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1、The Great Transformation: Double Movement in ChinaShaoguang WangDepartment of Government & Public AdministrationThe Chinese University of Hong KongSchool of Public Policy & ManagementTsinghua UniversityKarl Polanyi: Double Movement“The expansion of market forces would sooner or later be met by a cou

2、ntermovement aiming at conservation of man and nature as well as productive organization, and using protective legislation and other instruments of intervention as its methods” Karl Polanyi, The Great Transformation, pp. 130-134Main ArgumentChina has undergone a “great transformation” which consists

3、 of a “double movement” since 1978The politically induced transformation to the market systemThe countermovement and self-protection from societyOutlineDouble movement: Three periodsThe emergence of social policiesTwo key explanatory factorsDouble Movement in ChinaThree Periods 1949-1984: Moral econ

4、omy, no need for direct state provision of social policies1985-1998: Efficiency (growth) as priority, no attention to social policies1999-present: The emergence of social policiesMoral Economy, 1949-1984The planned economy consciously subordinated the economy to a set of social values.The securing o

5、f human livelihood was submerged in and determined by a nexus of non-economic institutions (e.g. work-units, peoples communes) and institutionalized norms (e.g. equality and solidarity).Distribution (not redistribution) was the main forms of resource allocation and social integrationSuch a distribut

6、ive system would not be able to proceed without an established center (the state) from which distribution took placeThe provisioning of humansthe securing of their livelihoodwas located in, or integrated through, urban work-units and rural communes, which were as much social as economic institutions

7、The logic of the economy was embedded in society through two mechanismsSoft-budget constraintIron rice bowlThe market played no vital role in human social lifeDistribution under the Moral (Planned) EconomyCentral BudgetLocal BudgetUnitUnitUnitSoft budget constraintsSoft budget constraintsIron rice b

8、owlParadigm Shift in Ideology: 1984-1999Rather than equity and security, Chinese policy-makers placed their top priority on rapid aggregate economic growth. The obsession with fastest possible GDP growth rates made them ready to tolerate a certain degree of inequity and to sacrifice some basic human

9、 needs, including health care. It was their belief that, as long as the “pie” continued to grow bigger, all other problems would eventually be solved.How Did the Economy e Disembedded?The transition from the embedded economy to market society marked a radical watershed in Chinas historyThe developme

10、nt of markets: 1979-1983Markets began to emerge but they were marginal, often heavily administered.There was still the dominance of non-market institutions and relationsThe development of market system: 1984-1992A system of interrelated markets (commodity, labor, financial, etc.)Competition and the

11、law of supply and demand did exist, but was not universal or omnipotentThe development of market society: 1993-1999No end other than economic ones were pursuedThe market threatened to e the dominant mechanism integrating the entirety of society.The magnitude of the markets reach can be measured by t

12、he extent of commodification, by the range of goods subject to commercial traffic (healthcare, education, environment, etc.).State Retreat from HealthcareState Retreat from EducationThe Breakup of the Moral (Planned) EconomyCentral BudgetLocal BudgetUnitUnitUnitHard budget constraintsContractEating

13、in separate kitchensDisembedded EconomyIn a market society, the livelihood of human being is market dependentAs markets became universal and hegemonic, the welfare of individuals came to depend entirely on the cash nexusConsequently, workers and farmers were forced to get by with reduced entitlement

14、 to assistance and securityGrowing inequalities eWealthHealthcareEducationRural-urbanRegionalWithin ruralWithin urbanConsequences of the Disembedded Economy, 1985-1998Selected Studies of InequalitiesThe Emergence of Social Policies, 1999-PresentThe Reembedding of the Market since 1999Market liberali

15、sm made demands on ordinary people that were simply not sustainableAs such dissatisfactions intensified, social order became more problematic and the danger increased that political leaders sought to divert discontent by somehow reembedding the economy A countermovement modification & Redistribution

16、 “ modification occurs when a service is rendered as a matter of right, and when a person can maintain a livelihood without reliance on the market” (Esping-Anderson, pp. 21-22)Redistribution entails contributions to the center (e.g. taxes) and payments out of it again (e.g. social assistance and soc

17、ial security)How does Redistribution Work?The StateTaxationSocial assistance& social insuranceNew Social Policies，1999-2007YearNew Social Policies1999-Go-West program2002-Urban minimum e guarantee program2003-Rural fee-tax reform; reestablishing rural Cooperative Medical Systems (CMS) 2004-Lowering

18、agricultural taxes; introduction of 3 types of rural subsidies2005-Partially abolishing agricultural taxes2006-Abolishing all agricultural taxes; introduction of comprehensive rural subsidies; free compulsory education in western and central rural areas; public housing for urban poor2007-Free compul

19、sory education in all rural areas; basic health insurance for all urban residents; CMS for over 80% of rural population; promoting rural minimum e guarantee program, promoting public housing for urban poorTo Reduce InequalitiesTo reduce regional e inequality To reduce urban-rural e inequalityTo redu

20、ce human insecurityMinimum eWork-related injuryHealthcareUnemploymentOld-age pensionTo reduce regional e inequalityTo reduce regional e inequalityDuring the period of 1994-2005, 10% of the central fiscal transfers went to eastern provinces, 44% to central provinces, and 46% to western provincesCentr

21、al fiscal transfers have helped reduce both vertical and horizontal fiscal imbalance and thereby regional inequalitiesConvergence of Provincial Growth RatesGini Coefficients of Provincial Per Capita GDP (1978 constant price)To reduce rural-urban gaps: Taking lessTo reduce urban-rural gaps: Giving mo

22、reTo reduce rural-urban gaps: Giving moreUrban-Rural e GapLeveling offPer Capita Expenditure on Healthcare and Education To reduce human insecurity: Urban Minimum e ProgramTo reduce human insecurity: Rural Minimum eTo reduce human insecurity: Increased government and social health spendingState Re-e

23、ngaged in HealthcareTo reduce human insecurity: Coverage of Urban Basic Healthcare InsuranceTo reduce human insecurity: Health Insurance Coverage of Active Employees & RetireesTo reduce human insecurity: Coverage of Rural Cooperative Health Insurance Counties with Coverage of Rural Cooperative Healt

24、h Insurance To reduce human insecurity:Coverage of Unemployment InsuranceTo reduce human insecurity: Urban Basic Pension Program #To reduce human insecurity:Urban Basic Pension Program %To reduce human insecurity: Coverage of Work Injury InsuranceTo reduce human insecurity: Budgetary Expenditure on

25、Social Welfare/Security, 1978-2005Two Key Explanatory VariablesAbility: Recuperating State Extractive CapacityWillingness: Changing Model of Agenda-Setting in Policy-MakingRecuperating State Extractive Capacity: Gross Fiscal Revenue, 1978-2005Recuperating State Extractive Capacity: Gross Revenue & E

26、xpenditure/GDP, 1978-2005Changing Model of Agenda-Setting in Policy-Making: Six Model of Agenda-SettingInitiator of AgendaDecision-MakersAdvisersCitizensDegree of Popular ParticipationLowI. Closed DoorIII. Inside AccessV. Outside AccessHighII. MobilizationIV. Reach-outVI. Popular Pressure王绍光，“中国公共政策

27、议程设置的模式”， 中国社会科学2006年第5期The Popular Pressure Model of Agenda-SettingWhere do pressures come from?Why do pressures have impact on agenda-setting?Stakeholders have e more assertive (e.g. regional policy)Involvement of NGOs (e.g. environmental policy)Changing role of mass media (e.g. work safety, education, healthcare)Rise of the internetThe Rise of the InternetPolicy Re-orientationFrom “efficiency first” to “Human-being first” to “harmonious society”Those issues on which people have called for changes (such as environmental crisis, regional disparities