Essay Title: 

China`s expanding class and income gap

March 22, 2016 | Author: | Posted in asian studies, history

China ‘s Expanding Class and Income Gap





China ‘s Expanding Class and Income Gap

Bureaucracy and Corruption in Post Reform Period

Table of Contents

Introduction .2

The Economic Reforms and Social Inequality in 80-90 ‘s .4

Further Increase in the Class and Income Gap .9

Privatization Issues .13

Bureaucracy and Corruption .16

Rent-Seeking and Bribery .18

Discussion .21

Conclusion .23

Bibliography .25


Since 1978 when China started its economic reforms , Chinese society [banner_entry_middle]

has experienced profound social and economic changes . Unlike some Eastern European states whose economies suffered from a shock-therapy reform strategy , the Chinese government adopted a gradualism reform plan under the guidance of Deng ‘s pragmatic philosophy . As a result , China achieved a double-digit average economic growth rate in the past two decades without experiencing unaffordable economic fluctuation . However , this success did not come without tears . Almost immediately after the economic reform advanced to the urban areas and state-owned enterprises the corruption that was labeled ‘economic crime ‘ became irremediable . It cost unnecessary but considerable economic inefficiency and caused social and political resentment . It is also credited with triggering some of the political instability that exploded in 1990 ‘s . Today handling bureaucracy and corruption in China has become the measure of the economic and political reforms

Since 1949 , when the communist government took power , bureaucracy corruption and political campaigns against them have been prominent in Chinese politics . Unlike previous bureaucracy and corruption in China that had nothing to do with decentralization , marketization and privatization , however , the current bureaucracy and corruption cannot be explained without relating it to economic reform . Particularly , the occurrences of bureaucracy and corruption in the private access to resources and massive loss of state-own property , as this study explores in detail , can be seen as the results of the way how the Chinese economy has been marketized and privatized . Changes in size , pattern , and type of bureaucracy and corruption since 1978 indeed show a high correlation with the economic reforms , which mainly refer to decentralization marketization , and privatization . Even though the formal rules have not changed much on yet , the institutional changes resulting from economic reforms have made the different incentive mechanisms be effective for both bureaucrats and individuals . As Sweezy and Bettleheim point out

Without revolutionary enthusiasm and mass participation , centralized planning becomes increasingly authoritarian and rigid with resulting multiplication of economic difficulties and failures . In an attempt to solve these increasingly serious problems the rulers turn to capitalist techniques , vesting increasing power within the economic enterprises in management and relying for their guidance and control more and more on the impersonal pressures of the market . Under these circumstances , the juridical form of state property becomes increasingly empty and the real power over the means of production , which is the essence of the ownership concept , gravitates into the hands of the managerial elite

Economic reforms in China since 1978 do not change the monopoly of the power but the distribution of the power in the sense that local government and… [banner_entry_footer]

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