RURAL SOCIETY: GREATER EQUITY?

RURAL SOCIETY: GREATER EQUITY?

Kate Zhou

University of Hawaii

Kate Zhou

University of Hawaii

  What are the main features of rural social

transformation in China? How is the contemporary way of life different from the Maoist regime? Where have been the greatest gains for personal autonomy in rural China? What can we learn from the China’s experience in terms of civil liberties?

  What are the main features of rural social

transformation in China? How is the contemporary way of life different from the Maoist regime? Where have been the greatest gains for personal autonomy in rural China? What can we learn from the China’s experience in terms of civil liberties?

Social and Political Transformation of Everyday Life

Social and Political Transformation of Everyday Life

1. Work (private businesses and private initiatives)

2. Clothes/food 3. Housing/health-care 4. Transportation/education 5. Tree movement of the people and

occupational choices 6. Rural Election

1. Work (private businesses and private initiatives)

2. Clothes/food 3. Housing/health-care 4. Transportation/education 5. Tree movement of the people and

occupational choices 6. Rural Election

The New State and Society Relationship The New State and Society Relationship

1. New autonomy (multi-ownership structures and individualism)

Right to be Left Alone/Right to own property?

2. New identities (entrepreneurs) and old power

3. New social ties (non-state associational ties) and change of old ties

religion and non-government organization

1. New autonomy (multi-ownership structures and individualism)

Right to be Left Alone/Right to own property?

2. New identities (entrepreneurs) and old power

3. New social ties (non-state associational ties) and change of old ties

religion and non-government organization

. New functions and old organizations?private philanthropy

. New functions and old organizations?private philanthropy

House churches and traditional religious orgs?

Traditional clans Organized crime

House churches and traditional religious orgs?

Traditional clans Organized crime

Social TransformationSocial Transformation

New gender relations and privacy/gay awareness

New social problems: inequality, drugs, AIDS, prostitution, punk

and unemployment continuity of the party-state’s strong hand one-child family land confiscation

New gender relations and privacy/gay awareness

New social problems: inequality, drugs, AIDS, prostitution, punk

and unemployment continuity of the party-state’s strong hand one-child family land confiscation

minjian rongzi (grassroots capital formation)

minjian rongzi (grassroots capital formation)

Hui are networks built on mutual trust, social relations, and financial capacity.

lai hui (Hubei and Hunan), yao hui (Zhejiang), tai hui (Zhejiang and Jiangsu), piao hui and he hui (Guangdong, Zhejiang, and Fujian)

dixia qianzhuang (underground banks) gaolidai (high interest loans) yinbei (literally “silver backs,” or money lending

men)

Hui are networks built on mutual trust, social relations, and financial capacity.

lai hui (Hubei and Hunan), yao hui (Zhejiang), tai hui (Zhejiang and Jiangsu), piao hui and he hui (Guangdong, Zhejiang, and Fujian)

dixia qianzhuang (underground banks) gaolidai (high interest loans) yinbei (literally “silver backs,” or money lending

men)

qiye jizi (enterprise deposits where workers and their families invest money to earn interest), gongfen jizi (a company which sells shares to gain capital)

Grain bank/Sun Dawu

qiye jizi (enterprise deposits where workers and their families invest money to earn interest), gongfen jizi (a company which sells shares to gain capital)

Grain bank/Sun Dawu

Illegal and Wide spreadIllegal and Wide spread

the hierarchy of hui in Zhejiang/five levels of interest rates, with the highest level set at 25% monthly interest, the second at 20%, the third at 15%, the fourth at 9%, and the lowest at 2-3%.

feifa jizi (illegally taking deposits from his workers at his enterprise)

minjian (grassroots) lending occurred in 95% of villages, with 85% of the lending involving high interest loans.

Easy access reduces red tape Local knowledge Informal contract

the hierarchy of hui in Zhejiang/five levels of interest rates, with the highest level set at 25% monthly interest, the second at 20%, the third at 15%, the fourth at 9%, and the lowest at 2-3%.

feifa jizi (illegally taking deposits from his workers at his enterprise)

minjian (grassroots) lending occurred in 95% of villages, with 85% of the lending involving high interest loans.

Easy access reduces red tape Local knowledge Informal contract

Dead Capital in Rural ChinaDead Capital in Rural China

assets without legal representation Lack of property rights regime Problem of existing land use rights Land related disputes

assets without legal representation Lack of property rights regime Problem of existing land use rights Land related disputes

New grass-roots land rights based lending

New grass-roots land rights based lending

Qiling Model: Chongqing Zhongsheng Fruits Limited

Global: Heng He group based in Macau/Technology/Agricultural Business

Local support: the farmers’ 30-year land use rights under baochan daohu as investment shares in the company.

State loans

Qiling Model: Chongqing Zhongsheng Fruits Limited

Global: Heng He group based in Macau/Technology/Agricultural Business

Local support: the farmers’ 30-year land use rights under baochan daohu as investment shares in the company.

State loans

annual land price of 250 yuan per mu, the remaining 20 years and 7 months of land use value totaled an equivalent of 2 million yuan.

26 legal shareholder representatives elected/300 yuan per mu,with a registered capital of 3.62 million yuan, and the State Development Bank in Chongqing provided pro-farmer loans to the new shareholding company. 2006, Qiling’s 64,000 orange trees were planted.

2009 with a per-mu profit of 2000 to 3000 yuan, ten times that of rice production.

annual land price of 250 yuan per mu, the remaining 20 years and 7 months of land use value totaled an equivalent of 2 million yuan.

26 legal shareholder representatives elected/300 yuan per mu,with a registered capital of 3.62 million yuan, and the State Development Bank in Chongqing provided pro-farmer loans to the new shareholding company. 2006, Qiling’s 64,000 orange trees were planted.

2009 with a per-mu profit of 2000 to 3000 yuan, ten times that of rice production.

Every inch is carefully measured.Every inch is carefully measured.

Private investorsPrivate investors

Zhejiang Industrialists Association, swarmed to Chongqing in July 2007 with 100 million yuan to a 3000 mu agricultural industrial park in the Jiulongpo district.

Zhejiang Industrialists Association, swarmed to Chongqing in July 2007 with 100 million yuan to a 3000 mu agricultural industrial park in the Jiulongpo district.

Ownership Society with Chinese Characteristics

Ownership Society with Chinese Characteristics

farmers as shareholders instead of just workers

Land use rights

Land ownership

House and land mortgage?

farmers as shareholders instead of just workers

Land use rights

Land ownership

House and land mortgage?

Agricultural TransformationAgricultural Transformation

EAFI Small Business LoansEAFI Small Business Loans

a six-week entrepreneur training class land use rights documents Repayment for the community-based and family-

based human capital empowerment Local needs High repayment rate

a six-week entrepreneur training class land use rights documents Repayment for the community-based and family-

based human capital empowerment Local needs High repayment rate

Land reform is the key Land reform is the key

Property rights protection for the poor Rule of law Entrepreneurship Reduction of corruption Participation of rural people

Property rights protection for the poor Rule of law Entrepreneurship Reduction of corruption Participation of rural people