Managed Chaos reads into the resounding events of Chinese politics and economy, ending the schizophrenia that the readers have lived with. It delves deep into both elements: the economic narrative that China has sustained a near 10 percent growth rate for 30 years and the political narrative that China is an increasingly fragile state, trapped in an incomplete transition from a totalitarian to a democratic market economy. For the first time, in his reading of China, the author consolidates this paradox by inferring that the cause behind both the growth and the political discontent is the politics of China.
Chapter 8: Recession and the Birth of Class Conflict
Recession and the Birth of Class Conflict
The competition that developed between the central and local governments and the corresponding cadres of the Communist Party explains several perplexing features of China's enigma-ridden growth. It accounts for China's phenomenal rate of growth. But it also explains why it has been so uneven, why it is so heavily biased towards investment and why it is so prodigiously wasteful in its consumption of raw materials and energy. This competition did not force the pace of privatization but overwhelmed it. Suddenly, the Getihu1 and the technocrat managers, who were China's first truly private entrepreneurs, were shoved aside by more than 47,000 pseudo-entrepreneurs (Bahl and Martinez-Vazquez 2003), variously referred to by Chinese scholars as ...