Independent Candidates in China’s Local People’s Congress Elections

In the Chinese political system, according to the constitution, the people’s congresses at the primary level are the only institution which the voters can directly elect. However, the Chinese Communist Party (CCP) tightly controls the “direct elections” and takes every measure in the elections to prevent grassroots power from entering even the primary-level people’s congresses. In recent years, grassroots power has kept struggling for its legal rights in the “direct elections” held in a few localities. The conflicts between the grassroots power and the authoritarian party in the “direct elections” have become an interesting political phenomenon, a subject deserves close observation and research. This paper studies the background of the independent candidates, their motivations and behaviour in elections. The paper also examines the party’s control in the elections and thus exposes the true nature of China’s people’s congress “direct” elections. The paper argues that independent candidates can have little impacts on China’s political structure at the current stage because of the party’s tight control, but their political participation has the most democratic value, compared with the “reforms” instigated and carried out by the CCP.     

The 2008 Financial Crisis and the Flying Geese Model

In the twentieth century Japan embarked on an economic developmental path that came to be known as the Flying Geese Model. The geopolitical milieu after the Second World War provided Japan with favourable conditions for rapid economic growth and industrialization. By the 1950s, many had noticed the success of the model and it was subsequently adopted by other East Asian countries. They too enjoyed decades of remarkable economic growth. An important element of the model is growth driven by export to the USA and Europe. As a result of the 2008 financial crisis, the traditional markets of the geese are shrinking. The new situation poses grave challenges to both the existing flying geese economies and latecomer economies which wish to follow the model. East Asian countries are responding to the situation by broadening and deepening their existing economic linkages and developing new ones. This represents a continuation of East Asian regionalism in the wake of the 1997 financial crisis.     

Family-owned,limited close corporations and protection of ownership

Protected ownership and freedom of contracts are two basic parts of the institutional framework of successful countries according to Douglass North, winner of the Nobel Prize in 1993. The incentives to make long-term investments are strengthened if ownership rights are protected and freedom of contracts is a basic element in the process of efficient allocation of scarce resources. An important engine in prosperous societies is the family firm. Most companies in these societies can be classified as family firms and a major part of GDP is produced by family businesses. Consequently, how ownership is protected in family firms is an important issue.Three important factors of private ownership of property are the rights to determine use of owned assets, the return generated from them and to transfer the assets at mutually agreeable terms to a new owner(s).The incentives of a founder entrepreneur to put efforts into the establishment of a firm are determined by all the three factors. We will here pay special attention to the third factor, transfer of the ownership of the firm. The founder often places contractual restrictions on such transfers to ensure that the structure of ownership is stable and that the firm stays in the family. The possibility to do so is part of the freedom of contracts and is associated with the extent of ownership held as well as the incentives to invest in new businesses.This paper is primarily about how protection of family ownership can be achieved from a legal point of view and discusses the reasons to enforce these legal relationships in the future for second, third, fourth etc. generations of family owners.