Lecture Two – Chinese Rural Society
I: Agricultural Reform
What could spur peasant productivity?
− higher wages/returns?
− originally just state price
− tried to increase state price
− too high of budget expenditures
− introduced double-pricing system (state and market)
What could incentive cadre productivity?
− managerial role
− cadres often also served in managerial capacities in TVEs
− fiscal contracts -> increased flexibility in expenditures
− cadre evaluation system; institutionalized promotion linked to revenue
So three reasons: personal economic welfare, fiscal, and professional
− TVEs also way to absorb surplus labour that resulted from
II: Rural Society and State
Why do peasants revolt?
− lack of transparency over use of revenue gained from fees
− extraneous burden of fees to the point of unreasonableness
− think 'rightful resistance'
Why do cadres extract?
− provision of public goods
− infrastructure; public services
− inflating salaries of local officials
− diverting funds to pro