Bell Ringer

1. Bell Ringer • Describe a Command Economy. • Private property? • Role of Gov.? • Competition and profit? • Describe a Market Economy. • Private property? • Role of Gov.? • Competition and profit? • Describe China’s socialist market economy.

2. Economic Systems • Command Economy: Government owns almost all industrial enterprises and retail sales outlets. Production goals set by a central government (party-dominated), values equality, quotas and plans/ directs production and distribution. • Free-Market Capitalism: Relies on profit motive and competition. • Mixed Economies:Market Economy with significant control from the government. • SocialistMarket Economy (China) • Gradual infusion of market economy while still retaining state control • State Capitalism (Russia) • Social Welfare Capitalist System (UK)

3. Economic Liberalism Economic Liberalism:the process of reducing state intervention in the economy What is it? Increase or decrease w/liberalization? • Subsidies • Tariffs • State Owned Enterprises (SOEs) • Foreign Direct Investment (FDI) Liberalism – the expansion of both individual rights and the market economy • Freedom of religion, freedom of the press • DO NOT think “liberal” as in US Democrats

4. Considerations Which international organizations push for economic liberalization? Pros and Cons to liberalizing?

5. Collective Enterprises • Collective Enterprises (China) – rural factories and businesses that vary greatly in size and are run by local government & private entrepreneurs • Make their own decisions & are responsible for their profits/loses • Since 1970s under (Deng Xiaopeng) • Slowed rural migration to cities • Collectivism (China) – Mao’s philosophy the good of the community should be valued above that of the individual • What was the Collective Consensus (UK) ?

6. Today we will … Objectives Agenda Discuss China in a comparative context: institutions, socialization, rule of law and judicial independence Compare the electoral systems of Russia and Mexico Slide/Notes Closure Activity Mexico v Russia electoral systems HW: Study for Unit Test on Wednesday

7. China’s Government • National • Province • City • County • Local/ Rural towns • Autonomous: Beijing, Shangjai, Tianjin, Chongquing

8. Decision Making in China

9. Authoritarian Regime Political decisions are made by political elites without much input from citizens Changing slowly as economic policies devolve power

10. Chinese Communist Party (CCP) • Organizing principle of the CCP is democratic centralism • The idea that there should be open discussion within the party. • After discussion, the “Truest of the true believers” organize the disparate and disorganized ideas of the masses into a party line which is harmonious with the official ideology. • The true believers then go back and teach that party line to the masses. • Top most leaders: standing committee of the politburo, or central committee eventually tell those below them in the hierarchy what the policy is. • Then this group tells the next group below.

11. Executive: President/VP & Premier Top leaders of CCP Includes Standing Committee & Politburo Power over all foreign & domestic policy How do these differences influence economic policy? • During Mao, leaders were: • Less educated • From military • Ideological • Revolutionary • Worked their way up through the party • Today’s leaders are: • Educated • Technocrats • Pragmatic & business oriented • Technical expertise • Groomed for leadership positions or family connections

12. China’s Current Leadership President of PRC (formerly called “Chairman”) • Head of State: Two 5-year terms • Elected by National People’s Congress • Gen’l Secretary of CCP • Xi Jinping Premier • Head of Government (Bureaucrat) • Politburo Standing Committee • Formally appointed by Pres • Always a member of the Standing Committee • Li Keqiang (economist by training)

13. Political Structure • Party, state and party-state • CCP “leading role”; setting of policy/law agenda • Personnel—nomenklatura • 70 million+ Party Members - high % of govt • “a dictatorship of ever-expanding elites within a self-selecting elite” Party hierarchy: on paper bottom-up, in practice top-down (w/ some checks/choice) • Party Congress, Central Committee, Politburo, Standing Committee, General Secretary • Party Secretaries: Provincial and below

14. Legislative: National People’s Congress Unicameral Power to: enact & amend the country’s laws Approve and monitor the state budget Declare & end war Meet for 2 weeks in March 3000 delegates 5 year term • Elect (or recall) • By secret ballot from a list of limited candidates members of the CCP Central Committee • President & VP “elected” - one nominee from the party • Symbolic: approve and showcase party decisions

15. Legislative Institutions • On paper: indirect democracy • In practice: managed contests & centralized power • National People’s Congress and Standing Committee; provincial, lower congresses • Roles in legislation and in government / judicial oversight • Rise of staff and specialized committees • Changing interest representation, membership

16. Check for understanding Which of the following best provides the political authority and power for Chinese leaders? Winner of popular election Previous position as General Secretary of CCP Close ties with former Soviet leaders Strength of ideology

17. Linkage Institutions

18. China Linkage Institutions • One Party System: China Communist Party • Organizing principle is democratic centralism • Legislation • Executive • Elite Recruitment • Elections • Unelected Legislature • Direct Election of Local • Interest Groups • Mass Organizations

19. Electoral Systems People are free to get elected into minor village positions, but entrance into high positions of the national government requires connections and appointments. Villages have become experiments with democracy, for free elections are allowed, where the Communist candidate sometimes loses. Why would an authoritarian state allow for local elections? What do they really want to accomplish?

20. Democracy? • Village Elections’ mixed record • No longer appointed from above • Chosen in direct, secret ballot elections • 610,000 villagers committees • Incumbent / orthodox candidates have the advantage • Not extended to higher levels • Selected from and by lower levels, not directly by people • Local “deliberative” government? • Budgets and other matters • Corruption • Incompetence Buyun Township, 1998

21. Check for understanding In the last part of the 20th century, Mexico and China both did the following, EXCEPT: Suppressed student protests Had weak legislative assemblies relative to the executive Had a president Outlawed all opposition parties from competing in elections Produced oil

22. Civil Society • Formal and informal organizations that are not part of the state but operate in public • Voluntary • Autonomous, self-governing created to advance it’s own cause • Groups that bring people together with common interests • Social, charitable, religious, community or political concerns to articulate and advance their own causes

23. Civil Society in China • CCP supports “mass organizations” for interest groups to express views • All-China’s Women’s Federation • All China Federation of Trade Unions – official state organization that collectively bargains for wages & benefit • What about Farmers? How are they heard, or not? • NGO’s • OK, as long as they steer clear of political issues

24. Statism • Strong state/central government • + protection against enemies • Often has little transparency • Weak civil liberties

25. Guanxi China’s “good old boy network” Personal and bureaucratic ties Link village leaders with lower party officials What did we call a similar kind of network in Mexico? What is a big problem with this kind of network?

26. Rule of Law (or Rule By Law) • During revolution, the law was seen as political, how the bourgeoisie kept the proletariat suppressed • Mao’s revolution destroyed old legal codes • Chinese justice system is harsh • Death penalty for smuggling, rape, theft • No independent judiciary – under control of the CCP • New economic growth requires consistent regulations be in place that allow China to trade internationally and attract foreign investment • Commercial law, contract law & property rights • Lax contract laws are an issue

27. Reforms to China’s Legal System • Refinements to both civil and criminal law • Requirements for judges • More law schools & lawyers • Legal advisory offices • What hasn’t changed? • CCP controls the law, courts and legal system • No judicial review • High rates of conviction • High rates of incarceration • Capital punishment • Burden of proof on the defendant, not state • Guanxi

28. Policy Decisions • 1989 Tiananmen Democracy Demonstrations • Arrests & attacks on dissidents • 1989 – 2000 Falun Gong • "a serious ideological and political struggle that would have a bearing on the future of the Communist Party and the State“ • Outlawed; arrest & execution of leaders • 2008-2009 Riots in Tibet & Xinjiang • Refusal to complete talks with Dalai Lama & arrests of dissidents

29. Environmental Policy Water & air pollution are major concerns in most urban area of the country due to China's economic progression. • In recent years the gov.has placed greater importance on environmental protection, and the development of clean energy: • Signing international agreements to phase out pesticides/ pollutants • Reversing deforestation through forest planning programs • Encouraging use of solar and wind energy • Source reduction • Economic Growth is still #1

30. Closure Why would China want to reform its legal system? Give two reasons.

31. Mexico Masher vs. Crusha from Russia

32. Mexico vs. Russia Activity Read the introduction and examine the data. Pairs can complete the questions for Mexico and Russia separately and answer the comparative questions together.

33. Check for UnderstandingIs Mexico’s past Russia’s Future? • PRI traditionally held power through patronage, electoral fraud, corporatism, co-option of dissent and executive power. • Mexico system reinforced one-party rule by using mixed proportional/single member district system in electing the Chamber of Deputies. • Gave the impression of party competition while maintaining control of the government. • Opposing parties won enough to be represented but not win majority control • How is this similar to Russia? • How are Russian institutions used-to consolidated authority?

34. Comparisons & Review

35. Comparisons • Russia: ethnic religious cleavage and conflict can undermine national legitimacy and integration. • China: Political ideology can play an important roel in limiting identity based fragmentation- cost is political freedom. • Mexico & UK- time to evolve toward democratic order

36. Social Cleavages Russia vs. China

37. Political Systems vs. Economic Systems • Integration of political & economic systems • Capitalism & communism are economic systems, but hard to separate from the political systems which support each • Attitudes & behaviors of citizens and how they respond to economic policies, economic inefficiencies, economic inequality and economic decision-making influence the actions of the government & policy-making Relator 2013

38. Global Trends