The myth of China's democratic capitalists -- Bypassing democracy : regime durability, informal institutions, and political change -- The unofficial and official revival of China's private sector -- Private entrepreneurs' identities, interests, and values -- Diversity in private entrepreneurs' coping strategies -- Local variation in private sector conditions -- Changing China : adaptive informal institutions
Under certain circumstances, the etiology of endogenous institutional change lies in the informal coping strategies devised by local actors to evade the restrictions of formal institutions. With repetition and diffusion, these informal coping strategies may take on an institutional reality of their own. The author calls the resulting norms and practicesadaptiveinformal institutions because they represent creative responses to formal institutional environments that actors find too constraining. Adaptive informal institutions may then motivate elites to reform the original formal institutions. This contention is illustrated by three major institutional changes that have occurred in the course of China's private sector development since the late 1970s—the legalization of private enterprise, the admission of capitalists into the Chinese Communist Party, and the amendment of the state constitution to promote the private economy.
This article questions predictions about China's democratic potential based on rising incomes in the private sector. For private entrepreneurs to constitute a democratizing force, structural theories expect two causal links: first, class formation; and second, collective action. This article examines national surveys of business owners, proposes a typology of entrepreneurs' political behavior, and concludes that class formation has not occurred among private entrepreneurs. The absence of a common basis for identity and interaction challenges the hypothesis that China's new capitalists might engage in collective action to demand democracy. Entrepreneurs should, thus, be examined at a lower level of abstraction rather than lumped into a catchall capitalist "middle class." Taking into account the employment background, social networks, and local political conditions of people in apparently similarly situated groups is essential for explaining political dynamics in transitional contexts where the identities and interests of new economic actors are mediated by prereform experiences.
In: World development: the multi-disciplinary international journal devoted to the study and promotion of world development, Band 32, Heft 9, S. 1487-1507
In: World development: the multi-disciplinary international journal devoted to the study and promotion of world development, Band 32, Heft 9, S. 1487-1507
The thirty members of Mr. Chang's society were asked to meet at his house on the 18th of the seventh month. As they were coming at his request and were going to help him with his need for funds. Mr. Chang provided a feast for his friends. A feast was served at all subsequent meetings of the [credit] society, but after the first meeting each member paid his share of the expense. (Sidney D. Gamble, "A Chinese mutual savings society,"Far Eastern Quarterly, No. 41 (1944), p. 41)