Wealth Into Power : The Communist Party's Embrace of China's Private Sector

In Wealth into Power, Bruce Dickson challenges the notion that economic development is leading to political change in China, or that China's private entrepreneurs are helping to promote democratization. Instead, they have become partners with the ruling Chinese Communist Party to promote economic growth while maintaining the political status quo. Dickson's research illuminates the Communist Party's strategy for incorporating China's capitalists into the political system and how the shared interests, personal ties, and common views of the party and the private sector are creating a form of 'crony communism'. Rather than being potential agents of change, China's entrepreneurs may prove to be a key source of support for the party's agenda. Based on years of research and original survey data, this book will be of interest to all those interested in China's political future and in the relationship between economic wealth and political power. Cover......Page 1 Half-title......Page 3 Title......Page 5 Copyright......Page 6 Contents......Page 9 Tables and Figure......Page 10 Acknowledgments......Page 13 1 Introduction......Page 17 Explanations of democratization......Page 19 Consequences of Modernization......Page 20 Changes in Social Structure......Page 24 The Emergence of Civil Society......Page 29 The ccp’s strategy for survival......Page 34 Crony communism......Page 38 Precis of the book......Page 43 2 The Party’s Promotion of the Private Sector......Page 48 Indigenous development of china’s private sector......Page 49 Summary......Page 62 Township and Village Enterprises......Page 63 State-Owned Enterprises......Page 70 The Size of the Private Sector......Page 77 Local support for the private sector......Page 78 Conclusion......Page 80 3 Co-opting the Capitalists......Page 82 The political logic of co-optation......Page 83 The debate over co-opting entrepreneurs in china......Page 86 The ccp’s strategy for recruiting private entrepreneurs......Page 95 Growing Numbers of Red Capitalists......Page 99 Assessing the CCP’s Strategy for Co-optation......Page 102 Motivations for Joining and Not Joining the CCP......Page 109 Conclusion......Page 115 4 Bridges and Branches: The CCP’s Institutional Links to the Private Sector......Page 117 The corporatist logic of china’s business associations: the party’s bridge to the private sector......Page 118 Official Business Associations......Page 124 Self-Organized Business Associations......Page 132 Building party branches in the private sector......Page 135 Paternalistic Party Building......Page 136 Challenges of Party Building......Page 137 Structural Factors......Page 139 Ambivalence of Workers......Page 140 Attitudes of Entrepreneurs......Page 143 Management of Party Building......Page 147 Summary......Page 149 Conclusion......Page 150 5 Views on the Economic, Political, and Social Environments......Page 152 The pace, process, and extent of reforms......Page 154 Consequences of growth......Page 162 The business environment......Page 169 Overall life satisfaction......Page 176 Conclusion......Page 179 6 Private Entrepreneurs in Public Service: Participation in China’s Formal Political Institutions......Page 183 The growing prominence of entrepreneurs in politics in china......Page 184 Election and selection processes......Page 190 Explaining political participation by china’s entrepreneurs......Page 192 Political Characteristics......Page 193 Individual and Firm Characteristics......Page 195 Cultural Factors......Page 196 People’s Congresses......Page 198 People’s Political Consultative Conferences......Page 201 Village Elections......Page 205 Multiple Posts......Page 211 Summary......Page 212 Conclusion......Page 213 7 The Ripple Effects of Privatization: Corruption, Inequality, and Charity......Page 215 The spread of corruption......Page 216 Official Profiteering and Bureaucratic Commerce......Page 220 Asset Stripping and Insider Buyouts......Page 222 Land Grabs......Page 223 Bribes......Page 227 Inequality......Page 233 Charitable work among china’s entrepreneurs......Page 240 Conclusion......Page 251 8 Conclusion......Page 253 Prospects for change......Page 256 The future of the party......Page 260 Future implications......Page 266 Appendix: Survey Design......Page 271 Bibliography......Page 275 Index......Page 289 Cover 1 Half-title 3 Title 5 Copyright 6 Contents 9 Tables and Figure 10 Acknowledgments 13 1 Introduction 17 Explanations of democratization 19 Consequences of Modernization 20 Changes in Social Structure 24 The Emergence of Civil Society 29 The ccp’s strategy for survival 34 Crony communism 38 Summary 43 Precis of the book 43 2 The Party’s Promotion of the Private Sector 48 Indigenous development of china’s private sector 49 Summary 62 Privatization of collective and state-owned enterprises 63 Township and Village Enterprises 63 State-Owned Enterprises 70 The Size of the Private Sector 77 Local support for the private sector 78 Conclusion 80 3 Co-opting the Capitalists 82 The political logic of co-optation 83 The debate over co-opting entrepreneurs in china 86 The ccp’s strategy for recruiting private entrepreneurs 95 Growing Numbers of Red Capitalists 99 Assessing the CCP’s Strategy for Co-optation 102 Motivations for Joining and Not Joining the CCP 109 Conclusion 115 4 Bridges and Branches: The CCP’s Institutional Links to the Private Sector 117 The corporatist logic of china’s business associations: the party’s bridge to the private sector 118 Official Business Associations 124 Self-Organized Business Associations 132 Summary 135 Building party branches in the private sector 135 Paternalistic Party Building 136 Challenges of Party Building 137 Structural Factors 139 Ambivalence of Workers 140 Attitudes of Entrepreneurs 143 Management of Party Building 147 Summary 149 Conclusion 150 5 Views on the Economic, Political, and Social Environments 152 The pace, process, and extent of reforms 154 Consequences of growth 162 The business environment 169 Overall life satisfaction 176 Conclusion 179 6 Private Entrepreneurs in Public Service: Participation in China’s Formal Political Institutions 183 The growing prominence of entrepreneurs in politics in china 184 Election and selection processes 190 Explaining political participation by china’s entrepreneurs 192 Political Characteristics 193 Individual and Firm Characteristics 195 Cultural Factors 196 Contextual Factors 198 The results 198 People’s Congresses 198 People’s Political Consultative Conferences 201 Village Elections 205 Multiple Posts 211 Summary 212 Conclusion 213 7 The Ripple Effects of Privatization: Corruption, Inequality, and Charity 215 The spread of corruption 216 Official Profiteering and Bureaucratic Commerce 220 Asset Stripping and Insider Buyouts 222 Land Grabs 223 Bribes 227 Summary 233 Inequality 233 Summary 240 Charitable work among china’s entrepreneurs 240 Summary 251 Conclusion 251 8 Conclusion 253 Prospects for change 256 The future of the party 260 Future implications 266 Appendix: Survey Design 271 Bibliography 275 Index 289 In Wealth And Power In Contemporary China, Bruce Dickson Challenges The Notion That Economic Development Is Leading To Political Change In China, Or That China's Private Entrepreneurs Are Helping To Promote Democratization. Instead, They Have Become Partners With The Ruling Chinese Communist Party To Promote Economic Growth While Maintaining The Political Status Quo. Dickson's Research Illuminates The Communist Party's Strategy For Incorporating China's Capitalists Into The Political System And How The Shared Interests, Personal Ties, And Common Views Of The Party And The Private Sector Are Creating A Form Of Crony Communism. Rather Than Being Potential Agents Of Change, China's Entrepreneurs May Prove To Be A Key Source Of Support For The Party's Agenda. Based On Years Of Research And Original Survey Data, This Book Will Be Of Interest To All Those Interested In China's Political Future And In The Relationship Between Economic Wealth And Political Power. Introduction -- The Party's Promotion Of The Private Sector -- Co-opting The Capitalists -- Bridges And Branches : The Ccp's Institutional Links To The Private Sector -- Views On The Economic, Political, And Social Environments -- Private Entrepreneurs In Public Service : Participation In China's Formal Political Institutions -- The Ripple Effects Of Privatization : Corruption, Inequality, And Charity -- Conclusion. Bruce J. Dickson. Includes Bibliographical References (p. 259-272) And Index. In Wealth into Power, Bruce J. Dickson challenges the notion thateconomic development is leading to political change in China or thatChina’s private entrepreneurs are helping to promote democratization.Instead, they have become partners with the ruling Chinese CommunistParty to promote economic growth while maintaining the political statusquo. Dickson’s research illuminates the Communist Party’s strategyfor incorporating China’s capitalists into the political system and showshow the shared interests, personal ties, and common views of the partyand the private sector are creating a form of “crony communism.”Rather than being potential agents of change, China’s entrepreneursmay prove to be a key source of support for the party’s agenda. Basedon years of research and original survey data, this book will be of interestto all those interested in China’s political future and the relationshipbetween economic wealth and political power. Introduction The Party's promotion of the private sector Coopting the capitalists Bridges and branches : the CCP's institutional links to the private sector Views on the economic, political, and social environments Private entrepreneurs in public service : political participation in China's formal political institutions The ripple effects of privatization Conclusion.