Shanghai and Globalization

1. Shanghai and Globalization Course of Development Studies Fudan/Queen’s September – December, 2009

2. Contents • Maoist China • Denist China • Aspects of Development • History of Shanghai: from a cosmopolitan city to an eldest son of the republic • Globalizing Shanghai as a state strategy.

3. Test Format • 1. Multiple Choice: circle the letter next to the best answer (30 %) The following are some keywords to describe Chinese society during 1949-1978. Which one is irrelevant? A. Patriarchy; B. Centralized Ideology; C. Market based economy; D. Totalitarianism • 2. Simple Answer (30%) What are the main aspects of social fragmentation according to Sun Liping? • 3. Read and comment (40%) Some writer argues that post-reform Chinese leaders have deliberately exchanged some of the unified command power of a strong (but clumsy and insensitive) thumb for the heightened responsiveness of sensitive (but relatively fragile and delicate) fingers.     Do you think China will transform itself from a command-based society to a market-based one? Please comment on the future of Chinese transformation in terms of the relationship between state and society. 

4. Development and Social Change: Maoist China Yu Hai Department of Sociology, Fudan University

5. Topics and Perspectives • Development in a local perspective Chinese traditions and social changes • Development in a global perspective Globalizing Shanghai • Development in a glocal perspective Shanghai’s revival as a state strategy

6. Ethical Society Ethical society: interpersonal relationships based on kinship relations in Chinese context Five ethical (伦)relationships: the monarch and his subjects (君臣); Father and his children (父子);Husband and his wife (夫妻);Brothers (兄弟);Friends (朋友) Mao tried to destroy kinship relations and replace them by new comrade ties. Were they still ethical relationships? (Xie Xialing)

7. Chinese society is an ethical societyXie Xialing • Question and topic: Ancient Chinese society is an ethical society, is contemporary Chinese society still a ethical society? • 1. Two major events shaped contemporary Chinese society 1) The leadership of the Chinese Communist Party (CCP) beginning in 1949 .The Party’s organizations integrated Chinese society in its entirety: Organization Principle 2) The expansion of the socialist market economy beginning in 1992: Market Principle

8. Contemporary Chinese society still a ethical society? • 2.From Ancient ethical society to contemporary ethical society • 1) Wu lun in ancient Chinese society In ancient Chinese society, there were five important ethical relations (wu chang五常or wu lun 五伦), referring to the relationships between ruler and subject, father and son, husband and wife, teacher and student, and between friend and friend. These are the five basic types of social relationships. All other types of relationship, such as between a supervisor and subordinates or between colleagues, either belong to or are derived from one of the five categories. All five relationship types are conducted following ethical principles. • 2) Ethical relations still exist in modern China Considering the various forms of social relationships in modern Chinese society, all five original types still exist, with the exception of the ruler-subject relationship. Xie Xialing

9. Patriarchal Society • Patriarchal Society: the three cardinal guides (ruler guides subject, father guides son, and husband guides wife) and officials as parent. • Mao encouraged youth to challenge seniority and promoted women’s status, but under the party-state and danwei system, Maoist China was still a patriarchal society in some sense.

10. Elitism Division between gentleman and petty person: moral and political division; The virtue of a gentleman is like the wind, the virtue of a petty person like the grass. When the wind blows over it, the grass must bend. Different elitism: vanguard party (from Leninism) Anti-elitism: The people, and the people alone, are the motive force in the making of world history. Mass line What difference between Mao’s line and modern democracy in western context?

11. Moral-Centralism Moral-Centralism: Lead them by means of government policies and regulate them through punishments, and the people will be evasive and have no sense of shame. Lead them by means of virtue and regulate them through rituals and they will have a sense of shame and moreover have standards. (from moral order to political order) Mao’s Voluntarism: to change not only society but also nature of human being with new ideology and to foster the new communist man.

12. Why did Chinese Revolution rise? • Dangers of national subjugation and genocide after 1840, first opium war with Great British. Case of Hong Kong and the settlements of Shanghai. • Revolution originated from national salvation movement. • Suffer from wars between warlords, the first civil war under the leadership of KMT and CCP against northern warlords and imperialists in 1924-1927. • China so poor and week, and subjected to endless bullying and humiliation by imperialism. • Everyone wanted to change the reality of China and everyone showed sympathy for revolution.

13. Inscription on people’s heroes by Mao • Inscription on the Monument to the People’s Heroes by Mao: - Eternal glory to the heroes of the people who laid down their lives in the people’s war of liberation and the people’s revolution in the past three years! - Eternal glory to the heroes of the people who laid down their lives in the people’s war of liberation and the people’s revolution in the past thirty years! - Eternal glory to the heroes of the people who from 1840 laid down their lives in the many struggles against domestic and foreign enemies and for national independence and the freedom and well-being of the people! September 30, 1949

14. The new tradition of Chinese Revolution • CCP: leading centre • Authoritarianism : military fighting for near 30 years and centralized discipline tradition. • Line of Class struggle (“revolution-antirevolution” split) • Governing experience in the areas under Red political power encircled by GMT regime, (such as redistributive system) . • Supreme leader: Mao Zedong

15. Mao’s Stature in New China • Mao’s stature by the time of victory in 1949 was without equal or challenge. He had led the party from the miserable days of the Long March retreat to victory over both Japan and the Guomindang in a period of fourteen years. Time and again, the broad strategic assessments he made had proved accurate, and his basic tactics had turned out to be effective. He had become the source of ultimate wisdom at the vortex of the greatest revolution in human history. His judgments in the year after 1949 could be discussed to the extent he permitted, but even his most powerful ministers could not oppose them successfully. Kenneth Lieberthal: Governing China, p84

16. The Maoist Era • Mao personally and Mao Zedong Thought as an ideology had such a huge impact on China after the revolution that it is appropriate to consider the period from 1949 until Mao’s death on 9 September 1976 as the era of Mao Zedong. Mao’s unique role in the Chinese political system meant, effectively, that his own ideas profoundly shaped the politics o the PRC. Kenneth Lieberthal: Governing China, p84

17. Aspiration of Mao • The goals of Mao were extraordinarily ambitious. He wanted not only to govern China but to change the very nature of Chinese society and culture to eliminate the country’s weaknesses and earn it respect in the modern world. Kenneth Lieberthal: Governing China, p59

18. Tensions Maoist China Facing • Tension from Cold War: confrontation between socialist camp and capitalist camp ( Korea War) (One American reaction to this war was to tighten an economic noose around China, cutting off the PRC to the maximum extent possible from trade with the West. This not only set back Chinese economic development but also forced the PRC to lean even more strongly in the direction of the Soviet bloc. Lieberthal) • Socialist transformation from a new democratic country • Leadership of CCP and authority of seniority (Antirightist ) • Ambitious plan for industrialization and the real state of “poverty and blankness” (Chinese way for accumulation: duplicate structure of urban China /rural China)

19. Industrial and socialist country • Our present task is to strengthen the people’s state apparatus-mainly the people’s army, the people’s police and the people’s courts- in order to consolidate national defence and protect the people’s interests. Given this condition, China can develop steadily, under the leadership of the working class and the Communist Party, from an agricultural into an industrial country and from a new-democratic into a socialist and communist society, can abolish classes and realize the Great Harmony. Mao Zedong: On the People’s Democratic Dictatorship

20. Socialism and Chinese Development • Socialism revolution and socialism construction - Land Reform - Suppression of Counterrevolutionaries - Thought Reform of Intellectuals - Agricultural Cooperativization - Socialism transformation of Industry and Commerce - • To relate the mechanisms of social stratification to the Chinese development in the socialism road.

21. Mechanisms of Social Stratification • Four structural and behavioral dimensions classified the Chinese into qualitatively different status groups under Mao: (a) a rural-urban divide in residential status, (b) a state-collective dualism in economic structure, (c) a cadre-worker dichotomy in occupational classification, and (d) a “revolution-antirevolution” split in political characterization. (Bian Yanjie)

22. Ideology: Maoism Authoritarianism and totalitarianism (Leninism) Socialism and communism (Marxism with Maoist character) Egalitarianism (Confucianism ) Class struggle (Marxism and Maoism) Elitism and vanguard party (Leninism ) Reshape society and human nature (utopia )

23. Maoist China: Organized China party-state danwei / people’s commune ideology and discipline social stratification economy: central planed and redistributive system

24. Party-State Three elements of Party-State: CCP organization, party secretary and party member CCP organization: leading centre and integrating force of society (Xie Xialing) Duplicate authorities: party system/administrative system Party member: ruling foundation and social network for CCP

25. Danwei (单位)Society • The danwei, an enclosed, multifunctional and self-sufficient entity, is the most basic collective unit in the Chinese political and social order. It plays both political (stateist) and economic (societal) roles. As a basic unit in the communist political order, the danwei is a mechanism with which the state controls members of the cadre corps, monitors ordinary citizens, and carries out its policies. As an economic and communal group, the danwei fulfills the social and other needs of its members. Many urban units have become ‘small societies’ themselves, providing entitlements and maintaining basic services ranging from housing, car fleets, dining services, barbers, kindergartens, guesthouses, and clinics to , in some large state-own-enterprises, cremation services. Indeed, the work unit has taken over many welfare and service responsibilities the state would otherwise have to provide. Many public goods and entitlements are not provided directly by the state but by individual danwei. Instead of developing a social security system, for example, work units have taken on all the necessary service and welfare responsibilities even for retirees. Many of these services have been provided either free or at very low cost.

26. Origination of Danwei • To create a new organization to govern urban China • To disband GMD government organs and to bring former GMD functionaries under a guarantee (baoxialai) • To organize worker as a foundation for urban mobilization • To transform “consumer “ cities into “producer” cities • An contemporary ethical society (Xie Xialing)

27. Roles of Danwei in totalitarian society Constitutive unit of society Mechanism of social stratification Redistributive unit of resources Network of social control Urban community and small society

28. Danwei System and Ethical Relations • Danwei system and ethical relations In modern Chinese society, the supervisor-subordinate relationship, along with relations between colleagues, have taken on new meanings. The work unit ( danwei 单位 ) to which a member of society belongs is very significant. The danwei is the basic social unit of modern Chinese society, so that if we say that modern western society is composed of individuals we can also say that Chinese society is composed of danwei. The significance of basic social units is that they constitute a society. In the past, we distinguished between western societies “based on individuals” and Chinese society “based on collectives.” Premodern Chinese society was based on the social units of families and clans, while contemporary Chinese society is based on the social unit of the danwei. The significance of the moral supervisor-subordinate relationship and also of the relationship between colleagues has increased since the danwei became the basic social unit of Chinese society. Xie Xialing

29. No Relationship between boss and employee in Danwei • No relationship between boss and employee in danwei • The work unit is often referred to in conversation as a “small society,” Yet it has become the basic moral entity of Chinese society. A danwei member seeking any sort of problem seeks advice from the danwei or its head, and in cases of inter-personal conflict, each party will consult its danwei or danwei head. Thus danwei chiefs are often called dangjiaren ( 当家人) meaning “household heads.” Yet no danwei member would claim that his relationship with the head was a political one, neither an economic relationship based on the employment situation: namely the heads of the work units are employers and workers are employees. Relationships within the danwei also contain the implication of economic relations, although that aspect is not dominant. In short, it is most accurate to say that the guiding relationship within the work unit is the ethical one. • Xie Xialing

30. Danwei System in Urban China Range: any work unit in urban China Function: comprehensive functions (political-economic-societal-ideological) Sort: party and government agencies enterprise unit; institutional work unit

31. The Mechanism of Social Stratification Systematic barriers and status mechanism -Hukou (residents registration system) Status (ascribed status): distinction between urban and rural residents -Political status: parentage, ideology, political loyalty, and the status as Party Member -Archives status: cadres and workers -Danwei status: hierarchy of danwei and different levels of social welfare

32. Official Social Stratification (1978)(Employed person)

33. Development and Social Change: Dengist China Dengist China

34. Why economy first? If we are to seize opportunities to promote China’s all-round development, it is crucial to expand the economy. The economies of some of our neighbouring countries and regions are growing faster than ours. If our economy stagnates or develops only slowly, the people will make comparisons and ask why. Deng Xiaoping

35. Poverty is not Socialism • Poverty is not socialism. If socialism means poverty, where is the superiority of socialism? In the past decade we suffered greatly from excessive egalitarianism and ultra –left tendencies. The Gang of Four would rather have poor socialism then rich capitalism. • Our general aim is for everyone in society to become rich and prosperous. This will take a long time. Our overall method is to encourage the advanced to take the lead in becoming rich, so that the others can follow • Deng Xiaoping.

36. Development: either economy and politics • The disintegration of Soviet Union made Dengxiaoping realize that unless CCP could satisfy the material aspirations of the populations, it might be destined for the same fate. In the inspection tour to South China in January-February 1992, Deng concluded that continued economic reform was vital for the party’s legitimacy.

37. Market economy does not necessarily imply capitalism • According to Deng, a market economy did not necessarily imply capitalism any more than a planned economy implied socialism. He refused to accept an argument that the danger of “peaceful evolution” mainly originated in the economic sphere. Deng warned against sinking into another ideological impasse. For Deng, the basic line of rapid reform was clear and it was to be upheld for 100years.

38. The political breakthrough:Third Plenum of the Eleventh CCP(December 1978) • Key decisions in the plenum - Economic modernization was made central to all party work. Ideology and class struggle were downplayed and policy-making became more pragmatic. - The plenum formed the source for a new policy direction that gradually increased the influence of market forces in the Chinese economy.

39. Rural reform from grass roots • In 1979, farmers in poor areas were beginning to abandon the collective structures and grass roots experimentation took place in contracting output to the household. Gradually this practice spread throughout other areas of rural China. • In 1983 the ‘responsibility system for agriculture” was officially endorsed with the household as the basis for contracting. This was reconfirmed in 1984 when cropping contracts were extended to 15 years and measures were introduced to concentrate land in the hands of the most productive households. Abandonment of the collective as the key economic unit in the countryside was complete.

40. Urban reform from the above • The policy of urban reform sought to bring the kinds of incentives and use of market forces that had proved successful in the rural areas to bear in the industrial sphere. To enable enterprises to take advantage of the limited market opportunities, managers were to be given greater power of decision-making with respect to production plans and marketing, sources of supply, distribution of profits within the enterprise and the hiring and firing of workers.

41. Urban reform from the above • To introduce a market-oriented economy system and establish a mixed economy. • To integrate Chinese economy into global economy • To develop export-oriented economy • To release rural residents from limitation on moving to city for work • To give up the line of class struggle and political mechanism of revolution and anti-revolution split, and to accept the principle of individualism in some sense. • ……

42. From Totalitarianism to Authoritarianism Totalitarianism: state totally penetrate into society and organize society with bureaucratic entities (danwei) and shape society by centralized ideology and discipline Authoritarianism: despite maintaining a monopoly of control over political life, and tightly controlling the boundaries of freedom, a large range of socio-economic decisions was removed from the direct control of party-state administrators. The reforms have purposely drastically reduced the scope of state intervention in society. What people actually think, how they choose to spend their leisure time, whom they marry, what careers they pursue, and related issues are no longer considered to be politically significant.

43. Discourses on social transition • Victor Nee: Theory of market transition • Bian Yanjie & John Logan: market transition and the persistence of power • Qin Hui:Left line without social security and right line without individual freedom. • R. Walker, D. Buck Chinese economy now operates largely according to capitalist logic. Instead of the reformers ‘ using capitalism to build socialism’, they ‘used socialism to build capitalism

44. Theory of Market Transition The market power thesis: If surplus is no longer monopolized by the redistributive sector, and more is allocated and distributed through marketlike exchanges, two things are likely to happen. First, less power –control over resources-is located in the redistributive economy and more in marketliketransactive exchanges. Second, when the price of labor and goods is based upon mutual agreement between buyer and seller, and not set by administrative fiat, direct producers have more power over the terms of exchange for their goods and services. Therefore, the transition from redistribution to markets involves a transfer of power favoring direct producers relative to redistributors . Victor Nee

45. Urban employed persons and composition of ownership units

46. The Theory of the Persistence of Redistributive Power China’s two central institutions of political control, the communist party and the danwei, continue to have a significant impact on the urban stratification system during the reform period. - Bian Yanjie and John Logen China differs profoundly from most post –Soviet and East European countries in that it did not undergo a sudden implosion of state, party and economy. Instead , and autocratic state has maintained a close hold on economic policy and the Communist Party continues to monopolize political life. - Richard Walker and Daniel Buck: The Chinese Road

47. New mechanisms of social stratification New mechanisms of social stratification -labor division: division between white-collar and blue-collar ( human resource and cultural resource) -rank of authority: division between the administrator and the governed (power resource) -production relations: employer and employee (economic resource) -systematic distinction: inside and outside of the system (systematic resource)

48. Aspects of Chinese Development

49. Migrant Worker

50. Labor export areas and import areas • The central and the western regions are major labor export areas • The eastern region and large and middle-sized cities are major labor import areas - in 2004, cross-border migrant workers made up 76% of the total number, of whom 51% had crossed provincial borders and 25% had crossed county borders. 82% of cross-provincial migrant workers moved to the seven provinces(municipalities) of Beijing, Tianjin, Shanghai, Zhejiang, Jiangsu, Guangdong and Fujian.