By Daniel Buck (auth.)
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Additional resources for Constructing China’s Capitalism: Shanghai and the Nexus of Urban-Rural Industries
The following subsections trace the history and evolution of each sector and its production systems. The histories may vary, but sectoral C on n e c t i ng t h e Ur b a n a n d t h e R u r a l 33 growth will emerge as the single most important imperative driving the expansion and elaboration of production systems. Other patterns will emerge, as well. Interviews with managers strongly corroborate— and further nuance—the patterns adduced from census data. For example, interviews revealed that specialized urban branch factories continued to play an important role in these production systems,13 but both sources demonstrate that a very significant share of the new subcontracting went to rural TVEs.
TVE revenues contributed the lion’s share of local government budgets by the late 1980s—anywhere from 75 to 90 percent (Whiting 1995, 38; Wilson 1997, 93). And local governments directed a substantial share of these revenues back into the expansion of existing TVEs and the creation of new ones (see chapter 2). But regulations also mandated that a percentage of TVE revenues, varying widely from place to place, be reserved for the provision of collective welfare and worker benefits and bonuses (Oi 1999, 25; Zweig 1997, 236).
Cadre promotion criteria became linked to economic development and success. Thus pushed and pulled, constrained and enabled, expected to fund themselves and to provide local jobs without external support, townships and villages mobilized local resources—including the surplus labor and household savings at their disposal—to establish TVEs (Oi 1992, 1999; Naughton 1994; Whiting 2001). Although some rural industry had existed since the 1950s, and overall had increased during the 1960s and 1970s,6 this baseline was soon dwarfed by the proliferation of rural factories in the 1980s.
Constructing China’s Capitalism: Shanghai and the Nexus of Urban-Rural Industries by Daniel Buck (auth.)