Course of Development Studies

Fudan/Queen’sSeptember – December, 2009

Shanghai and Globalization

ContentsMaoist ChinaDenist ChinaAspects of DevelopmentHistory of Shanghai: from a cosmopolitan

city to an eldest son of the republicGlobalizing Shanghai as a state strategy.

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. 

Yu HaiDepartment of Sociology, Fudan

University

Development and Social Change: Maoist China

Topics and PerspectivesDevelopment in a local perspective Chinese traditions and social changesDevelopment in a global perspective Globalizing Shanghai Development in a glocal perspective Shanghai’s revival as a state strategy

Ethical SocietyEthical SocietyEthical society: interpersonal Ethical society: interpersonal

relationships based on kinship relations relationships based on kinship relations in Chinese contextin Chinese context

Five ethical (Five ethical ( 伦伦 )relationships: the )relationships: the monarch and his subjects (monarch and his subjects ( 君臣君臣 ); Father ); Father and his children (and his children ( 父子父子 );Husband and his );Husband and his wife (wife ( 夫妻夫妻 );Brothers ();Brothers ( 兄弟兄弟 );Friends ();Friends ( 朋朋友友 ))

Mao tried to destroy kinship relations Mao tried to destroy kinship relations and replace them by new comrade ties. and replace them by new comrade ties. Were they still ethical relationships? (Xie Were they still ethical relationships? (Xie Xialing)Xialing)

Chinese society is an ethical society

Xie XialingQuestion 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

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

Patriarchal SocietyPatriarchal Society

Patriarchal Society: the three cardinal Patriarchal Society: the three cardinal guides (ruler guides subject, father guides guides (ruler guides subject, father guides son, and husband guides wife) and officials son, and husband guides wife) and officials as parent.as parent.

Mao encouraged youth to challenge Mao encouraged youth to challenge seniority and promoted women’s status, seniority and promoted women’s status, but under the party-state and danwei but under the party-state and danwei system, Maoist China was still a patriarchal system, Maoist China was still a patriarchal society in some sense.society in some sense.

ElitismElitismDivision between gentleman and petty person: Division between gentleman and petty person:

moral and political division; moral and political division; The virtue of a gentleman is like the wind, the The virtue of a gentleman is like the wind, the

virtue of a petty person like the grass. When virtue of a petty person like the grass. When the wind blows over it, the grass must bend.the wind blows over it, the grass must bend.

Different elitism: vanguard party (from Different elitism: vanguard party (from Leninism)Leninism)

Anti-elitism: The people, and the people alone, Anti-elitism: The people, and the people alone, are the motive force in the making of world are the motive force in the making of world history. history.

Mass lineMass lineWhat difference between Mao’s line and What difference between Mao’s line and

modern democracy in western context? modern democracy in western context?

Moral-CentralismMoral-CentralismMoral-Centralism: Lead them by means of Moral-Centralism: Lead them by means of

government policies and regulate them government policies and regulate them through punishments, and the people will be through punishments, and the people will be evasive and have no sense of shame. Lead evasive and have no sense of shame. Lead them by means of virtue and regulate them them by means of virtue and regulate them through rituals and they will have a sense of through rituals and they will have a sense of shame and moreover have standards. (from shame and moreover have standards. (from moral order to political order)moral order to political order)

Mao’s Mao’s Voluntarism: to change not only society but also nature of human being with new ideology and to foster the new communist man.

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.

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

The new tradition of Chinese Revolution

CCP: leading centreAuthoritarianism : 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

Mao’s Stature in New ChinaMao’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

The Maoist EraMao 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

Aspiration of MaoThe 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

Tensions Maoist China FacingTension 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 countryLeadership 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)

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

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.

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)

Ideology: Maoism Ideology: Maoism Authoritarianism and totalitarianism Authoritarianism and totalitarianism

(Leninism)(Leninism)Socialism and communism (Marxism Socialism and communism (Marxism

with Maoist character)with Maoist character)Egalitarianism (Confucianism )Egalitarianism (Confucianism )Class struggle (Marxism and Maoism)Class struggle (Marxism and Maoism)Elitism and vanguard party (Leninism )Elitism and vanguard party (Leninism )Reshape society and human nature Reshape society and human nature

(utopia )(utopia )

Maoist China: Organized ChinaMaoist China: Organized China

party-stateparty-statedanwei / people’s communedanwei / people’s communeideology and disciplineideology and disciplinesocial stratificationsocial stratificationeconomy: central planed and redistributive economy: central planed and redistributive

systemsystem

Party-StateParty-StateThree elements of Party-State: CCP Three elements of Party-State: CCP

organization, party secretary and party organization, party secretary and party membermember

CCP organization: leading centre and CCP organization: leading centre and integrating force of society (Xie Xialing)integrating force of society (Xie Xialing)

Duplicate authorities: party Duplicate authorities: party system/administrative systemsystem/administrative system

Party member: ruling foundation and social Party member: ruling foundation and social network for CCPnetwork for CCP

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.

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)

Roles of Danwei in totalitarian Roles of Danwei in totalitarian societysocietyConstitutive unit of societyConstitutive unit of societyMechanism of social stratificationMechanism of social stratificationRedistributive unit of resources Redistributive unit of resources Network of social controlNetwork of social controlUrban community and small societyUrban community and small society

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

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

Danwei System in Urban Danwei System in Urban ChinaChinaRange: any work unit in urban ChinaRange: any work unit in urban ChinaFunction: comprehensive functions Function: comprehensive functions

(political-economic-societal-ideological)(political-economic-societal-ideological)Sort: party and government agencies Sort: party and government agencies

enterprise unit; institutional work unitenterprise unit; institutional work unit

The Mechanism of Social The Mechanism of Social StratificationStratification Systematic barriers and status mechanismSystematic barriers and status mechanism --Hukou (residents registration system) Hukou (residents registration system)

Status (ascribed status): distinction Status (ascribed status): distinction between urban and rural residentsbetween urban and rural residents

--Political status: parentage, ideology, Political status: parentage, ideology, political loyalty, and the status as Party political loyalty, and the status as Party MemberMember

--Archives status: cadres and workersArchives status: cadres and workers --Danwei status: hierarchy of danwei and Danwei status: hierarchy of danwei and

different levels of social welfaredifferent levels of social welfare

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

Number Number %%

CadreCadre 18,000,00018,000,000 4.54.5

State workerState worker 57,000,00057,000,000 1414

Collective workerCollective worker 20,000,00020,000,000 55

Peasant (including Peasant (including peasant worker)peasant worker)

310,000,000310,000,000 76.576.5

Total Total 405,000,000405,000,000 100100

Development and Social Change: Dengist China

Dengist China

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

Poverty is not SocialismPoverty 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.

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.

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.

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.

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.

Urban reform from the aboveThe 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.

Urban reform from the aboveTo introduce a market-oriented economy system

and establish a mixed economy.To integrate Chinese economy into global

economyTo develop export-oriented economyTo release rural residents from limitation on

moving to city for workTo 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.

……

From Totalitarianism to From Totalitarianism to AuthoritarianismAuthoritarianism

Totalitarianism: state totally penetrate into Totalitarianism: state totally penetrate into society and organize society with bureaucratic society and organize society with bureaucratic entities (danwei) and shape society by entities (danwei) and shape society by centralized ideology and discipline centralized ideology and discipline

Authoritarianism: despite maintaining a Authoritarianism: despite maintaining a monopoly of control over political life, and tightly monopoly of control over political life, and tightly controlling the boundaries of freedom, a large controlling the boundaries of freedom, a large range of socio-economic decisions was removed range of socio-economic decisions was removed from the direct control of party-state from the direct control of party-state administrators. The reforms have purposely administrators. The reforms have purposely drastically reduced the scope of state drastically reduced the scope of state intervention in society. What people actually intervention in society. What people actually think, how they choose to spend their leisure think, how they choose to spend their leisure time, whom they marry, what careers they time, whom they marry, what careers they pursue, and related issues are no longer pursue, and related issues are no longer considered to be politically significant.considered to be politically significant.

Discourses on social transition

Victor Nee: Theory of market transition Victor Nee: Theory of market transition Bian Yanjie & John Logan: market transition Bian Yanjie & John Logan: market transition

and the persistence of powerand the persistence of powerQin Hui:Qin Hui: Left line without social security Left line without social security

and right line without individual freedom.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

Theory of Market TransitionTheory of Market Transition The market power thesis: If surplus is no longer The market power thesis: If surplus is no longer

monopolized monopolized by the redistributive sector, and more is allocated by the redistributive sector, and more is allocated

and distributed through marketlike exchanges, two and distributed through marketlike exchanges, two things are likely to happen. First, less power –things are likely to happen. First, less power –control over resources-is located in the control over resources-is located in the redistributive economy and more in marketlike redistributive economy and more in marketlike transactive exchanges. Second, when the price of transactive exchanges. Second, when the price of labor and goods is based upon mutual agreement labor and goods is based upon mutual agreement between buyer and seller, and not set by between buyer and seller, and not set by administrative fiat, direct producers have more administrative fiat, direct producers have more power over the terms of exchange for their goods power over the terms of exchange for their goods and services. Therefore, the transition from and services. Therefore, the transition from redistribution to markets involves a transfer of redistribution to markets involves a transfer of power favoring direct producers relative to power favoring direct producers relative to redistributors .redistributors .

Victor Nee Victor Nee

Urban employed persons and composition of ownership units

2003 2004 2005 2006 2007 2007(%)

Urban employed persons(10000)

25639 26476 27331 28310 29350

100

State Owned Units

6876 6710 6488 6430 6424 22

Collective Units

1000 897 810 764 718 2.4

Units of other types of ownership

22208

75.6

Joint ownership units

44 44.1 45 45 43 0.14

Private enterprises

2545 2994 3458 3954 4581 15.6

Foreign funded units

454 563 688 796 903 3

Self employed individuals

2377 2521 2778 3012 3310 11.2

The Theory of the Persistence of The Theory of the Persistence of Redistributive PowerRedistributive Power

China’s two central institutions of political China’s two central institutions of political control, the communist party and the danwei, control, the communist party and the danwei, continue to have a significant impact on the continue to have a significant impact on the urban stratification system during the reform urban stratification system during the reform periodperiod. - Bian Yanjie and John Logen. - Bian Yanjie and John Logen

China differs profoundly from most post –Soviet and China differs profoundly from most post –Soviet and East European countries in that it did not undergo a East European countries in that it did not undergo a sudden implosion of state, party and economy. sudden implosion of state, party and economy. Instead , and autocratic state has maintained a close Instead , and autocratic state has maintained a close hold on economic policy and the Communist Party hold on economic policy and the Communist Party continues to monopolize political life. continues to monopolize political life.

- - Richard Walker and Daniel Buck: The Chinese Richard Walker and Daniel Buck: The Chinese RoadRoad

New mechanisms of social New mechanisms of social stratificationstratification

New mechanisms of social stratificationNew mechanisms of social stratification --labor division: division between white-labor division: division between white-

collar and blue-collar ( human resource and collar and blue-collar ( human resource and cultural resource)cultural resource)

-rank of authority: division between the -rank of authority: division between the administrator and the governed (power administrator and the governed (power resource)resource)

-production relations: employer and -production relations: employer and employee (economic resource)employee (economic resource)

-systematic distinction: inside and outside -systematic distinction: inside and outside of the system (systematic resource)of the system (systematic resource)

Aspects of Chinese Development

Migrant Worker

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.

Contributions to labor import areas Contribution to GDP

1% of GDP growth by the shift of under-employed rural labor to industry and services where productivity was higher.

Important driving force in industrialization

migrant workers accounted for 58% of employment in secondary industry and 52% of employment in tertiary industry. They made up 68% of employment in the processing and manufacturing industry, and 80% of employment in the construction industry.

An important channel of national economic accumulation Contribution to the convenience and ease of life for urban residents Facilitating the development of the labor market

migrant workers lowered the cost of labor in urban areas, improved urban labor productivity, and increased the mobility of urban employees.

Effect on labor export areasContribution to income in 2004, farmers nationwide earned an

average annual income of 2936yuan, 998 yuan came from wages, migrant workers accumulated 160 billion yuan as a result of their outside employment.

Impact on family a special group of people (386199 troop

unit) are left at home to mind the farm : 88 million (22.9 million children live with one parent or are taken care of by grandparents.)

Hukou

Hypothesis on Hukou studies

Hypothesis 1: As long as the basic rules of the hukou system, i.e., the dual urban and rural structure of hukou and control over the transfer of hukou between cities, are not reformed, hukou will still play a significant role in social stratification in China.

Hypothesis 2: As one of China’s basic social policies and institutional arrangements, the hukou system has always influenced social mobility in different ways and degrees. Individuals with an urban hukou and /or the ability to transfer and change hukou will have a greater probability of upward mobility.

Main variables Dependent variables

1. measuring social stratification

1) party membership; 2) income level; 3) occupational status

2. measuring social mobility

1) occupational upward mobility; 2) managerial rank; 3) level of daiwei

Independent variables (interviewee)

hukou grade; hukou type (urban/rural); grade of hukou at birth; hukou location (at current place of residence /not); experience of transfer of hukou; parents’ type of hukou , etc .

conclusions

Hukou and social stratification

in acquisition of party membership, the interviewee’s type and location of huko have a very significant effect; with regard to economic income, hukou plays a significant role in income disparity and there exists a hukou hierarchy in income, i.e., the higher an individual’s hukou grade is, the more opportunities he will have for a higher income. And hukou grades have a significant positive correlation with occupational status.

Hukou and social mobility

individual and family hukou have a structural influence over mobility of occupation and status and over opportunities for advancement, and urban hukou, higher hukou grades and father’s experience of hukou transfer play a positive role in increasing the individual’s opportunities for upward mobility.

Date/ History/State Strategy/Reviving and Globalizing Shanghai

State Strategy and Globalizing Shanghai

1843-1949

Shanghai’s Miracle

Opening the door of Shanghai

After the first opium war(1842), the Qing government signed the first unequal treaty in Chinese modern history, leasing 830 MU of land to the British as residential quarters, thus opening the door of Shanghai The county was soon turned into a city carved up into autonomous settlements administered concurrently by the British, French, and Americans, all independent of Chinese law. Each colonial presence brought with it its particular culture, architecture, and society.

Model SettlementModern urban infrastructure and civic service raised, broadened and paved streets; public

transportation, electricity, tap water, sewage, fire safety and streetlights. Shanghai was the first city in China to use public facilities

Shanghai Municipal Council in order to finance and advance such work, a fairly

open, voluntary, and insofar as foreigners were concerned, judicially equitable, liberal government was created :the Shanghai Municipal Council

For these reasons, foreigners within the settlements viewed what they had created as “Model Settlement”. One that was exemplary, unique and worthy of emulation.

Since 1949

The Eldest Son of the Republic

State monopoly and Shanghai’s change

in the new ChinaState monopoly for purchase and marketing (of

grain, cotton, etc) and centralized distribution for means of production, Shanghai lost the position of trade centre in China.

State monopoly for foreign trade, Shanghai lost the position of foreign trade hub in China

State monopoly for banking and move of central banks to Beijing, Shanghai lost the position of financial centre in China.

Closing door line and producing only for domestic needs, Shanghai was no longer a cosmopolitan city.

A comprehensive industrial systemAfter 1949, the bridgehead function was

transformed into a production-oriented city under socialist industrialization. The service functions such as trade, finance, and distribution dwindled.

No longer an international city, Shanghai, for the first time in history, developed a comprehensive industrial system, including heavy industries. This would have been impossible in a free-trade world system in which the comparative advantages of industrialized countries would have prevented Shanghai from developing its own industrial sectors

The eldest son of the Republic

In the 1970s, Shanghai’s industrial output accounted for one-seventh of the national total;

its fiscal revenue was about one-fourth to one-sixth of the national total;

and the volume of freight handled and the value of export goods were about one-third of the national total.

In the heyday of socialist development, Shanghai was the source of innovation and production capacity.

Such a preeminent position prevented Shanghai from being tested with bolder policy experiments under the export-oriented development strategy, initially introduced in southern China in the early 1980s.

1990s-2010

Renaissance of Shanghai: China’s 

future global city as a state strategy

Strategies for Renaissance of Shanghai

State StrategyShanghai Strategy: history, geography;

local cultures; identity and character; new aspiration……

Global Strategy: global citySpatial Strategy: place promotion and new

urban space…….

One of biggest mistakes: leaving out Shanghai

Shanghai is another example. It has all the necessary conditions for faster progress. It enjoys obvious advantages in skilled people, technology and management and can have an impact over a wide area. In retrospect, one of my biggest mistakes was leaving out Shanghai when we launched the four economic zones. If Shanghai had been included, the situation with regard to reform and opening in the Yangtze Delta, the entire Yangtze River valley and, indeed, the whole country would be quite different.

Deng Xiaoping

Rejuvenating Shanghai :State Strategy and Deng Xiaoping

Strategy Symbols for forging ahead with reforms and open policy

For Deng, Shanghai and its Pudong project provided perfect symbols at home and abroad that China was forging ahead with reforms. Moreover, he saw Shanghai’s revival as crucial to China’s national development strategy. The reforms in Guangdong and Shenzhen in the 1980s were always experimental. There was nothing experimental about his intentions for Shanghai.

Shanghai role in the reform: from rear guard to vanguard

Shanghai is our trump card. To vitalize Shanghai is a shortcut for our development (March 3rd , 1990 )

Pudong project is not only crucial for Pudong, but also for whole city of Shanghai. Furthermore, it concerns how to develop the Yangtze River Delta and the entire Yangtze River Valley through Shanghai as a base.

You must catch hold of the tail of 20th century because this is the last opportunity for Shanghai.

Deng mentioned Shanghai in Selected Works of Deng Xiaoping for 56 times.

Rejuvenating Shanghai: Politics

In the mid-1980s, Beijing began transferring officials to Shanghai and giving Shanghai a voice again in the capital, (Jiang Zemin, 1985, Zhu Rongji, 1987)

In 1990s, more Chinese leaders with ties to Shanghai strengthened Shanghai’s position and finally formulated a state strategy for Shanghai’s development.

Jiang zemin (1989); Zhu Rongji (1991, 1998); Wu Bangguo (1994,2003); Zeng Qinghong (1989,2003), Huang Ju (1994,), Chen Zhili……

Shanghai Development as a State Strategy

Symbol : China is forging ahead with reforms.

Gateway and strategic space: to re-integrate China into the world economy]

Dragon head: not only for city of Shanghai, but also for the Yangtze Delta, the entire Yangtze River valley and the whole country

Global city: International economic, financial, trade and shipping centre

City Slated as Global Financial Centre

Shanghai will be built into a major international financial center and shipping hub by 2020, the State Council said yesterday, an indication of China's intention to place greater reliance on the city as it refines its strategy for battling the global economic downturn.

Shanghai will create "a multi-layered financial market system, promote the opening of financial services and ensure financial stability in the coming years to achieve this goal," the Cabinet said in guidelines listed on the central government's Website.

State Strategy Open up of Pudong new area (April 1990)Shanghai Stock Market (December 1990)international economic, financial, trade and

shipping centre (unique place for RMB business: Pudong)Shanghai Cooperation Organization (SCO, 2001) (Why Shanghai rather than Beijing or Ürümqi? Case

of Shanghai Communiqué )Centennial celebration of Fudan University

(2005)……

Local Governance for Globalizing Shanghai

Investment for Infrastructure To strengthen structural competitiveness, the state

has committed massive investment to infrastructure development since the 1980s

Bridge across the Huangpu River: Yangpu, Nanpu, Xupu, Lupu….

Fast Artery: Inner Ring, Middle Ring, Outer Ring, Yanan Freeway; South-North Way

Waigaoqiao Deep Water Berths; Yangshan deep water container port

Pudong International AirportHongqiao Comprehensive Transportation HubMetro System ( over 400km before Shanghai Expo)  

Designing competitive strategies

Since the 1990s a series of policy initiatives have aimed to create competitive strategies.

Six pillar industries (automobile; telecommunication and electronic equipment; iron and steel industry petrochemical, fine chemical, biological and pharmaceutical industry; power generation and electric equipment; household electronic appliance industry).

A new waterfront redevelopment project along the Huangpu River ( the project of waterfront redevelopment aims to convert warehouses and docks along the bank of the Huangpu River into residential, leisure, and business complexes in anticipation of the demand from the World Expo in 2010).

Public green movement ( green acreage per capita: 12.5 m² by 2008)

1949-1990s

Socialism Industrial Space

Space production: new ideologyFrom racecourse to People’s Square -Right after Chinese revolution in 1949,

Shanghai was asked to abolish racecourse in the city center by the new regime, changing this foreign colony symbol into two places, People’s Park and People’s Square. The first one is designed to offer a relaxing place to labors, and the second one is a political place for rally and other political mobilization.

From Wall Street in Far-East Asia to Xinhua Gate in Shanghai

Industry-Centered Space Production

The development strategy gave priority in heavy industry, such as the production of steel, machines, electronics and chemicals. Since it was impossible to build large-scale factories in the already overcrowded central city, industrial zones and workers’ dormitories were built in places away from the city or in rural areas. New development zones in Shanghai that emerged following reform can be found in the eastern suburb of Wusong, Pengpu in the north, and in the northwest region in Caoyang. A belt of newly developed factories extends to the southwest of Caohejing, until it reaches the western suburbs of Minhang. Many feel that the workers’ village replaced the Shikumen village and became Shanghai’s new landmark after 1949.

Since 1990s

Strategies for Globalizing Shanghai

Shanghai Development as a State Strategy

Symbol : China is forging ahead with reforms.

Gateway and strategic space: to re-integrate China into the world economy]

Dragon head: not only for city of Shanghai, but also for the Yangtze Delta, the entire Yangtze River valley and the whole country

Global city: International economic, financial, trade and shipping centre

Spatial StrategyTo transform a production-oriented city

to a service-oriented city To transform a old built environment to

a new global city

Shrinking Space Industrial spaceNongtang (old Shanghai neighborhood)

Rising SpaceFast ArteryOffice BuildingCommercial SpaceLiving SpacePublic Green