Cover: Capitalism from Below: Markets and Institutional Change in China, from Harvard University PressCover: Capitalism from Below in HARDCOVER

Capitalism from Below

Markets and Institutional Change in China

Add to Cart

Product Details

HARDCOVER

$55.00 • £44.95 • €49.50

ISBN 9780674050204

Publication Date: 06/19/2012

Short

456 pages

6-1/8 x 9-1/4 inches

5 line illustrations, 2 maps, 15 graphs, 29 tables

World

More than 630 million Chinese have escaped poverty since the 1980s, reducing the fraction remaining from 82 to 10 percent of the population. This astonishing decline in poverty, the largest in history, coincided with the rapid growth of a private enterprise economy. Yet private enterprise in China emerged in spite of impediments set up by the Chinese government. How did private enterprise overcome these initial obstacles to become the engine of China’s economic miracle? Where did capitalism come from?

Studying over 700 manufacturing firms in the Yangzi region, Victor Nee and Sonja Opper argue that China’s private enterprise economy bubbled up from below. Through trial and error, entrepreneurs devised institutional innovations that enabled them to decouple from the established economic order to start up and grow small, private manufacturing firms. Barriers to entry motivated them to build their own networks of suppliers and distributors, and to develop competitive advantage in self-organized industrial clusters. Close-knit groups of like-minded people participated in the emergence of private enterprise by offering financing and establishing reliable business norms.

This rapidly growing private enterprise economy diffused throughout the coastal regions of China and, passing through a series of tipping points, eroded the market share of state-owned firms. Only after this fledgling economy emerged as a dynamic engine of economic growth, wealth creation, and manufacturing jobs did the political elite legitimize it as a way to jump-start China’s market society. Today, this private enterprise economy is one of the greatest success stories in the history of capitalism.

Recent News

Black lives matter. Black voices matter. A statement from HUP »

From Our Blog

Photograph of Lessons from Plants, by Beronda L. Montgomery, from Harvard University Press, placed on sunny table next to leafy green potted plant and desk organizer

What Have We Learned from Plants?

For Beronda Montgomery, the author of Lessons from Plants, the undisturbed growth of plants has been a reminder that life moves along, even in the most difficult times. In her new book, Montgomery shows how plant behavior and adaptation can offer valuable insights for human thriving. Her recent article in Elle on how plants have been a beacon of hope for her and many others during the pandemic inspired us at HUP