The state and development The two political economy models of China and the West 1

• Published in: Development and Poverty Reduction Vol. 1; pp. 16 - 32
• Main Author: Zheng, Yongnian
• Format: Book Chapter
• Language: English
• Published: Routledge 2020
• Edition: 1
• Subjects: DAC Principle; Employer Paid Health Insurance Premiums; DAC Donor; Severe Income Inequality; Middle Income Stage; Middle Income Trap; World Development Report; Thrifty Food Plan; Economic Historian Karl Polanyi; Real Gdp; Chinese Government; Neoliberal Economics Today; UK Aid; Busan High Level Forum; Gdp Growth; Overburdened; State Market Nexus; Political Parties; China’s Market Economy Status; Lao People’s Democratic Republic; Ancient Greece; Western Political Economy; Gdp Growth Rate
• ISBN: 9780367262297; 0367262290
• DOI: 10.4324/9780429292125-2

In both the West and the East, the kernel of political economy is to regard economic activities as a necessary component and political responsibility of the state. To sum up, two different models of political economy are derived from distinct processes of evolution between the Western and Chinese civilizations, and the two models continue to shape how states in each civilization perform activities, such as economic development and poverty reduction. In modern times, however, with the rapid rise of capitalism, economics began to find its place outside the general studies of society, and eventually evolved into what is termed neoliberal economics today. The merchants and capitalists relied on the power of the state to maintain a unified market, and in turn, they became the foundation of politics by taking control of the government. The triple-layered market system determines that the Chinese market has to be subject to the state’s supervision and regulation.