Socialist Modernization “Socialist Economics with Chinese Characteristics”

The new regime Hua Guofeng in charge –Deng Xiaoping lays low at first October 1976: Gang of Four arrested (coup d’etat?) –“Hua joined a cabal…” (Dietrich: 238) –“Gang” criticized with Cultural Revolution labels The “Whateverists” don Maoist mantle March 1977: Deng returns

Deng makes his move Leads criticism of Gang of Four Gets ducks in order through Party Organization Department, Central Discipline Inspection Commission –Purges of “leftists” –Rehabilitations of allies, “rightists” Boldly counters Maoism with Pragmatism –“Seek truth from facts.” –“Red cat, white cat; what’s the difference, as long as it catches mice?”

Groundwork for “capitalist road” Class struggle no longer needed Law of value restored –Marxism says value-price relation is core of capitalism; surplus value = profit –This was Mao’s central critique of Khruschev’s economics: “putting profit in command” Foreign trade encouraged Commune system begins to be undermined

Conventional reform vs. Bold reform Conventionals (Chen Yun leads) –Socialist planning –Steady, even growth –Gradual Bolds (Deng, with Zhao Ziyang and Hu Yaobang) –East Europe and Western influence (modernization theory) –Individual ownership (collective secondary) –Market and price orientation –“socialism with Chinese characteristics” (= capitalism?)

Reforms in practice: individualism “Responsibility system” replaces Peoples Communes with individual incentive Breaking the iron rice bowl –Welfare rights reduced –End of guaranteed job Socialist commodity economy encourages consumption via market

Reforms in practice: open door Trade, investment, tourism, students Special Economic Zones (SEZs) –Foreign investment –Joint ventures –Export-led development (“Asian tiger” model)

Four modernizations Agriculture Industry Science and technology National defense

Problems Urban-rural gap grows wider Rapid resource depletion (esp. forests & farmland) State-sector inefficiency Crime and corruption

“The Fifth Modernization If the liberal economic model (“modernization” ) is good, why not the liberal political model?

Demands for democracy Democracy Wall –Tolerated, even approved by Deng… –… as long as the target was Maoism, Cultural Revolution The line drawn: Party is beyond criticism –“Four Cardinal Principles” installed –Four Great Freedoms removed

Developments in the ’80s Hua out; Hu Yaobang chair, Zhao Ziyang premier (Deng allies) Deng controls military Maoism, even Marxism questioned by leaders; but replaced by what?

Developments in the ’80s Foreign affairs –Armed conflict with Vietnam –Acquiring Hong Kong: “one country, two systems” Domestic affairs –Return to clan traditions –One-child policy –Emphasis on restrictive higher ed, neglect of commune public ed –Commune health care also dismantled

What were the effects of these changes in the rural villages? Gao village as case study

Prelude to tragedy Late ’80s: –economy overheats –Inflation –Corruption : student movement grows –Physicist Fan Lizhi becomes leading dissident –Even Hu Yaobang, Zhao Ziyang advocate “socialist democracy

Prelude to tragedy What about Deng? –Tensions with Hu Yaobang; Hu resigns as General Secretary –Resigns from Politburo, but Still head of military commission Secretly still “helmsman –Li Peng on the rise “Multiple centers of power” (Dietrich: 278)

The spark Hu Yaobang dies Why did the students like him?

Tiananmen Square: Chronology

Tiananmen: Crackdown