Minzhu guanli: the democratization of factory management in the Chinese revolution

From 1948 to 1951, the Chinese Communist Party attempted to implement a policy of ‘democratic management’ in urban industry. Minzhu guanli entailed various, sometimes contradictory elements including worker participation in management organs, the rationalization of factory production, and improvements in worker welfare. It was hoped that such reforms would not only help to build up working-class support for the revolutionary party, but would also improve production by relying on the initiative and creativity of the ‘worker masses’. Although short-lived and largely unsuccessful, experiments with democratic management in state-run factories in the early years of the People's Republic represent one of the most ambitious efforts to overcome capitalist relations of production. Although the CCP never went so far as to advocate worker control along syndicalist lines, minzhu guanli was aimed, in part, at overcoming alienation and the separation of decision making and implementation at the factory level. This paper draws upon diverse sources reporting on experiments with ‘democratic management’ throughout China. It assesses the conditions surrounding the implementation of participatory forms of factory management in order to determine which factors facilitated or hindered such reforms. The discussion includes a wide range of industrial enterprises and groups of workers in order to illuminate the underlying structures that conditioned the success or failure of democratic management. The concluding section traces the fate of minzhu guanli to the present day and assesses the implications of these experiences for China's experiment in socialism.