Lax contract laws are an issue

Reforms to China’s Legal System

Refinements to both civil and criminal law Requirements for judges More law schools & lawyers Legal advisory offices

What hasn’t changed? CCP controls the law, courts and legal system No judicial review High rates of conviction High rates of incarceration Capital punishment Burden of proof on the defendant, not state Guanxi

Policy Decisions

1989 Tiananmen Democracy Demonstrations Arrests & attacks on dissidents

1989 – 2000 Falun Gong "a serious ideological and political struggle that

would have a bearing on the future of the Communist Party and the State“

Outlawed; arrest & execution of leaders2008-2009 Riots in Tibet & Xinjiang

Refusal to complete talks with Dalai Lama & arrests of dissidents

Environmental Policy

Water & air pollution are major concerns in most urban area of the country due to China's economic progression. In recent years the gov. has placed greater

importance on environmental protection, and the development of clean energy: Signing international agreements to phase out pesticides/

pollutants Reversing deforestation through forest planning programs Encouraging use of solar and wind energy Source reduction

Economic Growth is still #1

Closure

Why would China want to reform its legal system? Give two reasons.

Mexico Masher vs. Crusha from Russia

Mexico vs. Russia Activity

Read the introduction and examine the data.

Pairs can complete the questions for Mexico and Russia separately and answer the comparative questions together.

Check for UnderstandingIs Mexico’s past Russia’s Future?

PRI traditionally held power through patronage, electoral fraud, corporatism, co-option of dissent and executive power.

Mexico system reinforced one-party rule by using mixed proportional/single member district system in electing the Chamber of Deputies. Gave the impression of party competition while

maintaining control of the government. Opposing parties won enough to be represented but not

win majority controlHow is this similar to Russia?How are Russian institutions used-to consolidated

authority?

Comparisons & Review

Comparisons

• Russia: ethnic religious cleavage and conflict can undermine national legitimacy and integration.

• China: Political ideology can play an important roel in limiting identity based fragmentation- cost is political freedom.

• Mexico & UK- time to evolve toward democratic order

Social Cleavages

Russia vs. China

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

Relator 2013

Global Trends

Democratization To Market Economies Revival of Ethnic/ Cultural Politics

More nations are turning toward some form of popular government

*REGULAR, COMPETITIVE elections

Private individuals own business and industries.

Contrasts with a command economy in which the government owns and controls business and industries.

Nationality problems broke up the old Soviet Union.

In the Middle East, political terrorism has been carried out in the name of Islam.