ECON 455 Lecture 23 Social threats

ECON 455 Lecture 23 Social threats - Econ455 Economic...

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1 1 Econ455: Economic Development in China Lecture 23: April 9 Social threats Sandra Poncet Lorch Hall, room 207 Email: [email protected] Office Hours: Mondays 16:30 18:30 & Wednesdays 10:30 12 2 Introduction Multiplication of protest movements (87,000 “public order disturbances” in 2005) is at odds with remarkable economic performance and decision by the CP to build a “socialist harmonious society” Growing concern that localized events may evolve into a widespread social crisis So it is crucial to identify the motives behind the unrest: derive from dissatisfaction over the impact of economic reforms and market based modernization amplified by widespread enterprise and government corruption and malfeasance So the central government is to tackle those 2 dimensions if it is to secure the sustainability of the reform process
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2 3 Lecture Outline Introduction I China’s Increase in Inequality A Inequality in China: level, evolution and dimensions B Growing number of losers II Social unrest in China A Stylized facts B Economic analysis of Chinese social unrest C Corruption and malfeasance as amplifiers III Responses by central authorities A ”New socialist countryside” B Property law C Proper incentives in terms of environmental protection Conclusion 4 I China’s Increase in Inequality A Inequality in China: level, evolution and dimensions Behind the increase in average income or HDI: increase of inequality explosion of number of losers
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