Neoliberalism with Chinese Characteristics David Harvey Mao dies

Neoliberalism with Chinese Characteristics David Harvey

Mao dies in 1976. Deng Xiaoping begins reform in 1978. “The outcome in China has been the construction of a particular kind of market economy that increasingly incorporates neoliberal elements interdigitated with authoritarian centralized control. ” (120) “It has managed to construct a form of state-manipulated market economy that delivered spectacular economic growth (averaging close to 10 per cent a year) and rising living standards for a significant proportion of the population for more than twenty years. But the reforms have also led to environmental degradation, social inequality, and eventually something that looks uncomfortably like the reconstitution of capitalist class power. ” (122)

Elements of neoliberalism in China De-centralization of central government control over economy Inducing competition between state-owned firms and sparking innovation and growth Initiation of township and village enterprises to stimulate growth and competition outside of large cities Export-led growth after 1987 Openness to Foreign Direct Investment Rapid development of urban infrastructure Unemployment, labor exploitation, massive rural to urban migration Labor unrest throughout the country

Why did China reform? Communist party adopts economic reforms in order to amass wealth and upgrade technological capacity Also to better manage internal dissent, defend from external aggression, and project geopolitical power in East and South-East Asia In other words, for self-preservation “Economic development was seen as a means to these ends rather than as an end in itself. ” (123)

GDP Growth

Exports

FDI

Urban vs. Rural

Geography of Economic Reform