Remington profiles the Bolshevik project of social transformation and political centralization known as War Communism. He argues that the effort to institute a centrally planned and administered economy shapedthe ideology of the regime, the relations between the regime and the working class, and the character of state power.
In this timely work, Scott Kennedy documents the rising influence of business, both Chinese and foreign, on national public policy in China.
China's shift to a market economy has made businesses more sensitive to their bottom line and has seen the passage of thousands of laws and regulations that directly affect firms' success. Companies have become involved in a tug of war with the government and with each other to gain national policy advantages, often setting the agenda, providing alternative options, and pressing for a favored outcome.
Kennedy's comparison of lobbying in the steel, consumer electronics, and software industries shows that although companies operate in a common political system, economic circumstances shape the nature and outcome of lobbying. Factors such as private or state ownership, size, industry concentration, and technological sophistication all affect industry activism.
Based on over 300 in-depth interviews with company executives, business association representatives, and government officials, this study identifies a wide range of national economic policies influenced by lobbying, including taxes, technical standards, and intellectual property rights. These findings have significant implications for how we think about Chinese politics and economics, as well as government-business relations in general.
More than 630 million Chinese have escaped poverty since the 1980s, reducing the fraction remaining from 82 to 10 percent of the population. This astonishing decline in poverty, the largest in history, coincided with the rapid growth of a private enterprise economy. Yet private enterprise in China emerged in spite of impediments set up by the Chinese government. How did private enterprise overcome these initial obstacles to become the engine of China’s economic miracle? Where did capitalism come from?
Studying over 700 manufacturing firms in the Yangzi region, Victor Nee and Sonja Opper argue that China’s private enterprise economy bubbled up from below. Through trial and error, entrepreneurs devised institutional innovations that enabled them to decouple from the established economic order to start up and grow small, private manufacturing firms. Barriers to entry motivated them to build their own networks of suppliers and distributors, and to develop competitive advantage in self-organized industrial clusters. Close-knit groups of like-minded people participated in the emergence of private enterprise by offering financing and establishing reliable business norms.
This rapidly growing private enterprise economy diffused throughout the coastal regions of China and, passing through a series of tipping points, eroded the market share of state-owned firms. Only after this fledgling economy emerged as a dynamic engine of economic growth, wealth creation, and manufacturing jobs did the political elite legitimize it as a way to jump-start China’s market society. Today, this private enterprise economy is one of the greatest success stories in the history of capitalism.
"There is no question that a well-defined 'Chicago School' of political economy has emerged, built largely around the work of George J. Stigler and his colleagues. Chicago Studies in Political Economy brings together the key works in this field, works that have been extremely influential among economists who study political processes. It is a collection of enormous value."—Roger G. Noll
This book argues, against the current view, that competitiveness--that is, the competitiveness of the manufacturing sector--matters to the long-term health of the U.S. economy and particularly to its long-term capacity to raise the standard of living of its citizens. The book challenges the arguments popularized most recently by Paul Krugman that
competitiveness is a dangerous obsession that distracts us from the question most central to solving the problem of stagnant real income growth, namely, what causes productivity growth, especially in the service sector.
The central argument is that, if the U.S. economy is to achieve full employment with rising real wages, it is necessary to enhance the competitiveness of its tradable goods sector. The book shows that current account deficits cannot be explained by macroeconomic mismanagement but are rather the consequence of an uncompetitive manufacturing sector. It finds that the long-term health of the manufacturing sector requires not only across-the-board policies to remedy problems of low or inefficient investment, but also sectoral policies to address problems that are strategic to resolving the balance of payments problems. Lessons are drawn from the experience of some European and Asian countries.
This book will be of interest to economists, political scientists, and business researchers concerned with the place of the manufacturing sector in overall health of the U.S. economy, with issues of industrial policy and industrial restructuring, and with the conditions for rising standards of living.
Candace Howes is Associate Professor, Barbara Hogate Ferrin Chair, Connecticut College. Ajit Singh is Professor of Economics, Queens College, Cambridge.
Since World War II, China has had a command economy administered under a dictatorship, while India's democracy has introduced a highly regulated economy. Despite obvious differences in their political systems, each country endured remarkably similar economic problems with respect to industry during the 1960s and 1970s. Both embarked in the 1980s on a series of industrial reforms designed to improve technology and efficiency in the use of resources, as well as to stimulate industrial growth in the face of declining productivity.
For economists, the two countries offer an interesting test case for examining similar reform programs launched from disparate political and economic systems. For policymakers concerned with the region's stability, a clear view of the economic futures of these two major powers is paramount.
Examining and comparing the reform experiences of China and India up to the present, George Rosen shows that although China enacted more sweeping reform measures and produced more impressive local growth, it also experienced more significant inflationary spurts. Two-thirds of each nation's population was involved in agriculture at the start of the reform period and nearly that many at the conclusion. Ultimately, the effects of the past industrial reforms in both countries in terms of significantly greater industrial employment or well-being of their populations were limited. An important lesson in these findings, argues Rosen, is that they actually reveal more about the political factors that limit and shape economic policy reforms in a dictatorship or democracy than they confirm the virtues of either capitalism or communism.
The National Industrial Recovery Act (NIRA) was enacted by Congress in June of 1933 to assist the nation’s recovery during the Great Depression. Its passage ushered in a unique experiment in US economic history: under the NIRA, the federal government explicitly supported, and in some cases enforced, alliances within industries. Antitrust laws were suspended, and companies were required to agree upon industry-level “codes of fair competition” that regulated wages and hours and could implement anti-competitive provisions such as those fixing prices, establishing production quotas, and imposing restrictions on new productive capacity.
The NIRA is generally viewed as a monolithic program, its dramatic and sweeping effects best measurable through a macroeconomic lens. In this pioneering book, however, Jason E. Taylor examines the act instead using microeconomic tools, probing the uneven implementation of the act’s codes and the radical heterogeneity of its impact across industries and time. Deconstructing the Monolith employs a mixture of archival and empirical research to enrich our understanding of how the program affected the behavior and well-being of workers and firms during the two years NIRA existed as well as in the period immediately following its demise.
Recently, real and artificial barriers to international transactions have fallen sharply, causing a rise in the overall volume of international trade. East Asia has been particularly affected by the economic stresses and gains derived from deregulation. Deregulation and Interdependence in the Asia-Pacific Region explores the broadly similar experiences of certain economies in the region—China, Hong Kong, Japan, Korea—in dealing with the potentially volatile process of deregulation, and examines the East Asian response to a rapidly transforming economic environment.
This work represents an important advance in the study of the interrelationships between business and U.S. foreign policy. Focusing on a single aspect of this broad field—the growth of industrial exports—William H. Becker demonstrates the complexity of business interests and behavior, of the bureaucratic and political forces at work in Congress and the Departments of Commerce and State, and of the interplay between business and governmental practices and concerns. In so doing, he provides the first full analysis of the industrial, political, and bureaucratic context in which the U.S. became a major exporter of industrial products.
India is the second most populous country in the world and also one of the poorest. From the late 1940s to 1980, India's per capita income grew at an average annual rate of only two percent. Expansionist economic reforms during the 1980s boosted economic growth but also unfortunately resulted in high inflation and a balance of payments crisis. As a consequence, in 1991 the government announced sweeping new changes in economic policies.
Economic Policy Reforms and the Indian Economy evaluates the effects of those changes and identifies areas of the Indian economy still in urgent need of reform. After an overview of Indian economic policies and development since independence, papers focus on the country's fiscal situation, the environment for private economic activity, education, the reservation of certain activities for small-scale industry, and determinants of differentials in rates of growth across the different Indian states. Contributors include respected academic specialists on India and policy reform, high-level Indian administrators, and present and past policymakers.
The past thirty years have witnessed a transformation of government economic intervention in broad segments of industry throughout the world. Many industries historically subject to economic price and entry controls have been largely deregulated, including natural gas, trucking, airlines, and commercial banking. However, recent concerns about market power in restructured electricity markets, airline industry instability amid chronic financial stress, and the challenges created by the repeal of the Glass-Steagall Act, which allowed commercial banks to participate in investment banking, have led to calls for renewed market intervention.
Economic Regulation and Its Reform collects research by a group of distinguished scholars who explore these and other issues surrounding government economic intervention. Determining the consequences of such intervention requires a careful assessment of the costs and benefits of imperfect regulation. Moreover, government interventions may take a variety of forms, from relatively nonintrusive performance-based regulations to more aggressive antitrust and competition policies and barriers to entry. This volume introduces the key issues surrounding economic regulation, provides an assessment of the economic effects of regulatory reforms over the past three decades, and examines how these insights bear on some of today’s most significant concerns in regulatory policy.
Embedded Politics offers a unique framework for analyzing the impact of past industrial networks on the way postcommunist societies build new institutions to govern the restructuring of their economies. Drawing on a detailed analysis of communist Czechoslovakia and contemporary Czech industries and banks, Gerald A. McDermott argues that restructuring is best advanced through the creation of deliberative or participatory forms of governance that encourages public and private actors to share information and take risks. Further, he contends that institutional and organizational changes are intertwined and that experimental processes are shaped by how governments delegate power to local public and private actors and monitor them.
Using comparative case analysis of several manufacturing sectors, Embedded Politics accounts for change and continuity in the formation of new economic governance institutions in the Czech Republic. It analytically links the macropolitics of state policy with the micropolitics of industrial restructuring. Thus the book advances an alternative approach for the comparative study of institutional change and industrial adjustment.
As a historical and contemporary analysis of Czech firms and public institutions, this book will command the attention of students of postcommunist reforms, privatization, and political-economic transitions in general. But also given its interdisciplinary approach and detailed empirical analysis of policy-making and firm behavior, Embedded Politics is a must read for scholars of politics, economics, sociology, political economy, business organization, and public policy.
Gerald A. McDermott is Assistant Professor of Management in The Wharton School of Management at The University of Pennsylvania. His research applies recent advances in comparative political economy and industrial organization, including theories of social networks, historical institutionalism, and incomplete markets to analyze issues of economic governance, firm creation, and industrial restructuring in advanced and newly industrialized countries. As evidenced by Embedded Politics, his current focus is on problems of institutional and organizational learning in the formation of meso-level governance institutions in emerging market and postsocialist economies.
McDermott also works as Senior Research Fellow at the IAE Escuela de Direccion y Negocios at Universidad Austral in Buenos Aires, and he has served as Project Coordinator at the Inter-American Development Bank. He has consulted for the Finance, Private Sector, and Infrastructure Division at the World Bank and advised the Deputy Foreign Minister of the Czech Republic. In addition he has published many papers and book chapters on entrepreneurship, privatization, institutions, and networks in Central Europe and Latin America.
Since the 1980s, economists have used the concept of strategic trade policy, which takes account of imperfect competition and increasing returns in the international marketplace, to criticize conventional views about free trade. According to the new view, a government can take strategic steps to raise its income at another country's expense—by subsidizing exports or erecting trade barriers, protecting certain firms from foreign competition, or promoting the development of new industries. This volume looks at the experience of specific industries in order to determine the effectiveness of strategic trade policy in promoting economic growth.
The nine papers cover the U.S. and European auto industries, the U.S. steel industry, the commercial aircraft industry, airline deregulation in Scandinavia, and labor and industrial policy in Korea and Taiwan. The authors refine the basic techniques for measuring policy effectiveness, extend them to encompass industry dynamics, and test the implications of new trade models.
International economists and trade experts in government and business will find important new insights into the role of strategic trade policy in international competitiveness.
In this highly acclaimed, provocative book, Robert Kuttner disputes the laissez-faire direction of both economic theory and practice that has been gaining in prominence since the mid-1970s. Dissenting voices, Kuttner argues, have been drowned out by a stream of circular arguments and complex mathematical models that ignore real-world conditions and disregard values that can't easily be turned into commodities. With its brilliant explanation of how some sectors of the economy require a blend of market, regulation, and social outlay, and a new preface addressing the current global economic crisis, Kuttner's study will play an important role in policy-making for the twenty-first century.
"The best survey of the limits of free markets that we have. . . . A much needed plea for pragmatism: Take from free markets what is good and do not hesitate to recognize what is bad."—Jeff Madrick, Los Angeles Times
"It ought to be compulsory reading for all politicians—fortunately for them and us, it is an elegant read."—The Economist
"Demonstrating an impressive mastery of a vast range of material, Mr. Kuttner lays out the case for the market's insufficiency in field after field: employment, medicine, banking, securities, telecommunications, electric power."—Nicholas Lemann, New York Times Book Review
"A powerful empirical broadside. One by one, he lays on cases where governments have outdone markets, or at least performed well."—Michael Hirsh, Newsweek
"To understand the economic policy debates that will take place in the next few years, you can't do better than to read this book."—Suzanne Garment, Washington Post Book World
Kuo contrasts the economic evolutions of Taiwan and the Philippines as the product of government and industry relations. The two nations shared many economic similarities-yet Taiwan moved from clientelism to state corporatism, while in the Philippines clientelism remains deeply entrenched.
Kuo's case studies in the textile, plywood, and electronics industries support these general arguments. He finds that clientelism invariably leads to economic problems, while a laissez-faire approach is unpredictable. The best formula for industrial success in a developing nation is close cooperation between business and government.
Over the last twenty-five years, there has been an acceleration in the move from government regulation towards privatization. Governance, Regulation, and Privatization in the Asia-Pacific Region is the first thoroughgoing account of the relative success of the different approaches to privatization as undertaken in Korea, China, Australia, and Japan.
In most contexts, privatization is expected to yield greater efficiency and cost effectiveness while avoiding the corruption and bloated budgets of government regulation or monopoly control. But broad-scale privatization, if ill designed, has also yielded its share of difficulties in East Asia. Privatization sometimes has created a vacuum in corporate governance for some of the region's most important industries and in some cases merely reinstated the monopoly-like configurations. The papers presented in this book discuss the experiences of privatization in several industries, including railroad and telecom, corporate governance problems, accounting issues, and challenges for the future in East Asian countries.
The first section is theoretical in nature and proposes boundaries among government protection, market freedom, and shareholder expectations. The second part is constituted by country case studies, beginning with an analysis of both the Korean financial crisis that followed its 1997 law to privatize large, public sector corporations and the new ways Korean corporations finance themselves. Following is an evaluation of China's approach to privatization, with an in-depth look at the financial transitions of companies slated for initial public offering.
Providing provocative examples of the methods of privatization in the Asia-Pacific region specifically, these papers will be of huge import to any economist or policymaker interested in transposing those successes for their own region.
Starting in the late 1970s, tens of thousands of American industrial workers lost jobs in factories and mines. Deindustrialization had dramatic effects on those workers and their communities, but its longterm effects continue to ripple through working-class culture. Economic restructuring changed the experience of work, disrupted people’s sense of self, reshaped local landscapes, and redefined community identities and expectations. Through it all, working-class writers have told stories that reflect the importance of memory and the struggle to imagine a different future. These stories make clear that the social costs of deindustrialization affect not only those who lost their jobs but also their children, their communities, and American culture.
Through analysis of poetry, fiction, creative nonfiction, film, and drama, The Half-Life of Deindustrialization shows why people and communities cannot simply “get over” the losses of economic restructuring. The past provides inspiration and strength for working-class people, even as the contrast between past and present highlights what has been lost in the service economy. The memory of productive labor and stable, proud working-class communities shapes how people respond to contemporary economic, social, and political issues. These stories can help us understand the resentment, frustration, pride, and persistence of the American working class.
Major economic reforms undertaken since 1991 have brought the Indian economy into a new phase of development directed toward becoming globally competitive through the opening of trade, foreign investment, and technology inflows. The private sector is expected to play a lead role, with a corresponding reduction in the role played by the public sector. This book is aimed at analyzing the comparative static effects of selected post-1991 trade and domestic policy reforms on trade, factor prices, economic welfare, and the intersectoral allocation of resources.
The study relies on a computable general equilibrium (CGE) model that has been specially designed to analyze the potential economic effects of India's policy reforms. The model was developed in a collaborative effort involving the National Council of Applied Economic Research in New Delhi and the University of Michigan. Patterned after the Michigan CGE Model of World Production and Trade that has been in use for more than two decades, the India CGE model features closer attention to special characteristics of India's economic structure, including more agricultural sector detail, allowance for state ownership, and administered pricing. The conclusions of the study suggest that the policy reforms will yield increased real returns to land, labor, and capital, and shift the terms of trade in favor of Indian agriculture. Lastly, not only are there efficiency-enhancing intersectoral shifts in resource allocation but there are notable increases in scale economies across the Indian manufacturing sectors.
Rajesh Chadha and Sanjib Pohit are Economists at the National Council of Applied Economic Research in New Delhi. Alan V. Deardorff and Robert M. Stern are Professors of Economics and Public Policy, University of Michigan.
This illuminating study of the evolution of Chinese capitalism chronicles the fortunes of the Song family of North China under five successive authoritarian governments. Headed initially by Song Chuandian, who became rich by exporting hairnets to Europe and America in the early twentieth century, the family built a thriving business against long odds of rural poverty and political chaos.
A savvy political operator, Song Chuandian prospered and kept local warlords at bay, but his career ended badly when he fell afoul of the new Nationalist government. His son Song Feiqing—inspired by the reformist currents of the May Fourth Movement—developed a utopian capitalist vision that industry would redeem China from foreign imperialism and cultural backwardness. He founded the Dongya Corporation in 1932 to manufacture wool knitting yarn and for two decades steered the company through a constantly changing political landscape—the Nationalists, then Japanese occupiers, then the Nationalists again, and finally Chinese Communists. Increasingly hostile governments, combined with inflation, foreign competition, and a restless labor force, thwarted his ambition to create an “Industrial Eden.”
Brett Sheehan shows how the Song family engaged in eclectic business practices that bore the imprint of both foreign and traditional Chinese influences. Businesspeople came to expect much from increasingly intrusive states, but the position of private capitalists remained tenuous no matter which government was in control. Although private business in China was closely linked to the state, it was neither a handmaiden to authoritarianism nor a natural ally of democracy.
The Martínez del Río family was a vigorous contestant in the highly politicized economy of early national Mexico. David Walker’s case study of its successes and failures provides a unique insider’s view of the trials and tribulations of doing business in a hostile environment. The family’s ordeal in Mexico—a series of personal dislocations and traumas—mirrored the painful contractions of an old society reluctantly giving birth to a new nation.
Using previously undiscovered primary source materials (including the private correspondence and business records of the family, public notary documents, transcripts of judicial proceedings, and the archives of Mexico’s Ministry of Foreign Relations and the British Foreign Office), Walker employs family history to analyze problems relating more generally to the development of state and society in newly independent Mexico.
The processes of socioeconomic formation in Mexico differed from those of Western Europe and the United States; accordingly, entrepreneurial activity had markedly contrasting implications for economic development and class formation. In the downwardly spiraling economy of nineteenth-century Mexico, economic activity was a zero-sum game. No new wealth was being created; most sectors remained stagnant and unproductive. To make their fortunes, empresarios, the Mexican capitalists, could not rely on income generated from authentic economic growth. Instead, they exploited the arbitrary acts of the interventionist Mexican state, which proscribed the free movement of factors within the marketplace. Speculation in the public debt took the place of more substantive undertakings. Coercive state power was diverted to create artificial environments in which otherwise inefficient and unproductive enterprises could flourish. But however well the empresarios might imitate the outward forms of industrial capitalism, they could not unlock the productive capacity of the Mexican economy. Instead, they and their allies and rivals engaged in destructive struggles to manipulate the state for personal gain, to the detriment of class interests, economic growth, and political stability.
Many people believe that conflict in the well-disciplined Japanese society is so rare that the Japanese legal system is of minor importance. Frank Upham shows conclusively that this view is mistaken and demonstrates that the law is extensively used, on the one hand, by aggrieved groups to articulate their troubles and mobilize political support and, on the other, by the government to channel and manage conflict after it has arisen.
This is the first Western book to take law seriously as an integral part of the dynamics of Japanese business and society, and to show how an informal legal system can work in a complex industrial democracy. Upham does this by focusing on four recent controversies with broad social implications: first, how Japan dealt with the world’s worst industrial pollution and eventually became a model for Western environmental reforms; second, how the police and courts have allowed one Japanese outcast group to use carefully orchestrated physical coercion to achieve wide-ranging affirmative action programs; third, how Japanese working women used the courts to force employers to eliminate many forms of discrimination and eventually convinced the government to pass an equal employment opportunity act; and, finally, how the Ministry of International Trade and Industry and various sectors of Japanese industry have used legal doctrine to cope with the dramatic changes in Japan’s economy over the last twenty-five years.
Readers interested in the interaction of law and society generally; those interested in contemporary Japanese sociology, politics, and anthropology; and American lawyers, businessmen, and government officials who want to understand how law works in Japan will all need this unusual new book.
The Left’s Dirty Job compares the experiences of recent socialist governments in France and Spain, examining how the governments of François Mitterrand (1981–1995) and Felipe González (1982–1996) provide a key test of whether a leftist approach to industrial restructuring is possible. This study argues that, in fact, both governments’ policies generally resembled those of other European governments in their emphasis on market-adapting measures that eliminated thousands of jobs while providing income support for displaced workers. Featuring extensive field work and interviews with over one hundred political, labor, and business leaders, this study is the first systematic comparison of these important socialist governments.
Liberty, equality, and justice have long been treasured in American culture as core values. In Liberty, Equality, and Justice, Ross Evans Paulson studies social and intellectual changes in a critical period of American history—from the end of the Civil War to the early days of the Depression—and argues that attempts to achieve civil rights, women’s rights, and the regulation of business faltered because so many Americans ranked liberty for themselves higher than equality with others and justice for all. Surveying a crucial period in the formation of the modern state and society, Paulson examines the prevailing conflicts of the time and the limitations of various attempts to institute reform, radical change, or ritualistic renewal of American society. His reading of existing scholarship highlights contested social constructs, clashing priorities, changing meanings of key terms, and shifting institutional dynamics in light of their contributions to a complex tragedy in which all parties fell short of the demands for democratic mutuality. Along with discussions of the movements and manipulations of presidential, congressional, and judicial politics, he integrates the experiences of diverse populations—including African Americans, women, Asian immigrants, Native Americans, and working people—and offers a new interpretation of the ways in which social change and political events interact to reframe the many possibilities of American society.
Making Common Sense of Japan
Steven R. Reed University of Pittsburgh Press, 1993 Library of Congress HD8726.5.R44 1993 | Dewey Decimal 331.0952
Common misconceptions about Japan begin with the notion that it is a “small” country (it's actually lager than Great Britain, Germany or Italy) and end with pronouncements that the Japanese think differently and have different values-they do things differently because that's the way they are.
Steven Reed takes on the task of demystifying Japanese culture and behavior. Through examples that are familiar to an American audience and his own personal encounters with the Japanese, he argues that the apparent oddity of Japanese behavior flows quite naturally from certain objective conditions that are different from those in the United States.
Mystical allegations about national character are less useful for understanding a foreign culture than a close look at specific situations and conditions. Two aspects of the Japanese economy have particularly baffled Americans: that Japanese workers have “permanent employment” and that the Japanese government cooperates with big business. Reed explains these phenomena in common sense terms. He shows how they developed historically, why they continue, and why they helped produce economic growth. He concludes that these practices are not as different from what happens in the United States as they may appear.
When, how, and why did the state enterprise system of modern China take shape? The conventional argument is that China borrowed its economic system and development strategy wholesale from the Soviet Union in the 1950s. In an important new interpretation, Morris Bian shows instead that the basic institutional arrangement of state-owned enterprise—bureaucratic governance, management and incentive mechanisms, and the provision of social services and welfare—developed in China during the war years 1937–1945.
Bian offers a new theory of institutional change that explains the formation of China’s state enterprise system as the outcome of the sustained systemic crisis triggered by the Sino–Japanese war. This groundbreaking work combines critical analysis of government policies with case studies of little-studied enterprises in heavy industries and the ordnance industry. Drawing on extensive research in previously unavailable archives, Bian adds a valuable historical perspective to the current debate on how to reform China’s sluggish and unprofitable state-owned firms.
In recent years, China 's leaders have taken decisive action to transform information, communications, and technology (ICT) into the nation's next pillar industry. In Networking China , Yu Hong offers an overdue examination of that burgeoning sector's political economy. Hong focuses on how the state, in conjunction with market forces and class interests, is constructing and realigning its digitalized sector. State planners intend to build a more competitive ICT sector by modernizing the network infrastructure, corporatizing media-and-entertainment institutions, and by using ICT as a crosscutting catalyst for innovation, industrial modernization, and export upgrades. The goal: to end China's industrial and technological dependence upon foreign corporations while transforming itself into a global ICT leader. The project, though bright with possibilities, unleashes implications rife with contradiction and surprise. Hong analyzes the central role of information, communications, and culture in Chinese-style capitalism. She also argues that the state and elites have failed to challenge entrenched interests or redistribute power and resources, as promised. Instead, they prioritize information, communications, and culture as technological fixes to make pragmatic tradeoffs between economic growth and social justice.
In December 1978 the Chinese Communist Party announced dramatic changes in policy for both agriculture and industry that seemed to repudiate the Maoist “road to socialism” in favor of certain “capitalist” tendencies. The motives behind these changes, the nature of the reforms, and their effects upon the economy and political life of countryside and city are here analyzed by five political scientists and five economists. Their assessments of ongoing efforts to implement the new policies provide a timely survey of what is currently happening in China.
Part One delineates the content of agricultural reforms—including decollectivization and the provisions for households to realize private profits—and examines their impact on production, marketing, peasant income, family planning, local leadership, and rural violence. Part Two examines the evolution of industrial reforms, centering on enterprise profit retention, and their impact on political conflict, resource allocation, investment, material and financial flows, industrial structure, and composition of output. Through all ten chapters one theme is conspicuous—the multiple interactions between politics and economics in China’s new directions since the Cultural Revolution.
Taiwan is a classic case of export-led industrialization. But unlike South Korea and Japan, where large firms have been the major exporters, before the late 1980s Taiwan's successful exporters were overwhelmingly small- and medium-sized enterprises (SMEs). The SMEs became the engine of the entire economy, yet for many years the state virtually ignored the SMEs and their role as exporters.
What factors account for the success of the SMEs and their benign neglect by the state? The key was a strict division of labor: state and large private enterprises jointly monopolized the domestic market. This gave the SMEs a free run in export markets. How did this industrial structure come into being? The author argues that it was an unintended consequence of the state's policy toward the private sector and its political strategies for managing societal forces. Indeed, Taiwan's unique industrial structure was shaped by both the witting and the unwitting interactions of the state and the private sector. Moreover, as the author shows, this industrial policy was a product of the internal politics of the economic bureaucracy, and the formulation and implementation of economic policy hinged on mechanisms for solving differences within the state.
Brazil was one of the most successful examples of state-led industrialization in the post-1945 era. Yet, on the surface, the Brazilian bureaucracy appears highly fragmented, personalized, and ad-hoc. Ben Ross Schneider looks behind this façade to explain how the Brazilian bureaucracy contributes to industrialization by analyzing career patterns and appointments which structure incentives and power more than formal organizations or institutions. Politics and personalism, of the right sort, Schneider argues, can in fact enhance policy effectiveness and state capacity.
Prophets of Regulation
Thomas K. McCraw Harvard University Press, 1984 Library of Congress HD3616.U46M38 1984 | Dewey Decimal 338.973
“There is properly no history, only biography,” Emerson remarked, and in this ingenious book Thomas McCraw unfolds the history of four powerful men: Charles Francis Adams, Louis D. Brandeis, James M. Landis, and Alfred E. Kahn. The absorbing stories he tells make this a book that will appeal across a wide spectrum of academic disciplines and to all readers interested in history, biography, and Americana.
How has the United States government grown? What political and economic factors have given rise to its regulation of the economy? These eight case studies explore the late-nineteenth- and early twentieth-century origins of government intervention in the United States economy, focusing on the political influence of special interest groups in the development of economic regulation.
The Regulated Economy examines how constituent groups emerged and demanded government action to solve perceived economic problems, such as exorbitant railroad and utility rates, bank failure, falling agricultural prices, the immigration of low-skilled workers, workplace injury, and the financing of government. The contributors look at how preexisting policies, institutions, and market structures shaped regulatory activity; the origins of regulatory movements at the state and local levels; the effects of consensus-building on the timing and content of legislation; and how well government policies reflect constituency interests.
A wide-ranging historical view of the way interest group demands and political bargaining have influenced the growth of economic regulation in the United States, this book is important reading for economists, political scientists, and public policy experts.
Regulation and Its Reform
Stephen Breyer Harvard University Press, 1982 Library of Congress HD3616.U47B68 | Dewey Decimal 353.0082
This book will become the bible of regulatory reform. No broad, authoritative treatment of the subject has been available for many years except for Alfred Kahn’s Economics of Regulation (1970). And Stephen Breyer’s book is not merely a utilitarian analysis or a legal discussion of procedures; it employs the widest possible perspective to survey the full implications of government regulation—economic, legal, administrative, political—while addressing the complex problems of administering regulatory agencies.
Only a scholar with Judge Breyer’s practical experience as chief counsel to the Senate Judiciary Committee could have accomplished this task. He develops an ingenious original system for classifying regulatory activities according to the kinds of problems that have called for, or have seemed to call for, regulation; he then examines how well or poorly various regulatory regimes remedy these market defects. This enables him to organize an enormous amount of material in a coherent way, and to make significant and useful generalizations about real-world problems.
Among the regulatory areas he considers are health and safety; environmental pollution, trucking, airlines, natural gas, public utilities, and telecommunications. He further gives attention to related topics such as cost-of-service ratemaking, safety standards, antitrust, and property rights. Clearly this is a book whose time is here—a veritable how-to-do-it book for administration deregulators, legislators, and the judiciary; and because it is comprehensive and superbly organized, with a wealth of highly detailed examples, it is practical for use in law schools and in courses on economics and political science.
The industrial development of Ecuador has made fortunes for some, but has largely bypassed the general population. Armed by its new power, the bourgeoisie has captured sate mechanisms for its own advancement, leading to the paradox of a “democratic authoritarianism.” In this study, Catherine M. Conaghan views the crucial differences between the social and economic changes in newly developed Latin American nations and those of the southern cone. Using Ecuador as her case study, she shows how industrial growth has given birth to an exclusive, ingrown bourgeoisie that is highly dependent on the state and foreign capital and is increasingly alienated from the peasants and urban poor.
This book assesses the changing nature of state intervention in the economies of the affluent democracies. Against a widespread understanding that contemporary developments, such as globalization and new technologies, are pressing for a rollback of state regulation in the economy, the book shows that these same forces are also creating new demands and opportunities for state intervention. Thus, state activism has shifted, rather than simply eroded.
State authorities have shifted from a market-steering orientation to a market-supporting one. Chief among the new state missions are: repairing the main varieties of capitalism (liberal, corporatist, and statist); making labor markets and systems of social protection more employment-friendly; recasting regulatory frameworks to permit countries to cross major economic and technological divides; and expanding market competition at home and abroad.
Because the changes from market steering to market support are so controversial and far-reaching, state officials often find themselves making choices that produce clear winners and losers. Such choices require a capacity to act unilaterally and decisively, even in the face of substantial societal opposition. As a result, state activism, autonomy, and occasionally imposition remain essential for meeting the challenges of today's globalizing economy.
The realities of Japanese-U.S. trade and investment relations are clouded by mistrust, misinformation, and myth. In what way is the Japanese economic system different, and is it to be emulated or challenged? The contributors, from both the United States and Japan, explore Japanese trade patterns, market structure and trade, financial markets, and industrial and trade policy. Offering analysis of the issues, Trade with Japan is a valuable resource for economists, policymakers, and the business community.
In the recent economic history of Latin America no country has yet found the means to combine effectively economic growth with equity. Unavoidable Industrial Restructuring in Latin America compares the development path of Latin America with that of the East Asian newly industrialized countries (NICs), the United States, and Europe in the 1970s and 1980s to show the national policies and international cooperation necessary to set Latin American countries on the road to healthy economies. Fernando Fajnzylber argues that technological and industrial progress is the driving force of a positive relationship among dynamism, competitiveness, austerity, and equity. Latin America’s failure to master this technological progress underlies its economic difficulties. To overcome the inheritance of past mistakes, the author maintains, Latin America must undergo not only macroeconomic stabilization and a reduction of the debt burden, but also a complete transformation of the production structure. The role of the state and the institutional setup need to be modified and new social and sectoral policies devised. Fajnzylber sees this radical restructuring as an unavoidable step if Latin America is ever to achieve a workable balance between growth and equity.
In Varieties of State Regulation, Yukyung Yeo explores how, despite China’s increasing integration into the global market, the Chinese central party-state continues to oversee the most strategic sectors of its economy. Since the 1990s, as major state firms were spun off from the ministries that managed them under the central planning system, the nature of the state in governing the economy has been remarkably transformed into that of a regulator.
Based on over 100 interviews conducted with Chinese central and local officials, firms, scholars, journalists, and consultants, the book demonstrates that the form of central state control varies considerably across leading industrial sectors, depending on the dominant mode of state ownership, conception of control, and governing structure. By analyzing and comparing institutional dynamics across various sectors, Yeo explains variations in the pattern of China’s regulation of its economy. She contrasts the regulation of the automobile industry, a relatively decentralized sector, with the highly-centralized telecommunications industry, and demonstrates how China’s central party-state maintains regulatory authority over key local state-owned enterprises. Placing these findings in historical and comparative contexts, the book presents the evolution and current practice of state regulation in China and examines its compatibility with other contemporary government practices.
This intellectually bold but accessible book seeks to go beyond limitations of the reigning neoclassical and institutional paradigms in explaining the organization of economic activity. It does this by construing "non-economic" factors such as institutions, cultures, and social practices as conventions, which coordinate economic actors by defining specific "frameworks of economic action." In these conventional frameworks, the standard distinction between economic and non-economic no longer exists. The authors explore in detail four basic frameworks--or "possible worlds of production"--which underpin the mobilization of economic resources, the organization of production systems and factor markets, patterns of economic decision making, and forms of profitability. The case studies examine how these possible worlds act to support innovative production complexes in a variety of sectors in several countries.
Storper and Salais show that economic actors coordinate actions with one another and interpret what others are doing in ways that are constructed by convention. The principal challenge to economic policy today, they argue, is to reconcile internally coherent conventions with the external tests of product and financial markets, which tend increasingly to escape jurisdictional borders. There is no single model of growth and efficiency that brings these two sides together around the world today, even in narrowly defined product markets. If policies are to deal effectively with an increasingly unified global system of flows of commodities, money, and people, they must be aware of the diverse, economically viable action frameworks found in different industries, regions, and nations.