Abstract
Chinese economic reforms since 1980 were accompanied by the systematic privatization and devolution of state-owned enterprises, the removal of the social welfare system in the form of the “iron rice bowl”, and the land expropriation of farmers. This paper uses Marx’ theory of primitive accumulation and Weber's theory of state power to argue that these socio-economic measures are needed in order to create a class of wage laborers, who are needed to fuel capitalist development in contemporary China. The central, provincial, and local states in China are playing a crucial role in enforcing the privatization of state-owned enterprises, the removal of the social welfare system and land expropriation.
Highlights
Since 1980, enormous economic development has fundamentally transformed the Chinese economy and the society
The author will use the Marxian theory of primitive accumulation, and the Weberian theory of state power in a macro-structural framework to explain the expropriation of rural farmers from their land, and the subsequent movement of people from the Chinese countryside to the city
Marx In Marx’ writings, one of his objective was to describe the dynamic process that is involved in capitalism, and how profoundly it alters the nature of society (e.g. Marx, 1846, 1848, 1850, 1852, 1867, 1871, 1875, 1885, 1894; Tucker, 1978)
Summary
Since 1980, enormous economic development has fundamentally transformed the Chinese economy and the society. China’s GDP per capita had increased from $469.2 in 1994 to $6188.2 in 2012.1 The World Bank designates China as an upper-middle-income country This economic development has transformed the Chinese economy and by extension has a tangible impact on social indicators. Much of this internal labor migration is confined to seven coastal provinces that absorb 82% of all migrant workers.4 This movement is accompanied by, on the one hand, material incentive structures, because rural areas are poorer than urban areas (Lu, 2012), because urban-rural inequality is increasing (Khan & Riskin, 1998; Yang, 1999; Zhao, 2006), and because city life implied an improved standard of living. The author will use the Marxian theory of primitive accumulation, and the Weberian theory of state power in a macro-structural framework to explain the expropriation of rural farmers from their land, and the subsequent movement of people from the Chinese countryside to the city. It is by separating the Chinese farmers from their land and welfare provisions that factories in the cities can be filled, and propel capitalist development
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