Download Chinese transformation

Chinese transformation:
Between varieties of capitalism and
communism
Maria Csanádi MTA KRTK
SVOC Conference
November 26-27, 2015.
Content
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Puzzles regarding the Chinese system specifics
Multiple interpretations and common assumptions
Questions regarding interpretations
Missing factors:
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The structure of the system
The dynamics of the system
The „Chinese specifics”
Specifics of Chinese transformation
• Conclusions on comparability and and multiple
interpretations
Puzzles: what kind of system prevails
in China?
• While most of the counterparts collapsed – in China
thirty years of reforms and double digit growth
• A communist regime – developing liberal market
• Expansion of private ownership – continuing
preference on large state-owned enterprises
• Creation of stock market – radical state intervention in
and clamp down on financial experts after stock
market crisis
• Authoritarian political regime – flourishing local
developments and private sphere
• What kind of system is it?
Multiple interpretations of the
„Chinese style”
• A specific „Chinese style”? Approaches from different
perspectives:
 The kind of political regime: predatory, socialist,
developmental, neoliberal, centralized developmental
autocracy, post-socialist developmental state,
 The kind of economic system: state capitalism, socialist
market economy, emerging system, hybrid system,
fragmented capitalism
 Subnational varieties: variegated capitalism,
polymorphous state, entrepreneurial state
• Common assumption: China’s economic system is a variety of
capitalism
Questions regarding interpretations
• Why are so many concepts attributed to the
Chinese system?
• Is the Chinese system capitalist or communist?
• Is the Chinese system in the process of
transformation or is it post-communist?
• Can suggested varieties be comprehensively
interpreted?
• What should be the basis and targets of
comparison?
The missing factors for
comprehensive interpretation
• The general characteristics of the party-state
systems
• The specific characteristics of the Chinese
party-state
• The characteristics of transformation of the
Chinese party-state
• The state’s role in the transforming party-state
context
What interpretations do not consider:
the structure of party-states
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Party hierarchy monopolizing the political
subfield
State hierarchy monopolizing the economic
subfield and resource extraction and distribution
Party’s instrument of power overlapping
positional, orgnizational and activity structure
and individuals in non-party organizations
Closed channels
Uni-directional but multi-threaded dependencies
Direct connections of party and non-party fields
Atomized actors (weak horizontal connections)
Multi-threaded interest promotion
Structural inequalities in dependency, interest
promotion and resisting capacity through
interlinking lines (D2; I2) and
Short-cuts/feedbacks (I3)
Bargaining capacities and formal positions differ
Different bargaining positions will provide the
distribution of power of the structure
Patterns of power distribution may vary
Self-similarities in the system’s
dynamics
• An interactive network is born from the intertwined relationship
of actors in the party, the state and the economy where
dependencies, interest promotion and resource extraction and
distribution are politically monopolized
• Elements, connecting and operating principles of the network are
self-similar in space, in time and different levels of aggregation
• Structural self-similarities bring about self-similar dynamics
through actors’ behavior:
 Politically rational selection criteria in resource distribution
priviledging large, state-owned enterprises deeply embedded
in the network, and
 Politically rational economic behavior in resource attraction:
drive for growth, hoarding of resources and accumulation of
connections and positions within the network,
 no matter the time, space or the levels of aggregation
• No efficiency only resource constraints in self-reproduction
The specific pattern of power
distribution in China
• Decentralized pattern of power in the network on national level and
different varieties of party-state power structures on local levels
• Partially decentralized resource extraction and redistribution,
decentralized inter-linking threads and economic feedbacks – Result in:
• Selectively strong resource attracting capacity and resisting capacity to
interventions in a decentralized institutional and functional setting
• Consequence: Frequently hardening constraints of self-reproduction of
the network – loss of cohesion – Reaction:
• Escalation of decentralizing reforms within the network, insufficient
extraction owing to resisting capacities and politically rational
distribution  Resource creating reforms outside the nework
• Economic expansion outside the network provides resources for the
self-reproduction of the network and keep Party legitimacy
• Determines the sequence, speed and conditions of transformation
Pattern-conforming system
transformation in China
Sequence - economic
transformation is first
Speed - retreat and
emergence is gradual
Conditions –
•economic transformation
under authoritarian regime,
•macroeconomic growth
•conserved Party legitimacy
Expansion of the
emergent field
Retreat of the network
Transformation: Retreat of the network from monopolized sub-spheres, expansion of the
emergent new sphere outside the network
The factors of absolute retreat
Decentralizing the network
Emptying of the network
Weakening of the network
Withdrawal of the network
Cut-off the network
The network is gradually, and spatially differently retreating from the economic sub-sphere at
different levels of aggregation
The factors of emergence (relative
retreat)
• Dual-track pricing,
• Allowing the increase of
the number of economic
units and capital outside
the net
• Privatized enterprises
• Transferred (stripped off)
convertible capacity
• The increase of the
overlapping segment
The emerging and expanding path-dependent and geopolitically influenced market economy is
strongly tied to the politically monopolized network on national and local levels
Interaction and constant move
• There is strong interaction between the retreating network and
the emerging market sphere at national and sub-national levels
while adapting to internal and external pressures, that provide
their changing dynamics during different periods of
transformation.
• Consequently, speed and conditions of transformation are
constantly in move in time, space and at different levels of
aggregation.
• In this transformation process the role and actions of the state is
institutionally embedded in the power network both on national
and local levels
• The consequence of its actions in the transforming systemic
context is similarly complex -- both system and patternconforming --- either during the „normal” process, or while
reacting to external and internal shocks.
Conclusion: system and comparativity
• The characteristics of the Chinese system: China is a
transforming party-state system with characteristics of
decentralized pattern of power distribution and respective
sequence, speed and conditions of transformation that may
differ in time, in space and at different levels of its aggregation
• Comparability: the Chinese system is comparable to the
structure and dynamics of other former and present party-state
systems with similar or different patterns and patternconforming sequence, speed and conditions of transformation
and respective state role and behavior
• Identification: the transforming Chinese party-state system
should not be identified with any variety of capitalist systems, or
a centralized pattern of communist systems, or with concluded
system transformations of post-socialist countries
Conclusion: how should varieties be
interpreted?
• State: Role and behavior of the state at central and local levels
in China should be interpreted in the context of the
transforming politically monopolized decentralized power
network, and its dynamics both at „normal” times and at crisis
situations
• Market: Expanding or shrinking market at any level and time
should be interpreted in strong interaction with the dynamics
of the retreating or expanding network and domestic and
external pressures
• Varieties of capitalism: attributed to the Chinese pattern of
power – be they approached from political, economic, central
or local dimensions -- should be interpreted in the context of
China’s transforming structural and dynamic party-state
specifics at all aggregation levels
Thank you for your attention!
Questions?