The Political-Economic Dimension of Pensions: The Case of Japan

This article examines how pensions are interwoven with the public and private financial system in Japan and the consequences for pension reform. A growing literature focuses on the multifaceted ways in which pensions are interwoven with the larger political economy. This study builds on this literature and finds that (a) public and private pensions have been integrated deeply into Japan's system of developmental finance, (b) this integration has created new economic and political problems as governments have attempted to shift away from its developmental model through deregulation, liberalization, and administrative reform, and (c) because pension reform is intimately linked with these reforms, it involves addressing fundamental issues regarding the role of the state, finance, and firms. These findings collectively illustrate that pension reform is not only driven by issues of fiscal viability and benefit levels, but also by the nature of the way in which pensions are integrated into a country's system of finance.     

Book reviews

Journal of Chinese Political Science -     

A re‐examination of Lardy‐Donnithorne debate in the provincial context of Guangdong, 1949–1992

This paper re‐examines the Lardy—Donnithorne debate in the provincial context of Guangdong. The study period is from 1949 to 1992. In the first place, the adequacy of provincial capital investment is evaluated against its population and national income shares. Secondly, it examines the capital construction investment from the administrative perspective with capital construction projects classified into central, ministry‐supported and local projects. Thirdly, it looks at the relationship from the financial perspective through a breakdown of capital construction investment by sources of investment funds, that is, state appropriation, domestic loans, foreign investment and self‐raised funds and others. Fourthly, the central‐local relationship is scrutinized through the fiscal relationship between the central and Guangdong governments. Lastly, extra‐budgetary funds data, whenever available, are also analyzed. The paper finds that the centripetal and centrifugal forces in Guangdong have always been in dynamic and precarious balance both before and after the Open Policy.     

China's consumer revolution: The 1990s and beyond

Since 1980 China's economic revolution has enabled more households to allocate labor to market‐related activities to earn more income. In 1992 an even greater surge in market economy growth took place when urban households began abandoning state‐related occupations and took their chances in the marketplace. The increase in consumer spending that followed reflects a new pattern of household spending for the first time in China since 1949: the share of spending for food relative to spending for other categories of goods and services is fast declining. This new trend, already strongly evident among high income‐earning households, is rapidly being replicated by other households as their incomes rise. During the 1990s new consumer patterns have emerged in the cities of the coastal provinces that strongly indicate that a consumer revolution is under way. This revolution has revived traditional gift‐giving between the Chinese people, thus facilitating the strengthening of their social, economic, and political ties and encouraging people to emphasize social and political stability.     

Southeast Asia and cross‐strait relations: The policy of separation of politics and economics

During the periods of July‐August 1995 and mid‐March 1996, China initiated a series of missile tests and military exercises in the Taiwan Strait, and the mainland for many was considered responsible for the rising tensions across the Taiwan Strait. But, Southeast Asian countries held Taiwan responsible for stimulating the mainland's military actions because of the island's claim for independence. Why? There are three different theoretical arguments on this issue, i.e. those of political primacy, economic determinism, and the separation of politics and economics. This paper contends that the principle of separation of politics and economics is the policy that Southeast Asian countries pursue in developing their relations with the PRC and the ROC, i.e. maintaining official and full‐scale relations with the PRC, but keeping unofficial and economic links with Taiwan. Therefore, for Southeast Asian countries, the PRC's military exercises in the Taiwan Strait were a political and not an economic problem, and one between the mainland and Taiwan. This is the key factor in explaining attitudes in Southeast Asian nations toward the Taiwan Strait crisis.     

Hegemony and Autonomy

This article analyzes the concept of hegemony and examines its relationship to power and autonomy. Refuting the conventional belief that it is ideology that distinguishes hegemony, the article argues that it is autonomy that constitutes the distinguishing characteristic. Although hegemons tend to evolve into imperialists, hegemony involves leadership of an alliance, not domination by coercion. It is impossible to conceptualize hegemony without also including autonomy. In this conceptualization, the primary source of autonomy lies in a specific hegemonic system of domination that itself embodies the notion of autonomy for both the polity and its citizenry, a limiting construction that hinders the tendency toward imperialism. Such a system includes one type of autonomy that can be designated as autonomy within hegemony. In addition, the article discusses two other types of autonomy: counterhegemony and a largely power-based opposed hegemony. Thus, the article concludes, hegemony is a complex concept, with several types of manifestation, that can more usefully be understood in connection with autonomy and power than as a stand-alone concept.     

Money,Mortgages, and the Conquest of America

In colonial America, land acquired new liquidity when it became liable for debts. Though English property law maintained a firm distinction between land and chattel for centuries, in the American colonies, the boundary between the categories of real and personal property began to disintegrate. There, the novelty of easy foreclosure and consequent easy alienation of land made it possible for colonists to obtain credit, using land as a security. However, scholars have neglected the first instances in which a newly unconstrained practice of mortgage foreclosure appeared—the transactions through which colonists acquired land from indigenous people in the first place. In this article, I explore these early transactions for land, which took place across fundamental differences between colonists’ and native communities’ conceptions of money, land, and exchange itself. I describe how difference and dependence propelled the growth of the early American contact economy to make land into real estate, or the fungible commodity on the speculative market that it remains today.