State failure and distorted urbanisation in post maos china, 1993 2012

PALGRAVE STUDIES IN ECONOMIC HISTORY Series Editor: Kent Deng STATE FAILURE AND DISTORTED URBANISATION IN POST-MAO’S CHINA, 1993–2012 Yazhuo Zheng and Kent Deng Palgrave Studies in Economic History Series Editor Kent Deng London School of Economics London, UK Palgrave Studies in Economic History is designed to illuminate and enrich our understanding of economies and economic phenomena of the past The series covers a vast range of topics including financial history, labour history, development economics, commercialisation, urbanisation, industrialisation, modernisation, globalisation, and changes in world economic orders More information about this series at http://www.palgrave.com/gp/series/14632 Yazhuo Zheng • Kent Deng State Failure and Distorted Urbanisation in Post-­ Mao’s China, 1993–2012 Yazhuo Zheng Beijing Enlightenment Institute for Economic and Social Research Beijing, China Kent Deng London School of Economics London, UK Palgrave Studies in Economic History ISBN 978-3-319-92167-9    ISBN 978-3-319-92168-6 (eBook) https://doi.org/10.1007/978-3-319-92168-6 Library of Congress Control Number: 2018947758 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover illustration: Abstract Bricks and Shadows © Stephen Bonk/Fotolia.co.uk Printed on acid-free paper This Palgrave Pivot imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland For ongoing reforms in China Acknowledgements We are grateful to Xiaoxi, Jianxi, Michael and Jirui, whose ideas fill this book We also owe an immense debt to Bo, the research assistant of Beijing Enlightenment Institute for Economic and Social Research, who collected most of the data in our book Finally, thanks to Laura and Clara at Palgrave Macmillan who helped us a lot in the course of publishing vii Contents 1 Introduction   1 2 Theoretical Foundation and Literature Review  13 3 Typical Cases in Northwest China  25 4 Understanding of China’s State and Market  65 5 Conundrum with Distorted Urbanisation  87 6 The Central Government and Its Goals 113 7 State-led Growth and Domestic Debts 123 8 Final Conclusions 135 ix x  Contents Appendix 1: Rank of China’s 338 Prefecture-Level Cities 149  Appendix 2: The List of Candidates for Deputies to the 12th Guangdong Provincial People’s Congress 153  Appendix 3: Population of China’s 31 Provinces/Independent Municipalities 163 Index 165 List of Figures Fig 1.1 Shanghai’s Pudong Financial District vs Rural Xinjiang (Kashgar) (Photographer: Liang, Hongjiu and Yazhuo Zheng) Fig 3.1 Sectoral contributions to GDP, 1996–2015 (%) (Source: China Statistical Yearbook, 1996–2015) Fig 3.2 Geographic location of Lanzhou Fig 3.3 H-T Divide in demography Fig 3.4 H-T Divide in energy consumption (Source: NASA satellite picture of night view (2016), vide: http://www.sohu com/a/134394089_465976, available on 16 April, 2017) Fig 3.5 Government revenues of Gansu province and Lanzhou city, 1997–2016 (in 100 million yuan) (Note: The ‘revenue’ here means the general budget revenue Source: China Statistical Yearbook, 1997–2016) Fig 3.6 Aero-photo of the Qilian range and Gobi Desert (Photographer: Yazhuo Zheng) Fig 3.7 Lanzhou on the Bank of the Yellow River (Photographer: Yazhuo Zheng) Fig 3.8 Location of Ordos district Fig 3.9 Ordos’ GDP growth rate, 2003–2015 (%) (Note: The real GDP may be lower than government figures Source: E Er Duo Si Shizhengfu Gongzuo Baogao, 2003–2016 (Report of Ordos Municipal Government, 2003–2016)) 26 27 28 29 35 36 36 45 47 xi 168  Index Consumption, 41, 74, 92, 101–103, 105–107, 138, 141, 144 Consumption tax, 74 Contemporary China, 38, 91 Contract, 115 Conventional wisdom, Copper, 56n38, 57, 58 Corporate debts, 129 Corporation, 91 Corruption, 3, 144–145, 145n18 Cost, 30, 39–42, 46, 52–54, 58, 59, 72, 73, 91, 94, 101–103, 119, 120, 142, 145 Cost-free, 52 Counter-cyclical pattern, 59 Counterpart, 2, 16 County authorities, 68 County-level governments, 107–108 Coupon, 53 CPI, 88, 91, 92, 105, 139 Crisis, 6, 71, 73, 130, 131, 136, 144–146 Crop value, 125, 143 Cultural Revolution, 2, 73 Currency quantitative easing, 88–93, 105 Custom, 74 control, 38 duties, 56 D Daily consumption, 107 Danger, 103, 132 da xibei, Deal, 39, 46, 51, 71, 78, 79, 83, 124, 125 Debt burden, 124 Debt crisis, 4, 50, 129 Debt-free, 128 Debt repayments, 50 Debt-revenue ratio, 129 Decade, 136, 137, 141, 142, 144, 145 Decision-maker, Decision-making, 16, 17 Decoration, 97 Defence industry, 30 Deficit, 16, 33, 53, 75 De-leverage, 132 Demand, 49, 52, 53, 57, 59, 83, 92, 94, 99, 103–105, 119 Democracy, 10, 119 Democratisation, 119 Demonstration effect, 72, 84, 88 Deng Xiaoping, 8, 15, 73, 78, 84, 108, 114, 144, 145 reform, 15 Department, 67, 69 De-pollution treatment, 141 Deposit, 91 Depression, Deprivation, 143 Desert region, 31, 48, 84, 88 Developer, 40, 42, 51, 73, 79 Developing countries, 16 Development, 4–6, 10 Development zone, 56, 57 Dictatorship, Differentiation, 16 Diminishing returns, 104, 114 Direct investment, 141 Directs and steers, 67 Discount, 40, 56 Discrimination, 119 Discrimination policy, 119  Index     Distorted economy, 145 Distortions, 5, 17–20, 88, 137–142, 145 Diversification, 49 Domestic consumption, 144 Domestic debts, 124, 129, 130 Domestic market, 91 Domestic servant, 71 Dongsheng, 48 Double-edged sword, 60, 137 E East Asia, 119 East coast, 15, 43, 129 East District, 35 Eco-balance, 142 E-commerce, Economic decision makers, 56 Economic development, 5, 28 Economic dualism, 17 Economic growth, 10 Economic modernisation, 15 Economic progress, 17 Economic Readjustment, 73 Economic recession, 72, 120 Economic recovery, 137 Economic reform, Economic rent, 136 Economic structure, 20, 115, 132, 137, 144, 145 Economy, 2, 4–6, 9, 9n11, 9n12 Eco-system, 142 Education subsidies, 48 Educational background, 67 Effectiveness, 141 Efforts, 136 Egalitarianism, 48 169 Egalitarian system, 71 Elbow-out effect, 109 Election campaign, 67 Electronic devices, 42 Employment, 143 opportunities, 16, 18, 41, 43, 72 rate, 72 structure, 114–115 Endogenous growth model, Energy, 78, 79 consumption, 28 price, 45, 46, 49 Energy-dependent enterprise, 31 Enterprise, 78, 80, 83, 129, 130, 137, 141 Entitlement, 16, 16n3, 20 Entrepreneur, 56, 80 Environmental damage, 58, 58n42 Environmental degradation, 4, 10, 141 Equipment maintenance, 53 Ethnic and religious group, Europe, 4, European Union, 144 Even if we are not ready, we make it ready, 76 Exception, 96, 117 Excessive debts, 101 Excessive investment, 141 Export, 136, 138, 141, 144 earnings, 91 market, 136 surpluses, 91 Export-orientation, 144 Export-oriented industrialisation, 91 Export-oriented manufacturing, 141 External expansion, External market, 137, 141 Extra-budget revenues, 20 170  Index F Factor endowment, Fake democracy, 68 Famers’ compensations, 39 Far west region, Farming, 98, 105, 107, 109 colonies, 29–30 productivity, 29 sector, 114 zone, 72 Feasible factor, 94 fenshuizhi gaige, 74 Financial block, 38 Financial burden, 101 Financial compensation, 78 Financial institution, 92 Financial leverage, 126 Financial loss, 53 Financial meltdown, 104 Financial subsidies, 31 Firm, First-hand experience, Fiscal arrangement, 75 Fiscal capacity, 74 Fiscal judiciary, 37 Fishery, 142 Fluctuation, 84 Food bill, 57 Food output, 143 Food shortage, 114 Foot soldier, 68 Foreign currencies, 91 Four modernisations, 114 Four-star tourist destination, 49 Fragile ecology, 29 Free conversion, 91 Freedom, 79 Freedom to pollute, 57 Free-standing city, 37 Fringe benefit, 96 Frontier region, 141 Full employment, 18, 81 Full government guarantee, 128 Full-time farmers, 143 G G7, Gamble, 73 Gansu Province, 7, 9n12 GDP, 4, 10, 26, 27, 31, 32, 35, 39, 42–46, 46n20, 51–54, 52n30, 52n32, 52n33, 57, 59–61, 66, 70, 72, 73, 76–78, 84, 88, 93, 94, 96–98, 103, 108, 108n18, 123, 125, 126, 129, 131, 132, 136–138, 141, 142, 144, 144n13, 145 fetish, 26, 44 ranking, 72 GDP-cum-promotions, 44 General public, 66, 67, 70 Generation, 2, Geographic trap, 34 Ghost City, 32, 32n6 Ghost town, 45, 59–60 Giffen goods, 99 Global banking crisis, 50 Global economy, Global governance, Globalisation, 2, 143 Global manufacturing, Global order, Gobi Desert, 37 Gold mine, 92 Good old days, 50 Government, bonds, 76  Index     borrowing, 91 budgetary cost, 19 bureaucrat, 144 control, 78 debt, 124, 125, 127–132 employee, 41, 68, 144 fiscal capacity, 125, 132 goal, 66 institutions, 66 joint guarantee, 128 land hoarding, 127 land leasing, 91, 92 revenues, 19, 27, 52, 54, 76, 78, 99, 107 spending, 75 stimulus packet, 130 subsidies, 128 surcharge, 56 taxation, 46 Government-run hospitals, 119 Government-run schools, 119 Grassroots community, 68 Great Leap Forward, 73 Growth, 2–6, 8–10, 136–138, 141, 144–146 data, and development plan, 39 mechanism, 14 model of dualism, 14 trajectory, 31, 55 Guangdong, 68 The Guardian, 32, 32n6 H Hainan Province, 142 Handlers, 67 Hard-budget, 84 Hard budget constraint, 124 171 Hard currencies, 136 Harris-Todaro model, 16–17 Harsh reality, 83 Health care schemes, 67 Heavy chemicals, 34 Heavy industrial goods, 57 Heavy industry, 9, 59 Heavy rental discount, 41 Hebei Province, 97 Heihe-Tengchong Divide, 27 Hidden debt, 129 Hidden unemployment, 14 High housing price, 103–104 High-tech, High-tech firm, 42 Historical materialism, Holiday resort, 71 House building, 44 Household borrower, 127 Household consumption, 108, 109 Household devices, 97 Household dispensable incomes, 105 Housing availability, 49 benefit, 144 bubble, 4, 103, 104 construction, 40, 54, 94 cost, 15 developer, 49 development, 53 exchange program, 53 market, 49, 50, 53, 54, 93–105, 109 prices, 51, 92, 98, 101, 103–105 recession, 103 rent, 104 sector, 99 subsidy, 48 value, 141 172  Index How the state rules, 66 H-T Divide, 27, 31 Hu Huanyong, 27 Huawei, Hukou, 9, 16, 18, 19, 114, 117, 118 Human resource, 67 Human rights, Humans combat and win the war against nature, 29 Hydraulic power station, 30 I Identity, 60 Ideology, 9, 29 Illegal banking, 51 Illegal organisation, 10 Illnesses, 142 Improvement, 10 Incentives, 19, 37, 41, 66, 68, 76, 83, 104, 114, 126 Income, 76, 77, 91, 93, 101, 104n16, 105, 108, 129, 144, 145 distribution, 143–145 gap, 108 inequality, polarisation, Income-debt ratio, 129 Incomplete citizenship, 117 Indebtedness, 109 Independent candidate, 68 Individual income, 145 Industrial capacity, 30 Industrial centre, 33–34 Industrial configuration, 31 Industrial goods, 117 Industrial growth, 31, 33, 59, 143 Industrial hollowing, 20 Industrialisation, 27–28, 31, 33, 39, 60, 66, 70, 73, 78, 84, 88, 114–117 Industrial output value, 42 Industrial park, 37, 38 Industrial pollution, 57, 58n42 Industrial relationship, 42 Industrial take-off, 38 Industry-cum-water pollution, 142 Inefficiency, 83 Inefficient model, 60 Inferior location, 43 Inflation, 88, 92, 105 Infrastructure, 4, 7, 38–40, 44, 48, 56, 124, 130 Initial push, 77 Inner Mongolia, 31, 48n22, 52n31, 96, 129 Innovation, 73, 76 Input, 66, 83 Institution, 66, 68, 113, 128–132 Integration, 37 Interest group, 136, 137 Interior province, 31 Internal discussion, 68 Internal selection, 68 Internet, Invention, 73, 76 Inventor, 72 Investment, 72, 73, 77, 78 alternatives, 104 rate, returns, 98–99, 104, 105, 138–141 Investment-intensive, 138 Investor, 49, 56, 73, 77–79, 92, 98, 104, 139, 141  Index     Irrationality, 73 Issuance, 77 IT, 38 J Jiangsu, 142 Job, 115, 119n5, 120 Job-seek, 78 Judicator, 79 K Kangbashi, 48, 49 Keynesian approach, 88 Keynesianism, Keynesian measures, 107 Keynesian policy, 88 Key policy factor, 39 Krugman, Paul R., 10 L Labour, 14–18, 21, 70, 73, 77, 78, 80, 81, 83 employment, 52 flow, 16 market, 15, 16 migration, 15 quality, 16 shortage, 15 supply, 15 Labourers, Land arbitrage, 20, 21 and capital, 80 creation, 142 lease scheme, 39 173 leases, 19, 39, 40, 49, 54, 56, 77, 126, 128 market, 20, 78 ownership, 137 supply, 105 transfer, 78 Land-cum-debt, 127 Land-for-loans, 99 Land-leasing, 39, 78 Landless farmer, 21 Land Management Law, 125 Lanzhou, 26–44, 37n8, 38n10, 38n11, 40n12, 42n13, 42n14, 46, 49, 55–57, 66, 72 Large state-owned mine, 53 Law and order, 71, 72 Law-maker, 68, 79 Leadership, League table, 33, 52, 56, 103 Lease, 96, 99, 108, 125, 126, 126n5, 128, 136, 143 Lease-hold rights, 39 Lease term, 96 Leasing fees, 19 Legitimacy, 10, 70, 83, 84, 136 Leninist, Lewis, Arthur, 14, 16, 17 dualistic economic transition, 15 Lewis model, 14–15 Lewis transition, 15 Liability, 99, 117, 124–125, 128, 146 Liangjiang, 37 Liquidity, 104, 107, 109 Livelihood, 117 Living condition, 15, 55 Living cost, 15 Loan, 78, 91, 92, 99, 126, 127 174  Index Loaned cash, 126 Local authorities, 39, 44, 49, 70, 73, 77 Local conditions, 123 Local congress, 68 Local constraint, 60 Local economic growth, 19, 115–116 Local economy, 44, 51, 57 Local electorates, 67 Local fiscal autonomy, 21 Local government, 4, 7, 19, 20, 27, 33, 40, 44, 48, 49, 51–55, 57, 58, 60, 70, 72, 73, 75–77, 84, 91–94, 96, 108, 109, 113, 116, 124–128, 136, 142, 143 Local government revenues, 19 Local law, 71 Local official, 10 Local resident, 68 Local resources, 73, 76 Local tax base, 125 Local tax revenues, 19, 126 Long term loans, 99 Loss-maker, 128 Low-cost housing, 40 Low level equilibrium trap, 14 Low quality land, 56 Low-tech, 126 Loyalty, 71 M M0, 91 M2, 88, 91 Machinery, 38 Macro-economic structure, 136 Magistrate, 67–69 Majority, 137 Mandarins, Mandatory foreign currencies conversion, 91 Manipulation, 66, 69 Manufacturing, 9, 14, 17, 26, 31, 37, 98, 105, 107, 109, 124, 127, 130, 132, 138 Manufacturing sector, 98, 105 Mao, 9, 14, 15, 16n3, 19 Maoism, 29, 66, 117, 136 Maoist collective ownership, 125 Maoist economy, 114 Maoist rural-urban registration, 19 Marginal product, 14, 15 Market, 2, 4, 5, 14–16, 18, 20, 21 activities, 78, 83, 136 bird, 84 demand, 27 economy, 2, 15, 66, 77–79, 83 law, 61 mechanisms, Marshes, 142 Marxian communism, Marxian jargon, 80 Marxism, 9, 80 Mass consumption, Material life, 70, 71 Mayor, 67–69 McKinnoncalls, Ronald I., 88 Means of production, 80 Media black-out, 70 Medical care, 71, 103, 119, 144 Merchant, 51 Meritocracy, 73 Microchips, Military, 70  Index     Millennia, Mine owner, 46 Mineral-processing, 56 Mini-Forbidden City, 32 Mini-Great Wall, 32 Minimal standards of living, Mining, 9, 49, 52, 53 Mini-Parthenon, 32 Mini-Sphinx, 32 Mini-Summer Palace, 32 Minsheng Bank, 80, 80n8, 80n9 Minsky Moment, 132, 132n18 Miracle, 145 Model, 2, Modern economy, 16, 17, 114 Modern growth, Modernisation, 6, 18, 114 Modernity, 14–16 Modern state, 18 Momentum, 94, 109 Monetary market, 91 Money, 88n1, 91, 97, 105–108, 124, 126, 128, 128n7, 132, 139 Money-lenders, 50 Money supply, 91, 93, 105 Monopolised land lease deals, 39 Monopolistic, 20, 78, 125 Monopoly, 78, 83 Monopsonic price, 125, 143 Monopsonistic, 20, 78 Monopsony, 78, 83 Mortgages, 50, 57, 92, 97, 101, 103, 107, 109 Motivation, Motor road, 30 Mudslide attack, 41 Multiple identities, 79–80 Municipal government, 39–41 175 N Nanny state, Nation, 2n1, 7, 9n11, 15, 20, 20n14 National Commission for Economic Planning, 38 National economy, 59, 137 National Environmental Protection Ministry, 58 National food provision, 143 Nationalisation of village farmland, 93 Nationalised land, 92 Nationalization, 125, 143 National poverty alleviation programs, 53 National subsidies, 45 National treasuries, 74 Nation-wide resident-employment registration, 114 Natural choice, Natural law, 29, 61 Near-free market, 80 Negative consequence, 142 Negative externalities, 88 Negative growth, 104 Negative impact, 57 Negative implication, 10 Negative outcome, Neo-classical economics, Neo-statism, Nepotism, 38 Net income, 103 New District, 32, 33, 37–44, 38n10 New Economic Policy, New economy, 14, 15 New Enclosure Movement, 20 New land, 142 New materials, 38 176  Index New technologies, 2, 56 New York, 103, 104 New York Times, 45, 45n15 Nominal salaries, 144, 145 Nominee, 68, 69 Non-farming use, 143 nongken bingtuan, 29 Non-material production, 105 North-China Plain, 141, 141n5, 142 Northwest, 8–10 Northwest China, 27, 58n42, 142n6 Nuisance, 143 O Obligation, 18, 66, 125 Official, 3, 7, 7n5, 7n9, 8, 10 Official statistics, 128, 145 Oil import, 46 Old district, 48 One-hour economic circle, 37 Open labour market, 14 Open recruitment, 80 Opportunity cost, 16 Optimism, Ordinary citizens’ income, Ordinary families, 101 Ordinary people, 66, 71 Ordos, 44–55, 46n16, 46n18, 46n19, 48n21, 48n22, 48n23, 50n24, 50n25, 51n27, 51n28, 52n30, 52n33, 53n35, 53n36, 54n37, 66, 72, 129 Organization, Orthodox, 80 Output, 30, 42, 46, 50, 52, 53, 59 Over-borrow, 88 Overproduction, 4, 137 P par, 91n2, 96, 97, 99, 101, 103–105, 104n15, 104n16, 108, 114, 117–120, 119n5, 124, 126, 129, 132, 136, 137, 139, 141, 142, 144, 145 Pareto optimum, 18 Party, 66–77, 79, 83, 84, 114, 119, 124, 136, 144 cadre, 144 control, 69 members, 10, 68 official, 136 Party-state, 5–10, 17, 66–77, 79, 83, 84 Payment, 40, 42, 46, 50, 92, 99, 119n5, 127 Peasantry, 137, 143 Peer pressure, 72, 73, 84, 88 Penalties, 124 Pensions, 67, 71, 144 People, 66–69, 72, 80n9, 92, 101–103, 119, 143 People’s Liberation Army, 29 People’s representatives, 67–69 Per capita income, 46, 104 Perfect plan, 66 Perfect storm, 72 Permission, 78 Personal achievement, 71 Personnel, 67, 69 Personnel performance, 67 Pessimism, Petrochemical centre, 34 Petrochemicals, 38 Physical construction, 55 Physiocracy, 114 Planning Commission, 78  Index     Policy implications, 21 Political/ideological return, 84 Political loyalty, 53 Pollutant and redundant factories, 42 Pollution allowance, 59 Pollution control, 73, 120 Pollution-intensive mode of production, 141 Ponzi scheme, 51 Population, 2, 8, 9, 9n12 density, 27, 29, 43, 94 increase, 17 Post-Mao, Poverty, 7, 7n5, 33, 53 Poverty line, 7, 7n5 Poverty-stricken, Power, 136, 145 centre, 38 corrupts, 71 Pragmatism, 83 Premodern, 14 Premodern economy, 14 Prerequisite, 43, 78, 103 Pressure, 92, 105 Primary education, 51 Prime age, 43 Principle-agent problem, 10, 71 Principle of secrecy, 10 Priority, 30, 35, 49, 56, 114 Private asset, 80 Private contractor, 40 Private debts, 109 Private investors, 78, 79, 127 Private land ownership, 20, 137 Private ownership, 81, 83 Private savings, 5, 107 177 Private sector, 39, 78, 137 Production capacity, 145 Production distortion, 142 Production function, 77 Productivity, 139 Profit, 81, 84, 99, 126n5, 128, 139n1, 143 Project, 19, 20, 29–33, 37–43, 51, 56, 72, 73, 77, 78, 94, 124, 126, 128 Proletarians, 137 Proliferation, 48, 73 Promotion, 10, 71–73, 76, 99, 103, 125 Promotion-cum-merits, 27 Promotion mechanism, 76 Properties, 92, 93n4, 98, 99, 104, 108, 139, 141 Property-hoarding, 104, 105 Property market, 105, 107 Property rights, 115 Prosperity, 3, 96 Pro-urban and pro-industrial government, 60 Provincial authorities, 68 Provincial economy, 33 Provincial governor, 67, 69 Provincial level, Pubic goods provision, 120 Public building, 48 Public goods, 103, 117 Public housing, 48, 53 Public office, 136 Public savings, 137 Public works, 40 Pudong, 37 Purchasing power, 108 178  Index Q Qing, Qing Period, 114 Qinghai Province, 55 Qinghai-Tibet Plateau, 55 Quality, 117 quanmin, 81 Quantitative analysis, 10 Quantitative easing, 91, 107, 124, 126 Quantitative easy, 105 R Radical change, 116 Radically developing West China, 29 Railway link, 40 Ratchet effect, 72, 73, 84, 88 Ratio, 88, 91, 97, 99, 101, 103, 104, 108, 114, 119, 129, 136, 141, 143 Rationale, 21, 66 Real estate, 39, 41, 49, 79, 96, 105, 107, 109, 124, 130, 139, 141 Reality, 2, 7, 10 Real market cost, 40 Recession, 51–52, 58, 96, 105, 136 Red card, 58 Re-distribution, 143–145 Reform, 18, 20, 74, 76, 78, 83, 84, 88, 136, 144, 145, 145n16 Refugee camp, 41 Regional authorities, 20 Regional fiscal autonomy, 20 Regional growth differentials, 27 Regional growth disparity, 28 Regional growth pattern, 20 Regional infrastructure, 31 Relationship, 113 Relatively barren locations, Relative poverty, 144 Relocated household, 48 Relocation, 31, 33, 41 ren ding sheng tian, 9, 29 Renewable resource, 99 Rent-free, 41 Rent-seeking, 19, 136 Representative, 67–69 Reputation, 98 Resident, 26, 38, 40–43, 48, 49, 53, 56, 60, 67–69, 80, 80n8, 80n9, 93, 93n4, 101, 101n10, 114, 119, 119n5, 126, 126n5, 142 Residential district, 38 Residential properties, 93 Resource, 4–7 allocation, 38, 77, 80, 83, 145 allocator, 83 endowment, 51, 55 Restriction, 58 Return, 14 Revenue, 27, 39–40, 49, 51–54, 57, 70, 74–76, 78, 84, 99–101, 105, 107, 127, 129 Revisionist, 16 Revolutionary, River-side cities, 43 Road link, 39 Rubber stamp, 68 Rule, 66, 70, 71, 83, 114, 124, 143, 145 Rule of law, Ruling party, Run-away government debts, 99 Run-away industrial pollution, Rural background, 51 Rural economies, 17  Index     Rural emigration, 16, 143 Rural household, 117 Rural hukou, 117 Rural immigrants, 16, 19, 117n1, 119, 143 Rural immigrant-workers, 15 Rural market, 118 Rural migrant workers, 143 Rural Minimum Living Standard Security System, Rural population, 45, 48, 117 Rural residents, 60 Rural-urban gap, 137 Rural-urban income gap, 15, 144 Rural-urban integration, 18 Rural workforce, 15 S Sack-in effect, 109 Salary, 144 san tong, 39 Savings rate, School catchment area, 136 Sea shore, 142 Secondary and tertiary sectors, 43 Secondary sector, 26 Secondary vested interested groups, 136 Second World War, Secretaries, 69–71 Sectoral recessions, Selected government officials, 69 Selector, 67 Self-discipline, 124 Self-serving tendency, 19 Self-sponsored immigrants, 117 Semi-market, 77, 80–84 Semi-urbanisation, 18, 19 179 Serve the people, Shandong Province, 15 Shanghai, 37, 46, 60n47, 79, 79n7, 99, 103, 104, 104n16, 119, 119n6, 120 shangyeyong di, 20 Shi Yuzhu, 80 Short cut, 15 Short run, 6, 53, 141 Short-termism, 88 shuiwu baogan, 74 Social group, 113 Social inequality, 117 Social justice, 15 Social welfare, 15–18, 16n3, 73, 117 entitlement, 16 provision, 15, 137 Socialist Transformation, 73, 78 Society, 2, Socio-economic change, Socio-economic externalities, 18 Socio-political revolution, 15 SOE, 78, 79, 84, 139n2, 139n3 Soft-budget, 84, 124, 124n1 Soft-landing, Soil pollution, 141 Solar panel, 56, 137 Solidarity, 70 Solider-turned migrants, 30 Song Ping, 38, 38n10 South Korea, 119 Soviet bureaucrats, 17 Soviet Union, 14, 33 Space, 34, 35, 49 Spendavailable fund, 88 Stability, Stalinist planner economy, Stalin-Maoism, 83 Stalin-Maoist economy, 83 180  Index Stalin’s Soviet Union, 66 Standard, 70 Standing member, 70 State, 4, 4n3, 6–9, 113, 114, 116, 119, 120, 123–126, 124n1, 136–146, 141n4 capitalism, 81, 136 control, 66, 78, 80, 83 failure, 6, 8, 9, 18, 66, 114, 136–145 grid, 39 ownership, 136 planning, 84 sector, State Bureau of Statistics, 26 State Council, 37, 56, 75, 76n3, 128 State-cum-human biomass, 69 State-led, 19, 28–31, 66, 70, 123, 137, 141, 146 growth, 124 growth model, 124, 137, 141, 146 State-owned banks, 50, 78, 91, 99, 137 State-owned commercial bank, State-owned enterprise, 78 State-owned land, 60 State-owned leasable land, 99 State-owned mega-companies, 139 State-owned mine, 53 State-owned sector, 50 State-run allocation, 38 State-run capitalism, 81 Statistics, Steel, 30, 34, 35, 42, 59n43, 117, 132, 137 Subsidies, 56, 57 Success, 53 Super-tanker, Supply, 6, 27, 49, 53, 83, 91, 94, 96, 105, 137 Supply-led approach, 27 Surface water, 33, 141, 142 Surplus, 14, 75, 81, 91, 143 Survival, 136 Sustainability, 54, 84 System, 69–71, 78, 81, 83, 114, 115, 117, 120, 125, 137, 142 T Taiwan, 119 Take-off, 57, 137 Targeted amount, 42 Taxation, 56, 107 Tax base, 125 Taxes, 117, 143 Tax-farming, 74 Tax holidays, 31, 56, 96 Taxman, 125 Tax rebate, 56 Technological change, 15 Technology, 14, 15 Telecommunication, 78 Territory, A textbook change, 114 Three links, 39 Tianjin, 27, 37, 43, 46, 46n20, 120, 142 Tier One cities, 103, 104 Time bomb, 104 Tokyo, 103, 104 Top-down, 70 Total investment, 31, 48 Touching cobbles to cross the river, Tourism, 9, 31 Trade centre, 35, 38 Trade network, 29 Trade-off, Trade surpluses, 91  Index     Tradition, 137 Traditional economy, 14–16 Transformable country, Transition, 15 Transport, 29, 30, 38, 43, 52, 60, 78 Transport hub, 29, 38 Trap, 14 Travel allowance, 41 Troika package, 56, 57 Trotskian ‘permanent revolution,’, Turning point, 46, 59, 74, 105, 125 U Ultrasound, UN, 7, 7n5, 7n7 Unclean air, 60 Underground water, 141 Unemployed workers, 57 Unemployment, 16, 18, 57, 72, 132 benefit safety net, 58 rate, 16 Unique autonomy, 113 Unlimited one-way migration, 103 Upper market, 49 Urban bias, 143 Urban-biased GDP creation, 124 Urban capital, 115 Urban centres, 27, 43, 55, 60 Urban developer, 20 Urban expansion, 2, 19, 48 Urban facilities and services, 117 Urban/industrial settlement, 88 Urbanisation, 8–10, 16–19, 16n3, 26, 39, 44, 48, 54, 55, 60, 66, 70, 73, 78, 84, 88, 94, 96, 103, 104, 114, 117, 119–120, 123, 144 Urbanisation rate, 88, 103, 104 181 Urban population, 26, 60, 93n4, 103, 114 Urban project, 94 Urban sector, 19, 143 US, 30, 77n5, 104n16 USSR, 30 Utilitarianism, 83 V Value Added Tax, 57, 74 Vanke, 79 Vast majority, 68 Veblen goods, 99 Vested interests, 10, 137 Village collective farmland, 78 Village farmland, 143 Village land, 125 Village products, 117 Virtual economy, 105 Visible hands, W Wage, 14–16, 53, 58, 73, 84, 92, 105, 117, 144–145 Wage bill, 144–145 Wage-earner, 144 War economies, Warehousing, 38 Water-intensive farming, Water link, 39 Water scarcity, 29 Water transport, 43 Wealth, 45, 46, 48, 108, 126, 136 Welfare entitlement, 15, 16, 16n3, 18, 19, 145 Welfare provision, 48 Wen Jiabao, 38 182  Index West, 2, West China, 29–32, 94, 96, 123, 127, 129, 141 Western democracy, 67 Western democratic societies, 124 Westernisation Movement, Winter for manufacturing, 26 Win-win plan, 71 Workforce, 78, 81, 84, 114, 120, 137, 143, 144 Workshop of the World, 98 World Bank, 88 World market, 46 Y Yangzi River, 43, 129 Yellow River, 33, 36, 142 Yuan, 31, 33, 38–46, 46n20, 48–54, 48n21, 51n27, 52n33, 56, 67, 69n1, 70, 76, 76n3, 78, 79n7, 91, 92, 99, 101, 104n16, 105, 126, 128–130, 129n13, 139n3, 141n5, 142, 144, 145, 145n16 Yuzhong County, 35 Z X xibu da kaifa, 29 Xining, 55–60, 66, 72 Xinjiang, 29 Xinjiang farming colonies, 30 Xinqu, 32, 38n10, 38n11, 42n14 X-ray, Zero-sum, 71 Zero-sum game, 107, 109 Zhejiang, 37, 45, 128n9, 142 zhengzhiju changwei, 70 Zhou Xiaochuan, 132 Zhoushan, 37 Zhu Rongji, 74 ... high-tech sectors in the world, including microchips and AI—to secure China’s leadership in global manufacturing China may not be bluffing and boasting: In the past few decades, a host of Chinese firms... Economic growth • Party -state • China Model © The Author(s) 2018 Y Zheng, K Deng, State Failure and Distorted Urbanisation in Post-Mao’s China, 1993–2012, Palgrave Studies in Economic History, https://doi.org/10.1007/978-3-319-92168-6_1... will inevitably be embodied by a growth in urbanisation in the past decade (2008-­18) Indeed, the party -state has pinned its hope of China’s next engine of growth on urbanisation. 10 According