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1. At a Dead End? China’s Drive to Reform Defense Science and Technology Institutes Stalls

Author:
Arthur S. Ding and K. Tristan Tang
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Since becoming China’s top leader ten years ago, General Secretary Xi Jinping has sought to sustain a three-decade effort to reform the defense industry in order to advance the development of defense technology and improve the People’s Liberation Army’s (PLA) capabilities. Recent reforms have focused on transforming defense science and technology (S&T) institutes into enterprise-like entities, but due to political and economic impediments, progress has been slow. This article examines the rationale for defense industry reform, assesses progress in implementation and explains difficulties encountered in the reform process.
Topic:
Science and Technology, Reform, and Defense Industry
Political Geography:
China and Asia

2. Will China’s new financial regulatory reform be enough to meet the challenges?

Author:
Martin Chorzempa and Nicolas Veron
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Effective financial supervision plays a crucial role in maintaining financial stability and a healthy financial system. China’s leadership has made financial risk a core priority, and in reforms approved in March 2023, it reassigned regulatory responsibilities, creating a new supervisory body that will take over some responsibilities from the central bank, the banking and insurance regulator, and the securities regulator. The aim is that a change to the financial supervisory architecture (who does what in financial supervision) will make China’s system more effective and stable. In this policy brief, we argue that this incremental reform will not solve the core issues China faces in financial supervisory effectiveness. We provide an overview of China’s large and complex financial system, including its largely state-owned banks (some of which are the largest in the world by assets), securities markets and other financial intermediaries. Traditional divisions between different types of activities and institutions have been blurred by the rise of large financial conglomerates, risk-transfer techniques and internet-based finance. Reforms in 2018 to China’s supervisory architecture did not eliminate perceived shortcomings, including failures to effectively regulate financial conglomerates, fintech and regional banks. We then survey global benchmarks against which China’s financial supervisory architecture can be compared, including the United States and European Union. China’s supervisory system is already more streamlined, at least on paper, than either of these most comparable global counterparts. Like them, China’s system does not correspond exactly to any of the three textbook archetypes of supervision: sectoral, twin-peaks or integrated supervision. Ultimately, the effectiveness of China’s financial supervisory architecture suffers from excessive state intervention in the financial system through other channels, including through the unique and pervasive influence of the communist party, which hampers supervisory independence and makes it difficult to establish accountability for regulatory failures. While the recently announced reform may improve coordination across supervisory bodies, coordination within the new quasi-integrated supervisor, across central departments, and between them and local branches, will remain a challenge.
Topic:
Reform, Regulation, Finance, and Financial Stability
Political Geography:
China and Asia

3. China Maritime Report No. 28: Bitterness Ends, Sweetness Begins: Organizational Changes to the PLAN Submarine Force Since 2015

Author:
J. Michael Dahm and Alison Zhao
Publication Date:
06-2023
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
“Above-the-neck” reforms in the People’s Liberation Army (PLA) that began in 2015 directed the development of a new joint operational command system that resulted in commensurate changes to PLA Navy submarine force command and control. Additional changes to tactical submarine command and control were driven by the evolution and expansion of PLA Navy surface and airborne capabilities and the introduction of new longer-range submarine weapons. Follow-on “below-theneck” reforms inspired significant organizational change across most of China’s military services. However, the PLA Navy submarine force, for its part, did not reorganize its command structure but instead focused on significant improvements to the composition and quality of its force. Between 2017 and 2023, the PLA Navy submarine force engaged in a notable transformation, shuffling personnel and crews among twenty-six submarines—eleven newly commissioned and fifteen since retired—relocating in-service submarines to ensure an equitable distribution of newer, more capable submarines across the fleet. Observations of infrastructure improvements at PLA Navy submarine bases portend even more changes to submarine force structure in the coming years.
Topic:
Armed Forces, Reform, Maritime, Submarines, and People's Liberation Army (PLA)
Political Geography:
China and Asia

4. Decoding China’s Dilemma: The Difficulties Of Economic Reform

Author:
Sunny Cheung
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On November 27, the State Council of the People’s Republic of China (PRC) unveiled a new policy, titled “Notice on Strengthening Financial Support Measures for the Private Economy (关于强化金融支持举措 助力民营经济发展壮大的通知)” (People’s Bank of China, November 27). The notice introduces a set of 25 measures crafted to reinvigorate the private sector. These prioritize key areas such as technological innovation, green initiatives, and primary support for small to medium-sized enterprises. The package includes increasing financial assistance and gradually enhancing the proportion of loans to private businesses. It underscores the importance of facilitating credit, lowering interest rates, issuing bonds, and other kinds of financial instruments to meet the varied financing needs of private enterprises. This policy measure echoes mandates put forth during the 20th Party Congress in October 2022 and Central Financial Work Conference held at the end of October 2023 in response to China’s deepening economic woes (Xinhua, November 1). This backdrop has prompted policies aimed at addressing the challenges facing the Chinese economy. In October, the PRC National Bureau of Statistics announced that the Consumer Price Index (CPI) fell by 0.2 percent year-on-year—worse than expected and marking a contraction since July (RTHK, November 9). This ominous data, which includes price deflation for both July and October this year, is indicative of significant weakness in domestic demand, particularly due to the underperforming real estate market, which affects citizens’ expectations for asset prices. The ongoing economic downturn in China also refutes the notion that economic chaos would clear up after the abandonment of the Zero-Covid policy. This situation is also similar to the Japan-style recession in the 90s in which consumption and investment are further repressed in favor of paying down debt. China’s recent response has been to implement a series of economic stimulus measures in an attempt to revive its weakening national economy.
Topic:
Economics, Reform, Business, and Banking
Political Geography:
China and Asia

5. The Chinese Debate on Economic Reform

Author:
Arran Hope
Publication Date:
09-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
A steady drumbeat of ominous data and troubling commentary on the state of China’s economy has punctuated the summer months. Reports from the commentariat in the anglosphere have provided diagnostic analysis and detailed potential policy solutions that the Chinese government might pursue. However, China’s central decision makers in the Politburo or in the National Development and Reform Commission (NDRC), are more likely to take their cues from internal advisors and domestic experts within the PRC than from those outside. As such, one fruitful exercise is to take the temperature of voices within the system to determine the extent to which their perceptions align or diverge from those in the West, and to ascertain which views carry weight with the final arbiters of economic policy in Beijing. By doing so, analysts outside of China may better comprehend the future (mis)steps that China will take as it struggles to achieve its aim of “basically realizing socialist modernization.” In July, the Chinese government held several meetings and released documents pertaining the economy. On July 24 the Politburo met to discuss the economy as it usually does this time of year. But on the same day, a 17-point plan was issued by the NDRC, following on from a 31-point plan co-issued by the State Council and the Central Committee ten days prior. These send a clear message about the concern in government over China’s straitened circumstances. Indeed, just this week, the NDRC announced a new “private economy development bureau” to further support private industry (NDRC, September 4). The assessment of the situation is put bluntly in the Politburo readout: “the current economic system is facing new challenges… insufficient domestic demand, difficulties in some enterprise’s operations, multiple risks in key areas, and a complex and severe external environment.”
Topic:
Development, Economics, and Reform
Political Geography:
China and Asia

6. Civil Society-Led Truth-Seeking Initiatives: Expanding Opportunities for Acknowledgment and Redress

Author:
Eduardo González Cueva, Jill Williams, and Félix Reátegui Carrillo
Publication Date:
04-2022
Content Type:
Special Report
Institution:
The International Center for Transitional Justice (ICTJ)
Abstract:
This study reviews civil society-led truth-seeking initiatives in different regions of the world drawing on their experiences, methodologies, and contributions. It identifies lessons learned and best practices and presents practical options for activists considering similar endeavors. The report is inspired by and builds on the work of transitional justice practitioners, including at ICTJ, who deploy wide-ranging modalities to advance truth seeking, including oral history, artwork, theatrical productions, reenactments, museum exhibits, memorials, films, and documentation projects. The right to the truth is a fundamental component of redress for victims of massive human rights violations. Institutional silence, suppression of complaints, and refusal to acknowledge such violations further perpetuates them by protecting and enabling those responsible. In many contexts, government-supported truth commissions are not possible. Moreover, total reliance on state-sanctioned formats can result in one-size-fits-all approaches to truth seeking, devoid of creativity or potential. In the absence of political will, civil society actors have responded to demands for truth by devising and carrying out truth-seeking efforts independently, using a wide array of tools and methods. Civil society-led truth-seeking initiatives provide a practical channel by which communities can respond to demands for redress when the state fails to deliver on its obligations to protect victims’ rights. While truth-seeking initiatives can take many forms, they generally share three main objectives: (1) establish the facts about human rights violations that remain disputed or denied and validate different interpretations and analyses of those facts; (2) protect, acknowledge, and empower victims and survivors; and (3) inform public policy, promote institutional reform, and contribute to social and political transformation. Through an examination of case studies from the United States, Colombia, Scotland, and West Papua, the report highlights common considerations and procedural questions that civil society groups should consider when designing and implementing a truth-seeking mechanism. These considerations can help inspire and guide civil society actors as they lead truth-seeking efforts in the United States and around the world.
Topic:
Reform, Transitional Justice, Youth, Criminal Justice, Memory, Engagement, Reparations, Gender, Atrocity Prevention, and Truth and Reconciliation
Political Geography:
Europe, Asia, Colombia, South America, North America, and United States of America

7. Will the Xi Jinping Leadership Take Up Reformist Policies After the 20th Party Congress?

Author:
Willy Wo-Lap Lam
Publication Date:
09-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
That President Xi Jinping and his faction will dominate the 20th Party Congress is apparent from the Politburo announcement that the week-long, five-yearly conclave will take place on October 16. The Politburo meeting, which was held on August 30, said that the guiding principle of the party and country would remain “Xi Jinping Thought on Socialism with Chinese characteristics for a new era” (Gov.cn, October 16). The Politburo reasserted that the Chinese Communist Party (CCP) would follow principles laid down by Mao Zedong, Deng Xiaoping, Jiang Zemin, Hu Jintao, and above all, Xi Jinping. However, the dictums on reform and the open door – as well as the “lie low” foreign policy – promulgated by “Chief Architect of Reform” Deng in the 1980s and 1990s were conspicuously absent from the Party Congress announcement. Instead, the communique emphasized the so-called “three continuances” (三个继续, san ge jixu). This is a reference to Xi’s efforts to uphold Mao Zedong-style “common prosperity” (共同富裕, gongtongfuyu); to sustain “party construction” (党的建设 (dang de jianshe) in order to ensure the loyalty of cadres; and to work toward the formation of a “community with a shared future for mankind” (人类命运共同体,renlei mingyun gongtongti) (Xinhua, August 30; Ming Pao, August 30).
Topic:
Politics, Reform, Leadership, Domestic Politics, and Xi Jinping
Political Geography:
China and Asia

8. Beijing Winter Olympics 2022: Sports, Law, and Policies

Author:
Tim Harcourt, Deborah Healey, Keiji Kawai, and Yang Pei
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
China Studies Centre, The University of Sydney
Abstract:
The 2022 Beijing Winter Olympics were hosted amid the Covid-19 pandemic and surrounded by concerns and controversies. This Understanding China Brief results from a roundtable discussion organized by the China Studies Centre and the Centre for Asia and Pacific Law of Sydney University on 3 February 2022 to examine four aspects of the Beijing Olympics: boycotts, COVID- 19 control, law reform, and the economics of the Olympics.
Topic:
Economics, Reform, Sports, Conflict, Olympics, Pandemic, and COVID-19
Political Geography:
China and Asia

9. Disrupting Cycles of Discontent: Transitional Justice and Prevention in the Philippines

Author:
Robert Francis B. Garcia
Publication Date:
07-2021
Content Type:
Special Report
Institution:
The International Center for Transitional Justice (ICTJ)
Abstract:
The end of authoritarianism in the Philippines in 1986 was an important opportunity to pursue transitional justice and effect societal transformation. This report examines how reparations, legal and institutional reforms, and truth telling about historical injustice and marginalization have contributed to prevention. But it also reveals how the limited and delayed nature of these efforts fits within a broader failure of society to address the root causes and legacies of the past. This, in turn, allows the risk of recurrence to persist. The study examines how the Philippines has responded to the repression and corruption under former president Ferdinand Marcos as well as armed conflicts that persist today. Reparations, for example, have contributed to the recognition and inclusion of victims of human rights violations by addressing grievances, providing redress, and increasing awareness of rights. In the Bangsamoro region, a truth commission addressed issues such as land dispossession, marginalization, and discrimination and made concrete recommendations for change. It is reasonable to argue that transitional justice in the Philippines has played a role in preventing the recurrence of the most serious and widespread human rights violations associated with Marcos. But many of its measures were not implemented at the opportune time and were not sufficient to either fully address the legacies of the past or to maximize their contributions to prevention. The lack of accountability for crimes committed under Marcos and the limited accountability in the decades since have perpetuated a culture of impunity. Post-dictatorship reforms have achieved much in way of reestablishing the democratic order but have not removed a corrupt system that can be traced back to colonial times. Limited structural change and economic policy have failed to address inequality. The persistence of rampant human rights violations since 1986 and the country’s recent swing back to authoritarianism are arguably at least partially the result of society’s failure to learn the lessons of the past.
Topic:
Reform, Criminal Justice, Memory, Institutions, Reparations, and Truth and Reconciliation
Political Geography:
Asia, Philippines, and Oceania

10. Measuring Results and Monitoring Progress of Transitional Justice Processes

Author:
Mateo Porciuncula
Publication Date:
01-2021
Content Type:
Special Report
Institution:
The International Center for Transitional Justice (ICTJ)
Abstract:
Transitional justice processes are complex, politically contested, and not necessarily linear. Because of this, they present unique theoretical and practical challenges for measuring results, which include challenges for gathering data, registering unintended outcomes, reporting progress, providing feedback to interventions, and extracting useful information to establish impact or counterfactuals. Based on a desk research and a series of discussions with practitioners, policymakers, and academics, this report considers the following: The different roles monitoring and evaluation systems can play and the questions they can answer at different stages of a transitional justice process. This report recommends conducting assessments early on to inform design and to build feedback loops into ongoing processes. Key features of transitional justice processes, including their complexity, their political nature, and the difficult contexts where they are usually implemented. Combining qualitative and quantitative methods and designing monitoring and evaluation approaches that allow for capturing rich contextual data and unexpected results. Power dynamics, exclusion, and language, particularly in fragile contexts and when dealing with vulnerable populations. Monitoring and evaluation approaches that are conflict sensitive, victim centered, and participatory. The Sustainable Development Agenda as a framework for measuring results of transitional justice. While a politically legitimate and useful conceptual framework, there is room for improvement as current indicators are not best suited to contexts where a large proportion of the population has experienced human right abuses. Overall, stakeholders in transitional justice should take a “user-centered” approach to measuring progress and results, one that puts the people that a process is meant to serve at the center. In doing so, they can focus on collecting what matters, establishing feedback loops, and learning from and continually improving their interventions.
Topic:
Reform, Transitional Justice, Youth, Criminal Justice, Memory, Institutions, Gender, and Truth and Reconciliation
Political Geography:
Africa, Europe, Middle East, Asia, South America, and North America

11. Transitional Justice and Prevention: Summary Findings from Five Country Case Studies

Author:
Roger Duthie
Publication Date:
06-2021
Content Type:
Special Report
Institution:
The International Center for Transitional Justice (ICTJ)
Abstract:
This report summarizes the findings of an ICTJ research project exploring the role that transitional justice can play in preventing both massive and serious violations of human rights as well as violence and violent conflict more broadly. Its conclusions are drawn from case studies of five countries—Colombia, Morocco, Peru, the Philippines, and Sierra Leone—representing a range of complex contexts in which societies are grappling with violent conflicts, repressive governments, or acute inequality. It argues that transitional justice should be an integral element of conflict prevention, peacebuilding, and sustainable development. The report contends that transitional justice can contribute to prevention by: (1) addressing the exclusion and other harms that victims experience due to human rights violations they suffered; (2) addressing the exclusion and related injustices that communities and social groups face as a result of targeted violations and structural marginalization; (3) strengthening the rule of law and making it more inclusive; and (4) catalyzing the reform of institutions and laws that have perpetuated violence and discrimination as a means to exclude marginalized groups. The report also identifies a number of limitations to the preventive impact of transitional justice, including: (1) tensions that can exist between justice and prevention initiatives, especially in the short term; (2) justice processes that may be seen to be insufficiently participatory or even exclusionary themselves; (3) a lack of implementation of measures and reforms that are designed or recommended; and (4) contextual factors such political dynamics, security concerns, and the absence of broader structural change. The report concludes that applying a prevention lens to transitional justice does not fundamentally change how the field is understood, but it does have broad policy implications. First, fostering inclusion should be a primary objective of both the outcomes and the design of transitional justice mechanisms. Second, assessing the preventive role of transitional justice requires a long-term approach to inclusion and reform as these involve changes to social relationships, institutions, and structures. Third, prevention requires a society to confront both the root causes and consequences of injustice, and transitional justice processes can contribute greatly in this regard. However, they alone are not enough.
Topic:
Reform, Transitional Justice, Criminal Justice, Memory, Institutions, Reparations, and Truth and Reconciliation
Political Geography:
Africa, Middle East, Asia, South America, North Africa, North America, Sierra Leone, Morocco, Peru, and Oceania

12. From hermit kingdom to miracle on the Han

Author:
Douglas A. Irwin
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
In 1960, South Korea’s exports were about 1 percent of GDP, and the country’s ability to import depended almost entirely on US aid. After changing its foreign exchange and trade policies in the mid-1960s, Korea saw a surge in exports to more than 10 percent of GDP by the end of the decade. What factors account for the shift in policy that enabled this dramatic export growth to occur? The United States helped initiate the process by withholding financial assistance, pressuring Korea to devalue its currency and reform its foreign exchange regime. Initially, the Korean government resisted taking these steps, but in 1964 it became firmly committed to an export promotion strategy to boost foreign exchange earnings and end its dependence on American aid.
Topic:
Economics, Foreign Exchange, Reform, Exports, and Trade
Political Geography:
Asia and South Korea

13. Reforms and Opening of China's Financial System

Author:
Marcos Caramuru, Kamila Aben Athar, Karin Vazquez, and Yan Lan
Publication Date:
05-2021
Content Type:
Special Report
Institution:
Brazilian Center for International Relations (CEBRI)
Abstract:
China has been the country to better recover from the economic crisis of the pandemic. Its FDI increase, many trade agreements being signed and the Chinese Central Bank deciding to launch a new digital currency are some of the highlights. However, there are still challenges on the horizon and the main one is the relationship with the United States, which has hit a historic low point. Future Beijing-Washington talks, and the results of the many internal and external economic reforms will define China’s role for the next few years. The report summarizes the main finding, analysis and conclusion of the XXIII China Analysis Group Meeting, with the participation of Yan Lan, CEO of Lazard, Anna Jaguaribe, Ambassador Marcos Caramuru and Karin Vazquez.
Topic:
Reform, Finance, and Economic Crisis
Political Geography:
China, Asia, and United States of America

14. The Contribution of Parliament's to Sustainable Development Goal 16 Through Security Sector Governance and Reform

Author:
Merle Jasper
Publication Date:
11-2021
Content Type:
Case Study
Institution:
Geneva Centre for Security Sector Governance (DCAF)
Abstract:
The United Nations’ 2030 Agenda is a global action plan for sustainable development and a key priority for the UN and its member states. Within the 2030 Agenda, SDG 16 has a pivotal role highlighting the security-development nexus and emphasizing the need for strong institutions which adhere to good governance principles. The achievement of SDG 16 requires that national security sectors are well governed, subject to civilian oversight, and respectful of human rights and the rule of law. Against this background, this case study compilation circles in on parliaments, as key oversight actors, and questions how they contribute to SDG 16 through their role in security sector governance and reform. It is based on an explorative review of four country studies on Colombian, Georgia, Nigeria and the Philippines, written by regional experts. Their observations form the foundation for a comparative analysis of common challenges and effective practices of parliaments contributing to the achievement of SDG 16.
Topic:
Security, Development, Governance, Reform, Sustainable Development Goals, Sustainability, and Parliamentarism
Political Geography:
Africa, Europe, Asia, Philippines, Colombia, South America, Georgia, Nigeria, and Oceania

15. Restoring Civic Trust in the Post-Pandemic Era: What makes citizens trust governments?

Author:
Sarah Cliffe and Paul von Chamier
Publication Date:
05-2021
Content Type:
Commentary and Analysis
Institution:
Center on International Cooperation
Abstract:
We are still engaged in a race against time of increasing urgency, not only in terms of flattening the pandemic curve in situations such as those India and many Latin American countries face, but also in restoring trust that government and international institutions can act, and act successfully, in face of 21st century crises. We are seeing both deeply negative and truly positive developments. Many parts of the world enter the depths of the third wave of the pandemic, with record highs in new daily infections, and in human suffering behind the numbers. Yet at the same time there is positive news: on medical innovation, on international liquidity, on tax cooperation, and on climate. The question is which will win out: can positive progress move fast enough to counteract the trust crisis? In 2020, CIC published a number of pieces on trust in high-, middle- and low-income countries and in international organizations. Last summer, trust in government had in many parts of the world increased: we made the argument that people were faced with a brutal reminder of what governments are for and hence had turned back to the state, but also warned that trust bubbles in crises often evaporate within a year if people do not see sustained and credible action. This analysis from the CIC team looks at what empirical research says about why trust matters for many different forms of political, social, and economic development—and why we should take declining trust seriously. The team also takes a look at what we know about the determinants of trust, in particular corruption, inequality, and history. Lastly, this analysis discusses the different policy options to restore and nurture trust.
Topic:
Security, Governance, Reform, Multilateralism, Economic Development, and COVID-19
Political Geography:
China, Asia, North America, and United States of America

16. China Maritime Report No. 14: Chinese Views of the Military Balance in the Western Pacific

Author:
Eric Heginbotham
Publication Date:
06-2021
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
This report examines Chinese views about the military balance of power between China and the United States in the Western Pacific. It argues that while there is no single “Chinese” view on this topic, Chinese analysts tend to agree that 1) the gap between the two militaries has narrowed significantly in recent years, 2) the Chinese military still lags in important ways, and 3) Chinese military inferiority vis-à-vis the U.S. increases the further away it operates from the Mainland. In terms of specific areas of relative strength, the Chinese military has shown the greatest improvements in military hardware, but has farther to go in the area of jointness, training, and other military “software.” Nevertheless, despite continued criticism from senior civilian leaders, training quality has likely improved due to a greater focus on realism, and recent military reforms have, to a degree, improved the prospects for jointness.
Topic:
Armed Forces, Reform, Strategic Competition, Military, and Competitive Balance
Political Geography:
China, Asia, North America, and United States of America

17. Early Warning Brief: Introducing the “New, New” China Coast Guard

Author:
Ryan D. Martinson
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
In the past decade, the China Coast Guard (CCG, 中国海警, zhongguo haijing) has experienced two major reforms. The first, which began in 2013, uprooted the service from the Ministry of Public Security—where it was organized as an element of the People’s Armed Police (PAP)—and placed it under the control of the State Oceanic Administration (SOA), a civilian agency. In the process, the CCG was combined with three other maritime law enforcement forces: China Marine Surveillance (CMS), China Fisheries Law Enforcement (CFLE), and the maritime anti-smuggling units of the General Administration of Customs. The resulting conglomerate was colloquially called the “new” CCG, differentiating it from the “old” CCG of the Ministry of Public Security years. The second reform began in 2018, when the “new” CCG, now swollen with the ranks of four different forces, was stripped from the SOA and transferred to the PAP, which itself had just been reorganized and placed under the Central Military Commission (CMC) (China Brief, April 24, 2018). While much research has been done on the first reform, little is known about the second, at least in the English-speaking world. This article seeks to answer basic questions about the “new, new” CCG. What are its roles/missions, organization, and force structure? How does it differ from the CCG of the SOA years? How is it similar? What progress has been made two years after the second reform began?
Topic:
Law Enforcement, Armed Forces, Reform, and Borders
Political Geography:
China and Asia

18. The (Im-)Possibility of Rational Socialism: Mises in China’s Market Reform Debate

Author:
Isabella Weber
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Investigate the long first decade of reform in China (1978-1992) to show that Mises, in particular his initiating contribution to the Socialist Calculation Debate, became relevant to the reconfiguration of China’s political economy when the reformers gave up on the late Maoist primacy of continuous revolution and adhered instead to an imperative of development and catching up. During the Cultural Revolution, Mao had rejected the notions of efficiency and rational economic management. In the late 1970s, the reformers under Deng Xiaoping’s leadership elevated these notions to highest principle. As a result, Mises’ critique that socialism could not achieve a rational economic order came to be debated throughout the 1980s and Chinese economists developed their own reading of Mises and the Socialist Calculation Debate. When Deng Xiaoping reinstated market reforms in the early 1990s after the Tiananmen crackdown, a history of thought review of the possibility of rational socialism and socialist markets helped to justify the Socialist Market Economy with Chinese Characteristics the official designation of China’s economic system to this day.
Topic:
Markets, History, Reform, Economy, and Socialism
Political Geography:
China and Asia

19. China’s COVID Response and the State of Local Finance in the Xi Jinping Era

Author:
Christine Wong, Carl Riskin, and Qin Gao
Publication Date:
09-2021
Content Type:
Video
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
In China’s decentralised fiscal system, since virtually all vital public services such as education, healthcare, and social welfare are provided by local governments, a well-functioning intergovernmental fiscal system is essential to ensure local governments have adequate incentives and resources to perform their role. Since 1978, China has overhauled its public finances to create a system able to finance government operations, support economic growth, and supply revenues for the government’s ambitious industrial policies and international initiatives. The COVID-19 pandemic has posed new challenges to China’s public finance that is likely to continue in the years to come. This lecture provides an update on local finance through three decades of reform including those implemented since 2013, when a comprehensive package was announced, with promise of a realignment of central-local revenues and expenditures by 2020. The findings are that local fiscal status has deteriorated since 2015 due to a combination of slowing growth, tax cuts, and reform pressures. This has already led to a decline in social spending as a share of GDP, threatening to reverse some recent gains in improving public services and undermining other policy goals. This event is part of the 2021-2022 lecture series on “COVID-19 Impacts and Responses in China and Beyond” and is co-sponsored by the China Center for Social Policy and the APEC Study Center at Columbia University
Topic:
Reform, Finance, Fiscal Policy, Xi Jinping, and COVID-19
Political Geography:
China and Asia

20. Uzbekistan’s new Central Asia policy: The economic rationale and political implications of good neighbourliness

Author:
Kristiina Silvan
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Under the leadership of President Shavkat Mirziyoyev, Uzbekistan has embarked on a moderate reform programme that aims to achieve socio-economic growth without undoing the country’s authoritarian political system. The programme has implications beyond Uzbekistan’s borders because it has changed the way Uzbekistani foreign policy is formulated and implemented. Uzbekistan’s former isolationist stance has shifted to a foreign policy opening, which is most noticeable in the improvement of its relations with its neighbours. This Working Paper analyzes “good neighbourliness”, the key concept of Uzbekistan’s new Central Asia policy. It details the amendment of Uzbekistan’s bilateral relations with its neighbours and points to the positive reception of Uzbekistan’s new regional policy in Russia, China, and the West. The paper argues that while “good neighbourliness” is a pragmatic strategy rooted in economic rationality, the policy’s regional implications are substantial. It is laying the necessary foundation for sustainable Central Asian co-operation from within in a way that is acceptable to the Central Asian states and big non-regional actors alike.
Topic:
Regional Cooperation, Bilateral Relations, Authoritarianism, Reform, and Leadership
Political Geography:
Russia, China, Europe, Central Asia, Asia, and Uzbekistan

21. Trade Reform and the Evolution of Agglomeration in Vietnamese Manufacturing

Author:
Đoàn Thi Thanh Ha and Hông Quỳnh Nguyen
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
It is well-documented that agglomeration contributes to productivity growth. However, concentrations of workers could also lead to increasing regional income disparities. Therefore, understanding the evolution of agglomeration is relevant for the formulation of industrial policy and inclusive growth. This study documents the extent, pattern, and determinants of agglomeration in Vietnamese manufacturing during 2002–2016, a period when substantial economic reform took place. Our major findings are three-fold. First, agglomeration, as measured by the Ellison–Glaeser index, has declined since the mid-2000s. Second, there exists significant sectoral heterogeneity in the level and trend of agglomeration. Third, we do not find a significant impact of trade and foreign direct investment on agglomeration per se. However, foreign direct investment in port districts does contribute to disagglomeration.
Topic:
International Trade and Finance, Reform, Manufacturing, and Productivity
Political Geography:
Asia and Vietnam

22. The Value-Added Tax Reform and Labour Market Outcomes: Firm Level Evidence from China

Author:
Yuxiang Yang and Hongyong Zhang
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The tax incentives designed to stimulate firm investment may have a large impact on labour market outcomes. Using a comprehensive data set containing more than 1 million Chinese manufacturing firms during the period 2000–2013 with a difference-in-difference approach, we examine the impact of the value-added tax reform in 2004–2008 on the firm-level labour market outcomes. We find that firms in eligible industries and regions (treated firms) enjoying lower costs of purchasing fixed assets under the reform tended to increase capital investment and reduce employment relative to firms that did not have tax incentives (the control firms). Compared with the control firms, the treated firms became more capital intensive and had an increase in average wage but a decline in labour income share. We also provide evidence that the substitutions of labour input by capital input is associated with increases in firm productivity and the share of skilled workers, but not imported capital goods.
Topic:
Labor Issues, Reform, Tax Systems, and Labor Market
Political Geography:
China and Asia

23. Intergenerational Transmission of Human Capital: The Case of Thailand

Author:
Sasiwimon W. Paweenawat
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study provides evidence of intergenerational transmission of human capital in Thailand, using data from the Thailand Labor Force Survey of 1985–2017. Employing the instrumental variable approach using Thailand’s compulsory educational reform of 1978 as the instrumental variable to minimise bias caused by the endogeneity of parental education, this study estimates the effect of parental education on children’s education and their labour market outcomes. Besides reaffirming the conventional positive link between parental and children’s years of education, new and intriguing evidence is put forth on the negative link between parental education and the child’s brawn skill, based on the industry and occupation adopted by the child in the labour market. The influence of paternal education is found to outweigh that of maternal education, in contrast to the evidence from developed countries. High intergenerational educational persistence and low intergenerational mobility indicate unequal opportunities in the country, as individual welfare is largely tied to parental background. Therefore, it is recommended that the Government of Thailand weaken this linkage to improve equality in the country.
Topic:
Education, Reform, Children, and Parenting
Political Geography:
Asia and Thailand

24. Identity Crisis: Ethnicity and Conflict in Myanmar

Author:
International Crisis Group
Publication Date:
08-2020
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
Ethnicity and conflict are tightly linked in Myanmar, as communal groups take up arms to press grievances for which they have found no other recourse. The problem calls for dialogue and deep reform, but meanwhile authorities can take smaller steps to indicate their positive intent.
Topic:
Minorities, Reform, Ethnicity, Discrimination, Conflict, and Identity
Political Geography:
Asia, Burma, and Myanmar

25. The Functions and Problems of China’s State-Owned Economy

Author:
Wei-xiao Jia
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
At the national symposium on the reform of state-owned enterprises, General Secretary Xi Jinping gave important instructions that state-owned enterprises are important forces in strengthening the country’s overall strength and safeguarding the common interests of the people. Therefore, the country must make state-owned enterprises „stronger, better, and bigger”. Huge objections arose in the academic field. This article thoroughly analyzes China’s state-owned economy from the perspective of Marx’s historical materialism, national productivity, and social development, and clarifies the historical status and role of China’s state-owned economy. At the same time, this article comprehensively analyzes the economic significance of making state-owned enterprises „stronger, better, and bigger” from the perspective of total factor productivity, and proposes that since the state-owned economy is backed up by the state, investing in technology research and development has its advantages. However, because the state-owned economy is biased toward administrative instructions, it often lacks efficiency, so if the state-owned economy wants to become „stronger, better, and bigger”, it must undergo reforms in terms of management efficiency.
Topic:
Economics, Governance, Reform, State Building, State-Owned Enterprises, and Productivity
Political Geography:
China and Asia

26. Disposing of “Zombies”: Why the Reform of Non-Performing State-Owned Enterprises Has Gotten Even Harder

Author:
April A. Herlevi
Publication Date:
03-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Normally at this time of year, the Chinese Communist Party (CCP) and the People’s Republic of China (PRC) government would be holding the large plenary meetings known as the “Two Sessions” (两会, lianghui). China watchers would be monitoring these meetings to assess whether and how the CCP is achieving its 2020 goal of achieving a “moderately prosperous society” (小康社会, xiaokang shehui). However, the COVID-19 outbreak (China Brief, multiple dates) has not only halted key meetings (National People’s Congress, February 27), but has also put into question many of China’s economic goals. This includes key goals discussed at the Central Economic Work Conference (CEWC) held in December 2019, which focused on “three categories of risk: financial, environmental, and external” and “identified six areas of priority for China’s 2020 economic policy agenda” (China Brief, December 31, 2019). The 2019 CEWC meetings identified at least 10 distinct issues to be pursued in order to move China on the path towards a more balanced economy (Xinhua, December 12, 2019). This article will focus on one aspect of China’s efforts to achieve “high-quality development” (高质量发展, gao zhiliang fazhan): the dismantling of “zombie firms” (僵尸企业, jiangshi qiye). CCP efforts to deal with non-performing and debt-ridden “zombies” has been an ongoing effort since at least 2015. The inclusion of policies to reduce non-performing state-owned enterprises (SOEs) in the economy follows official guidance set forth in 2016, and several policy actions taken since. First, this article will discuss what “zombie firms” are, and why they are a drag on the economy; second, it will summarize the key policies intended to dismantle zombie firms. It will then examine why zombie firms are so difficult to dismantle, and conclude by noting that the COVID-19 outbreak and the resulting economic losses due to quarantines are likely to further disrupt the ability of provincial governments to deal with non-performing firms and accumulating debt. As a result of these factors, zombie firms are likely to linger for some time to come.
Topic:
Reform, Public Health, Pandemic, COVID-19, and State-Owned Enterprises
Political Geography:
China and Asia

27. Toward a Robust Architecture for the Regulation of Data and Digital Trade

Author:
Dan Ciuriak and Maria Piashkina
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The rapid digital transformation occurring worldwide poses significant challenges for policy makers working within a governance framework that evolved over centuries. Domestic policy space needs to be redefined for the digital age, and the interface with international trade governance recalibrated. In this paper, Dan Ciuriak and Maria Ptashkina organize the issues facing policy makers under the broad pillars of “economic value capture,” “sovereignty” in public choice and “national security,” and outline a conceptual framework with which policy makers can start to think about a coherent integration of the many reform efforts now under way, considering how policies adopted in these areas can be reconciled with commitments under a multilateral framework adapted for the digital age.
Topic:
International Trade and Finance, Reform, Digital Economy, Multilateralism, and Digitization
Political Geography:
United States, China, Europe, Asia, and North America

28. Democracy under siege: Advancing cooperation and common values in the Indo-Pacific

Author:
Kharis Templeman
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
Over the past three decades, democracy has put down roots in many seemingly unlikely places across Asia, from Mongolia to Indonesia. At a time when democracy is in global retreat, the majority of these Asian regimes have demonstrated surprising resiliency, though many continue to suffer from glaring flaws: weak state capacity and accountability institutions, the absence of impartial rule of law, and uneven protection of political rights and civil liberties. This issue brief, “Democracy under Siege: Advancing Cooperation and Common Values in the Indo-Pacific,” by Dr. Kharis Templeman, examines challenges and opportunities for advancing cooperation and common values in the Indo-Pacific as the region faces an increasing challenge from China.
Topic:
Civil Society, Corruption, Diplomacy, International Organization, Politics, Reform, Elections, Democracy, Rule of Law, Norms, and Transition
Political Geography:
Japan, China, Taiwan, East Asia, Asia, Australia, Korea, and Indo-Pacific

29. New Developments in China's Financial and Economic System

Author:
Ronald Schramm
Publication Date:
11-2020
Content Type:
Video
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
Ronald Schramm, Visiting Associate Professor of International and Public Affairs, Columbia University Moderated by: Shang-Jin Wei, N. T. Wang Professor of Chinese Business and Economy and Professor of Finance and Economics, Columbia Business School Professor Jin Wei will interview Ron Schramm about new and important developments in China’s financial and economic system since the first edition of Schramm's textbook in 2015 (Routledge/Taylor&Francis): China Macro Finance: A US Perspective. Both new reforms and retrenchments in the Chinese economy will be discussed as well as the fraught economic relationship with the United States. Students and scholars of China will benefit by putting their own research in the context of how far China has come and where it is going in terms of economic and financial reform.
Topic:
Development, Diplomacy, Economics, Reform, Finance, and Business
Political Geography:
China, Asia, and United States of America

30. Thailand's New Political Generation: Forward to the Future?

Author:
Duncan McCargo and Andrew J. Nathan
Publication Date:
11-2020
Content Type:
Video
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
Thai politics have been extremely polarized in recent years: “yellow” (conservative) versus “red” (pro-Thaksin) contestations have divided the country, reflecting deep-rooted regional, class and identity cleavages. But Thailand’s newest cleavage, apparent only since 2018, is a generational divide that cuts across all other categories. Generation Z – Thais under 25 – seem to have a radically different understanding of themselves from older people. Digital natives who grew up online, and access information, virtually are rejecting deference, hierarchy and paternalism. They voted in large numbers for the short-lived Future Forward Party, which became the third largest party in the Thai parliament after the March 2019 elections. Since the dissolution of Future Forward by the Constitutional Court on 21 February 2020, many of these young people have become profoundly alienated from Thailand’s state and society, and have taken to the streets to demand far-reaching reforms. This talk will examine how intra-generational contestation is re-shaping Thailand’s politics.
Topic:
Politics, Science and Technology, Reform, Political Parties, and Generation
Political Geography:
Asia and Thailand

31. Toxic Institutions in Security Sector Reform: Lesson Learned From the Failure of Building Security Institutions in East Timor

Author:
Sugito Sugito, Tulus Warsito, and Achmad Nurmandi
Publication Date:
07-2020
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
Liberal peace strongly believes that security sector reform (SSR) can strengthen the structure of peace and security in post-conflict countries. However, this approach is not always successful in several countries including East Timor. Based on the institutionalism approach, this study found an interesting fact that Falintil's veterans' toxic role in their relations with state security institutions had weakened the function of state security institutions and caused the insecurity of the state and people of East Timor from 2000-2008. These results were obtained through field research using qualitative-quantitative mix method research based on primary data obtained from interviews, surveys, and official documents from the United Nations and the government of East Timor.
Topic:
Security, Reform, Institutions, and Peace
Political Geography:
Asia, Southeast Asia, Timor, Oceania, and East Timor

32. The Future of the Kuomintang in Taiwan: Reform, Recalibrate, or Stay the Course?

Author:
Thomas J. Shattuck
Publication Date:
01-2020
Content Type:
Commentary and Analysis
Institution:
Foreign Policy Research Institute
Abstract:
Once again, the future of Kuomintang (KMT), the political party headed by Chiang Kai-shek for decades and that favors a closer relationship with Mainland China, is in doubt due to the results of the recent presidential and legislative elections in Taiwan. President Tsai Ing-wen of the Democratic Progressive Party (DPP) was reelected in a landslide against her opponent Kaohsiung Mayor Han Kuo-yu of the Kuomintang. Tsai received a record 8+ million votes, and the DPP retained its majority in the country’s national legislature by winning 61 seats—though it did lose seven compared to the 2016 election when the party won its first-ever majority. The blowout victory puts the KMT’s future into question—though more senior analysts note that this conversation occurs after every election, particularly the 2016 election, and nothing really changes. Maybe, just maybe, this time will be different.
Topic:
Foreign Policy, Politics, Reform, History, and Kuomintang
Political Geography:
Taiwan and Asia

33. Defined Contribution Funded Social Security and Labor Supply: Focus on Mexican Social Security Reform in 1997

Author:
Sungwoo Hong
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Countries adopting a defined benefit pay-as-you-go (DB PAYG) regime have two options to solve the issue of financial unsustainability: (1) a parametric reform, which alters policies within DB PAYG regime, and (2) a structural reform, which changes the regime from DB PAYG to a defined contribution funded (DC) system. In this study, focusing on the structural reform of Mexico in 1997, I investigate whether structural social security reform affects labor supply. The findings suggest that the change in the social security regime increased both labor force participation and work hours per week. However, in the case of the elderly, the intensive margin effect on labor supply was not statistically significant.
Topic:
Reform, Tax Systems, Social Security, and Labor Market
Political Geography:
Asia, Korea, and Mexico

34. Reforming Indian Agriculture

Author:
Ashok Gulati, Devesh Kapur, and Marshall M. Bouton
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Center for the Advanced Study of India
Abstract:
Following an overwhelming election victory, Prime Minister Narendra Modi’s new government has a golden opportunity to bring about historic reforms in the agricultural sector to improve farmer livelihoods and national food security. The sector affects the economic well-being of half the Indian population and the access to affordable and nutritious food for all Indians. Fundamental reforms can achieve sustainable and broadly distributed agricultural growth that will add to India’s GDP, increase export earnings, help conserve increasingly scarce resources of land and water, and enable the more orderly movement out of agriculture and into other productive sectors. Reforms in four areas should be the priority if Prime Minister Modi’s bold goal of doubling farmer incomes is to be accomplished in the coming years. First, the focus of agricultural policies must shift from production per se to farmers’ livelihoods. Second, policies to improve the allocation and efficiency of land and water are essential if the critical resources of water and land are to be conserved. Third, reforms are needed to help farmers cope with the growing risks of weather and price volatility. Fourth, agricultural markets must be opened to greater competition and provided with better infrastructure if farmers are to realize better returns for produce while ensuring nutritional security for low-income consumers. Agriculture is a state subject but where the Central government has had—and will continue to have—a large role. Reforms can only succeed if the Central and state governments work closely together in a spirit of “cooperative federalism.” Many of the important levers of change—water, power, irrigation, extension, agri-markets, etc.—are controlled by the states. Going forward, it would be helpful if the government created an Agri-Reforms Council on the lines of GST Council for a somewhat longer term than is currently done (for two months). The focus for the Government of India will need to be twofold: actions that it can unilaterally take to raise agricultural incomes; and second, actions to influence state government efforts to improve agriculture with its sustainability at the core. The steps listed should be thought of as a package, which will have an impact if most are implemented and not one or two in isolation.  Reduce cereal procurement and keep MSP price increases for rice and wheat below inflation, and not exceeding border prices, while encouraging the private sector to develop robust markets in less water intensive crops like pulses and oilseeds by removing controls on stocking, trading, exports, etc. This will also have a beneficial impact on depleting water tables in certain regions, notably in north-west and southern India.  Implement income transfers scheme for farmers in tandem with reductions in the subsidies for power, water, and fertilizer that distort incentives and hinder change. This will have large positive environmental effects and help toward better natural resource management. Keep the real prices of subsidized grains under the National Food Security Act, 2013 and link them to the MSP to incentivize the production and consumption of non-cereals.  Scrap the Essential Commodities Act and other laws designed fifty years ago for conditions of scarcity. Those conditions of scarcity have long since disappeared. India is trying to cope more with the problems of surfeit than scarcity.  Focus on income from livestock to help marginal farmers (<1 ha). Change laws and more importantly the political and social climate that have been so detrimental to the livestock sector lately.  Eliminate or reduce dramatically export restrictions and export taxes on agricultural products. Trade policies that have been arbitrarily and pro-cyclically imposed (increasing tariffs and import restrictions when world prices come down, and imposing export bans and taxes when domestic prices rise)—must become stable and predictable by setting “trigger levels” well in advance.  Accelerate the effort to create a single agricultural market by introducing assaying, grading, setting standards, bringing “Uber-type” logistical players on e-platforms to move goods from one region to another, and setting dispute settlement mechanisms so that farmers and farm organizations can transact with any buyer, anywhere in India, and at any time of their choosing.  Support the creation of public mandis as a viable alternative to private trade. Most importantly, across the board, increase marketing options available to farmers while subsidizing market infrastructure improvements.  End support for the rehabilitation of inefficient urea plants and create a plan for closing the most inefficient plants.  Incentivize the passing of state laws to allow easy leasing/renting of agricultural land and relax restrictions on conversion of agricultural land for other purposes. At present, these restrictions keep the value of agricultural land low and raise the barriers to exit from agriculture. Finally, even as these reforms are undertaken, it needs to be recognized that growth and employment opportunities outside agriculture are critical for long-term improvements in farmers’ incomes. Relentless population pressures have meant that most Indian farms are too small to provide viable incomes. The long-term future of Indian farmers fundamentally depends on getting many people out of farming. Ironically, that future will come about more reliably if policies to improve agricultural production and incomes are pursued today.
Topic:
Agriculture, Reform, Elections, and GDP
Political Geography:
South Asia, India, and Asia

35. The Impact of Intranational Trade Barriers on Exports: Evidence from a Nationwide VAT Rebate Reform in China

Author:
Jie Bai and Jiahua Liu
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
It is well known that various forms of non-tariff trade barriers exist within a country. Empirically, it is difficult to measure these barriers as they can take many forms. We take advantage of a nationwide VAT rebate policy reform in China as a natural experiment to identify the existence of these intranational barriers due to local protectionism and study the impact on exports and exporting firms. As a result of shifting tax rebate burden, the reform leads to a greater incentive of the provincial governments to block the domestic flow of non-local goods to local export intermediaries. We develop an open-economy heterogenous firm model that incorporates multiple domestic regions and multiple exporting technologies, including the intermediary sector. Consistent with the model’s predictions, we find that rising local protectionism leads to a reduction in interprovincial trade, more “inward-looking” sourcing behavior of local intermediaries, and a reduction in manufacturing exports. Analysis using micro firm-level data further shows that private companies with greater baseline reliance on export intermediaries are more adversely affected.
Topic:
International Trade and Finance, Political Economy, Reform, and Tariffs
Political Geography:
China and Asia

36. The CCP’s Renewed Focus on Ideological Conditioning, Part 2: The New Five-Year Plan for Training Party Cadres

Author:
John Dotson
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The leadership of the Chinese Communist Party (CCP) has long pointed to the collapse of the Soviet Union as a cautionary example, and party organs have produced books and films that warn of the dire consequences that would follow from any steps to loosen the CCP’s grip on the economy, public discourse, or political power. These materials have been made the focus of mandatory study under CCP General Secretary Xi Jinping (SCMP, November 18, 2013). Alongside alleged villains such as the reformist Mikhail Gorbachev, ideological laxity among Soviet Communist Party members has been identified as a key factor in the downfall of the Soviet state. [1] To address this, the CCP leadership has undertaken concerted efforts throughout 2019 to bolster ideological indoctrination among its own membership. Party members have been made subject to mandatory use of the smartphone app Xuexi Qiangguo (学习强国), which was introduced in January of this year. [2] Users are required to meet quotas of “study points” for spending time on the app, reading and commenting on articles, and taking tests about party policies (SCMP, February 14, 2019). In addition to serving as a channel for ideological indoctrination, the app also serves as a surveillance tool: it both “collects and sends detailed app log reports on a daily basis, containing a wealth of user data and app activity,” and contains “code that amounts to a backdoor to rooted devices… granting complete administrator-level access to a user’s phone” (Open Technology Fund, September 12). The CCP’s current official ideology is “Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era” (习近平新时代中国特色社会主义思想, Xi Jinping Xin Shidai Zhongguo Tese Shehui Zhuyi Sixiang). This ideological program is grounded in Xi’s ever-growing cult of personality, and relies heavily on the dogmatic repetition of slogans rather than clearly articulated ideas. In broad terms, it strikes three general themes: (1) achieving the “China Dream” (中国梦, Zhongguo Meng) of restored national greatness; (2) unyielding CCP control over politics and Chinese society; and (3) continuing reforms in party-state institutions and governance. The latter element is often expressed in terms of greater centralization of power at the top echelons of the CCP, and demands for stricter personal loyalty to Xi Jinping (China Brief, November 19). [3]
Topic:
Politics, Reform, Ideology, and State Building
Political Geography:
China and Asia

37. China's Economic Choices

Author:
David Orsmond
Publication Date:
12-2019
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
China’s economic growth has fallen to its slowest rate since 1990, and this deceleration looks set to continue unless China implements the kinds of deep reforms behind the successful economic transitions of Japan and Korea. China’s economic growth has fallen to its slowest rate since 1990, and this deceleration looks set to continue. Key factors include weakening demographics, inefficient investment, maturing export markets and declining productivity growth rather than the current trade dispute with the United States. To reverse that trend, China will need a wide-ranging policy approach that mimics the policies implemented by Japan and Korea at a similar economic stage. While there are considerable political and economic obstacles to such reforms, if it manages to continue its rapid catch-up to advanced economy incomes the potential returns for both China and the world are significant.
Topic:
Reform, Economy, Economic Growth, Trade Wars, and Trade
Political Geography:
China, Asia, Australia, and United States of America

38. Assessing China’s Financial Reform: Changing Roles of the Repressive Financial Policies

Author:
Yiping Huang and Tingting Ge
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
When China began economic reform in 1978, it had only one financial institution, the People’s Bank of China (PBOC), which, at that time, served as both the central bank and a commercial bank and accounted for 93 percent of the country’s total financial assets. This was primarily because, in a centrally planned economy, transfer of funds was arranged by the state and there was little demand for financial intermediation. Once economic reform started, the authorities moved very quickly to establish a very large number of financial institutions and to create various financial markets. Forty years later, China is already an important player in the global financial system, including in the banking sector, direct investment, and bond and equity markets. However, government intervention in the financial system remains widespread and serious. The PBOC still guides commercial banks’ setting of deposit and lending rates through “window guidance,” although the final restriction on deposit rates was removed in 2015. Industry and other policies still play important roles influencing allocation of financial resources by banks and capital markets. The PBOC intervenes in the foreign exchange markets from time to time, through directly buying or selling foreign exchanges, setting the central parity, and determining the daily trading band. The regulators tightly manage cross-border capital flows, and the state still controls majority shares of most large financial institutions.
Topic:
Economics, Foreign Exchange, Reform, Financial Markets, and Banks
Political Geography:
China and Asia

39. Supply-side reform leads to economic resilience

Author:
Qiyuan Xu
Publication Date:
02-2019
Content Type:
Policy Brief
Abstract:
China's GDP grew 6.6 percent in 2018, according to National Bureau o ftatistics data. Despite the slight slowdown in the GDP growth rate, however, exports grew at a relatively high 9.9 percent year-on-year calculated in US dollars. And, not surprisingly, China's trade surplus with the United States expanded further. ...... Besides, the relative prosperity index of small and medium-sized enterprises has dropped to the second-lowest point in a decade, and the financial cost differentiation among various industries is growing. This may have a negative impact on not only short-term macroeconomic stability, but also the development space of relevant emerging industries and long-term growth momentum.
Topic:
Reform, GDP, Economy, Economic Growth, and Resilience
Political Geography:
China and Asia

40. Perceiving Truth and Ceasing Doubts: What Can We Learn from 40 Years of China’s Reform and Opening up?

Author:
Fang Cai
Publication Date:
05-2019
Content Type:
Working Paper
Abstract:
China’s reform, opening up and resultant economic growth in the past 40 years haveled to the accumulation of an immense array of experiences, which economists areobligated to look into, analyze and theorize upon. In fact, the rich literature in thisarea has positively assessed and documented China’s successful experiences. However,theories that were established in Western countries have been applied as doctrine tojudge China’s experiences. By adopting an analytical framework unifying historicallogic and theoretical logic, the purpose of this paper is to reveal the unique Chineseexperience and its relevance to the general laws of economic development. Based on theexperiences of and in reference to research findings about China, this paper chroniclesthe process of reform, opening up and economic growth, and analyzes the nexus betweenthem. The study demystifies how the incentive mechanism, the factor accumulation andallocation system, market development, and macro policy environment reforms havespurred China’s economic growth, structural changes and the increase in productivity.The changes in development stage are examined and policy implications for furtherreform are discussed.
Topic:
Reform, Economy, Economic Growth, and Trade Policy
Political Geography:
China and Asia

41. India's Social Policies: Recent Changes for the Better and Their Causes

Author:
Joachim Betz
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Despite being a consolidated democracy with free and fair elections and having a political system with intense party competition, a relatively vibrant civil society, and a functioning federal set-up, India still ranks poorly in terms of the coverage, generosity, efficiency, and quality of its social protection. This is difficult to explain based on the factors usually advanced for the implementation of generous social policies. A second puzzle is the predominantly protective nature of welfare policies in India in the current era of globalisation, which should necessitate policies enabling workers to participate successfully in a more demanding economic environment. These puzzles may be explained partly by (a) the long-term insulation of the Indian economy from international competition, (b) the low share of industry and modern services in GDP until recently, (c) the precedence of identity policies, (d) the fragmentation of the political sphere, and (e) the meagre empowerment of women in India. We should, however, acknowledge that change is underway and that the picture is not bleak across India as a whole – being supported by economic reforms and growth, a greater degree of decentralisation and party competition within the country, increasingly discerning voters, and progress on female education and employment opportunities.
Topic:
Gender Issues, Reform, Democracy, Social Policy, and Welfare
Political Geography:
India and Asia