Abstract
China's second economy : second nature ? A study of the second economy in a socialist country is a matter of considerable interest. Indeed, the use of this approach can throw light on the ways in which the economy really functions, as opposed to the legal or official routes which it is supposed to follow. Assessment of the extent of the divergence between the two would require a precise quantification of all the diverse forms of economic activity by which the second economy manifests itself, and this, given the lack of statistics, is not generally possible. However, such indications as can be found in the country's press afford some insight into its workings, suggesting that the activities of the second economy tend to develop in all those sectors where the official economy has proved itself incapable of organizing production and distribution in a rational and efficient manner, and that they represent the reintroduction of economic incentives into a system which is almost entirely lacking in these. Illegal economic activity takes a great many forms, but broadly it might be classified under three main headings : illegalities committed by enterprises and by the administration, which arise from the contradictions within the system ; then come those illegal activities which, in one way or another, have to do with corruption and which, by definition, are committed by officials ; and lastly there are the « poor man's crimes ». The article examines these various aspects of illegal economic activity in China, one of the socialist countries which are least often mentioned in this context. For reasons which are partly structural and partly circumstantial (the latter having to do with an attempt at reform and reorganization of the economy) the second economy in China has nowadays become greatly extended. Falsification of accounts, the amount of goods and funds misappropriated not only by enterprises but also by officials or ordinary private individuals, the importance of the bribe, the simple straightforward pillaging of State property, all bring to mind Ilya Zemstov's classic description of such activities in the context of Soviet Azerbaïdjan. Having shown that this apparently heterogeneous assortment of practices does in fact add up to a coherent and well-articulated whole, the author goes on to ask a number of questions about the nature of the socialist system and the forces at work therein.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have