Neoliberalism,Authoritarian Politics and Social Policy in China

This article explores the relationships among neoliberalism, social policy expansion and authoritarian politics in contemporary China. It argues that in the era of neoliberalism, rising new right and authoritarian governments, the Chinese Communist Party has sought to retain power by shifting politically to the right and promoting neoliberal-looking economic policies. These policies have raised average living standards but also increased insecurity for most of the Chinese population, while new social policies have facilitated marketization. Social policy expansion includes minimal cash transfers as well as social old-age and health insurance for hitherto excluded sections of the population. These policies have begun to erode long-standing urban–rural segregation, but they have added new, underfunded, social programmes rather than widening participation in existing ones, re-segregating provision so that urban elites and formal sector workers enjoy much more generous provisions than many people working informally and those without work. These social policies’ most significant dark sides thus include compounded income inequalities and the segmentation and stigmatization of the poorest. Authoritarian controls have enabled the Communist Party to avoid redistributive policies that would undermine its urban support, so that politics in China differ from the right-wing populism of new, anti-establishment authoritarian regimes.     

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.     

TRANSPORTATION RATES AND LOCATION OF THE FIRM: A COMPARATIVE STATIC ANALYSIS*

ABSTRACT This paper examines the role of the structure of transportation rates in the Weber-Moses triangle model. It shows that, in Zeigler's analysis, the appearance of the price elasticities of demand for inputs actually vanish by a simple application of the envelope theorem. Applying comparative statics analysis, we show when transportation rates are a function of quantity and distance, the assumptions that the production function is homogeneous of degree one and the transportation rates elasticities with respect to quantity and distance are constant are not sufficient to insure that the optimum location is independent of the level of output. This result is significantly different from that obtained by either Miller and Jensen or Zeigler.