Rural China in ruins: The rush to urbanize China's countryside is opening a moral battleground (Respond to this article at http://www.therai.org.uk/at/debate)

China has officially become a predominantly urban country, with over 50% of the population now registered as urban residents. Its urbanization process has been described as the most managed in human history. The Chinese government manages the building of new cities, regulates the housing of displaced people and controls squatters. As an historically poorer area, the west of China has been the target of ongoing efforts at infrastructural development. Describing urbanization as managed however masks the conflicts and contradictions involved in a process which is far from smooth. Although villagers are usually seen to be largely the powerless victims of these initiatives, it is clear that many try to take advantage of the situation, while others are unable to do so. Based on recent fieldwork and eight years of visits to one village undergoing urbanization, this article looks at the complex dynamics involved and at the moral battleground which they lay bare.     

THE PUBLIC LIFE OF ECONOMIC INCENTIVES

Many current proposals for policy reform call for the use of economic incentives. The growing application of economic incentives in a number of policy areas necessitates continuing critical examination of the claims for and the criticisms of their use. Early empirical evidence on the implementation of incentive schemes serves to shed light on the validity of some of the supporting and opposing arguments. By continuing the assessment of the viability of economic incentives, this study reveals that incentive alternatives face obstacles to use stemming from implementation problems, but political and philosophical issues pose greater threats. Nevertheless, the use of incentives can best be defended on political and moral grounds. Political resistance can be overcome and incentives can be employed effectively, if incentive schemes are understood as fostering one form of social interaction in a mixed regime.     

A CONTEXTUAL ANALYSIS OF THE JOURNEY-TO-SHOP WITH PRICE UNCERTAINTY*

ABSTRACT In this paper we extend the contextual theory of demand to consider rational consumer behavior when the household must deal with some random fluctuation in the prices it faces. Prices at stores reflect “advertised specials,” which are potential cost reductions random across goods, and random in-store price changes, which can only be observed by visiting the store. Our theory of rational behavior includes: (1) calculation by the household of an ex ante plan for its planning period; (2) modification to take account of advertised specials; and (3) rational search behavior to take advantage of random fluctuations observable only on a given day. This theory utilizes an active cash balance as a buffer against random variations from planned daily expenditures, and reformulations of trip circuits to account for patterns of cost-minimizing search.