The Resurgence of East Asia: 500, 150 and 50 Year Perspectives

by Mark and Nanette Gottlieb Studies Asia's intended for a high-level specialist only. Titles a for innovative new a...

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by Mark

and Nanette Gottlieb

Studies Asia's intended for a high-level specialist only. Titles

a

for innovative new and the titles he

C h i n e s e Media, Global C o n t e x t s by

Lee

2. I m p e r i a l i s m in S o u t h East "A fleeting, passing phase" 3. Internationalizing t h e Pacific The United States, and the Institute of Pacific peace,

in war and

Koreans in Critical voices from the margin Edited by Soma 5. T h e A m e r i c a n O c c u p a t i o n of Literature and memory

available

and Okinawa*

paperback

Critical is a series intended showcase the indicontributions to scholarship in Asian Each of the volumes presents a lending Asian scholar that are central to his or her most significant and lasting contribution to Asian studies. T h e series committed to the of research and writing on not restricted to any particular discipline, approach or geographical expertise. Past, China's Future Energy, food, environment Vaclav China U n b o u n d Evolving perspectives on the Chinese past A. Cohen W o m e n and t h e Family in C h i n e s e History Patricia

Ebrey

S o u t h e a s t Asia A testament George

The Resurgence of East Asia

500,

and 50 year perspectives

Edited by Giovanni A r r i g h i , Takeshi and Mark Selden

Routledge Taylor LONDON AND

First

2003 by Routledge

2 Park Square, Milton Park. Abingdon,

OX

Simultaneously published In the USA and Canada by Routledge 270 Madison Ave. New York NY an imprint of the Taylor & Francis Group

to Digital 2006 © 2003 Giovanni Takeshi and Mark Selden selection and editorial matter; individual chapters, the Typeset by Wearset Ltd, Tyne and Wear All rights reserved. No part of this book may be or reproduced or utilized any or by any mechanical, or other means, now known or including and or any storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing Publication Data A catalogue record for this book available from the British Library Library of Congress

Cataloging

Publication

The resurgence of East 500, ISO and 50 year edited by Giovanni Takeshi Hamashita, and Selden. p. cm. transformations) Includes bibliographical references and index East Asia-Economic conditions. 2. East Asia-Commerce. 3. East Asia-Economic integration. Giovanni. Hamashita, Takeshi. III. Selden, Mark. IV. Series. HC460.5 2003 330.95'03-dc2l

ISBN

Contents

of figures x

List of contributors

xin

Introduction: the rise of East

in regional and

historical perspective GIOVANNI

1

TAKESHI HAMASHITA AND MARK

Tribute and

maritime Asia a n d treaty port networks

in the era of negotiation, TAKESHI HAMASHITA

2

3

A frontier view of Chineseness

T h e East Asian path of e c o n o m i c d e v e l o p m e n t : a perspective

4

work, family, and e c o n o m i c d e v e l o p m e n t in Europe and East Asia: long-term trajectories and contemporary comparisons KENNETH

5

T h e importance of c o m m e r c e in the organization of China's late imperial e c o n o m y G. HAMILTON AND

78

Contents 6

technology and Asian regionalism

comparative

perspective J.

7

Historical capitalism, East and West GIOVANNI ARRIGHI.

NG

AND

MARK SELDEN

334

Figures

1.1 1.2 1.3 1.4 3.1 3.2 3.3 3.4 3.5 3.6

and in Maritime of East a n d routes T r e a t y p o r t s a n d o p e n e d cities in East Asia in t h e 1880s Trading points along the border T h e industrial r e v o l u t i o n a n d industrious revolution The survival t r a d i t i o n a l industry T h e c h o i c e of industrial s t r u c t u r e Global L o r e n z curve (thirty c o u n t r i e s ) in 1870 a n d 1950 G l o b a l L o r e n z curve (199 c o u n t r i e s ) in 1950 a n d 1990 T h e snowballing in t h e rise of East Asia

18 22 32 33 83 85 91 97 103 104 302

Tables

1.1 3.1 3.2

World economic Relative e c o n o m i c

3.3 3.4 3.5 3.6 5.1 5.2 7.1 7.2 7.3 7.4 7.5 7.6

45

C h i n a s t r a d e with K o r e a , 1500-1995 t h e West versus Asia,

Per G D P in selected c o u n t r i e s , 1 8 2 0 - 1 9 9 2 (1990 Estimates o f i n J a p a n a n d o t h e r Asian c o u n t r i e s L a n d r e n t in different c o u n t r i e s of t h e world circa World War T h e rate of c o m p a r a t i v e perspective Estimates o f t h e i m p o r t a n t c o m m o d i t i e s i n C h i n a ' s i n t e r n a l t r a d e in 1840 E x p o r t s of C h i n e s e native cloth, 1 8 7 1 - 1 9 3 0 Regional s h a r e s o f world G N P ( a n d p o p u l a t i o n ) Regional G N P P C as a p e r c e n t a g e of "world" Breakdown East Asian G N P P C as a p e r c e n t a g e of "world" GNPPC Regional s h a r e s of "world" a d d e d in m a n u f a c t u r i n g account surplus or R e g i o n a l s h a r e s of t h e ten largest foreign e x c h a n g e reserves

78 79 80 86 102

200 303 304 305 306 307 308

Notes on contributors

Giovanni Money, nance

is of Sociology at J o h n s H o p k i n s University, Maryland. His latest b o o k s a r e The Long Power of Our Times a n d Chaos and System J.

Chang of Sociology at N a t i o n a l T a i w a n . His b o o k s i n c l u d e Economy sis of Hong Kong, Organization, and and Economy: ological Thought (all in

H u a University with and

Chu Classical

Takeshi Hamashita is Professor of History at the Institute for S o u t h e a s t Asian Studies, Kyoto University a n d the Institute of Oriental Culture, University. He is of t h e six-volume J a p a n e s e work, Maritime a n d n u m e r o u s works on t h e political e c o n o m y of East Asia. Gary G. Hamilton is Professor of Sociology a n d t h e School of I n t e r n a t i o n a l S t u d i e s at t h e University of W a s h i n g t o n . His r e c e n t books i n c l u d e Cosmopolitan Hong Kong and the Diaspora at the end the 20th The Organization of East Asian Capitalism, Marco a n d Nicole a n d Asian Business Networks. Cultural Studies at University, H o n g K o n g . He t h e a u t h o r of Not (2002, C h i n e s e ) , a n d coe d i t o r o f t h e C u l t u r a l a n d Social S t u d i e s T r a n s l a t i o n Series six v o l u m e s , Chinese). Hung a PhD candidate Sociology at J o h n s H o p k i n s University. T h e a u t h o r of n u m e r o u s articles in C h i n e s e a n d English, dissertation e x p l o r e s t h e d y n a m i c s o f early m o d e r n i t y a n d politics i n C h i n a . His " O r i e n t a l i s m a n d Social T h e o r y : C h i n a , E u r o p e , a n d t h e C o m p a r i s o n o f Civilizations from to Weber" was p u b l i s h e d

xit Notes on contributors Peter J. is S. C a r p e n t e r J r . Professor of Intern a t i o n a l Studies at C o r n e l l University, New York. He has written widely o n issues o f political e c o n o m y a n d n a t i o n a l security i n b o t h E u r o p e a n d Asia. His r e c e n t work on r e g i o n a l i s m world politics i n c l u d e s a n d Tawed Power; Europe Peter Perdue is T. T. a n d tions a n d Professor of History He teaches courses on social a n d e c o n o m i c history, Exhausting the Earth: State and the f o r t h c o m i n g 1600-1800.

Professor of Asian at t h e Massachusetts of T e c h n o Chinese and Chinese a n d t h e Silk R o a d . He t h e a u t h o r of Peasant Hunan, and West: The Conquest of

Kenneth is Professor of History at of California, Irvine. He h a s written The Great China, Europe and the of the Modern a n d c o - a u t h o r e d (with Steven T o p i k ) The World that Trade Created. Mark S e l d e n is Professor of Sociology at University a n d Professional Associate, East Asia P r o g r a m , C o r n e l l University, New York. His r e c e n t b o o k s i n c l u d e , Society: Change, and J. Perry) a n d Islands of Discontent: Responses to Japanese and Laura is Professor of E c o n o m i c History at O s a k a His Japanese books include and Development of Trade (1996) a n d The Rise of Asia-Pacific Economy ( 2 0 0 3 ) . He is c u r r e n t l y w o r k i n g on t h e of East Asia in global history.

Acknowledgments

v o l u m e , seven years in t h e . m a k i n g , the product collaboration involving r e s e a r c h e r s i n t h e U n i t e d Stales, J a p a n , H o n g K o n g a n d C h i n a . a c k n o w l e d g e with t h a n k s t h e s u p p o r t for o u r work from t h e A m e r i c a n C o u n c i l o f L e a r n e d Societies a n d t h e Social S c i e n c e Research Council which m a d e possible t h e c o n v e n i n g o f w o r k s h o p s the Braudel Center of University, t h e C h i n e s e University o f H o n g Kong, and Global Studies in C u l t u r e , a n d History H o p k i n s University. In t h e c o u r s e of these w o r k s h o p s have from t h e critical insights a n d s u g g e s t i o n s o f n u m e r o u s scholars i n c l u d i n g Mitchell B e r n a r d , T h o m a s Bray, C h r i s t o p h e r ChaseDunn, Stephen Chut, Bruce Ramon David Harvey, K h a n , Paul S t u a r t W. Leslie, Mao, Aihwa William Rowe, S o m a Keith S c h o p p a , Beverly Silver, So, R o b e r t W a d e , W a n g H u i , R. Bin Wong, Wong, and Wang W e gratefully a c k n o w l e d g e the s u p e r b administrative a n d technical s u p p o r t p r o v i d e d b y D o n n a o f t h e F e r n a n d B r a u d e l C e n t e r a n d Dr. Felicity o f t h e Institute for Global Studies in C u l t u r e , Power a n d J o h n s H o p k i n s Univer-

introduction The rise of East Asia in regional and w o r l d historical perspective Takeshi

Hamashita

and

Mark

T w o events o f world significance h a v e m a r k e d t h e closing d e c a d e s of t h e twentieth century: t h e d e m i s e of t h e USSR as o n e of the w o r l d ' s two military s u p e r p o w e r s a n d t h e of t h e East Asian region as o n e o f t h e w o r l d ' s e c o n o m i c p o w e r c e n t e r s . O f t h e s e two events, t h e d e m i s e o f t h e USSR has b e e n m o s t readily p e r c e i v a b l e , a n d i n d e e d has a t t r a c t e d m o s t a t t e n t i o n , n o t only b e c a u s e o f t h e d r a m a t i c c h a r a c t e r o f the political d e n o u e m e n t , also b e c a u s e fits well i n t o c o m m o n u n d e r s t a n d i n g s of t h e rise a n d fall of e m p i r e s . T h e rise of East Asia, contrast, r e m a i n s a d i s p u t e d fact o v e r s h a d o w e d n o t just by t h e d e m i s e of t h e USSR b u t even m o r e b y t h e s u b s e q u e n t e c o n o m i c r e s u r g e n c e o f t h e U n i t e d States at a l i m e of p e r s i s t e n t e c o n o m i c recession in a n d t h e 1997 e c o n o m i c crisis in t h e r e g i o n at large. M o r e o v e r , in c o n t r a s t to Soviet disintegration, the of East a process t h a t has no single d r a m a t i c p u n c t u a t i o n a n d d o e s n o t f i t comfortably i n t o historical u n d e r s t a n d i n g s t h a t pivot o n n a t i o n a l As we shall s e e the concluding by s o m e indicators t h e East Asian d o e s a p p e a r to h a v e slowed d o w n in t h e 1990s, especially in J a p a n . Nevertheless, t h u s far t h e slowdown has b e e n by u n a b a t e d e x p a n s i o n e l s e w h e r e the notably in C h i n a , p r o d u c ing a situation to t r a n s f o r m b o t h r e g i o n a l a n d d y n a m i c s . T a k i n g t h e r e g i o n a n d t h e p e r i o d as a t h e East Asian e x p a n s i o n since t h e 1960s s t a n d s o u t as a shift economic power few p r e c e d e n t s world history. No shift of such p r o p o r t i o n s can o c c u r w i t h o u t pauses a n d t e m p o r a r y setbacks, as witnessed by t h e centered Great Depression of 1930s d u r i n g t h e early twentieth-century global shift from W e s t e r n E u r o p e to N o r t h A m e r i c a a n d Silver 1999: 9 5 - 6 , 2 7 4 - 5 ) . But p a u s e s a n d setbacks s h o u l d n o t p r e v e n t us from s e e i n g t h e u n d e r l y i n g t r e n d . The of this b o o k is to assess t h e origins of shift in light of a large-scale, l o n g - t e r m d y n a m i c t h a t has s e l d o m b e e n invoked the mushrooming o n t h e p h e n o m e n o n . O u r basic p r e m i s e i s that t h e e x c e p t i o n a l e c o n o m i c d y n a m i s m of t h e East Asian r e g i o n in t h e closing

2

and Selden

of twentieth c e n t u r y s h o u l d b e viewed a s t h e j o i n t p r o d u c t o f a single process o p e r a t i n g at t h e world-regional r a t h e r t h a n as s u m of s e p a r a t e processes o p e r a t i n g primarily at t h e n a t i o n a l level. In concur Bruce (1987: 46) assessment t h a t a approach m i s l e a d i n g b e c a u s e it "misses, t h r o u g h a fallacy of disa g g r e g a t i o n , t h e f u n d a m e n t a l unity a n d integrity of t h e r e g i o n a l effort in F o c u s i n g on t h e a c h i e v e m e n t s of t h e last halfcentury by J a p a n and S o u t h Korea a n d T a i w a n , Cumings 47) finds t h a t "an u n d e r s t a n d i n g of t h e N o r t h e a s t Asian e c o n o m y can only e m e r g e from an a p p r o a c h t h a t t h e systemic i n t e r a c t i o n o f e a c h c o u n t r y the others, and of the region t h e world a t Like C u m i n g s , w e p u t t h e systemic i n t e r a c t i o n a m o n g t h e r e g i o n ' s c o u n t r i e s a n d b e t w e e n t h e r e g i o n a n d t h e world a t large a t t h e c e n t e r o f o u r analysis. W e g o f u r t h e r , in both temporal and spatial t e r m s . By e x t e n d i n g t h e discussion of c o n t e m p o r a r y d e v e l o p m e n t a l issues to a l o n g - t e r m historical perspective, a n d by e x p l o r i n g a b r o a d spatial c o n c e p t i o n of t h e East Asian r e g i o n , we can offer a n e w u n d e r standing of the d y n a m i c across t i m e a n d s p a c e .

The three temporalities of the East Asian dynamic As Gilbert

has n o t e d :

East Asia a g r e a t r e g i o n of t h e past, h a v i n g b e e n in t h e forefront of world for at two t h o u s a n d years, until t h e s i x t e e n t h , s e v e n t e e n t h , or even e i g h t e e n t h c e n t u r y , after which it suffered a relatively brief b u t d e e p l y felt r e c e n t p a t t e r n s of a c h i e v e m e n t by c o u n t r i e s in t h e r e g i o n a n d by t r a n s p l a n t e d p e r s o n s whose families have m o v e d a b r o a d , m o s t now a g r e e t h a t p r o m i s e s to be a g r e a t r e g i o n of t h e future. ( 1 9 9 1 : 6) As this passage t h r e e distinct frames or t e m p o r a l i t i e s define t h e r e l a t i o n s h i p of East Asia to t h e world at large. T h e r e is, first of the " s h o r t r u n " o f r e c e n t p a t t e r n s o f a c h i e v e m e n t b y c o u n t r i e s a n d territories in t h e r e g i o n a n d by t h e r e g i o n overall. T h e relevant time frame for t h e analysis of t h e s e p a t t e r n s is t h e that e n c o m p a s s e s t h e d e f e a t of J a p a n in t h e S e c o n d W o r l d W a r , t h e e s t a b l i s h m e n t of a C o m m u n i s t regime in China, revolutions t h r o u g h o u t the region leading to t h e d i s m a n t l i n g of colonial e m p i r e s , t h e division of East and the world two a n t a g o n i s t i c blocs d o m i n a t e d respectively by t h e U n i t e d States a n d t h e Soviet U n i o n , a n d f i n a l l y , t h e o v e r c o m i n g o f d e e p as a result b o t h of e c o n o m i c a n d political a n d strategic shifts, m a k i n g possible t h e e m e r g e n c e of a new regionalism. T h e s e events

introduction 3 r e o r g a n i z e d t h e r e g i o n i n its i n t e r n a l a n d e x t e r n a l relations, c r e a t i n g i m p o r t a n t p r e c o n d i t i o n s for its e c o n o m i c ascent. But t h e events themselves a n d t h e ways in which t h e r e g i o n was r e o r g a n i z e d c a n only be u n d e r s t o o d in t h e light of t h e t r e n d s a n d events of a s e c o n d temporality. T h i s s e c o n d t e m p o r a l i t y is t h e " l o n g " c e n t u r y t h a t s e p a r a t e s us from t h e brief b u t d e e p l y felt eciipse" of t h e prestige a n d p o w e r of t h e r e g i o n in t h e m i d - n i n e t e e n t h c e n t u r y in t h e wake of t h e d e c l i n e of t h e and r e g i m e s i n C h i n a a n d J a p a n , t h e defeat o f C h i n a i n t h e O p i u m Wars, t h e s u b s e q u e n t collapse o f t h e C h i n e s e e m p i r e , a n d t h e c o l o n i z a t i o n of large p a r t s of East Asia. T h e events t h a t m o s t decisively s h a p e d t h e r e g i o n i n this " l o n g " c e n t u r y b e g a n with t h e relative d e c l i n e o f East Asia in military a n d terms, a d v a n c e of W e s t e r n p o w e r in t h e r e g i o n in t h e form of colonial r e g i m e s in its p e r i p h e r i e s a n d t h e s h a r p d e c l i n e i n t h e p o w e r o f its c o r e J a p a n ) , giving rise to t h e R e s t o r a t i o n of 1868, industrialization a n d subjugation of substantial p a r t s of East Asia, successive C h i n e s e r e v o l u t i o n s from t h e 1860s t h r o u g h to 1949 a n d b e y o n d , t h e r e c u r r e n t invasions a n d wars t h a t set J a p a n against C h i n a t h r o u g h o u t t h e f i r s t half o f t h e twentieth and Japanese to displace China regional to r e o r g a n i z e t h e r e g i o n with itself at t h e c e n t e r , a n d to drive t h e Western colonial p o w e r s from t h e r e g i o n . O n c e a g a i n , however, t h e events that s h a p e d East Asia this p e r i o d can best be u n d e r s t o o d as t h e o u t c o m e of processes e n c o m p a s s e d by an even l o n g e r temporality. T h i s l o n g e r t e m p o r a l i t y invites a n d e n a b l e s u s t o seek c o n n e c t i o n s between the present of East Asia a n d t h e r e g i o n ' s e a r l i e r position "in t h e forefront of world d e v e l o p m e n t , " as p u t it in t h e passage q u o t e d a b o v e . Substantial l i t e r a t u r e s p i v o t i n g o n c o n c e p t s o f i n c o r p o r a tion, c o l o n i a l i s m , m o d e r n i z a t i o n a n d " r e s p o n s e t o t h e West" t e n d t o imply a m o r e or less c o m p l e t e d i s p l a c e m e n t of t h e East Asian historical h e r i t a g e of this e a r l i e r p e r i o d . We d i s a g r e e a n d see i n s t e a d processes of hybridization a n d cross-fertilization a c c o m p a n y i n g t h e e m e r g e n c e o f W e s t e r n n o m i c a n d military p o w e r as significant forces in t h e r e g i o n from t h e s i x t e e n t h to t h e e i g h t e e n t h c e n t u r i e s , a n d c o n t i n u i n g new ways t h r o u g h o u t a n d s u b s e q u e n t t o t h e e r a o f i m p e r i a l i s m a n d revolution i n East Asia. In t h e s e processes, e l e m e n t s of t h e East Asian historical h e r i t a g e w o u l d r e p e a t e d l y reassert themselves t o s h a p e i n t e r a c t i o n s within t h e r e g i o n a n d b e t w e e n t h e r e g i o n a n d t h e world a t l a r g e right u p t o t h e In s h o r t , we p r o p o s e an analysis of t h e East Asian r e g i o n a l political e c o n o m y a l o n g t h r e e distinct t e m p o r a l d i m e n s i o n s , e m b e d d e d within o n e a n o t h e r in Russian doll fashion. T h e perspective is d e f i n e d by t h e historical h e r i t a g e of a p e r i o d s p a n n i n g t h e s i x t e e n t h to e i g h t e e n t h turies in w h i c h East Asia r e m a i n e d in t h e forefront of world d e v e l o p m e n t

4

Hamashita and

i n t h e s p h e r e s o f s t a t e - m a k i n g a n d n a t i o n a l e c o n o m y - m a k i n g , while interactions a n d hybridization b e t w e e n t h e E u r o p e a n a n d East Asian r e g i o n s intensified. T h e i n t e r m e d i a t e perspective b e g i n s t h e eclipse o f East Asian wealth a n d p o w e r t h e face of t h e n i n e t e e n t h - a n d twentiethc e n t u r y c h a l l e n g e of i m p e r i a l i s m . Even before t h e e n d of this p e r i o d we n o n e t h e l e s s n o t e signs of r e s u r g e n t p o w e r in East Asia, m o s t notably in t h e f o r m a t i o n of t h e b u t also in revolutionary processes in C h i n a a n d that w o u l d s u b s e q u e n t l y b e a r fruit. Finally, t h e s h o r t e s t perspective is d e f i n e d by t h e r e g i o n ' s e c o n o m i c r e n a i s s a n c e following its r e o r g a n i z a t i o n d u r i n g a n d after t h e Cold W a r e r a . T h e collective claim of this b o o k is t h a t e a c h of t h e s e perspectives has s o m e t h i n g valuable t o offer toward t h e u n d e r s t a n d i n g o f t h e p r e s e n t r i s e o f East Asia a n d t h e m o d e r n world system a n d t h a t offers fresh light on t h e future of r e g i o n a l a n d global processes.

East Asia as a world region T h e n o t i o n of a distinctive a n d d y n a m i c East Asian historical h e r i t a g e at t h e f o u n d a t i o n o f o u r e n t i r e investigation. underlies both what we u n d e r s t a n d by East Asia as a world region a n d t h e different t e m p o r a l perspectives we in t h e analysis of t h e r e g i o n a l d y n a m i c . A n d yet, t h e identification of a r e g i o n a l historical h e r i t a g e a task f r a u g h t with difficulties: T h e c o n c e p t of h e r i t a g e — even m o r e so for a r e g i o n t h a n for a c o u n t r y - poses difficulties of It t h r e a t e n s to be vague a n d all-encompassing. Any overview m u s t s o m e h o w c h a r t a c o u r s e through and d e m a n d s o f scholars an interest heritage.

s o u g h t a way o u t of these difficulties by f o c u s i n g on t h e Confucian intellectual tradition - a tradition t h a t has over two a n d a half m i l l e n n i a . Useful as it h i g h l i g h t i n g s o m e c o m m o n a n d disting u i s h i n g features of d e v e l o p m e n t s in East focus i g n o r e s t h e irrelevance of C o n f u c i a n i s m to t h e historical trajectory of m u c h of t h e r e g i o n that we e x a m i n e large areas of S o u t h e a s t including I n d o n e s i a , Malaysia, T h a i l a n d , and the Philippines, to Mongolia, T i b e t a n d M a n c h u r i a i n I n n e r t h e g r e a t differences i n t h e n a t u r e a n d d e g r e e o f p e n e t r a t i o n o f C o n f u c i a n i s m even i n t h e societies o n which i t did m a k e a n i m p a c t , a n d t h e q u e s t i o n o f t h e r e l e v a n c e o f C o n fucianism t o dynamics in m u c h of the region. Moreover, such a focus t e n d s to o b s c u r e t h e systemic c h a r a c t e r of t h e social, econ o m i c a n d political i n t e r a c t i o n s in a r e g i o n s h a p e d by t h e t o p o g r a p h i e s of

5 seas, l a n d , rivers a n d m o u n t a i n s , a n d by t h e i n t e r p l a y of political a n d econ o m i c e x c h a n g e s , l i n k i n g p r e d o m i n a n t l y a g r a r i a n a n d pastoral c u l t u r e s , as well as m a r i t i m e a n d c o n t i n e n t a l r e g i o n s , t h a t over have given rise to a distinctive East Asian w o r l d - r e g i o n a l f o r m a t i o n . Like t h e c o n t r i b u t o r s t o a n o t h e r v o l u m e o n East Asia and 1 9 9 7 ) , t h e c o n t r i b u t o r s to this v o l u m e t e n d to a g r e e with Karl c o n c e p t u a l i z a t i o n of world r e g i o n s as g r o u p s of c o n t i g u o u s c o u n t r i e s m a r k e d l y i n t e r d e p e n d e n t over a wide r a n g e of d i m e n s i o n s that vary in space a n d evolve over t i m e . As P e t e r n o t e s , this " s u p p o r t s a n a p p r o a c h t h a t reflects c h a n g e n o t stasis a n d t h u s uncovers t h e c o n s t r u c t e d c h a r a c t e r of yet avoids p o r t r a y i n g t h e world as a totally fluid a g g l o m e r a t i o n of c o n t i n u o u s l y shifting, d e f i n e d identities" (1997: 1 1 - 1 2 ) . T h u s u n d e r s t o o d , t h e c o n c e p t o f "world r e g i o n " i n c l u d e s , b u t has a b r o a d e r m e a n i n g t h a n , F e r n a n d and n o t i o n of "world-economy" - an e x p r e s s i o n which they h y p h e n a t e to u n d e r s c o r e t h a t it "only c o n c e r n s a f r a g m e n t o f t h e w o r l d , a n e c o n o m i c a l l y a u t o n o m o u s section o f t h e p l a n e t a b l e to p r o v i d e m o s t of its own n e e d s , a section to which its i n t e r n a l links and a c e r t a i n o r g a n i c unity" ( B r a u d e l 1984: 2 2 ) . We s p e a k of East Asia as a world r e g i o n a world-economy b o t h to e l i m i n a t e a m a j o r s o u r c e of confusion a b o u t spatial s c o p e of t h e entity in q u e s t i o n a n d to d o w n p l a y t h e of B r a u d e l ' s d e f i n i t i o n . T h u s , while we use t h e t e r m "world" to convey the idea t h a t we a r c talking a b o u t a (relatively) a u t o n o m o u s a n d o r g a n i c entity e n c o m p a s s i n g a multiplicity of i n t e r r e l a t e d m a t e r i a l c u l t u r e s a n d we use t h e t e r m " r e g i o n " to convey less a m b i g u o u s l y t h a n a h y p h e n t h e idea we a r e talking a b o u t a "section of t h e g l o b e . " At t h e same we d r o p the term t o signal o u r u n d e r s t a n d i n g t h a t t h e a u t o n o m y a n d o r g a n i c unity of t h e entity in q u e s t i o n rest also on political a n d c u l t u r a l r a t h e r t h a n exclusively e c o n o m i c f o u n d a t i o n s . I n d e e d , in s e t t i n g t h e b o u n d a r i e s of t h e East Asian r e g i o n we rely as m u c h o n t h e n a t u r e a n d e x t e n t o f inter-state r e l a t i o n s a s w e d o o n t h e n a t u r e a n d e x t e n t o f c r o s s - b o r d e r e c o n o m i c transactions. M o r e specifically, t h e b o u n d a r i e s of o u r East Asian r e g i o n - which i n c l u d e I n n e r a n d S o u t h e a s t Asia - a r e d e f i n e d primarily by t h e i n d i g e n o u s , C h i n a - c e n t e r e d inter-state system t h a t was in p l a c e l o n g b e f o r e E u r o p e a n g o v e r n m e n t a l a n d business o r g a n i z a t i o n s b e c a m e significant players i n t h e r e g i o n (Figure The of an inter-state system was originally d e v e l o p e d to d e s c r i b e t h e E u r o p e a n system t h a t was eventually institutionalized at W e s t p h a l i a in 1648. (1974a; 1974b) m a d e state system o n e o f t h e two constituents of world system" o r "capitalist w o r l d - e c o n o m y " - t h e o t h e r c o n s t i t u e n t b e i n g t h e axial division of l a b o r that e n c o m p a s s e s t h e system's s e p a r a t e political j u r i s d i c t i o n s . M o r e recently, J a p a n e s e scholars specializing i n t h e

6 Arrighi, Hamashita and

Figure Source: Press,

world and from Takeshi Hamashita,

Network

and

(Ithaca: Cornell University

p.

reconstruction of the structures and m o d e of operation of the Chinac e n t e r e d t r i b u t e - t r a d e system have h i g h l i g h t e d t h e e x i s t e n c e in East Asia of an inter-state system different from b u t c o m p a r a b l e the European (see 199(5, for an overview of t h e c o n t r i b u t i o n ; s e e also H a m a s h i t a , Chapter Peter Perdue a n d C h a p t e r 2 , this v o l u m e ) has s u g g e s t e d t h a t at least until t h e n i n e t e e n t h c e n t u r y t h e East Asian system C h i n a at c o r e may have gravitated m o r e toward C e n t r a l Asia t h a n toward S o u t h e a s t Asia, as r e c o n s t r u c t i o n implies also 1992, for a similar i n t e r p r e t a t i o n ) . B u t this alternative interpretation strengthens rather than weakens the assessment of the comparability of t h e East Asian a n d E u r o p e a n inter-state systems. T h e e x i s t e n c e of an East system considerably t h e task of s e t t i n g t h e spatial b o u n d a r i e s of t h e East Asian world r e g i o n , as well as t h e t r a n s f o r m a t i o n s u n d e r g o n e by t h e r e g i o n o v e r t h e p e r i o d s by o u r investigation. B o u n d i n g world r e g i o n s always p r e sents p r o b l e m s . Most of t h e m arise from t h e two different m e a n i n g s t h a t have b e e n a t t r i b u t e d t o t h e term r e g i o n . T h e definition w e h a v e a d o p t e d , focusing o n and interactions a m o n g contiguous t e r r i t o r i e s / l o c a t i o n s , is n o t t h e only, n o r i n d e e d t h e m o s t widely used

Introduction 7 d e f i n i t i o n of w o r l d r e g i o n . J u s t as widely used a t h a t focuses on c o m m o n a l i t i e s t h a t p r o v i d e c o n t i g u o u s t e r r i t o r i e s a distinct identity, or otherwise 3 0 0 1 : 225; and Chapter S t r o n g i n t c r d c p e n d c n c i c s a n d d e n s e transactions can o f c o u r s e exist a m o n g culturally h o m o g e n e o u s territories. I n d e e d , s o m e m e a s u r e o f s h a r e d values generally a c o n d i t i o n for t h e s t r e n g t h e n i n g of a n d t h e proliferation o f transactions, a n a r g u m e n t a p p l i e d , for e x a m p l e , to c o n E u r o p e . A n d this in t u r n may well m a k e t h e parties involved m o r e h o m o g e n o u s culturally or If t h e case, t h e r e is no c o n t r a d i c t i o n b e t w e e n t h e two definitions of a n d e i t h e r o n e can b e used i n b o u n d i n g r e g i o n s empirically. A t t h e s a m e however, r e q u i r e s o m e diversity, a n d may in t u r n p r o m o t e d e v e l o p m e n t a l o n g d i v e r g e n t p a t h s t h r o u g h specialization a n d differentiation, as in t h e historic relations b e t w e e n a g r a r i a n C h i n a a n d Inner W h e n this is t h e case, t h e two definitions of r e g i o n yield different results a n d t h e empirical identification of a lar r e g i o n r e q u i r e s privilege o n e definition over the o t h e r . T h e n a t u r e of t h e p r o b l e m can be illustrated to the location of Most discussions of S o u t h e a s t Asia have focused on t h e issue of w h e t h e r constitutes a world r e g i o n its own r i g h t on t h e basis of t h e c o m m o n a l i t y criterion. On o n e h a n d , S o u t h e a s t Asia has b e e n d e n i e d w o r l d r e g i o n status o n a c c o u n t of t h e derivative a n d h e t e r o g e n e o u s n a t u r e of its literary, political a n d e c o n o m i c h e r i t a g e . T h u s , "by c o m p a r i s o n with E u r o p e or even S o u t h Asia," Victor finds t h e c a t e g o r y S o u t h e a s t r e s i d u a l " ( 1 9 9 3 : 47G). " W h e r e v e r looks," write Martin Lewis a n d K a r e n W i g c n s u m m i n g u p t h e e v i d e n c e , "differences seem t o b e m o r e p r o m i n e n t t h a n similarities" (1997: 175). O n t h e o t h e r h a n d , t h e status of S o u t h e a s t Asia as a w o r l d r e g i o n has b e e n affirmed on t h e basis o f c o m m o n a l i t i e s derived from t h e r e c e n t e x p e r i e n c e o f E u r o p e a n a n d Japanese or from legacies - a perspective sometimes reified by t h e e x i s t e n c e of S o u t h e a s t Asian studies as a field of scholarly i n q u i r y . Particularly persuasive is A n t h o n y spite of m u l t i p l e i n f l u e n c e s a n d i n t e r n a l differences, a c o m m o n cultural s u b s t r a t u m provides t h e r e g i o n with a distinctive identity an identity c h a r a c t e r i z e d , a m o n g o t h e r t h i n g s , the importance of commercial a n d f i n a n c i a l r e l a t i o n s i n c e m e n t i n g t h e social o r d e r a n d t h e c o m p a r atively h i g h status of w o m e n Whatever the validity of these c o n t r a s t i n g views, we d e p a r t from b o t h by d e f i n i n g world r e g i o n s on t h e basis of i n t c r d c p e n d c n c i c s and interactions rather than commonalities. From s t a n d p o i n t , from the sixteenth S o u t h e a s t Asia was f i r s t a n d f o r e m o s t t h e crossroads of inter-regional t r a d e l i n k i n g N o r t h e a s t a n d Asia to S o u t h and

to E u r o p e , b o t h t h e C a p e a n d the A m e r i c a s . m e a n t that a n d variety o f t h e m a r i t i m e traffic p a s s i n g t h r o u g h t h e r e g i o n were e x t r a o r d i n a r y by c o n t e m p o r a r y s t a n d a r d s - wholly c o m p a r a b l e , in Archibald words "to that o f t h e M e d i t e r r a n e a n o r t h e n o r t h e r n a n d Atlantic coast of E u r o p e " in B r a u d e l 1984: also m e a n t , however, that t h e s t r o n g e s t linked Asian territories, n o t t o o n e a n o t h e r , b u t t o t h e territories o f n e a r b y (South and Northeast or a n d the Americas) By o u r definition, t h e r e f o r e , S o u t h e a s t n o t qualify as a world r e g i o n b u t c o n s t i t u t e s instead a of a l a r g e r social-spatial grouping. In s i t u a t i n g S o u t h e a s t a l a r g e r regional g r o u p i n g , wc face t h e a d d i t i o n a l p r o b l e m of assessing t h e c o m p a r a t i v e i m p o r t a n c e of and Privileging t h e latter would lead us to a d o p t w h a t A n d r e G u i l d e r F r a n k (1998: has called a perspective." F r o m this p e r s p e c t i v e , as as t h e t h i r t e e n t h c e n t u r y a single global e c o n o m y w h o l e of Afro-Eurasia ( a n d after 1500 t h e A m e r i c a s as well), n o t only actually existed, b u t decisively i n f l u e n c e d t h e d y n a m i c s of all regional com(see, a m o n g o t h e r s , 1989). F r o m this perspective, t h e r e no r o o m for (in B r a u d e l ' s s e n s e ) o r world r e g i o n s (in o u r s e n s e ) b u t only for g e o g r a p h i c a l g r o u p i n g s s u c h as S o u t h e a s t Asia of no analytical significance e x c e p t as loci i n t e r a c t i o n s . In this perspective, we a r e n o t d e n y i n g t h e far-reaching a n d i m p a c t s o f global t r a d e b e f o r e a n d especially after 1571 - t h e year of t h e f o u n d i n g of t h e crucial e n t r e p o t of Manila that D e n n i s and (1995: 201) lake a s t h e b e g i n n i n g of truly global t r a d e . R a t h e r , we claim t h a t at least t h r o u g h t h e early teenth century Northeast, I n n e r and Southeast constituted a single world r e g i o n t h e sense i n t e r a c t i o n s within a n d b e t w e e n these s u b - r e g i o n s were m o r e i m p o r t a n t i n s h a p i n g processes a n d o u t c o m e s t h a n t h e i r i n t e r a c t i o n s with o t h e r r e g i o n s o f t h e global e c o n o m y . base o u r claim o n two m a m O n e c o n c e r n s migration a n d private t r a d e . F o r t h r o u g h o u t early m o d e r n a n d m o d e r n times Southeast has b e e n t h e p r i m a r y d e s t i n a t i o n of substantial flows of C h i n e s e e m i g r a t i o n . T h e s e flows, in t u r n , gave to d e n s e a n d extensive n e t w o r k s o f private t r a d e , r e m i t t a n c e s a n d c o m m u n i c a t i o n s , b o t h a n d illegal, e n c o m p a s s e d m a r i t i m e East T h e second consideration c o n c e r n s t h e C h i n a - c e n t e r e d networks. T h e s e networks encompassed not Northeast and Inner but Southeast as well. In certain p e r i o d s a n d certain t h e formal political e c o n o m y of tributary t r a d e prevailed over t h e informal e c o n o m y of private t r a d e . O f t e n , however, t h e o p p o s i t e was t r u e . E i t h e r way, s o m e

9 c o m b i n a t i o n of a n d private t r a d e linked t h e territories of cast, I n n e r a n d S o u t h e a s t Asia in a d e n s e web of e x c h a n g e s a n d transactions, b o t h e c o n o m i c political, that m a k e s a p p r o p r i a t e to speak of a single East Asian world r e g i o n e n c o m p a s s i n g these 7. volume; C h a p t e r 1, volume; P e r d u e , C h a p t e r 2 , this v o l u m e ) . In s u m , o u r c o n c e p t u a l i z a t i o n of East Asia as a world r e g i o n focuses primarily o n i n t e r a c t i o n s a m o n g g o v e r n m e n t a l a n d business organizations. Many o f t h e s e o r g a n i z a t i o n s , particularly t h o s e o p e r a t i n g o u t o f S o u t h e a s t i n t e r a c t e d on a r e g u l a r basis also extra-regional organizations. Wc nonetheless links a n d provided East a certain o r g a n i c p o l i t i c a l - e c o n o m i c unity distinct from t h e global system of in which it was e m b e d d e d . T w o cons e q u e n c e s follow from this c o n c e p t u a l i z a t i o n , o n e c o n c e r n i n g variation t i m e a n d o n e c o n c e r n i n g variation over O u r sensitivity t o t e m p o r a l factors s u p p o r t s a n a p p r o a c h attentive t o c h a n g e s in t h e c o n s t i t u t i o n of East Asia as world r e g i o n , a n d i n d e e d in t h e e x t e n t to which it constitutes a world r e g i o n at all. T h e l o n g e r t e m p o r a l i t y is m e a n t to c a p t u r e c o n s o l i d a t i o n of an East Asian world region t h e c o n t e x t of i n c r e a s i n g i n t e r a c t i o n a m o n g world regions, Asia i n c l u d e d . T h e i n t e r m e d i a t e t e m p o r a l i t y highlights a m o m e n t of overwhelming influence of interactions. A l t h o u g h we t a k e issue with t h e c o n t e n t i o n typical of world-systems analysis t h a t o v e r w h e l m i n g i n f l u e n c e r e s u l t e d in a c o m p l e t e d e c o m p o s i t i o n of t h e East Asian region within t h e s t r u c t u r e s of t h e E u r o p e a n - c e n t e r e d m o d e r n world system, wc r e c o g n i z e that for m o s t of this p e r i o d a tende n c y toward t h e of was at work, in of J a p a n ' s a t t e m p t in first half of t h e t w e n t i e t h c e n t u r y to c r e a t e an East Asian r e g i o n c e n t e r e d on itself. Finally, s h o r t e r (50-year) temporality focuses on a p e r i o d in which this t e n d e n c y was reversed a n d a process of set in, in spile of, a n d p e r h a p s in p a r t precisely b e c a u s e of, an u n p r e c e d e n t e d d e g r e e of i n t e g r a t i o n of East Asia within t h e s t r u c t u r e s of t h e global political e c o n o m y . As the concluding chapter d o e s n o t involve a r e t u r n to e a r l i e r forms of r e g i o n a l i n t e r d e p e n d e n c e and interaction. Rather, involves t h e e m e r g e n c e of forms of regional i n t e g r a t i o n t h a t o r i g i n a t e as m u c h from t h e legacy of t h e i n d i g e n o u s t r i b u t e - t r a d e system a n d o t h e r e a r l i e r forms of Asian intera c t i o n , as from t h e legacy of t h e c l a s h / e n c o u n t e r with t h e E u r o p e a n c e n t e r e d m o d e r n world system. In any event, t h e East Asian world r e g i o n will be c o n c e i v e d as a c o n t i n u a l l y c h a n g i n g reality, r e c u r r e n t l y in t h e process o f b e i n g and unmade. O u r c o n c e p t u a l i z a t i o n o f t h e East Asian r e g i o n , focusing o n r a t h e r t h a n c o m m o n a l i t i e s , s u p p o r t s a n a p p r o a c h that reflects

Hamashita and Selden not just over but diversity over s p a c e . As we have s e e n in a r g u i n g for t h e inclusion of S o u t h e a s t a n d I n n e r in t h e East Asian region, wc do not presume t h e units w h o s e m a k e East Asia a world r e g i o n fit a p a r t i c u l a r m o d e l of a n d institutional b e h a v i o r . On contrary, wc conceive of Asian world region as b e i n g c h a r a c t e r i z e d by at least as m u c h i n t e r n a l diversity of m a t e r i a l c u l t u r e s , e c o n o m i e s a n d as Mediterranean world-economy. T h i s diversity is n o t h a r d to d e s c r i b e . It c o m p l i c a t e s considert h e analysis of world r e g i o n s as evolving totalities. As we shall sec in the next t h e c o n t r i b u t o r s to this v o l u m e have r e s o r t e d to strategies of m e t h o d o l o g i c a l simplification in o r d e r to obviate these difficulties. F o r all t h e i r r e s e a r c h design, c h a p t e r s of t h e book nonetheless complement o n e another r e c o n s t r u c t i n g t h e East Asian r e g i o n a l d y n a m i c its g e o g r a p h i c a l a n d historical c o m p l e x i t y . N a t i o n a l diversity a n d a n d r e g i o n a l conflicts a n d c o m p e t i tion a r e integral aspects o f this c o m p l e x i t y . W e d o n o t d e n y , t h e r e f o r e , usefulness of n a t i o n a l studies, particularly t h o s e sensitive to t h e interplay of regional a n d global forces. Wc simply claim t h a t the East Asian r e g i o n a l d y n a m i c i s s o m e t h i n g m o r e t h a n a n d different from the s u m o f t h e separate n a t i o n a l d y n a m i c s . In n u m e r o u s ways, r e g i o n a l d y n a m i c has c o n s t r a i n e d , driven a n d s h a p e d t h e d e v e l o p m e n t o f t h e economics, a n d societies over a l o n g historical time.

The East Asian dynamic in world historical perspective As David Harvey ( 2 0 0 1 :

has

T h e r e a r e m a n y windows from which t o the world The view from C h i n a l o o k i n g o u t w a r d s or from t h e lower classes l o o k i n g up is different from that from t h e P e n t a g o n or Street. But each can be r e p r e s e n t e d a c o m m o n frame of d i s c o u r s e , subject to evaluation as i n t e r n a l integrity a n d credibility. While s h a r i n g t h e c o m m o n frame o f discourse h i g h l i g h t e d above, t h e c h a p t e r s of book t h e evolving s t r u c t u r e a n d d y n a m i c of t h e East Asian region from different "windows," e a c h c h a r a c t e r i z e d by a particular angle vision a n d substantive focus. T h e first two c h a p t e r s d e s c r i b e t h e i n n e r s t r u c t u r e of t h e r e g i o n as a w h o l e b u t with a s o m e w h a t different substantive focus. F o c u s i n g on t h e d e n s e a n d extensive networks forged t h e coastal areas o f m a r itime East i n t o a diverse b u t well-integrated realm, H a m a s h i t a in C h a p t e r 1 shows that, even at t h e h e i g h t of t h e i r

1 colonial states c o l l u d e d to r e i n f o r c e e l e m e n t s of the historical East Asian tributary system. F o c u s i n g on i n t e r a c t i o n with I n n e r P e r d u e in C h a p t e r 2 recognizes the i m p o r t a n c e of c o m m e r c i a l e x c h a n g e s b u t sees security as t h e o v e r r i d i n g p r o b l e m t h a t m a d e military r a t h e r t h a n c o m m e r c i a l a n d p r o d u c t i v e p o w e r t h e decisive force in inter-state relations. As previously n o t e d , we do n o t r e g a r d these c o n t r a s t i n g views as c o n t r a d i c t i n g o n e R a t h e r , wc them as c o m p l e m e n t i n g o n e a n o t h e r in jointly defining o u r s t a n d i n g of t h e historic East Asian r e g i o n a l system. M o r e o v e r , t h e from different of t h e r e g i o n , for e x a m p l e , a m a r i t i m e versus an overland perspective, p r o d u c e distinctive u n d e r s t a n d i n g s o f t h e dynamics p r o d u c e regional complementarity or hierarchy. T h e b o o k ' s t h r e e c e n t r a l c h a p t e r s a d o p t a n a r r o w e r a n g l e o f vision a n d focus on specific b u t particularly significant aspects of t h e East Asian d y n a m i c in c o m p a r i s o n the Western dynamic. in C h a p t e r 3 focuses o n t h e d e v e l o p m e n t o f t e c h n i q u e s / t e c h n o l o g i e s o f p r o d u c t i o n at t h e level of e c o n o m i e s . H a m i l t o n a n d C h a n g in C h a p t e r 4 focus on s t r u c t u r e of business o r g a n i z a t i o n s o p e r a t i n g within national societies. A n d C h a p t e r 5 focuses on t h e g e n d e r division of l a b o r within a n d b e t w e e n h o u s e h o l d s in c o r e r e g i o n s of t h e East Asian a n d E u r o p e a n r e g i o n a l e c o n o m i c s . As we shall s e e below, these different foci a n d perspectives c o m p l e m e n t o n e a n o t h e r i n d e f i n i n g o u r u n d e r s t a n d i n g of t h e of social a n d e c o n o m i c East Finally, t h e two c o n c l u d i n g c h a p t e r s , like t h e first two, analyze t h e East Asian r e g i o n as a w h o l e . T h e y do so, however, from a c o m p a r a t i v e perspective. in C h a p t e r 6 c o m p a r e s t h e East Asian a n d European o r d e r s b y focusing o n t h e r o l e t h a t J a p a n a n d G e r m a n y have played i n t h e i r f o r m a t i o n a n d t r a n s f o r m a t i o n . H u n g a n d S e l d e n , i n C h a p t e r 7 , i n c o n t r a s t , focus o n t h e role o f capitalism a n d r e l a t i o n s in first, a global shift of politicale c o n o m i c p o w e r from East to E u r o p e and North America, and then, the beginning r e c e n t t i m e s of a s e e m i n g reversal of shift. T h e c o m m o n premises of the book concerning c o n s t i t u e n t elem e n t s of t h e East Asian world r e g i o n a r c laid o u t t h e first two Taking at the land-based a n d that, spite of m u l t i p l e c h a l l e n g e s , a r e still d o m i n a n t in Asian studies scholarship, Hamashita examines ways in which t h e seas, t h e i r coastal areas, a n d p o r t cities d e f i n i n g features o f East Seas a n d o t h e r waterways have l o n g served effect as "highways," port cities as strategic n o d e s t h a t facilitate tributary, t r a d e , m i g r a t i o n a n d o t h e r i n t e r c h a n g e s t h a t define t h e r e g i o n a l c o n s t e l l a t i o n . C a r r y i n g his analysis t h r o u g h t h e late n i n e t e e n t h c e n t u r y , H a m a s h i t a offers an analysis of r e g i o n a l forces t h a t c o n t i n u e s t h e era of i m p e r i a l i s m ,

extension of many earlier o f political a n d c o m m e r c i a l i n t e r c o u r s e i n t o t h e colonial era. Perdue argues that many of features t h a t H a m a s h i t a e x p l a i n s i n t e r m s of m a r i t i m e waterways a n d t h e i r coastal areas a n d cities apply equally to l a n d b o r d e r s which he sees n o t as lines dividing a u t o n o m o u s states b u t a s z o n e s o f intensive i n t e r a c t i o n . T r a d e a n d tribute missions a r e i m p o r t a n t aspects of i n t e r a c t i o n . In times of however, t h e s e are m a j o r war zones. notes importance of extending analysis of Asian r e g i o n a l i s m to the of military conflict. W h i l e C h i n a a n d I n n e r Asia d e v e l o p e d i m p o r t a n t relationships, he holds t h a t C h i n e s e s t a t e s m e n were above all p r e o c c u p i e d with I n n e r Asia b e c a u s e of t h e i r fears of attack from t h e or t h e i r own expansive activities s e e k i n g to press o u t w a r d t h e i r b o r d e r s i n t o t h e s t e p p e . T h e other five chapters adopt an c o m p a r a t i v e perspective. Each h i g h l i g h t s a n i m p o r t a n t aspect o f a c o m m o n story a b o u t d i v e r g e n c e , c o n v e r g e n c e a n d hybridization within East Asia a n d b e t w e e n t h e East Asian a n d E u r o p e a n / W e s t e r n r e g i o n a l systems. c o m m o n story can b e summed up in three propositions. First, t h e g r e a t d i v e r g e n c e in t h e political a n d e c o f o r t u n e s of East Asia a n d E u r o p e was at least in p a r t based on earlier, less divergences t h e d e v e l o p m e n t a l trajectories of t h e two world r e g i o n s . T h u s , focusing on t h e different trajectories of n a t i o n a l economic i n t h e two systems, g r o w i n g part out of d e m o g r a p h i c differences involving t h e m o r e densely p o p u l a t e d r e g i o n s o f t h e East Asian c o r e , particularly C h i n a a n d J a p a n , sees East Asian trajectory c u l m i n a t i n g a and t h e E u r o p e a n / N o r t h A m e r i c a n trajectory c u l m i n a t i n g a and "industrial revolution." F o c u s i n g on s t r u c t u r e a n d g e n d e r roles, highlights a d i v e r g e n c e b e t w e e n a n East Asian t e n d e n c y toward a s h a r p e n i n g of t h e g e n d e r division of l a b o r a n d a E u r o p e a n t e n d e n c y toward a s h a r p e n i n g of t h e division of l a b o r . F o c u s i n g on t h e different s t r u c t u r e s of t h e East Asian a n d E u r o p e a n inter-state systems, d e t e c t a d i v e r g e n c e in t h e t h r o u g h t h e e i g h t e e n t h c e n t u r i e s between a E u r o p e a n t e n d e n c y toward t h e f o r m a t i o n o f overseas e m p i r e s a n d i n t e n s e inter-state c o m p e t i tion m o b i l e capital on t h e o n e h a n d , a n d an Asian t e n d e n c y toward n a t i o n a l e c o n o m y - m a k i n g a n d little overt for m o b i l e capital, o n t h e o t h e r . Focusing o n differences the organization o f c o m m e r c i a l a n d industrial activities, a n d C h a n g also see a d i v e r g e n c e b e t w e e n a C h i n e s e a n d a E u r o p e a n / W e s t e r n p a t t e r n o c c u r r i n g since S o n g S e c o n d , t h e p r e d o m i n a n c e of a p a r t i c u l a r t e n d e n c y within each of t h e two r e g i o n a l systems d i d n o t involve a lack of differentiation a m o n g t h e c o m p o n e n t s of system. On t h e c o n t r a r y , s o m e respects,

within East Asia a r c s e e n to have b e e n as i m p o r t a n t as differb e t w e e n world r e g i o n s . P e r d u e highlights differences between pastoral-nomadic prevailing Asia a n d t h e agrarian f o u n d a t i o n s o f m u c h o f rural C h i n a . u n d e r s c o r e s significant differences b e t w e e n a J a p a n e s e a n d a C h i n e s e of g e n d e r e d labor d u e to lesser spatial mobility of female l a b o r China. Hamilton and C h a n g sec the e m e r g e n c e in China of commodity c h a i n s " l i n k i n g a highly d e c e n t r a l i z e d , rural-based p r o d u c t i o n to a system of mass d i s t r i b u t i o n c o n t r o l l e d by m e r c h a n t g r o u p s o r g a n i z e d flexibly on t h e basis of o c c u p a t i o n a l specialization a n d r e g i o n of origin, as differentiating the Chinese path of from t h e E u r o p e a n b u t from t h e J a p a n e s e p a t h a s well. P e t e r compares German a n d J a p a n e s e a p p r o a c h e s t o t e c h n o l o g y , n o t b e c a u s e they a r c of c o m m o n patterns t h r o u g h o u t their regions, but these p a t t e r n s differentiate t h e m b o t h from o n e a n o t h e r a n d from o t h e r technological r e g i m e s within t h e i r respective r e g i o n s . Finally, t h e d e e p e n i n g i n t e r - p e n e t r a t i o n of t h e two r e g i o n a l systems within a single global system since t h e n i n e t e e n t h c e n t u r y has n o t entailed c o n v e r g e n c e of t h e East Asian p a t t e r n of social, e c o n o m i c a n d political i n t e r a c t i o n toward t h e E u r o p e a n / W e s t e r n p a t t e r n a s many analysts, t h o s e w o r k i n g within a m o d e r n i z a t i o n p a r a d i g m , have p r e s u p p o s e d . O n c o n t r a r y , t h e c h a p t e r s t h a t explicitly address t h e issue sec a s m u c h d i v e r g e n c e a s c o n v e r g e n c e b o t h b e t w e e n a n d within r e g i o n s . T o t h e e x t e n t that see c o n v e r g e n c e , they d o n o t see i t e r a s i n g differences. R a t h e r , they it as b e i n g strongly c o n d i t i o n e d by p a t h d e p e n d e n c e . M o r e i m p o r t a n t , they see c o n v e r g e n c e p r o c e e d i n g a s m u c h toward East Asian as toward E u r o p e a n / W e s t e r n p a t t e r n s . Thus, ci t h e US r e g i m e established in East Asia after the S e c o n d W o r l d W a r as unwittingly reviving c e r t a i n key features of t h e historic East Asian t r i b u t e - t r a d e system, s u c h as a r e g i m e of and trade b e t w e e n t h e i m p e r i a l a n d vassal states that was favorable to t h e vassal states. Similarly, H a m i l t o n a n d C h a n g see t h e U S buyers" t h a t o p e r a t e today in East Asia t h r o u g h p r o d u c t i o n n e t w o r k s as c e r t a i n o r g a n i z a t i o n a l features c h a r a c t e r i s t i c of t h e buyers" of Late I m p e r i a l C h i n a . P o m e r a n z , for p a r t , finds that, in of p o i n t s of convergence, the the and t h e C h i n e s e patt e r n s of g e n d e r e d division of l a b o r have c o n t i n u e d to evolve a l o n g distinct paths, each its own i m p l i c a t i o n s for e c o n o m i c d e v e l o p m e n t a n d emancipation. goes f u r t h e r t h a n any o f other contributors to the in u p h o l d i n g t h e view t h a t t h e p r e s e n t of East Asia as works h o p o f t h e world can b e t r a c e d t o processes o f p a t h d e p e n d e n c e a n d h y b r i d i z a t i o n . In his view, t h e i n c o r p o r a t i o n of Western technological East Asian institutional frameworks - first p i o n e e r e d by

Hamashita and

a n d now t a k i n g r o o t in a g r o w i n g of East Asian c o u n t r i e s not t h e main secret of East Asian e c o n o m i c success. It is also t h e m o s t p r o m i s i n g r o u t e toward a m o r e egalitarian a n d sustainable economic expansion. c o n t r a s t s sharply that a d v a n c e d chapter. c o m p a r e s t h e r o l e o f J a p a n e s e g o v e r n m e n t a l a n d business agencies s h a p i n g t h e post-Second W o r l d W a r t e c h n o l o g i c a l o r d e r East Asia t h e r o l e of in E u r o p e . In s o m e respects analysis c o m p l e m e n t s a n d s u p p l e m e n t s that o f t h e o t h e r c h a p t e r s by richly d o c u m e n t i n g t h e limits of convergence at a of u n p r e c e d e n t e d ( a n d increasing) global p o l i t i c a l - e c o n o m i c i n t e g r a t i o n . As in the o t h e r c h a p t e r s , in too, history a n d g e o g r a p h y c o n t i n u e t o m a t t e r i n c o n d i t i o n i n g a n d s h a p i n g local r e s p o n s e s to t h e e s t a b l i s h m e n t of t h e US world o r d e r . In o t h e r respects, however, analysis d e p a r t s from that of o t h e r c h a p t e r s , especially W h i l e n o t i n g similarities b e t w e e n t h e C h i n e s e a n d J a p a n e s e a p p r o a c h e s t o t h e p r o b l e m s o f t e c h n o l o g y , like Hamilton and Chang, e m p h a s i z e s differences r a t h e r t h a n similarities between C h i n e s e a n d J a p a n e s e business More fundamentally, u n l i k e h e d o e s not sec t h e d e v e l o p m e n t a l p a t h opened b y J a p a n a s l e a d i n g toward g r e a t e r equality a m o n g n a t i o n s regionally a n d globally. R a t h e r , h e sees t h e rapid i m p r o v e m e n t o f technological as b e i n g based on a n d r e p r o d u c i n g an East Asian division of labor m o r e h i e r a r c h i c a l t h a n t h e W e s t e r n E u r o p e a n . Katzend o e s n o t r u l e o u t t h e possibility t h a t i n c o m i n g d e c a d e s r e g i o n a l key i n d u s t r i e s c o u l d pass from J a p a n e s e to East Asian firms of a n o t h e r nationality - particularly to firms l o c a t e d in "China Circle." But he sees no reason to a n t i c i p a t e that c h a n g e of l e a d e r s h i p would u n d e r m i n e t h e relatively h i e r a r c h i c a l c h a r a c t e r of t h e r e g i o n a l division of labor. el at c o n c u r p a r t with this assessment. U s i n g a different set of data t h a n S u g i h a r a , they r e a c h the s a m e c o n c l u s i o n as he d o e s that over t h e past t h e East Asian e c o n o m i c a d v a n c e has m a d e a m a j o r c o n t r i b u t i o n to t h e r e d u c t i o n of i n c o m e inequality, particularly b y t h e g a p b e t w e e n East on the o n e h a n d , a n d E u r o p e a n d N o r t h A m e r i c a , o n t h e o t h e r . B u t t h e i r d a t a also s h o w that, a s a r g u e s , i n c o m e inequality a m o n g East Asian states has increased through the a n d r e m a i n s a m o n g t h e h i g h e s t i n t h e world. As they c o n c l u d e , it is n o t at all c l e a r at point which of two t e n d e n c i e s will eventually prevail. In s u m , t h e c h a p t e r s of start from t h e c o m m o n p r e m i s e t h e p r e s e n t East Asian d y n a m i c can only be u n d e r s t o o d in light of the r e g i o n ' s historical heritage a n d r e a c h i m p o r t a n t c o m m o n conclusions conc e r n i n g t h e n a t u r e of that heritage a n d its c o n s e q u e n c e s played o u t in

Introduction t e m p o r a l a n d spatial r h y t h m s . Since t h e c h a p t e r s have the s a m e reality from different "windows," a n d since a u t h o r s e x a m i n e the l a n d s c a p e u s i n g different lenses, they d o n o t reach t h e s a m e conclusions. F o r t h e m o s t these different c o n c l u s i o n s a r e c o m p a t i b l e o n e a n o t h e r , reflecting t h e m u l t i p l e lineages o f t h e o n g o i n g regional econ o m i c r e n a i s s a n c e . O n s o m e i m p o r t a n t issues t h o s e discussed above, they c o n s t i t u t e a b o u t t h e o n g o i n g East Asian econ o m i c r e n a i s s a n c e w h o s e plausibility r e m a i n s to be assessed t h e light of t h e u n f o l d i n g e v i d e n c e . T h e y n o n e t h e l e s s r e m a i n u n i t e d i n t h e conviction that t h e historical of t h e East Asian region, a n d n o t simply t h e n a t i o n s a n d localities that c o n s t i t u t e have s h a p e d a n d c o n t i n u e t o s h a p e b o t h r e g i o n a l o u t c o m e s a n d t h e n a t u r e o f i n t e r a c t i o n s linking East a n d t h e global political e c o n o m y . T h i s m e a n s , further, understandings of globalization processes that fail to e n g a g e of whether in t h e s i x t e e n t h c e n t u r y , t h e n i n e t e e n t h c e n t u r y or in t h e early twenty-first a r e likely to miss critical d y n a m i c e l e m e n t s .

Note Wc the

East

Northeast to for the larger region

is

Japan of

preserving

References Janet.

Before Hegemony: The World A.D. Oxford University Press. and j. Silver el Chaos and Minneapolis, of Minnesota Press. Fernand. and vol. of the World. New York: Row. Cumings, Bruce. 1987. Origins Development of the Northeast Asian Political Sectors, Product Cycles, and Political ConDeyo The. Political Economy of Asian Ithaca, NY: Cornell pp. 44-83. J o h n . 1992. "The Middle Kingdom, the Middle Sea, and the Pivot of Review XV, 3: 477-525. Dennis O. and 1995. "Born The Origin of World Trade of World History 2: Frank, Andre Guilder. Economy the Asian Age. CA: of California Press. David. Spaces of York: Sato. 1990. "The History of the World-System vs. The History of East-Southeast i: 49-76. Peter. 1997. "Introduction: Asian Regionalism Comparative spectives," in P. T. and NY: Cornell Press. 1250-1350.

Peter and 1907. Power: Ithaca, NY: University Press. Lewis, Martin and Karen E. The Myth of Berkeley, University of Press. "Local Integration and Analogies: Asian History, Asian Studies, 27: 475-572. Perdue, Peter Seventeenth- and China, Russia, and (4): Reid, Anthony. Age vol. The Lands Winds. New CI": Yale Press. Reid, Anthony (cd.) Southeast the Era: Trade, and Ithaca, NY: Cornell University Press. Gilbert. The East Confucian Heritage and Adaptation. Princeton University Press. Wallerstein, 1974a. The vol. I: Capitalist Agriculture the of the the Century. New York: Press. Wallerstein, "The Rise and Future of the World Capitalist Concepts for Analysis," Studies Society 4,

Chapter

T r i b u t e and t r e a t i e s Maritime Asia and treaty p o r t networks in the era of negotiation,

Takeshi

Hamashita

States and the seas Countries functioning territorial states have l o n g d i s t i n g u i s h e d selves f r o m o t h e r s by e s t a b l i s h i n g b o u n d a r i e s , e x t e n d i n g t h e i r even o u t t o sea. T h e result has often b e e n inter-state d i s p u t e s s u c h a s clashes o v e r 200-mile sea z o n e s a n d c o n f l i c t i n g claims to islands, as in t h e case of t h e Island issue p o t e n t i a l l y large oil r e v e n u e s at T h e state has l o n g c l a i m e d sovereignty, a n d the w h e n all things were t h o u g h t t o b e l o n g ultimately t o t h e state, n e g o t i a t i o n s a n d conflicts focused on exclusive possession of territory d e f i n e d by formal b o u n d a r i e s . T h e m e a n i n g of t h e seas c a n n o t be fully a p p r e c i a t e d as l o n g as s e e n as o p p o s e d to t h e l a n d a n d as l o n g as o n e ' s focus is on t h e land. T h e seas, in fact, form a n d set t h e c o n d i t i o n s of land. T h e seas a n d t h e land should be u n d e r s t o o d not as b e i n g b y t h e coasts, b u t a s p a r t of a l a r g e r w h o l e in w h i c h t h e l a n d is p a r t of t h e seas vice T h e sea forms, s h o r t , a r o a d , a basis for c o m m u n i c a t i o n a n d n e t w o r k flows, n o t a b a r r i e r . L o o k i n g at f r o m t h e viewpoint of t h e seas b r i n g s focus t h e feat u r e s t h a t identify it as a m a r i t i m e r e g i o n par T h e seas a l o n g t h e e a s t e r n coast of t h e Eurasian c o n t i n e n t form a g e n t l e S extending from n o r t h to s o u t h ( F i g u r e 1.1). T h e c h a i n f o r m e d by t h e seas that o u t l i n e t h e c o n t i n e n t , its p e n i n s u l a s a n d a d j a c e n t islands, can be seen as shaping the premises geopolitical s p a c e . T h e " m a r i t i m e areas" t h u s f o r m e d i n a n d a r o u n d Asian l a n d s a r e s m a l l e r t h a n a n o c e a n a n d less closely associated t h e l a n d t h a n a r e bays or inlets. L e t us follow t h e "Asian seas" from n o r t h to s o u t h . T h e Sea of O k h o t s k s h a p e s K a m c h a t k a a n d Siberian Russia. F u r t h e r it merges the of J a p a n ; then comes the a n d t h e Yellow T h e s e , with C h i n a Sea, e m b r a c e t h e K o r e a n P e n i n s u l a , t h e J a p a n e s e a r c h i p e l a g o , a n d t h e islands o f O k i n a w a . T h e c h a i n o f seas t h e n divides two. O n t h e cast the Sea l e a d i n g to t h e Coral, a n d Seas. On t h e west is t h e Java Sea t h a t s t r e t c h e s west a n d c o n n e c t s the

Tribute and treaties Strait Malacca a n d t h e n c e t o t h e Bay o f B e n g a l . F r o m t h e intersections of t h e s e seas, t r a d e n e t w o r k s f o r m e d , p i v o t i n g on places like Nagasaki, S h a n g h a i , H o n g K o n g , Malacca, a n d S i n g a p o r e . Asian s t u d i e s in C h i n a , J a p a n a n d t h e West h a s , from its i n c e p t i o n , revolved a r o u n d t h e history of l a n d - b a s e d states. However, to g r a s p t h e totality, p a r t i c u l a r l y t h e r e g i o n a l integrity, it is necessary to study Asia in t e r m s o f t h e interfaces a n d e x c h a n g e s t h a t take place w i t h i n a n d a m o n g m a r i t i m e z o n e s a n d t h a t cross state

The

emergence

of maritime

zones

If t h e a r e a s called East Asia a n d S o u t h e a s t are understood t o b e t h e m a r i t i m e r e a l m s h a p e d a n d d e f i n e d b y t h e East C h i n a Sea a n d t h e S o u t h C h i n a Sea, t h e historical system o f t h e r e g i o n can b e u n d e r s t o o d logically. T h e m a r i t i m e w o r l d t h a t f u n c t i o n s h e r e not m e r e l y o n e of seas. R a t h e r , it is c o m p o s e d of t h r e e One the coastal a r e a w h e r e l a n d a n d sea intersect. I n t h e s e v e n t e e n t h the e m p e r o r issued a n o r d e r f o r c i n g t h e S o u t h C h i n a coastal p o p u lation t o m o v e i n l a n d a n a t t e m p t t o s e p a r a t e t h e m from t h e o f t h e powerful leader Zheng Cheng-gong whose m a r i t i m e e m p i r e e x t e n d e d from a n d G u a n g d o n g t o Taiwan. This d e m o n s t r a t e s t h e pivotal r o l e of coastal a r e a s in t h e m a r i t i m e world. Another important element t h e sea-rim z o n e c o m p r i s e d o f coastal a r e a s . A l o n g this rim a r e t r a d i n g p o r t s a n d cities that c o m p r i s e t h e key n o d e s o f t h e m a r i t i m e a r e a . T h e s e p o r t s a r e n o t s o m u c h o u t l e t s t o t h e sea for i n l a n d a r e a s a s p o i n t s t h a t c o n n e c t o n e m a r i t i m e z o n e t o a n o t h e r . Historically, t h e m e r c h a n t s o f l o c a t e d o n t h e C h i n e s e coast, for e x a m p l e , a m a s s e d w e a l t h p r e d o m i n a n t l y t h r o u g h coastal a n d m a r i t i m e t r a d e r a t h e r t h a n f r o m c o n t i n e n t a l t r a d e . N i n g b o m e r c h a n t s played a particularly i m p o r t a n t r o l e in t r a d e with Nagasaki. O t h e r m a r i t i m e links t h a t f l o u r i s h e d i n t h e e i g h t e e n t h a n d centuries included t r a d e l i n k i n g J a p a n a n d Korea, t h e route between the and Southwest Japan, linking Southeast China a n d Taiwan, a n d l i n k i n g t h e D u t c h East I n d i e s , Malaya, a n d S o u t h e a s t C h i n a . Notably, t h e m a r i t i m e c o n c e p t has r e a p p e a r e d today i n the concepts of the J a p a n a n d Yellow Sea-rim t r a d e z o n e s . T h e t h i r d e l e m e n t o f t h e m a r i t i m e w o r l d i s t h e p o r t cities t h a t link maritime r e g i o n s t h r o u g h l o n g - d i s t a n c e t r a d e . A m o n g cities o f this type which flourished in the n i n e t e e n t h century are Naha, G u a n g z h o u , Macao, a n d H o n g Kong. N a h a , for e x a m p l e , h a d long-established t r a d e links with while G u a n g z h o u s links were with Nagasaki a n d east Asia. P o r t cities l i n k i n g t h e S o u t h C h i n a Sea a n d I n d i a n O c e a n i n c l u d e d Malacca, a n d l a t e r S i n g a p o r e a n d A c e h i n I n d o n e s i a . I n c o n t r a s t

to t h e m a r i t i m e world e n c o m p a s s e d coastal t r a d e , trade, and c o n n e c t i o n s , for e x a m p l e , t h o s e l i n k i n g t h e S o u t h a n d East C h i n a seas. T h e was a n o p e n , multi-cultural was a n d well i n t e g r a t e d . To u n d e r s t a n d t h e o p e r a t i o n a l principles of t h e m a r i t i m e world, is t o e x a m i n e t h e interplay o f political, a n d cultural factors that u n f o l d e d The historical loosely t h e m a r i t i m e world of East was e n c a p s u l a t e d in relations, which tioned from t h e T a n g t h r o u g h dynasties, from t h e seventh c e n t u r y to C h i n a - c e n t e r e d o r d e r n e v e r t h e l e s s p e r m i t t e d Korea, J a p a n , a n d V i e t n a m to assert themselves as " c e n t e r s " smaller n e i g h b o r i n g states u n d e r t h e i r sway. T h e region was by a hierarchical o r d e r d e f i n e d by Confucian c o n c e p t i o n of a "rule of virtue." Like any hegemonic it was b a c k e d by military force, b u t w h e n t h e system well, p r i n c i p l e s of reciprocity involving politics a n d e c o n o m i c s l o n g p e r i o d s o f peaceful i n t e r a c t i o n . In t h e o r d e r , tributaiy states s e n t p e r i o d i c t r i b u t e missions to t h e capital, a n d e a c h rulers of tributaiy c h a n g e d , C h i n a d i s p a t c h e d an envoy to officially r e c o g n i z e t h e n e w ruler. I n u n s e t t l e d times, C h i n e s e forces s o m e t i m e s i n t e r v e n e d t o p r o p u p o r e n s h r i n e a ruler. T r i b u t e r e l a t i o n s w e r e n o t only political b u t involved e c o n o m i c a n d t r a d e relations as In e x c h a n g e for t h e gifts carried to the c o u r t , t r i b u t e b e a r e r s received silk textiles a n d o t h e r g o o d s from t h e e m p e r o r . Specially licensed t r a d e r s a c c o m p a n y i n g t h e envoy engaged c o m m e r c i a l t r a n s a c t i o n s at d e s i g n a t e d places t h e capital. In a d d i t i o n , m o r e t h a n ten times as m a n y m e r c h a n t s as these special t r a d e r s exchanged commodities local m e r c h a n t s a t t h e c o u n t r y ' s b o r d e r s a n d at d e s i g n a t e d ports. In s h o r t , lucrative t r a d e was t h e l u b r i c a n t for t h e tributaiy system d e f i n i n g r e g i o n a l political, e c o n o m i c , a n d cultural course. sea r o u t e s a n d m a j o r p o r t s o f call o f t h e t r i b u t e missions s e n t by to C h i n a , for e x a m p l e , were clearly established. Navigational charts devised b a s e d o n seasonal winds a n d o n t h e p o i n t s a n d lines established by surveying coasts a n d observing t h e m o v e m e n t s of t h e stars. N o t only overseas C h i n e s e m e r c h a n t s b a s e d East a n d S o u t h e a s t Asia b u t I n d i a n , Muslim, a n d E u r o p e a n m e r c h a n t s p a r t i c i p a t e d in this t r i b u t e t r a d e , l i n k i n g land a n d m a r i t i m e A m a r i t i m e z o n e , t h e r e f o r e , was also a t r i b u t e a n d t r a d e z o n e . M o r e over, such zones broadly d e f i n e d flows of h u m a n m i g r a t i o n . In J a p a n stories a b o u t castaways were often told to inspire fear, d i s c o u r a g i n g p e o p l e from a t t e m p t i n g to leave t h e land. In fact, however, w h e n castaways were discovered, they were to taken a l o n g t h e t r i b u t e r o u t e back to t h e i r h o m e at e x p e n s e . A l o n g t h e coast of

Tribute and treaties Kyushu, private C h i n e s e ships t o o k a d v a n t a g e of drifting up a l o n g t h e coast, a n d e n g a g i n g in a before arrived to do t h e i r Tribute

trade

and

Ryukyu

rule, intentiontrade

networks

To s e e w h a t a t r a d e z o n e was like, let us l o o k at t h e T h e Ryukyu K i n g d o m regularly s e n t missions t o S o u t h e a s t Asia t o o b t a i n t h e p e p p e r and sappanwood c o u l d n o t p r o d u c e locally, a n d p r e s e n t e d these t o C h i n a as p a r t of its t r i b u t e t r a d e . T h e first v o l u m e s of t h e or Precious Kings), a collection of official C h i n e s e tributary-trade r e c o r d s , states t h a t d u r i n g t h e M i n g p e r i o d t h e Ryukvus e n g a g e d i n c o m m e r c i a l t r a n s a c t i o n s S o u t h e a s t Asia, i n c l u d i n g Java, Malacca, S u m a t r a , and can b e a s s u m e d that J a p a n , a n d C h i n a were a m o n g t h e t r a d e p a r t n e r s i n a d d i t i o n t o t h e s e S o u t h e a s t Asian c o u n t r i e s . The s h o r t , was p a r t of an extensive t r a d e Slated differently, this far-flung n e t w o r k pivoted on b u t was by no m e a n s limited to t h e Ryukyu t r i b u t e t r a d e with C h i n a . T h e trade h a d two distinctive features. O n e was that t r a d e Siam a n d o t h e r S o u t h e a s t Asian c o u n t r i e s was vigorous t h e early fifteenth and the mid-sixteenth T h e o t h e r was that, a s far as wc k n o w from t h e t r a d e with S o u t h e a s t d e c l i n e d while t r a d e with Korea a n d J a p a n i n c r e a s e d . T h i s p h e n o m e n o n p r o m p t s u s t o ask two q u e s t i o n s c o n c e r n i n g t h e w h a t h a p p e n e d to t h e t r a d e with S o u t h e a s t Asia after t h e A n d w h a t was t h e n a t u r e of t h e t r a d e with Manila a n d Luzon t h e c o n t e x t of Ryukyu t r a d e with S o u t h e a s t In e x a m i n i n g these q u e s t i o n s , wc n o t e that t h e were involved i n two t r a d e r o u t e s b e t w e e n t h e S o u t h C h i n a a n d S o u t h e a s t Asia. O n e r o u t e ran a l o n g t h e island c h a i n s o n e a s t e r n side o f t h e S o u t h C h i n a Sea from L u z o n t o a n d t h e o t h e r s t r e t c h e d a l o n g t h e coast o f the c o n t i n e n t o n t h e w e s t e r n side o f t h e S o u t h C h i n a Sea from Siam t o Malacca ( F i g u r e 1.2). T h e e a s t e r n r o u t e s t a r t e d from (or Southeast coastal C h i n a , a n d s p a n n e d t h e r e g i o n b e t w e e n t h e Taiwan, a n d Sulu. r o u t e n o t only c a r r i e d t h e t r a d e with S o u t h e a s t Asian tributaiy states b u t also, from t h e s i x t e e n t h a n d s e v e n t e e n c e n t u r i e s o n w a r d , t h e t r a d e with S p a i n c e n t e r e d at Manila - e x c h a n g i n g silk for silver a n d t h e D u t c h East I n d i a C o m p a n y c e n t e r e d o n T a i w a n . A t t h e the r o u t e ran f a r t h e r n o r t h from F u z h o u w h e r e soybean a n d soybean meal f r o m N o r t h C h i n a in e x c h a n g e for rice, s u g a r , p o r c e l a i n , a n d silk. T h e w e s t e r n r o u t e , s t a r l i n g from G u a n g z h o u , linked various parts o f S o u t h e a s t Asia following t h e coast to major S o u t h e a s t Asian tributaiy

Figure

East and West maritime routes

Source: Takeshi Hamashita

249).

states, i n c l u d i n g Siam, Malacca, a n d S u m a t r a . Rice, m a r i n e p r o d u c t s , a n d spices w e r e m a j o r i t e m s i m p o r t e d t o G u a n g d o n g from S o u t h e a s t Asia a n d t h e n traveled i n l a n d t o H u n a n , a n d o t h e r parts o f S o u t h a n d Central China. to Southeast were rice a n d sugar. In years after t h e r e c o r d s of official t r a d e with east Asia s t o p p e d a p p e a r i n g in 1570, t h e Ryukyu King S h o asked t h a t p e p p e r , which was n o t p r o d u c e d locally, he e x c l u d e d from t h e of g o o d s . T h e C h i n e s e c o u r t a p p r o v e d . T h i s suggests that over t h e p r e c e d i n g c e n t u i y , using t r a d e c h a n n e l s , Ryukyu was a b l e to o b t a i n p e p p e r from S o u t h e a s t for inclusion shipments to C h i n a . B e h i n d this d e v e l o p m e n t lay t h e i n c r e a s e rice t r a d e Siam, b r i n g i n g m o r e m e r c h a n t s from t h e C h i n e s e coast t o S o u t h e a s t t r a d e r s were able t o o b t a i n p e p p e r a n d s a p p a n w o o d e i t h e r by j o i n i n g C h i n e s e m e r c h a n t s t r a d i n g in S o u t h e a s t Asia or by d i r e c t p u r c h a s e from Even after b e i n g i n v a d e d by t h e S a t s u m a d o m a i n of J a p a n in t h e early s e v e n t e e n t h c e n t u i y , t h e Ryukyu K i n g d o m c o n t i n u e d t o d i s p a t c h t r i b u t e envoys to C h i n a . At t h e s a m e it s e n t envoys to

Tribute and treaties 23 Tokugawa i n E d o (present-day T o k y o ) . relations with Korea also c o n t i n u e d . After t h e Ryukyu K i n g d o m was and the became a p r e f e c t u r e i n 1870, N a h a , w h i c h h a d b e e n a n i m p o r t a n t t r a d i n g p o r t l i n k i n g t h e Ryukyus East a n d S o u t h e a s t Asia, lost t h e s e linkages a n d a new treaty p o r t system treaties with western c o u n tries. Ryukyu t r a d e was t h e r e a f t e r r o u t e d exclusively t h r o u g h J a p a n , a n d J a p a n e s e m e r c h a n t s c o n t r o l l e d m u c h o f it. H o n g K o n g a n d S i n g a p o r e played i m p o r t a n t roles i n t h e e m e r g i n g treaty p o r t system t h a t w o u l d r e d i r e c t t r a d e r o u t e s t h r o u g h o u t Asia a n d b e t w e e n Asia, E u r o p e a n d t h e

The era of negotiation in the tributary-trade zone F r o m t h e 1830s to t h e 1890s t h e n a t i o n s a n d of East entered a p e r i o d t h a t can be called t h e e r a of n e g o t i a t i o n , o n e c h a r a c t e r i z e d by multilateral and n e g o t i a t i o n s . T h e origins o f t h e historical issues t h a t t h e e r a poses c a n b e s t b e g r a s p e d n o t from t h e conventional perspective of o p e n i n g from t h e " i m p a c t o f t h e West," b u t r a t h e r from a p e r s p e c t i v e t h a t focuses on i n t e r n a l c h a n g e s in t h e East Asian r e g i o n . in t h e historical i n t e r n a t i o n a l o r d e r of East Asia b e g a n with adjustments in the tribute relationships centered on the authority of the e m p e r o r . T r i b u t a i y states a n d t r a d i n g n a t i o n s on t h e periphery of the Q i n g empire, based on their newfound economic s t r e n g t h , no l o n g e r strove to m a i n t a i n as close a r e l a t i o n s h i p with t h e Q i n g a s b e f o r e , a n d i n e a c h o f t h e m i n t e r n a l conflicts e r u p t e d b e t w e e n r e f o r m i s t a n d conservative factions. A variety of n e g o t i a t i o n s e n s u e d b e t w e e n t h e Q i n g a n d its t r i b u t a i y a n d f o r m e r states. By t h e early n i n e t e e n t h c e n t u i y , t h e ability to m a i n t a i n c o n t r o l over peripheral a n d minority regions on b o r d e r s was severely w e a k e n e d . Criticism a n d r e s i s t a n c e b y e t h n i c g r o u p s m o u n t e d against t h e by a b o r i g i n a l officials a n d against t h e Office of B o r d e r Affairs c h a r g e d with m a n a g i n g areas" W i t h t h e w e a k e n i n g of state c o n t r o l , e c o n o m i c activity in t h e coastal t r a d i n g r e g i o n s p i c k e d u p , a n d various e c o n o m i c a n d political forces o n t h e p e r i p h e r y b e g a n t o a d v a n c e claims. Forces hostile to t h e w e a k e n e d Q i n g t o o k a d v a n t a g e of t h e c h a n g i n g East Asian r e g i o n a l tributaiy o r d e r a n d of A m e r i c a n a n d E u r o p e a n efforts to c o n c l u d e treaty relations with East Asian countries. created at least t h e a p p e a r a n c e of n a t i o n s , these b e i n g t h e r e q u i r e d for the establishm e n t o f treaty p o r t s a n d t h e c o n c l u s i o n o f treaties, t h e r e b y e x t e n d i n g p e a n d i p l o m a t i c n o r m s a n d treaty n e g o t i a t i o n s i n t o Asia. As we will n o t e , however, significant e l e m e n t s o f t h e f o r m e r tribute-trade o r d e r r e m a i n e d .

•

T h e c h a n g e s i n any o n e o f i n t e r n a l r e l a t i o n s h i p s within t h e East Asian (2) r e l a t i o n s h i p s within t h e Q i n g of influence; or relations East a n d E u r o p e a n d t h e A m e r i c a s , would have b e e n sufficient t o d e l i n e a t e a n historical e r a . Focussing o n t h e s i m u l t a n e ous a p p e a r a n c e o f in three as o n e a n d viewing t h e sixty-year p e r i o d from 1830s to t h e 1890s as e r a of n e g o t i a t i o n , allows a fuller of t h e c o n c e p t u a l u n d e r p i n n i n g of t h e East Asian r e g i o n a l one t h e process negotiation. T h e m o s t d i r e c t e x p r e s s i o n of t h e special c h a r a c t e r i s t i c of this e r a was t h e i n c r e a s e d d y n a m i s m of relations within t h e East Asian r e g i o n , cent e r e d on t h e b e t w e e n treaty p o r t s . O n e i n t e r p r e t a t i o n has r e f e r r e d to special as t h e c o e x i s t e n c e of t r i b u t e a n d treaty r e l a t i o n s . This p r e d i c a t e d as on a view of t h e t r i b u t e r e l a t i o n s h i p as t h e c o n c e p t u a l basis o f t h e East Asian i n t e r n a t i o n a l o r d e r c e n t e r e d o n C h i n a a n d t h e treaty r e l a t i o n s h i p a s the p r i n c i p l e u n d e r p i n n i n g intern a t i o n a l relations in W e s t e r n E u r o p e , naturally c o n s i d e r s this p e r i o d as o n e of transition in East Asia from t h e o r d e r of t h e old era to t h e treaty o r d e r of t h e new. T h e t r i b u t e system, however, was an e x p r e s s i o n of the C h i n e s e world o r d e r an historically evolved h i e r a r c h y o f "civilized" a n d " b a r b a r i a n " p e o p l e s , which regionwide geopolitical r e l a t i o n s . Intellectuals in t h e n a t i o n s a n d r e g i o n s of East s h a r e d t h e ideal of h i e r a r c h y e x t e n d i n g o u t w a r d from a M i d d l e Kingdom b u t also from Japan a n d V i e t n a m in d e f i n i n g relations their w e a k e r n e i g h b o r s , a n d this c o u l d h a r d l y d i s a p p e a r easily o r quickly. T h e c o n c e p t o f t h e treaty r e l a t i o n s h i p , o n t h e o t h e r h a n d , was derived from W e s t e r n E u r o p e a n i n t e r n a t i o n a l and although international based on t h e c o n c e p t of n a t i o n a l sovereignty sove r e i g n , territorially d e f i n e d - r e q u i r e d the c r e a t i o n of these c o n d i t i o n s in n o n - E u r o p e a n societies, in the p e r i o d u n d e r review, t h e result was a m e r e c o r r e s p o n d e n c e o f forms. T h e and external r e l a t i o n s of East Asia w e r e by no m e a n s i m m e d i a t e l y g o v e r n e d by new treaty r e l a t i o n s . I n t h e situation that actually d e v e l o p e d o u t o f t h e i n t e r a c t i o n b e t w e e n these two c o n c e p t s a n d clash of two historical systems, this show n o t only that t r i b u t e a n d treaty r e l a t i o n s h i p s w e r e n o t m u t u a l l y incompatible, but East the tribute concept tended to subsume t h e treaties. T h e c o n c e p t s o f East a n d West did n o t overwrite o n e another, but rather can be said that t h e t r i b u t e c o n c e p t , t h a t the c o n c e p t of a h i e r a r c h i c a l o r d e r , r e m a i n e d t h e treaty relat i o n s h i p s u b o r d i n a t e d to In 1839, t h e e m p e r o r issued historic e d i c t trying to change Qing relations Ryukyu, a n d Siam. H e o r d e r e d t h e m t o r e d u c e t h e f r e q u e n c y o f t r i b u t a i y missions the Qing c o u r t from a r a n g e o n c e e a c h year to o n c e in t h r e e years respectively to

Tribute and treaties 25 o n c e in f o u r years in e a c h case. T h i s policy c h a n g e was p r o m p t e d p a r t by a Q i n g fiscal crisis r e q u i r i n g r e d u c t i o n in e x p e n s e s associated with missions. It was also associated Qing to c o n t r o l over tax r e v e n u e s d e r i v e d from coastal t r a d e by b r i n g i n g t h e t r a d e u n d e r c e n t r a l c o n t r o l by various m e a s u r e s i n c l u d i n g it from d i s t a n t p o r t s w h e r e local officials c o r r u p t l y s i p h o n e d off r e v e n u e s that t h e center sought. change policy can also be called a c h a n g e from tril> t r a d e to m e r c a n t i l i s m initiated by t h e Q i n g state. W h e n t h e Ryukyu K i n g d o m vigorously p r o t e s t e d this r e d u c t i o n the f r e q u e n c y o f t r i b u t a i y missions, t h e e m p e r o r a g r e e d t o restore a n n u a l t r a d e missions from t h e Ryukvus t o F u z h o u . N o r was t h e Q i n g able t o i m p l e m e n t t h e n e w t r a d e a n d f i n a n c i a l policy d e s i g n e d t o c o n t r o l emerging economic strength s o u t h C h i n a a n d t h e S o u t h C h i n a Sea a r e a , t h e r e g i o n s d o m i n a t e d b y C h i n e s e , w e s t e r n , T a i w a n e s e , a n d SouthAsian C h i n e s e m e r c h a n t s t h a t was b e y o n d t h e of Beijing. While all of these h a d previously p a r t i c i p a t e d in t h e t r i b u t a i y t r a d e , n o w s o u g h t t o e x t r i c a t e themselves from t h e relationship, s e e k i n g m o r e lucrative private t r a d e t h r o u g h o u t t h e S o u t h C h i n a Sea a n d t h e East C h i n a Sea i n d e p e n d e n t o f state missions. T h e result was b o o m i n g t r a d e b e t w e e n C h i n a a n d S o u t h e a s t Asia in t h e m i d to late n i n e t e e n t h c e n t u r y , t r a d e largely b e y o n d t h e c o n t r o l o f t h e

The expansion of relations between the treaty ports T h e c o n d i t i o n s u n d e r which c o m p e t i t i o n b e t w e e n a r e g i o n a l n a t i o n a l o r d e r b a s e d on t h e historically h i e r a r c h i c a l politics of East Asia, on the o n e h a n d , and the mutually treaty d i p l o m a c y begun E u r o p e a n d t h e U n i t e d Slates, o n t h e o t h e r , were m o s t visible i n t h e treaty p o r t s . T h e i n t e r p l a y o f t h e two o r d e r s p r o p e l l e d t h e e x p a n sion of port A broad of t h e treaty p o r t in East from t h e termin a t i o n of t h e English East I n d i a C o m p a n y ' s exclusive right to t r a d e with China through the war o f yields t h e following historical t h e m e s . T r e a t y relations, w h e t h e r b e t w e e n E u r o p e a n a n d Asian n a t i o n s o r within t h e Asian r e g i o n itself, c o n c l u d e d as relationships. T a k e n as a w h o l e , however, they b o u n d t h e treaty t o g e t h e r in a m u l t i l a t e r a l r e l a t i o n s h i p . A l t h o u g h pacts like Treaty of N a n j i n g c o n c l u d e d in 1842 a n d t h e 1844 Si T r e a t y of W h a m p o a w e r e e a c h c o n c l u d e d b e t w e e n two n a t i o n s , t h r o u g h t h e i r e x t e n s i o n Treaty of a n d t h e U n i t e d S t a t e s - K o r e a T r e a t y o f Amity a n d C o m m e r c e , m u t u a l access a m o n g t h e treaty p o r t s b e c a m e possible. A critical issue Asian treaty ties of E u r o p e a n d t h e U n i t e d

concerned a m o n g t h e treaty p o r t s . C h i n e s e m e r c h a n t s a n d W e s t e r n t r a d i n g firms s t r u g g l e d to s e c u r e a p l a c e in Asian t r a d e n e t w o r k s , c o n s t r u c t i n g bases i n t h e ports a n d linking them. T h i s t r e n d of establishing a p r e s e n c e in t h e treaty p o r t s was n o t t h e result solely o f E u r o p e a n p r e s s u r e s . T r e a t i e s o f c o m m e r c e a n d treaties o f f r i e n d s h i p b e g a n to be c o n c l u d e d within Asia as well. T h e s e i n c l u d e d t h e o f K a n g w h a b e t w e e n Japan a n d Korea, t h e 1882 R e g u l a t i o n s for M a r i t i m e a n d O v e r l a n d C h i n e s e a n d K o r e a n Subjects a n d t h e 1885 T r e a t y b e t w e e n C h i n a a n d Japan. T h e s e c o m m e r c i a l treaties c o n c l u d e d b e t w e e n Asian n a t i o n s d i s m a n t l e d t h e f r a m e w o r k of m a n a g e d t r a d e of t h e p r e v i o u s t r i b u t e - t r a d e era, a n d t h e m e r c h a n t s o f t h e coastal t r a d i n g p o r t s began to t h e inter-treaty p o r t t r a d e great numbers, thereby s t r e n g t h e n i n g previous trade networks. O f c o u r s e , treaty relations within were m o d e l e d o n t h e treaties with t h e West an era of W e s t e r n p r e d o m i n a n c e . T h e y differed, their i n t e n t i o n a n d t h e p r o c e s s of t h e i r i m p l e m e n t a t i o n . S o m e t i m e s t h e m a i n t e n a n c e of suzerain-vassal relations was o p e n l y e x p r e s s e d ; a t o t h e r times t h e p r e t e n s e o f t h e geopolitical r e l a t i o n s h i p enshrined t h e historical t r i b u t e tic was m a i n t a i n e d while in p r a c t i c e t r a d e goals were p u r s u e d . D u r i n g treaty n e g o t i a t i o n s , employed a n d E u r o p e a n legal a n d d i p l o m a t i c advisors a n d c o n d u c t e d n e g o t i a t i o n s based o n t h e i r p r o p o s a l s . T h e situation r e s u l t i n g from t h e s e i n t e r n a l a n d e x t e r n a l relations m a d e t h e s u b s t a n c e o f era of negotiation even m o r e b r o a d l y T h e 1882 R e g u l a t i o n s for M a r i t i m e a n d O v e r l a n d T r a d e Between C h i n e s e a n d K o r e a n discussed below, illustrate t h e c h a r a c t e r of r e g i o n a n d t h e e r a . A close e x a m i n a t i o n of this treaty reveals h o w t h e r e l a t i o n s h i p was maintained through a period change. After t h e o p e n i n g o f t h e f i v e p o r t s ( C a n t o n , Fuzhou, Ningbo, a n d S h a n g h a i ) by t h e 1842 T r e a t y of N a n k i n g , local Q i n g officials supervised c u s t o m s . W h e n t h e S h a n g h a i c o u n t y seat was o c c u p i e d the 1853 Small Sword Society u p r i s i n g , however, t h e S h a n g h a i Circuit was forced t o T h e A m e r i c a n , British, a n d F r e n c h consuls t h e r e u p o n offered j o i n t l y to collect c u s t o m s d u t i e s in his place an a t t e m p t to s t r e n g t h e n t h e i r c o n t r o l over E u r o p e a n a n d A m e r i c a n t r a d i n g with a r e a s u n d e r t h e c o n t r o l o f t h e rebels. T h e Q i n g g o v e r n m e n t later e x p a n d e d m e t h o d o f c u s t o m s collection t o t h e o t h e r treaty p o r t s as a m e a n s to assure r e v e n u e s . A foreign i n s p e c t o r a t e of c u s t o m s was established in port an I n s p e c t o r - G e n e r a l of Customs Peking. T h e inspectors h a d the same standing as the Chinese S u p e r i n t e n d e n t of C u s t o m s b u t in t h e foreign inspectors controlled operations. T h e Chinese maritime customs system, i n c l u d i n g t h e role of foreign m a r i t i m e c u s t o m s i n s p e c t o r s , in t h e

Tribute and treaties 27 ports the gave an i n s t i t u t i o n a l " g u a r a n t e e " to inter-treaty port relations. T h e maritime customs initially b e g u n t o t h e central finances of t h e Q i n g as well as to c o n s o l i d a t e relations b e t w e e n t h e E u r o p e a n p o w e r s a n d t h e Q i n g , n a t u r a l l y affected vassal states. m a r i t i m e c u s t o m s system was K o r e a , a n d in t h e Paul von of t h e m a r i t i m e c u s t o m s was d i s p a t c h e d as Korean maritime customs inspector. A debate sprang up at that point concerning the problem of the duties to be by ships e n t e r i n g Korean ports h a d previously d o c k e d i n C h i n e s e treaty p o r t s . T h e q u e s t i o n was w h e t h e r foreign s h i p s t h a t h a d p a i d t h e 5 p e r c e n t ad i m p o r t tax s t i p u l a t e d in t h e tariff a g r e e m e n t for vessels s t o p p i n g in any C h i n e s e treaty p o r t s h o u l d pay t h e 2.5 p e r c e n t Q i n g d o m e s t i c transport or be r e g a r d e d as carrying foreign g o o d s a n d t h e r e f o r e pay a n a d d i t i o n a l 5 p e r c e n t i m p o r t tax w h e n they e n t e r e d K o r e a n treaty p o r t s . B e h i n d this lay a difference in p e r c e p t i o n s c o n c e r n i n g w h e t h e r Korea was a C h i n e s e vassal stale or an i n d e p e n d e n t n a t i o n . Elsewhere, the system was u n d e r as a result of c h a n g i n g relations Japan its g r i p on t h e Ryukyus, with V i e t n a m s u c c u m b i n g t o F r e n c h colonial r u l e a n d B u r m a t o British rule. N e v e r t h e l e s s , in e a c h of these cases, negotiated China g r a n t e d C h i n e s e m e r c h a n t s special tax relief in t r a d e with t h e s e tributaiy T h i s c o n s t i t u t e d r e c o g n i t i o n by J a p a n , F r a n c e , a n d of t h e c o n t i n u e d s a l i e n c e o f c e r t a i n C h i n e s e t r i b u t a i y p r e r o g a t i v e s . T h e tribute system did n o t simply yield to t h e treaty system. As can be s e e n in t h e tax collection p r o b l e m of K o r e a n m a r i t i m e c u s t o m s , t h e treaty p o r t s c o n f r o n t e d t h e historical t r i b u t e or vassal relat i o n s h i p of t h e C h i n e s e world o r d e r East Viewed from a n o t h e r a n g l e , t h e a p p l i c a t i o n of t h e logic of t h e historical East Asian world o r d e r b e c a m e an issue in t h e o p e r a t i o n , p e r c e p t i o n , a n d position of t h e treaty p o r t s even t h o u g h they h a d b e e n formally o p e n e d treaties with Western suggests t h a t t h e historical b a c k g r o u n d o f t h e treaty p o r t s themselves m u s t b e taken c o n s i d e r a t i o n . T h e treaty p o r t s were o f c o u r s e n e i t h e r newly c o n s t r u c t e d n o r recently o p e n e d a s ports; t h e f i v e s o u t h e a s t C h i n a p o n s , in fact all t h e treaty p o r t s , h a d histories d a t i n g far back a s t r a d i n g p o r t s , a n d i n N o r t h - S o u t h coastal t r a d e a n d S o u t h C h i n a - S o u t h e a s t Asia t r a d e they h a d l o n g b e e n sites of activities. M e r c h a n t guilds f u n c t i o n e d in of t h e m , e a c h h a d a historically d e v e l o p e d t r a d i n g r e g i o n , a n d c o m m e r c i a l networks h a d l o n g f o r m e d a r o u n d t h e m . After a c q u i r i n g t h e r i g h t for t h e i r n a t i o n a l s to reside the treaty p o r t s , a n d A m e r i c a n m e r c h a n t s c o m p e t e d for cial c o n c e s s i o n s commercial T h e issue, always a p p a r e n t i n A m e r i c a n a n d E u r o p e a n treaty negotia t i o n s with t h e Q i n g , of h o w to h a n d l e treaty tics b e t w e e n t h e Q i n g a n d its

vassal framed relations a m o n g t h e treaty W h e n Western countries entered treaty n e g o t i a t i o n s with n a t i o n s o r r e g i o n s within the Qing sphere or u n d e r i n f l u e n c e , they t r e a t e d the suzerain Q i n g a s o n e c o n c e r n e d parly in negotiations. s h o r t , ostensibly bilateral c o u l d only b e c o n c l u d e d b y t a k i n g t h e Q i n g a n d t h e e n t i r e tributaiy relationship T h u s the tribute which formed the background to r e l a t i o n s h i p e x p r e s s e d i n t h e treaty, was a n d indirectly

Vassal states and the negotiation of the Regulations for Maritime and Overland Trade Between China and Korea From tribute to tributary

change and

the

T r a d e r e g u l a t i o n s b e t w e e n t h e Q i n g a n d Korea were c o n c l u d e d o n O c t o b e r 4 , 1882 u n d e r the S u p e r i n t e n d e n t o f T r a d e for the N o r t h and of Li From t h e Q i n g , Z h o u Fu, t h e C u s t o m s of and Li private secretary, a n d t h e E x p e c t a n t were a p p o i n t e d a s r e p r e s e n t a t i v e s . O n t h e K o r e a n t h e Envoy to C h i n a , Yong-ha, t h e Assistant Envoy and Secretary O were Li H o n g z h a n g recorded the most important points of the negotiations a n d t h e c o n t e n t s of t h e r e g u l a t i o n s : was s e n t to Korea w h e r e h e investigated actual c o n d i t i o n s t h r o u g h discussions with the Korean (2) Li supervised Z h o u Fu a n d ing t h e p r e c e d e n t s i n f o r m i n g t h e r e l e v a n t C h i n e s e statutes, a n d carefully e x a m i n i n g i n t e r n a t i o n a l law, (3) r e g u l a t i o n s differed from those defining b e t w e e n two n a t i o n s as they w e r e to r e g u l a t e traffic a vassal state; a n d e i g h t of r e g u l a t i o n s stated t h a t Li H o n g z h a n g a n d t h e K o r e a n k i n g shall future m a k e d e t e r m i n a t i o n s t h r o u g h c o n s u l t a t i o n . A l t h o u g h criticised b y s o m e C h i n e s e for i n t e n t i o n ally a l t e r i n g t h e old system t h e p u r s u i t of profit, t h e r e g u l a t i o n s served t h e suzerain-vassal T h e regulations assure " e q u a l " t r a d e , based o n premise that Korea was a vassal state. In drafting t h e r e g u l a t i o n s , t h e n e g o tiators were d e e p l y c o n s c i o u s of relations in c o n n e c t i o n with t h e Korea issue. H o n g z h a n g n o t e s , for e x a m p l e , t h a t O t h e chief K o r e a n n e g o t i a t o r p r e p a r i n g t h e r e g u l a t i o n s , feared that t h e J a p a n e s e would use t h e r e g u l a t i o n s as a p r e t e x t to i n c r e a s e d e m a n d s on Korea. E x a m i n a t i o n o f t h e c o n t e n t s a n d special characteristics o f t h e preface a n d e i g h t articles clarifies these issues.

Tribute and treaties 29 The confirmed the t h a t Korea h a d h a d titles ferred as a vassal stale a n d t h a t t h e r e was no c h a n g e in t h a t d e t e r m i n a t i o n . Given t h a t , a n d in light of t h e fact t h a t t h e p r o h i b i t i o n on sea t r a d e had earlier been a b a n d o n e d a n d land a n d sea was b e i n g c o n d u c t e d with foreign n a t i o n s , t h e m e r c h a n t s o f t h e two c o u n t r i e s were to c o n d u c t trade each t h e profits equally, while r u l e s for frontier t r a d e w o u l d be m o d i f i e d as c i r c u m s t a n c e s T h e s e r e g u l a t i o n s for m a r i t i m e a n d o v e r l a n d t r a d e resulted from C h i n a ' s i n t e n t to treat its vassal generously; the they c o n f e r r e d were t o apply t o t h e relations b e t w e e n C h i n a a n d Korea only." In this way, t h e Preface, while e m p h a s i z i n g goal of i n c r e a s i n g C h i n a s t r a d i n g profits from t h e t r a n s f o r m a t i o n i n t r i b u t e t r a d e with K o r e a a n d i n t h e f r o n t i e r t r a d e t h e n o r t h e r n p a r t o f Korea, s i m u l t a n e o u s l y reaffirmed t h e suzerain-vassal T h e f i r s t Article e s t a b l i s h e d t h a t n a t i o n a l s o f e a c h c o u n t r y w o u l d b e supervised t r a d e c o m m i s s i o n e r s d i s p a t c h e d from t h e i r own and t h a t e a c h c o u n t r y would b e a r t h e cost of m a i n t a i n i n g its own while they r e s i d e d i n t h e o t h e r n a t i o n . I n s h o r t , C h i n a ' s S u p e r i n t e n d e n t o f T r a d e for t h e N o r t h (Li H o n g z h a n g ) w o u l d a p p o i n t t r a d e c o m m i s s i o n e r s t o t h o s e treaty p o r t s already o p e n e d b y Korea; trade commissioners w e r e e q u a l in s t a n d i n g to t h e K o r e a n officials t h a t were t h e i r c o u n t e r parts; t h e K o r e a n k i n g w o u l d likewise d i s p a t c h a high official to r e s i d e in a n d r e p r e s e n t a t i v e s to reside in e a c h of t h e treaty p o r t s ; they too w e r e e q u a l in s t a n d i n g to t h e local C h i n e s e a u t h o r i t i e s . What of particular i n t e r e s t h e r e is t h e e n a c t m e n t of a provision for "treaty p o r t diplomacy," t h a t is, C h i n a a n d Korea e a c h d i s p a t c h e d c o m m i s s i o n e r s to e a c h o t h e r ' s treaty p o r t s j u s t a s t h e E u r o p e a n n a t i o n s a n d t h e U n i t e d States a p p o i n t e d c o n s u l s t o t h e treaty p o r t s . F u r t h e r m o r e , t h e d e t e r m i n a t i o n e a c h n a t i o n was to b e a r t h e cost of m a i n t a i n i n g its own officials was a significant c h a n g e since t h e e x p e n s e s o f t h e t r i b u t a i y missions h a d all p r e viously b e e n c o v e r e d b y C h i n a . T h e p o s t i n g o f c o m m i s s i o n e r s o f e q u a l rank, however, was k e e p i n g with t h e historical r a n k i n g o r d e r . In s h o r t , t h e r e was b o t h c o n t i n u i t y a n d c h a n g e the tributaiy relationship b e t w e e n C h i n a a n d Korea. T h e s e c o n d Article d e a l t with c o n s u l a r j u r i s d i c t i o n in conflict resolut i o n . T h u s , in t h e case of an i n c i d e n t involving C h i n e s e m e r c h a n t s a K o r e a n treaty p o r t , i f o n e C h i n e s e m e r c h a n t b r o u g h t c h a r g e s against a n o t h e r , t h e n t h e C h i n e s e t r a d e c o m m i s s i o n e r w o u l d a d j u d i c a t e . F o r incid e n t s c o n c e r n i n g p r o p e r t y , i f t h e a c c u s e r was K o r e a n a n d t h e a c c u s e d C h i n e s e , t h e n t h e C h i n e s e side w o u l d arrest a n d try t h e If c o n victed, t h e c r i m i n a l w o u l d b e t u r n e d o v e r t o t h e K o r e a n a u t h o r i t i e s . I n t h e reverse case, t h e K o r e a n side would arrest a n d try accused a n d t u r n t h e c o n v i c t e d c r i m i n a l o v e r to t h e C h i n e s e . H o w e v e r , in C h i n e s e p o r t s , if a K o r e a n was involved in an i n c i d e n t , w h e t h e r accuser or accused,

the still a d j u d i c a t e d . determination of the consular jurisdiction of t h e t r a d e c o m m i s s i o n e r s of b o t h n a t i o n s was e x t r e m e l y one-sided, and jurisdiction of the Korean c o m m i s s i o n e r was essentially n o t r e c o g n i z e d C h i n e s e treaty ports. T h e Article d e t e r m i n e d c u s t o m s p a y m e n t s a n d allowed t h e free passage of fishermen in t h e coastal areas of b o t h c o u n t r i e s . stipulated Ships g r o u n d e d on stress of w e a t h e r shall allowed to a n c h o r at w h a t e v e r place this o c c u r s , to buy provisions a n d have t h e necessary r e p a i r s d o n e ; b u t while t h e local a u t h o r i t i e s shall take c h a r g e , all e x p e n s e s shall be b o r n e by t h e o w n e r s of t h e ship. Ships e n t e r i n g p o r t s that n o t yet b e e n o p e n e d would have b o t h c a r g o a n d vessel confiscated. F i s h e r m e n living in and provinces i n K o r e a , a n d i n S h a n d o n g a n d provinces i n C h i n a , however, were p e r m i t t e d to take on provisions a n d water those areas. C o m p a r i n g this r e g u l a t i o n t r i b u t e t r a d e , wc n o t e a shift from t h e practices u n d e r t h e latter of (1) tax e x e m p t i o n : a n d (2) C h i n a p a y i n g the costs o f r e t u r n i n g g r o u n d e d o r d a m a g e d ships t o t h e i r h o m e c o u n t r y . T h e new r e g u l a t i o n s r e q u i r e d t h a t c u s t o m s d u t i e s levied a n d t h a t t h e costs of s h i p r e p a i r be b o r n e by t h e owner. r e g u l a t i o n reveals how heavy a b u r d e n t r i b u t e t r a d e was for t h e C h i n e s e The opening up, m o r e o v e r , o f t r a d e a l o n g t h e Yellow Sea a n d coasts, which h a d b e e n strictly limited d u r i n g t h e e r a of t r i b u t e t r a d e , was a big c h a n g e . T h e f o u r t h Article consisted of tax r e g u l a t i o n s a p p l i e d to g o o d s transp o r t e d b e t w e e n C h i n a a n d Korea a n d a n o t h e r r e g u l a t i o n g o v e r n i n g transactions t h e i n t e r i o r of t h e two n a t i o n s . stipulated that was to lease l a n d a n d b u i l d i n g s in t h e treaty p o r t s ; w h e n C h i n e s e g o o d s w e r e t r a n s p o r t e d from o n e treaty p o r t to a n o t h e r a s u m e q u a l to half of t h e e x p o r t d u t y on t h e m was to be collected as an i m p o r t tax; K o r e a n a n d C h i n e s e m e r c h a n t s were allowed t o set u p s h o p s a n d e n g a g e c o m m e r c e only P e k i n g a n d in a n d S e o u l , respectively, while t r a d e in o t h e r parts of t h e i n t e r i o r r e q u i r e d special p e r m i s s i o n from t h e t r a d e c o m m i s s i o n e r s . K o r e a n m e r c h a n t s were r e q u i r e d for t h e f i r s t t o pay t h e C h i n e s e d o m e s t i c t r a n s p o r t lax. T h e a r r a n g e m e n t s for t h e d o m e s t i c t r a n s p o r t tax a n d for transit passes established b e t w e e n China and the countries of E u r o p e and North America adopted change t h e C h i n e s e - K o r e a n r e g u l a t i o n s . T h e formal designation of P e k i n g a n d S e o u l as " o p e n cities" preceded the o p e n i n g o f these cities t o E u r o p e a n d t h e U n i t e d States. C u s t o m s a g r e e m e n t s previously e n t e r e d E u r o p e a n d t h e U n i t e d States w e r e selectively a d o p t e d h e r e . T h e f i f t h Article a i m e d a t c o n v e r t i n g t h e frontier t r a d e t o

trade.

Tribute and f r o n t i e r t r a d e was c a r r i e d on at various places like and had been "numerous arising from t h e a u t h o r i t y by local officials." As a result, and on the River a n d and on the River d e s i g n a t e d as o p e n t r a d i n g l o c a t i o n s , c u s t o m s set up t h e s e newly o p e n e d m a r k e t s , a n d a 5 p e r c e n t ad tax was collected on all g o o d s e x c e p t r e d g i n s e n g Article five c o n s t i t u t e d a c h a n g e in trade on the frontier a n d s e a p o r t s , w h e r e t h e scale o f c o m m e r c e h a d b e e n largest u n d e r t h e e a r l i e r t r i b u t e - t r a d e r e g i m e . T h e refere n c e h e r e to "difficulties" with local officials was an attack on t h e diversion of t r a d e r e v e n u e s local finances. T h e 5 p e r c e n t tariff was t h e a t t e m p t t o establish c o n t r o l over tax r e v e n u e s o n t h e frontier. The Article f o r b a d e t h e m e r c h a n t s o f b o t h c o u n t r i e s f r o m d e a l i n g opium (importing or domestic production) or arms, permitted the i m p o r t to C h i n a of K o r e a n red g i n s e n g with a 15 p e r c e n t ad valorem tax, a n d e s t a b l i s h e d a p e r m i t system for t h e e x p o r t of r e d g i n s e n g from C h i n a ( b o t h Korea a n d N o r t h C h i n a e x p o r t e d r e d g i n s e n g ) . T h i s article clearly identified p r o b l e m s in t h e actual c o n d i t i o n s of t r a d e as t h e Q i n g s o u g h t to c o n t r o l over Article seven a t t e m p t e d to s t r e n g t h e n with Korea. T h e t r a d e w h i c h was formerly limited to t h e o v e r l a n d r o u t e via was n o w e x t e n d e d to t h e sea ( F i g u r e 1.3). T h e r e g u l a t i o n s p r o v i d e d that t h e S u p e r i n t e n d e n t o f T r a d e for the N o r t h dispatch a m e r c h a n t vessel of t h e C h i n a M e r c h a n t ' s S t e a m s h i p Navigation Company, a government-sponsored enterprise, t r o o p s on b o a r d to p r o v i d e for e a c h location. stipulated further while t h e C h i n e s e state p r o v i d e d security, t h e K o r e a n b e a r a p o r t i o n of costs. clause h a d powerful military o v e r t o n e s providing not security with respect to t r a d e but s t r e n g t h e n i n g Korea's d o m e s t i c d e f e n s e s with an eye to J a p a n - K o r e a conflict (Figure 1.4). Article e i g h t s t i p u l a t e d revision of t h e r e g u l a t i o n s was to be h a n d l e d t h r o u g h c o n s u l t a t i o n b e t w e e n t h e S u p e r i n t e n d e n t o f T r a d e for t h e N o r t h on the Chinese and Korean T h e e i g h t articles led to g r e a t c h a n g e s in t h e form of t r a d e . T h i s can be s u m m a r i z e d as a C h i n e s e a t t e m p t to m a k e t h e e x i s t i n g t r i b u t e t r a d e c o n sistent t h e forms o f treaty p o r t t r a d e . T h e C h i n e s e goals were: reforming the one-sided financial b u r d e n tribute trade p l a c e d on C h i n a ; (2) r e d i r e c t i n g to c e n t r a l finances, t h a t is c u s t o m s finances, t h e t r i b u t e - t r a d e r e v e n u e s t h a t in p r a c t i c e a b s o r b e d by local officials; (3) c o n f i r m i n g t h e t r e n d of e x p a n s i o n in t h e activities of coastal fishermen and in the frontier trade. T h e regulations further affirmed t h e g e n e r a l f r a m e w o r k o f t h e suzerain-vassal r e l a t i o n s h i p a n d maintained the r e l a t i o n s h i p o f r a n k b e t w e e n t h e two c o u n t r i e s t h r o u g h t h e inclusion o f t h e e q u a l r e l a t i o n s h i p b e t w e e n t h e d e n t o f T r a d e for t h e N o r t h a n d t h e K o r e a n king, t h e e q u a l r e l a t i o n s h i p

Harbin o

Hakodate

Changchun

Vladivostok

\

Osaka

China

Anqing Okinawa Fuzhou

f J

Xiamen

Kong Open port and open market O Major market place

Figure i.3 Treaty ports and opened cities in East the Source: Takeshi Hamashita, "Tribute and Treaties: East Asian Treaty Ports Network in the Era of Bast Asian (Brill, Leiden, Boston, J, Volume 62.

between the trade a n d o t h e r provisions. where China had b o r n e t h e costs of t r i b u t a i y t r a d e , n o w s o u g h t (successfully) to i m p o s e an e q u a l s h a r e of costs on Korea. T h e introduction of the r e g u l a t i o n s h a d two c o n s e q u e n c e s . T h e first was criticism by t h e K o r e a n k i n g a n d t h e K o r e a n concerning the

Tribute and

Figure

33

Trading points along the Sino-Korean border (related to the Regulations for Maritime and Overland Trade Between Chinese and Korean Subjects)

Source: Takeshi Hamashita

68).

of f i n a n c i a l b u r d e n previously b o r n e b y t h e Q i n g . T h e s e c o n d further expansion of the border trade by m e r c h a n t s of both countries, which h a d b e g u n t o flourish, i n v i g o r a t i n g t r a d e t h r o u g h o u t t h e e n t i r e region. T h e s e r e g u l a t i o n s w e r e i m p l e m e n t e d at a t i m e of great tension on the K o r e a n p e n i n s u l a , with C h i n e s e t r o o p s e n t e r i n g Korea t o c o u n t e r the influence.

Hamashita

Korean

of the

Korean winch h a d from tribute t r a d e , took t h r e e types of actions w h e n b e c a m e clear t h a t t h e Q i n g policy of c u t t i n g back f i n a n c i a l s u p p o r t m e a n t that t h o s e would b e r e d u c e d . 1

2

8

A t t e m p t s to m a i n t a i n t h e f o r m e r profits of t h e t r i b u t e t r a d e the gap a n d t h e C h i n e s e side's t r e a t m e n t of Korea as a vassal slate a n d its a t t e m p t to m a i n t a i n tribute order. P o i n t i n g o u t that, while t h e of t h e r e g u l a t i o n s was equality a n d fairness, i n p r a c t i c e t h e r e g u l a t i o n s violated t h a t spirit, t h e C h i n e s e side's advocacy of reciprocity regulations notwithstanding. Advancing the of t h e J a p a n e s e t h r e a t , specifically n o t i n g t h a t the trade gave t h e J a p a n e s e a n e x c e l l e n t p r e t e x t t o v e n e i n Korea, a n d p r e s s u r i n g t h e Q i n g t o r e c o n s i d e r i m p l e m e n t a t i o n of t h e

T h e s e a p p r o a c h e s reveal t h e K o r e a n adroitly c o m b i n i n g t r i b u t e , treaties, a n d East Asian i n t e r n a t i o n a l relations to d e f e n d its historical interests. T h e t r a d e r e g u l a t i o n s h a d t h e i m m e d i a t e effect o f s u b j e c t i n g t h e Korean tribute missions to C h i n e s e taxation. A b o u t two m o n t h s after t h e c o n c l u s i o n of t h e r e g u l a t i o n s , w h e n Korea to p r e s e n t t r i b u t e in P e k i n g , a 4 p e r c e n t ad valorem tax was collected from t h e m the border gate of Duties were also collected at gate, which o p e n e d t o a n d P e k i n g . T h i s was u n p r e c e d e n t e d i n t h e m o r e t h a n two h u n d r e d years o f t h e Q i n g dynasty. Yet from a n o t h e r a n g l e , also r e p r e s e n t e d a reaffirmation of t h e special t r i b u t a i y r e l a t i o n s h i p since Korea was asked to pay only 4 p e r c e n t w h e r e a s all o t h e r s were to a 5 p e r c e n t lax. In a d d i t i o n , t h e p r a c t i c e of b o r r o w i n g funds from C h i n e s e m e r c h a n t s was forbidden. T h e head of t h e t r i b u t e mission strongly e x p r e s s e d the h o p e t h a t tribute t r a d e would be m a d e free of duty, as had been Li r e s p o n s e to t h e first K o r e a n criticism was t h a t since t r i b u t e was an issue for t h e Ministry of Rites (Li a n d new taxes an issue for t h e Ministry of R e v e n u e the regulations were a matter that s h o u l d be r e f e r r e d for investigation to t h e for t h e M a n a g e m e n t o f t h e Business o f Foreign C o u n t r i e s ) . H e t h u s d e a l t c r i t i q u e simply as a difference b e t w e e n j u r i s d i c t i o n a l o r g a n i z a t i o n s . t h e n reviewed t h e p r o h i b i t i o n s a n d p r o h i b i t e d g o o d s u n d e r t r i b u t e T h e Ministry o f Rites h a d f o r b i d d e n t r i b u t e emissaries from t r a d i n g a t t h e I m p e r i a l D e s p a t c h Office a n d from d e a l i n g a n u m b e r of items i n c l u d i n g w e a p o n s a n d g u n p o w d e r . I t h a d also f o r b i d d e n foreign

Tribute and treaties 35 who r e t u r n i n g h o m e from t a k i n g p e o p l e , for shipbuilding, nails, s e s a m e , o r with t h e m . T h e private p u r c h a s e o f raw silk a n d silk p r o d u c t s w e r e also p r o s c r i b e d . However, in t h e case of a r e q u e s t from t h e K o r e a n king, s u c h p r o h i b i t e d items a s c o p p e r , i r o n , h o r s e s a n d m u l e s , bows, a n d raw silk h a d all b e e n a p p r o v e d for e x p o r t . T h e r e was also a p r e c e d e n t from p r o s c r i b i n g t h e p u r c h a s e of c o p p e r cash. Since m o s t of t h e s e restrictions h a d b e e n lifted with t h e o p e n i n g of p o r t t r a d e , Li c o n c l u d e d t h a t t h e e c o n o m i c benefits enjoyed by t h e K o r e a n side w e r e far from n e g l i g i b l e . C o n c e r n i n g t h e s e c o n d criticism, t h a t t h e t e r m s w e r e u n f a i r t o Korea, O a r g u e d that: E x a m i n i n g t h e texts of i n t e r n a t i o n a l an article m u t u a l equality is to be f o u n d in o n e . A l t h o u g h wc have enjoyed y o u r favor, t h e c o n d i t i o n s offered o t h e r c o u n t r i e s differ from t h o s e given Korea. A l t h o u g h you say it is u n a v o i d a b l e in t h e t r i b u t a i y o r d e r , this is different from t h e c e r e m o n y of the Great" a n d r e q u e s t e d t h e removal o f t h e " u n e q u a l " clauses. C u s t o m s Fu a r g u e d against that:

Zhou

In t h e c o n c e p t of t h e r e is of necessity a p l a c e for t h e small a n d for t h e great. is no e m p t y c e r e m o n y ; d e p e n d s on a real obligation. t h e fact that in i n t e r n a t i o n a l law different t e r m s are u s e d for t h e c o m m e r c i a l traffic of vassal n a t i o n s is irrelevant to this

Z h o u Fu, in r e s p o n s e , also rejected t h e claim of inequality Article two, a s s e r t i n g t h e n e e d t o distinguish b e t w e e n g r e a t a n d small. T h e C h i n e s e was t h a t t h e r e g u l a t i o n s e x e m p l i f i e d t h e sadae r e l a t i o n s h i p . On the point of the Japanese threat, O p o i n t e d o u t that while liberalizing passage of fishing vessels a l o n g t h e coast was a g o o d thing, it would provoke the Japanese, who had d e m a n d i n g whaling access to t h e East Sea. F u r t h e r m o r e , w a r n e d that t h e o p e n stipulated t h e f o u r t h Article w o u l d lead t o J a p a n e s e d e m a n d s t h a t Tacgu and be o p e n e d . He therefore requested that Article a n d Articles t h r e e a n d f o u r n o t b e revealed t o foreign n a t i o n s . Z h o u Fu dismissed a r g u m e n t c o m p l e t e l y . As for Q i n g differentiating r e g u l a t i o n s with K o r e a from t h o s e other countries, the K o r e a n side h a d b e e n t a k e n i n b y a r g u m e n t s foisted o n t h e m b y o t h e r n a t i o n s . J a p a n e s e officials, believed, m o c k e d Korea as p o s i t i o n e d s o m e w h e r e b e t w e e n h a l f a n d total d e p e n d e n c e . C o n c e r n i n g Article t h r e e , Zhou pointed out that the Japanese n o t t h e only o n e s taking a d v a n t a g e o f t h e situation, a n d g r e a t e r a t t e n t i o n s h o u l d b e paid t o

smugglers. four, he that if cities were to t r a d e , n o t only J a p a n e s e m e r c h a n t s b u t also C h i n e s e m e r c h a n t s would g o into t h e interior, thus s t i m u l a t i n g t h e o f Korean These counter-arguments were natural extensions of the principles underlying t h e Q i n g foreign had replaced managed tribute mutual trade.

The

expansion

of northern

I m p l e m e n t a t i o n of t h e T r a d e produced a change functioning of the system o n n o r t h e r n b o r d e r with Korea. T h e r e efforts were m a d e t o r e f o r m m a n a g e d b o r d e r t r a d e a n d i m p l e m e n t to r e p l a c e t h e e x i s t i n g b o r d e r t r a d e tariff-based t r a d e . H o n g z h a n g , in a m e m o r i a l to t h e t h r o n e of F e b r u a r y 18. 1883, p r e s e n t e d a four-article p r o p o s a l to r e o r g a n i z e the b o r d e r t r a d i n g cities of Jilin p r o v i n c e a n d Korea t h e provisions for o p e n cities i n Article t h r e e o f t h e r e g u l a t i o n s even m o r e Article O n e . I n t h e past, d u r i n g the first m o n t h o f t h e year t h e m e r chants of P r o v i n c e traveled t o t o t r a d e , a n d o n c e every two years they would go from H o e r y o n g to Kyongwon. Since and a r c only sixty a p a r t , however, it is m o r e conven i e n t t o c o n d u c t t r a d e a t these two locations. T h e t r a d i n g r o u t e t h e r e f o r e be divided two: o n e r o u t e shall go from the border of C o u n t y t o H o e r y o n g i n Korea; t h e o t h e r from H u n c h u n to Kyongwon District. It a n t i c i p a t e d t h a t t h e merc h a n t s o f t h e Jilin provincial capital, o f and of H u n c h u n r e a p twice t h e profits as a result of T h i s r e g u l a t i o n can b e c o n s i d e r e d a n a d m i n i s t r a t i v e m e a s u r e t o i m p r o v e m a r k e t c o n d i t i o n s . In o t h e r w o r d s , it can be r e g a r d e d as a policy r e s p o n s e to t h e

to i n c r e a s e t h e profitability of t h e n o r t h e r n trade-

Article Two. C u s t o m s s h o u l d b o r d e r of only w h e n t h e

established a t H u n c h u n a n d o n t h e

C o u n t y . In t h e past, b o r d e r t r a d e was t r a n s a c t e d River froze over. F u r t h e r m o r e , in t h e past t h e r e

were n o ferries o n t h e

River. F r o m n o w o n ,

trade

b e t r a n s a c t e d t h r o u g h o u t t h e year, s o ferry l a n d i n g s a n d b u i l d i n g s should be constructed on both banks and

b o a t s s e n t from

Jilin T h i s r e g u l a t i o n was a i m e d a t p r o v i d i n g t h e p o r t a n d c u s t o m s facilities that b e c o m e necessary as a result of t r a d e . I n v e s t m e n t would be u n d e r taken t o s t r e n g t h e n t h e so-called b o r d e r

Tribute and treaties 37 Tariff should a n d g o o d s categorized and taxed The g o o d s g o i n g from to Korea a r c h o r s e s , h i d e s , a n d c l o t h , a n d while t h e f i r s t two have hithe r t o b e e n t a x e d a c c o r d i n g t o J i l i n tariff r e g u l a t i o n s , b e c a u s e c o t t o n cloth is e x c h a n g e d for i m p o r t e d g o o d s , it has n o t b e e n heavily taxed. Now, b e c a u s e o f t h e switch t o t r a d e , o t h e r than the first two i t e m s s h o u l d b e t a x e d a c c o r d i n g t o o u r tariff s c h e d u l e a n d c u s t o m s receipts issued. T h e tariff rates shall 5 p e r c e n t ad e x c e p t for g i n s e n g at 15 p e r c e n t . T h e t h i r d clause e s t a b l i s h e d tariff rates a n d a t t e m p t e d to apply t h e 5 p e r c e n t ad tax that was t h e basis of C h i n e s e c u s t o m s to Korean trade. Article F o u r . C o m m i s s i o n e r s will be d i s p a t c h e d from Jilin to the two l o c a t i o n s of H o e r y o n g a n d Kyongwon Korea to supervise t h e Jilin m e r c h a n t s . Local K o r e a n officials a r e n o t qualified to supervise t h e s e m a t t e r s , s o officials from t h e J i l i n should be posted. Food and fuel costs s h o u l d n o t be t r e a t e d as p u b l i c e x p e n d i t u r e s , as t h e J a p a n ese c o n s u l b u t r a t h e r s h o u l d b e p a i d for o u t o f t h e b u d g e t items for t h e envoys d e s p a t c h e d to e a c h c u s t o m s post, so as n o t to place a b u r d e n o n K o r e a n officials o r m e r c h a n t s . should be given to t h e possibility of d i s p a t c h i n g K o r e a n c o m m i s s i o n e r s to t h e two c o u n t y seats o f D u n h u a a n d H u n c h u n . R e c i p r o c i t y a n d m u t u a l i t y a r e s t r o n g e r h e r e t h a n i n t h e r e g u l a t i o n s . Li's i n j u n c t i o n to d i s p a t c h C h i n e s e b e c a u s e "local K o r e a n officials a r e n o t qualified to offers an i r o n i c f o o t n o t e to t h e issues of customs administration a n d in China. T a k e n as a w h o l e , Li p r o p o s a l s s o u g h t to e x p a n d t r a d e a n d s e c u r e t h r o u g h tariffs a s o u r c e o f r e v e n u e for C h i n a s finances. A b o u t a week later, h o w e v e r , t h e military g o v e r n o r of S h e n y a n g a n d o t h e r s criticized this p r o p o s a l in a m e m o r i a l to t h e t h r o n e . E m p h a s i z i n g b o r d e r security, they u r g e d t h a t e n t r y a n d exit b e restricted t o t h e b o r d e r gate, as h a d b e e n u p t o that t i m e . reflected wariness c o n c e r n i n g t h e h u m a n traffic across t h e frontier t h a t w o u l d e x p a n d as a result of t r a d e . T h e y also n o t e d t h e necessity of following p r e c e d e n t , vividly displaying t h e frontier-defense m i n d s e t of regional T h e Twenty-four Rules for Traffic o n t h e F r o n t i e r b e t w e e n L i a o d o n g a n d Korea, c o n c l u d e d i n M a r c h 1883 b y C h e n Circuit of t h e East for Qing and O on t h e K o r e a n side, e s t a b l i s h e d a free-trade a r e a in Although the e s t a b l i s h m e n t o f c u s t o m s a n d i m p l e m e n t a t i o n o f d u t i e s followed t h e

Trade at the clearly stipulated missions w o u l d n o t b e t a x e d , t r i b u t e would c o n t i n u e , a n d u n r e stricted passage o n t h e t r i b u t e r o a d b y was p r o h i b i t e d . T h e result was that tariff t r a d e a n d t r i b u t e t r a d e existed side The o p e n i n g of t h e n o r t h of t h e K o r e a n led to t h e f o r m a t i o n of a r e g i o n o f m u t u a l i n t e r c h a n g e a n d n e g o t i a t i o n s t r e t c h i n g from J a p a n t h e s o u t h to in t h e

The expansion of Korea Korean

merchants

and

maritime customs to Qing

merchants

T h e drive t o e x t e n d t h e C h i n e s e c u s t o m s system t o Korea can b e a s o n e i n s t i t u t i o n a l basis for r e g a r d i n g t h e p e r i o d from t h e m i d d l e t h r o u g h t h e latter half o f t h e c e n t u i y a s a n era o f n e g o t i a t i o n , one shaped, b y t h e multilateral t r a d e b e t w e e n treaty p o r t s . T h i s m o v e m e n t , t h r o u g h t h e m a n a g e m e n t o f K o r e a n m a r i t i m e c u s t o m s from P e k i n g , was a on t h e i n c r e a s e d c u s t o m s r e v e n u e a n t i c i p a t e d from e x p a n d e d t r a d e . C h i n a s i m u l t a n e o u s l y strove t o m a i n t a i n i n f l u e n c e o v e r Korea t h r o u g h m a r i t i m e c u s t o m s . treaty p o r t s a n d o p e n cities i n Korea c o n s t i t u t e d a bid to s h a r e profits by n o t only u s i n g t h e cities of t h e N o r t h o p e n e d t h r o u g h C h i n e s e initiative, b u t also t o m a k e active use o f t h e treaty p o r t s o f Korea previously o p e n e d t h r o u g h J a p a n e s e initiative. T h e m a n a g e m e n t o f t r a d e t h r o u g h t h e treaty p o r t s a n d o p e n cities a d v a n c e d on fronts. first was t h e of t h e special concessions g r a n t e d t o K o r e a n m e r c h a n t s o p e r a t i n g u n d e r t h e old t r i b u t e t r a d e ; t h e s e c o n d was a n a t t e m p t t o s e c u r e c u s t o m s r e v e n u e from C h i n e s e m e r c h a n t s in K o r e a n treaty p o r t s by c o n t r o l l i n g t h e i r activities. Viewed from a a n g l e , we witness t h e a d v a n c e Korea a n d t h r o u g h o u t East Asia of C h i n e s e t h e t r a d i n g activity of t h e treaty p o r t s a n d o p e n cities after t h e i r e s t a b l i s h m e n t East L o o k i n g first at t h e of special concessions for domestic t r a d e for foreign u n d e r tribute trade, a r e p o r t from May by G a n s u provincial Circuit Gong indicates one a Korean m e r c h a n t , h a d b e e n actively ginseng and other Chinese medicines Gansu. T h e r e p o r t stated fact that h e e n g a g e d i n t r a d e even t h e r e were n o t r a d i n g ports o r o p e n cities in G a n s u t h e trade regulations of t h e two The movements of s a m e m e r c h a n t were persistently tracked, a n d a b o u t half a year later t h e G o v e r n o r - G e n e r a l of S i c h u a n , D i n g reported he was buying g i n s e n g a n d C h i n e s e in Gansu w i t h o u t a Korean m e r c h a n t s used t h e special concession for t r a d e " in t h e interior u n d e r t r a d e to e n g a g e in a lively t r a d e , despite tracking of C h i n e s e

Tribute and

39

officials to old practices t h r o u g h e n f o r c e m e n t of the t r a d e regulations. T h e p r o d u c t s that K o r e a n m e r c h a n t s dealt with were ginseng, raw silk, a n d silk cloth, a n d wc can infer that these g o o d s were primarily i n t e n d e d to m e e t Japanese C h i n e s e m e r c h a n t s rapidly e n t e r e d Korean ports. T h i s was particularly n o t a b l e the ports J a p a n e s e "initiative." O n t h e e l e v e n t h of 1884, a year a n d a half after t h e c o n c l u s i o n of the T r a d e Regulations of September the Superintendent of Trade for t h e N o r t h , Li H o n g z h a n g , q u o t e d t h e r e p o r t of C h e n a trade c o m m i s s i o n e r w h o h a d b e e n d i s p a t c h e d t o Korea. T h e r e p o r t omits P u s a n and b u t it d o e s list, a c c o r d i n g to of origin, C h i n e s e m e r chants a n d employees in Seoul, Mapo, a n d Inchon. 1 C h i n e s e m e r c h a n t s based in Seoul Zhejiang offices total of e i g h t e e n staff. S h a n d o n g G r o u p : t h i r t e e n offices Huiji, total of staff. employees: Department of Machinery one Chinese; official r e s i d e n c e , four N i n g b o Chinese; American two C a n t o n e s e ; two S h a n d o n g C h i n e s e ; seven J i a n g x i C h i n e s e a n d Shanghai total of s e v e n t e e n staff. Chinese

2 C h i n e s e m e r c h a n t s based in M a p o Shandong seven C h i n e s e ; S h a n d o n g five Chinese; Co. (two C a n t o n e s e , t h r e e Z h e j i a n g Chinese); Xichuan s h i p with six S h a n d o n g merc h a n t s ) ; total of twenty-three staff. 3 C h i n e s e m e r c h a n t s b a s e d in I n c h o n G u a n g d o n g G r o u p : t h r e e offices total of s e v e n t e e n staff; s h u n c h u a n o n e s h i p (six staff). Shandong Group: Two offices (Yonglong shunchuan, total of t h i r t e e n stall". G r o u p : two offices shun, total of e i g h t e e n staff. Chinese employees: Maritime Customs two Z h e j i a n g C h i n e s e , one Jiangxi Chinese, G u a n g d o n g C h i n e s e ; C u s t o m s Inspect o r a t e - two Z h e j i a n g C h i n e s e , two Chinese; affiliZ h e j i a n g C h i n e s e ; total o f staff.

4

Other Translators: Customs; T a n g Secretaries: T a n g Z h a o x i a n , Counselors: W a n g

Zhou C u s t o m s ; all C a n t o n e s e . from j i a n g x i . from

Inchon

s h o r t , after t h e o p e n i n g o f m e r c h a n t s from provinces like S h a n d o n g , Guangdong, and moved i n t o K o r e a n treaty p o r t s . T h e i r surpassed t h o s e o f t h e J a p a n e s e m e r c h a n t s they c o m p e t e d with. T h e J a p a n e s e , a s can be seen in t h e r e p o r t of from t h e a c t i n g at P u s a n , a d d r e s s e d to F o r e i g n Minister displayed a s t r o n g s e n s e of crisis that Korean ports had b e e n t a k e n over by aggressive C h i n e s e the population C h i n e s e m e r c h a n t s in Korea i n c r e a s e d rapidly from in 1883 to 2,182 in 1893, 3,661 in 1906, a n d 11,818 T h e r e were few women, one-tenth to one-thirtieth of the male population, and the i m m i g r a t i o n p a t t e r n was o n e o f m i g r a n t w o r k e r s . T h e era o f n e g o t i a t i o n p r e m i s e d o n t r a d e a m o n g treaty p o r t s above all resulted t h e e x p a n s i o n of C h i n e s e m e r c h a n t s treaty p o r t s t h r o u g h o u t East C h i n e s e m e r c h a n t s from t h e coastal provinces, freed from t h e t r a d e c o n t r o l o f t h e Q i n g c e n t e r with t h e d i s i n t e g r a t i o n o f state p o w e r in t h e first half of t h e n i n e t e e n t h c e n t u r y , l i n k e d t o g e t h e r via t r a d e t h e r e g i o n s o f coastal C h i n a , J a p a n , Korea, a n d b e y o n d . Chinese mercantile was a s o u r c e of anxiety for J a p a n e s e , K o r e a n a n d H o n g K o n g , as well as E u r o p e a n , m e r c h a n t s , all of w h o m f o u n d t h e c o m p e t i t i o n from C h i n e s e m e r c h a n t s t o b e f i e r c e . T h e Q i n g state was also c o n c e r n e d a b o u t t h e d y n a m i c t h r u s t of coastal C h i n e s e capital t h r o u g h o u t Asia. It was p r e cisely o r d e r to m a n a g e a n d c o n t r o l t h e i r activities, a n d assure t h e [low of tax r e v e n u e s to t h e C h i n e s e state, that t h e e x t e n s i o n of C h i n e s e marc u s t o m s t o Korea b e c a m e a n issue.

The conflict over Korea-China maritime customs - independent

nation

and the or vassal

Korean state?

T r a d e a m o n g t h e treaty p o r t s was b y n o m e a n s limited t o t h e C h i n e s e p o r t s , b u t s p r e a d to treaty p o r t s t h r o u g h o u t East Asia with t h e e x p a n s i o n o f treaty While a m o n g t h e treaty was o n t h e o n e h a n d , b y C h i n e s e m e r c h a n t s w h o a d v a n c e d i n t o Korea, J a p a n , a n d e l s e w h e r e , Q i n g C h i n a ' s a t t e m p t t o apply t h e m a r i t i m e c u s t o m s system of its own treaty p o r t s to Korea a n d also to install foreign m a r i t i m e c u s t o m s officers led to t h e d i s s e m i n a t i o n of t h e c u s t o m s system of t r a d e a m o n g treaty p o r t s t h r o u g h o u t O n O c t o b e r 3 , 1883, R o b e r t H a r t ,

o f t h e Imperial

Tribute and treaties C u s t o m s in on t h e c u r r e n t c o n d i t i o n of arms The of a r m s m o n i t o r e d , with t h e transfer of to Korea via S h a n g h a i of c o n c e r n to Hart. Earlier that year four c a n n o n s a n d fifty-four c a n n o n halls were delivered an English from H o n g K o n g to S h a n g h a i , w h e r e 8c Co. filed a customs r e p o r t a n d transferred t h e m t h e s a m e day, again a British ship. Because these b r o u g h t i n t o Korea via S h a n g h a i , Hart, w h o was c o n c e r n e d a b o u t a r m s sales, "discovered" a customs p r o b l e m . A l t h o u g h Korea was r e c o g n i z e d as a state of C h i n a , t h e treatm e n t o f c u s t o m s w o u l d differ d e p e n d i n g o n w h e t h e r Korea was r e g a r d e d as a foreign n a t i o n or t h e s a m e fashion as e a c h of C h i n a ' s o t h e r provinces. If Korea were classified as o n e of C h i n a ' s provinces, foreign g o o d s a r e t r a n s - s h i p p e d , t h e n a r e c e i p t of p a y m e n t of i m p o r t d u t i e s or a c u s t o m s waiver s h o u l d be o b t a i n e d a n d a of l a d i n g issued. H o w e v e r , if Korea were classified as a foreign state, t h e n , a c c o r d i n g to t h e treaty, it w o u l d be sufficient to issue a r e c e i p t for t h e g o o d s a n d n o t necessary to have a bill of lading. Since t h e d e t e r m i n a t i o n of K o r e a s position was o f g r e a t i m p o r t a n c e c o n c e r n i n g relations with t h e o u t s i d e world, this m a t t e r c o u l d n o t b e settled b y t h e I n s p e c t o r - G e n e r a l In way, c o u l d be that H a r t s o u g h t , the concrete issue of m a r i t i m e c u s t o m s p r o c e d u r e s , a s o l u t i o n to t h e problem of t h e r e c o g n i t i o n of K o r e a as an historical vassal state C h i n a a n d an a p p r o a c h 10 t h e d e t e r m i n a t i o n of t h e n a t u r e a n d s c o p e t h e relations h i p . T h e h a n d l i n g o f c u s t o m s o p e n e d q u e s t i o n s p e r t a i n i n g t o t h e role o f trade East Asian t r i b u t e Li H o n g z h a n g m a d e t h e following response to Hart's F o r e i g n g o o d s o n which i m p o r t d u t i e s have b e e n at Chinese c u s t o m s a n d t h a t a r c t h e n t r a n s - s h i p p e d t o Korea, w h e t h e r b y C h i n e s e or foreign m e r c h a n t s , shall be t r e a t e d as delivered to a foreign stale a n d i m p o r t duties shall b e according to the customs regulations o f K o r e a . E x p o r t e d C h i n e s e g o o d s , after p a y m e n t o f e x p o r t can be d i s p o s e d of freely, even t h o u g h d u t i e s for foreign m e r c h a n t s a n d C h i n e s e or K o r e a n m e r c h a n t s differ. T h e tax on ships (levied by t o n n a g e ) will be by ships e n t e r i n g C h i n e s e p o r t s a n d again after e n t e r i n g K o r e a n p o r t s . Chinese customs regulations and the R e g u l a t i o n s for M a r i t i m e a n d O v e r l a n d T r a d e Between C h i n e s e a n d K o r e a n Subjects will be e n f o r c e d parallel favorable t r e a t m e n t of its t r i b u t a i y k i n g d o m s differs from t h e E u r o p e a n a n d A m e r i c a n t r e a t m e n t of t h e i r d e p e n d e n t territories as p r o v i n c e s , a p o i n t t h a t will be e x a m i n e d in m o r e detail the In r e s p o n s e to a t t e m p t to t h e vassal state issue within diplomatic r e l a t i o n s , o n e can p r o b a b l y say t h a t Li H o n g z h a n g , while asserting

was a u t o n o m o u s b o t h foreign and domestic administration, i t b o t h from E u r o p e a n a n d A m e r i c a n c o l o n i c s a n d provinces, t h u s leaving r o o m for n e g o t i a t i o n c o n c e r n i n g special status. H a r t m e t in 1889 a n d again t o u c h e d on the vassal state q u e s t i o n , s t a t i n g t h a t if Korea was n o t a vassal state of C h i n a , t h e n t h e d e b a t e as to it was or was n o t s h o u l d itself be s t o p p e d . He w e n t on to say that if it were a vassal state, on every available occasion foreign n a t i o n s s h o u l d be i n f o r m e d to that effect. Korea as well s h o u l d be m a d e to acknowledge To H a r t s of vassal states as Li H o n g z h a n g w i t h h e l d r e s p o n s e , b u t to claim that if it was a d e p e n d ency, t h e n c o r r e s p o n d i n g c u s t o m s were necessary, Li r e p l i e d clearly t h a t Korea was a foreign n a t i o n , a u t o n o m o u s domestic administ r a t i o n a n d foreign r e l a t i o n s . A l t h o u g h t h e i r perspectives on vassal a n d d e p e n d e n c i e s differed, n e i t h e r t o take t h e o t h e r t o task o n t h e issue. T h i s was an e x p r e s s i o n of t h e special - negotiating among principles of of the era of negotiation. In fact, t h e o p e n cities a n d treaty e s t a b l i s h e d in t h e R e g u l a t i o n s for M a r i t i m e a n d O v e r l a n d T r a d e B e t w e e n a n d K o r e a n Subjects were e x e m p t from m a r i t i m e c u s t o m s . T h e position o f trade activity is n e i t h e r on t h e basis of t h e treaty based o n r e l a t i o n s h i p s b e t w e e n n o r t h e t r i b u t e p r i n c i p l e , based o n suzerain-vassal r e l a t i o n s h i p . R a t h e r suggests t h e possibility of a t h i r d c o n c e p t that c o u l d be called a "regional p r i n c i p l e " o n e that s o u g h t t o e n c o m p a s s c o r e - p e r i p h e r y t r a d i n g activities b y b o t h parties. T h e development of maritime customs, moreover, functioned as a m e a n s to s u b s u m e a b r o a d r e g i o n , so t h a t h e r e as a process of based on a r e g i o n a l p r i n c i p l e can discerned

Foreign advisors and the loan issue In t h e e r a in which n e g o t i a t i o n s c o n c e r n i n g treaty were initiated E u r o p e , t h e U n i t e d States, J a p a n , the employment of Westerners as advisors was i n d i s p e n s a b l e . In Korea, a r o u n d 1882, w h e n t h e n e g o t i a tion o f t h e for M a r i t i m e a n d O v e r l a n d T r a d e B e t w e e n C h i n e s e a n d K o r e a n Subjects with t h e Q i n g b e g a n , a d e b a t e e n s u e d o v e r t h e e m p l o y m e n t o f W e s t e r n e r s . I n particular, warned the K o r e a n k i n g t h a t if W e s t e r n e r s were n o t e m p l o y e d h a n d l i n g negotiations, Korea m i g h t lose autonomy. H o n g z h a n g , in r e s p o n s e , strongly r e c o m m e n d e d the former G e r m a n consul as genial, loyal, a n d e x p e r t C h i n e s e as a result of years of e x p e r i e n c e C h i n a ' s m a r i t i m e c u s t o m s . H e also r e c o m m e n d e d t h a t Koreans e m p l o y t h r e e C h i n e s e advisors: M a w h o h a d previously c o n d u c t e d n e g o t i a t i o n s with his o l d e r b r o t h e r , a n d Li

Tribute and treaties In D e c e m b e r was e n g a g e d as a advisor a n d as I n s p e c t o r - G e n e r a l of C u s t o m s for K o r e a , a n d foreign advisors were i n t r o d u c e d Korea. In 1883, a c u s t o m s a g r e e m e n t was s i g n e d with J a p a n , a n d treaties were also n e g o t i a t e d a n d s i g n e d England and I n July resigned, and Owen Denny, former American consul in replaced him as diplomatic advisor, while H e n r y Merrill t o o k t h e post of c u s t o m s i n s p e c t o r . W h i l e M o l l e n d o r f f m e d i a t e d b e t w e e n Korea a n d t h e Q i n g , with t h e e m e r g e n c e o f t h e J a p a n e s e p r o b l e m , t h e situation f r e q u e n t l y b e c a m e i n t r a c t a b l e . As a result, t h e duties of c u s t o m s i n s p e c t o r a n d d i p l o m a t i c advisor w e r e s u b s e q u e n t l y split i n t o two posts. In t h e i n t e r i m , however, t h e Q i n g a t t e m p t e d to e x e r t d i p l o m a t i c in Korea t h r o u g h a f o r m e r c u s t o m s i n s p e c t o r w h o was a p p o i n t e d a n d d i s p a t c h e d from C h i n a , e x p l o i t i n g his p o s i t i o n as advisor. effect, Q i n g tried to incorporate the principle of the r e l a t i o n s h i p i n t o t h e maritime c u s t o m s system a n d t o m a i n t a i n through relationship a m o n g treaty p o r t s . I n s t i t u t i o n a l r e f o r m o n t h e K o r e a n side also a d a p t e d t o this situation, a n d in 1882 a n e w Office of State Affairs a was set up for d i p l o m a t i c n e g o t i a t i o n . M o r e o v e r , t h e D e p a r t m e n t o f Relations with China and of N e i g h b o r l y Relations w h i c h h a d h a n d l e d r e l a t i o n s with t h e Q i n g a n d J a p a n respectively, were m e r g e d a n d a F o r e i g n Office was established with responsibility for m u l t i l a t e r a l n e g o t i a t i o n s . T h i s process also was a r e s p o n s e to t h e o r g a n i z a t i o n a l c h a n g e s followed t h e o p e n i n g of the five Chinese ports. T h e c o n d i t i o n s o n t h e occasion w h e n Merrill t o o k u p itime Customs Inspector Korea, w e r e as follows: 1

2

3

4

post a s

T h e k i n g o f Korea h a d b e e n i n f o r m e d that Merrill w o u l d b e a p p o i n t e d by t h e S u p e r i n t e n d e n t of T r a d e for t h e N o r t h , t h a t by China, t h e title I n s p e c t o r - G e n e r a l of C u s t o m s for Korea, a n d he was to lake c h a r g e of all p a r t i c u l a r s of c u s t o m s r e v e n u e . After Merrill t o o k office, m a r i t i m e c u s t o m s in Korea w e r e to be conducted on the same principles as the Chinese maritime customs. Merrill was to receive i n s t r u c t i o n s exclusively from t h e d e n t of T r a d e for t h e N o r t h a n d t h e K o r e a n R e s i d e n t - G e n e r a l a n d he was to be s u b o r d i n a t e to no o t h e r party. After t a k i n g up post, Merrill was to d e v o t e himself to maritime customs but if the Korean g o v e r n m e n t requested that he perform o t h e r duties, would do so to best o f ability. However, h e was n o t t o n e g l e c t customs Merrill, as of C u s t o m s for Korea, was to be well

5

T h e I n s p e c t o r - G e n e r a l of c o u l d at any time r e t u r n to his duties i n t h e C h i n e s e m a r i t i m e c u s t o m s , a n d t h e S u p e r i n t e n d e n t o f Trade t h e N o r t h c o u l d a t any recall h i m . H e r e Q i n g C h i n a , t h r o u g h t h e a p p o i n t m e n t a n d dispatch o f maritime customs i n s p e c t o r , e s t a b l i s h e d a position of s t r e n g t h with r e s p e c t b o t h to t h e Inspector-General and the can b e regarded as an attempt to maintain Chinese

To support the diplomatic negotiations Korea, t h e Q i n g p l a n n e d t o m a k e a l o a n to Korea. was a p r e - e m p t i v e m o v e d e s i g n e d to c o u n t e r any J a p a n e s e l o a n . T h e use o f K o r e a n m a r i t i m e c u s t o m s r e v e n u e s a s security for t h e loan clearly w e n t b e y o n d t h e loan u s e d by various foreign nations Qing China and

The

Korean

maritime

regulations

and

tax

code

1883, and o f J a p a n a n d Korea s i g n e d t r a d e regulations. T h i s s i g n i n g t o o k place nearly seven years after t h e 1876 T r e a t y d u r i n g w h i c h time n o m a r i t i m e c u s t o m s h a d been established a n d no duties T h e c u s t o m s r e g u l a t i o n s r e g a r d i n g K o r e a n e x p o r t d u t i e s were e x t r e m e l y s i m p l e : all taxed at 5 p e r c e n t ad Duty-free items were c u r r e n c y , gold, a n d silver, a n d it was f o r b i d d e n to e x p o r t red g i n s e n g . P r o d u c t s were divided eleven categories: m e d i c i n e s a n d spices; dyes a n d p i g m e n t s ; metals a n d tools; fats; textiles; writing i m p l e m e n t s a n d p a p e r ; food, beverages, a n d t o b a c c o ; g e n e r a l m e r c h a n d i s e ; ships; c u r r e n c y , gold, a n d silver; a n d c o n t r a b a n d (fake m e d i c i n e a n d s o f o r t h ) . I m p o r t taxes started at 5 p e r c e n t ad a n d rose to 8, 10, 15, 20, 30, a n d even 35 p e r c e n t . I m p o r t duties were established for specific J a p a n e s e p r o d u c t s , such as silk a n d p a p e r at 8 A protectionist character on the Korean a l t h o u g h slight, discernible. T h e absence of d u t i e s on silver a n d was an a p p l i c a t i o n of C h i n e s e m a r i t i m e customs Among thirty-nine articles that m a k e u p t h e c u s t o m s r e g u l a t i o n s , the d i f f e r e n c e from C h i n e s e m a r i t i m e c u s t o m s r e g u l a t i o n s c o n c e r n e d K o r e a n i n l a n d c u s t o m s a n d t h e fact that n o tax was collected o n transfers a m o n g treaty p o r t s . T h e r e g u l a t i o n s conformed to the Chinese maritime customs, a n d no inland customs were stipulated. A l t h o u g h p r e v i o u s r e s e a r c h has e x a m i n e d t h e bilateral r e l a t i o n s h i p by focusing on t h e J a p a n e s e a d v a n c e i n t o K o r e a also possible to view process as J a p a n striving to a s h a r e of t h e a d v a n t a g e s that Korea p r o v i d e d t o C h i n a , o r t h a t were c o n s t r u c t e d o n t h e basis of a C h i n e s e - K o r e a n r e l a t i o n s h i p t h a t r e t a i n e d i m p o r t a n t e l e m e n t s of The of n e g o t i a t i o n in t h e s e c o n d half of t h e

Tribute and treaties 45

trade with Korea, Imports

1886

29,643 120.440 464,984 952,307 513,516 879,320

1,086,748

2,629,433 and Sun Note Units: maritime customs the oppositional relationship between Europe and c a n also be r e g a r d e d as o n e s h a p e d by t h e n e g o t i a t i o n of i n t e r n a l , m u l t i l a t e r a l Asian r e l a t i o n s h i p s .

Conclusion: treaties between Korea and the United Russia, and Up to now "Western " o p e n i n g " o f Asia, a n d " m o d e r n i t y " have b e e n used m o r e or less s y n o n y m o u s l y in t h e l i t e r a t u r e . M o r e o v e r , all have essentially b e e n u n d e r s t o o d as p r o d u c t s of t h e W e s t e r n i m p a c t on Asia, a framework p i o n e e r e d half a c e n t u r y a g o John bank and in t h e i r classic the West. In China and are p l a c e d in n o t of an a c t o r o r i n i t i a t o r b u t o f a n o b j e c t a c t e d u p o n , a n d t h e West i s c o n s i d e r e d t o have provided the impulses t r a n s f o r m e d Asian In t h e treaties c o n c l u d e d the Western nations become the point of d e p a r t u r e for m o d e r n i t y . W h a t has b e e n a t t e m p t e d a b o v e , however, could perhaps called a n effort t o r e t h i n k t h e i n d i g e n o u s s o u r c e s o f Asian m o d e r n i z a t i o n i n t h e c o n t e x t b o t h o f historic t r i b u t e framework a n d o f i n t e r a c t i o n with t h e West. A m o n g t h e East Asian a n d S o u t h e a s t Asian r e l a t i o n s h i p s that f o r m e d a r o u n d with C h i n a , t h e s e c o n d half o f t h e n i n e t e e n t h i n O k i n a w a a n d Korea poses e x t r e m e l y i m p o r t a n t historical issues c o n c e r n i n g t h e q u e s t i o n o f how t o i n t e r p r e t t h e totality o f t h e s e r e l a t i o n s h i p s . T h e e x p a n s i o n o f t r a d e with C h i n a a n d t h e g r o w t h o f Russian i n f l u e n c e i n N o r t h a n d N o r t h e a s t C h i n a and e n c r o a c h m e n t from t h e S o u t h , t h e a p p r o a c h o f the U n i t e d States f r o m East, t h e C h i n e s e m a r i t i m e c u s t o m s a n d t h e

a p p r o a c h of F r a n c e , a n d G e r m a n y from West turned not o n bilateral with K o r e a b u t o n c o m p l e x , multilateral relationships, s o m e of o f l o n g historical vintage, e n c o m p a s s i n g t h e e n t i r e East This w h a t allows this p e r i o d in East to be called t h e era of n e g o t i a t i o n . Korea, u n d e r t h e o p p o s i t i o n b e t w e e n t h e d o m e s t i c c u r r e n t s of and took its f u n d a m e n t a l n e g o t i a t i n g s t a n c e a position b e t w e e n "equality" in Europe and "semi-autonomy" in relations the Qing. r e s p o n s e , t h e c o u n t r i e s of E u r o p e to build r e l a t i o n s h i p s with K o r e a , while at t h e s a m e d e e p l y involving themselves i n n e g o t i a t i o n s b e t w e e n C h i n a a n d Korea. T h e U n i t e d States n e g o t i a t e d t h e draft of its treaty Korea the Chinese Superintend e n t for T r a d e with t h e N o r t h , Li H o n g z h a n g , a n d in t h e treaty of 1882 the US p r e s i d e n t even s e n t a l e t t e r to t h e k i n g of K o r e a e x p r e s s i n g t h e o p i n i o n that as C h i n a a n d Korea h a d a relationship that historically t o o k p r e c e d e n c e o v e r treaty r e l a t i o n s h i p s , t h e r e would b e n o conflict t h e new as well, can be c o n s i d e r e d n o t to have d i v e r g e d significantly from a policy of d e e p e n i n g t r a d e r e l a t i o n s Korea in line with, a n d taking a d v a n t a g e of, t h e e x p a n s i o n of t h e maritime c u s t o m s system t o Korea. T h e E u r o p e a n c o u n t r i e s a n d t h e U n i t e d States p r e m i s e d m a n y of t h e i r actions, so to on t h e e x i s t e n c e of East Asian i n t e r n a t i o n a l relations with t h e historical Q i n g ships of East Asia at t h e c e n t e r . n e g o t i a t i n g a p p r o a c h with C h i n a Korea differed from t h a t w h i c h t o o k toward o t h e r , particularly W e s t e r n , n a t i o n s . In a w o r d , r a t h e r t h a n n e g o t i a t i o n , b o r r o w i n g a p a g e from t h e W e s t e r n colonial powers in t h e i r c o l o n i z i n g t h r u s t large parts of East Asia, J a p a n o p t e d for o p e n c o n f r o n t a t i o n b o t h t h e Q i n g a n d Korea i n a n effort to b r e a k t h e p a t t e r n of C h i n e s e suzerainty over Korea o r d e r to b r i n g Korea within t h e J a p a n e s e s p h e r e . In t h e years 1872 to 1874 J a p a n severed its historical r e l a t i o n s h i p p r e m i s e d on to Korea t h r o u g h T s u s h i m a Island a n d p r e s s e d for K o r e a n " i n d e p e n d e n c e " from t h e Q i n g , b e g i n n i n g with t h e 1876 Treaty o f and continuing through the 1895 T r e a t y of T h e p a t t e r n of n e g o t i a t i o n visible process was n o t p r e d i c a t e d on historical East Asian i n t e r n a t i o n a l r e l a t i o n s as e n c a p s u l a t e d in t h e tributary-trade system t h a t d e f i n e d relations throughout the r e g i o n . F r o m o n e p e r s p e c t i v e , J a p a n was even m o r e aggressive in p u r s u i t of bilateral treaty relations t h a n were A m e r i c a or Europe. From the Meiji times o n , p r e c i p i t a t e d s h a r p clashes in p e r i p h e r a l r e g i o n s of t h e Q i n g E m p i r e , i n c l u d i n g the (Ryukyu) Islands, Taiwan, a n d Korea. F o r e x a m p l e , t h e 1876 unresolved a problem h a d o c c u r r e d twice (in and w h e n Korea refused to r e c o g n i z e t h e new g o v e r n m e n t b e c a u s e of with earlier p r o t o c o l : rejected attempts

Tribute and treaties 47 terminate diplomatic m e d i a t e d t h r o u g h T s u s h i m a . Viewed from t h e p e r s p e c t i v e of " n e g o t i a t i o n , " it can be Japan to renegotiate the tributaiy H a v i n g failed abandoned negotiation T h e first Article of t h e T r e a t y of staled that " C h o s e n (Korea) b e i n g a n i n d e p e n d e n t state enjoys t h e s a m e sovereign rights a s d o e s Japan" T h i s c o n s t i t u t e d an a t t e m p t to s e p a r a t e Korea from relation t h e Q i n g on t h e basis of p r i n c i p l e o f equality b e t w e e n n a t i o n s . A t t h e s a m e however, w h e n J a p a n tried t o a p p r o a c h t h e Q i n g t o s e c u r e t h e special privileges won t h r o u g h t h e E u r o p e a n a n d A m e r i c a n treaties a n d to others through c o n t r a d i c t i o n s b e t w e e n t h e two b e c a m e clear. W h e n t h e Q i n g p o i n t e d this o u t , J a p a n n o t only c e a s e d to in bilateral n e g o t i a t i o n s with C h i n a , b u t also faced t h e p r o b l e m o f c h o o s i n g b e t w e e n t h e West a n d T h e result o f t h e c o m b i n a t i o n o f J a p a n ' s i m p e t u o u s n e g o t i a t i n g egy a n d successive military a c t i o n s was t h e of East A serious necessary of h o w J a p a n ' s p u r s u i t of tion in state f o r m a t i o n led it to violate c o r e p r i n c i p l e s of t h e i n t e r n a t i o n a l o r d e r in East Asia. F o r e x a m p l e , following t h e collapse of J a p a n e s e treaty n e g o t i a t i o n s with t h e Q i n g over t h e Islands t h e years to 1888, J a p a n a b a n d o n e d n e g o t i a t i o n favor of "direct action." The W a r of 1894—5 m a r k e d t h e e n d of t h e era of negotiation in East b e c a m e a l a n d m a r k in J a p a n ' s military a d v a n c e over t h e n e x t half c e n t u i y . the Chinese c o n c e p t i o n a n d t h e nation-state c o n c e p t i o n originally differed, in t h e s e c o n d of t h e n i n e t e e n t h centuiy, through the intersection between t h e c o n c e p t i o n of C h i n a as a c u l t u r a l c e n t e r , a n d or C h i n a as a m o d e r n state, Asian n a t i o n a l i s m c a m e to take on new forms. Historically, Asian nationalism can be s e e n as s p r i n g i n g from t h e criticism d i r e c t e d toward C h i n e s e imperial prerogative encapsulated the system by various c o u n t r i e s that s h a r e d t h e c o n c e p t of s u z e r a i n t y associated with By the e n d of the Qing, many countries on the periphery sought to r e d u c e t h e g r i p if n o t b r e a k free entirely of C h i n e s e s u z e r a i n t y by actively i n c o r p o r a t i n g t h e West. A t t h a t p o i n t treaty n e g o t i a t i o n s t o o k o n g r e a t F o r t h e Q i n g , facing W e s t e r n p o w e r a t a time i n t e r n a l d e c l i n e , treaty always r e m a i n e d s u b o r d i n a t e d to historic principles t h e C h i n e s e w o r l d o r d e r associated with suzerainty a n d t h e tribute-trade order.

Notes 1

Mill, Norman G. Owen and Roberts Fishing Proceedings of Conference on Claims South Studies, J Kong: of Hong Kong Press, Kim. Park. Paik (eds), UN on the of Sea Seoul: of East and West Studies, 1090; Frederic Dragon v.t Montreal: Mark Valencia, Van A. China Sea, Honolulu: of Press, 1997; de la chine To, China and the South China Sea Mans J. Law of the Sea Zones the Pacific

2 Takeshi Peter J.

in East Asia in Modern Times," ant) Power: Japan and NY: Cornell University Press, 1997: Boxer, Merchants and London: Variorum Reprints, Lewis, the of Alliens, OH: Press, David E. The Sea Nomads: the Boat People Southeast National James Francis The. Zone Singapore: Singapore University Press, Ng Trade and The on the China Singapore: Singapore sity Press, II. Murray, Pirates of the South China Coast CA: Stanford Press, 1987; Jacques Oars "La marine noise X an XIV 1992; Wayne from the Sea: funk Trade Siam Early Centuries, Studies on Asia. Ithaca, Cornell University Press, Wells, Shipwrecks and Sunken Southeast Singapore: Junk Trade from Southeast Asia: Translation from the. Institute of Asian 1998.

4

and Relations Korea and South Countries: An Annotated Translation of the Printing Co., 1909; Gregory Visions of Ryukyu: and logy Early Modern Thought and Honolulu: University of Press, Taipei:

fifteen volumes,

(3

Cambridge, MA,

7

Anthony Reid, Cheng and Wu Southeast since the 14th Centuiy: Cloves, Pepper, Coffee, and Sugar, Singapore: ISEAS,

8

Masai

Tokyo: Tokyo

9 Mere we find the real historical context of the War," which hitherto viewed as clash and East. Within work put forward here, should seen as a clash North and South China with the slakes on the expanding trade between Asia and China, a trade which western merchants were deeply involved. See vol. James M. The Opium War, Cambridge, MA: Harvard University Press.

and treaties 49 [0

no no in discusses East Asia the as does sciki no in vol. 54, no. 5 H a m a s h i t a Takeshi, shi kenkyu, 1989. of t h e n e g o t i a t o r s t h e Q i n g . while on the o n e h a n d insisting was a vassal s o u g h t the conclusion foreign nations, taking position that treaties neither of state n o r c o n d i t i o n s of t h e p e o p l e . " Ma vol. 4. Li z h a n g c h e n g , " m Yi vol. 13. joyakn gekan, kyoku, Li H o n g z h a n g , Yu Yi gno, vol. 13. guanxt pp. Li H o n g z h a n g . in Yi 13. Oingji guanxt shiliao, p p . pp. Kanmalsu toshokan kyoku, In Russia a Treaty of F r i e n d s h i p a n d C o m m e r c e , trade a n d a tariff with Korea, o p e n i n g up direct negotiations between t h e two nations. F u r t h e r m o r e , 1888 t h e for Frontier T r a d e on t h e River were and near b o r d e r was m a d e an o p e n Also, 1896, t r a i n i n g officers Korea. no to no kindai," in kenkyu, 344 p. J p. Kindai boeki no kenkyu, 1981. katdto Chosen gekan, Yang kenkyu

i

13

19 20

22 23 24 25 20

27 Zhong-Ri-Han shiliao, p p . 1204-5. 28 pp. 29 Reflecting these Korean m a r i t i m e customs m the report the Chinese c u s t o m s i n c l u d e material the t h r e e ports of I n c h o n , Pusan, a n d from as an a p p e n d i x ; see China, Customs, Decennial Report Shanghai, 30 Li H o n g z h a n g , gno, 19. 31 S e e Ko kwa kwa 4) a n d Pu "Choson vol. 1. 1973). 32 Li Yi gaa, 19. 33 Ibid. 34 z h a n g c h e n g ji in pp. 35 shows t h e e x p a n s i o n t r a d e from 1883 t h r o u g h 1910. In t h e r e was a f u n d a m e n t a l surplus from C o m p a r i n g China a n d J a p a n i n Korean t r a d e , while J a p a n d o m i n a t e d exports, C h i n a a c c o u n t e d for p e r c e n t of Yang and Sun 1991, pp.

Russia, shi to

Forest Bureau, a n d Sasaki Yo, Tokyo:

37 the United addressed to king of Korea clear Korea was a would not interfere with t h e restrictive t r e a t m e n t of t h e 38 in no naka no Nikon

and and

Toko On t h e occasion t h e signing May Treaty of and t h e letter p r e s i d e n t of t h e U n i t e d Stales makes stales that t h e U n i t e d with C h i n a . T h i s a p p e a r s to

kyoku, gaiko no Masatoshi, a n d to Daigaku

- C h o s e n no o (eds), Ajia

A frontier Peter

of C h i n e s e n e s s

Perdue

In this I offer a f r o n t i e r p e r s p e c t i v e on Last Asian d e v e l o p m e n t . By "frontier perspective," I m e a n a focus on political, c u l t u r a l , a n d economic on the edges of the slates o f t h e East Asian r e g i o n , w h e r e they e a c h o t h e r , a n d w h e r e they a b u t o n o t h e r r e g i o n s of t h e g l o b e . 1 h a v e a r g u e d t h a t East Asian frontiers, like r e g i o n s o r states, have c o m m o n features t h a t d e s e r v e c o m p a r a t i v e analysis (Perdue, forthcoming b). view resolves s o m e o f t h e p a r a d o x e s o f nationalist h i s t o r i o g r a p h y , a n d c o m p l e m e n t s t h e in this v o l u m e . T h e o t h e r writers this v o l u m e focus a l m o s t exclusively on m a r i t i m e frontiers, b u t t h e i r p e r s p e c t i v e n e e d s to be c o m p l e m e n t e d by a discussion of t h e c o n t i n e n t a l frontiers like t h e n o r t h w e s t . Often what d e e m special of m a r i t i m e r e g i o n a r e c o m m o n t o all h e r f r o n t i e r r e g i o n s . N o m a d s o n t h e "grassland sea" a n d caravan t r a d e r s o n t h e Silk R o u t e c o u l d play t h e s a m e r o l e a s m a r i t i m e t r a d e r s a n d pirates. T h e f r o n t i e r e n c o u r a g e d p e o p l e with r e m a r k a b l y diverse religions, l a n g u a g e s , a n d c u s t o m s to live t o g e t h e r , as e a c h f o u n d t h e i r own particular e c o n o m i c n i c h e . A frontier perspective an analysis b a s e d primarily on t h e i m p a c t o f foreign t r a d e , b y stressing t h e e q u a l i m p o r t a n c e o f military a n d geopolitical c o n s i d e r a t i o n s . A t least u p u n t i l t h e e n d o f t h e e i g h t e e n t h centuiy, imperial policies a n d institutions g e n e r a l l y p u t m o r e e m p h a s i s o n security a n d c o m m e r c e i n t h e n o r t h w e s t t h a n i n t h e s o u t h a n d s o u t h e a s t . T h e H a n a n d T a n g dynasties d i r e c t e d m o s t o f t h e i r c o m m e r c i a l a n d military r e s o u r c e s toward C e n t r a l Asia. Even t h e officials of the Southern Song w h o d e v e l o p e d s o u t h e r n coastal a n d overseas t r a d e m o s t extensively, still h a d t o p u t m o s t o f t h e s t a t e ' s b u d g e t w a r d i n g off o f invasion from t h e n o r t h . T h e g r e a t n i n e t e e n t h century in global position m e a n t n o t a c h a n g e in p o w e r a n d t r a d e b a l a n c e s , b u t a l a r g e g e o g r a p h i c a l r e o r i e n t a t i o n of i m p e r i a l a t t e n t i o n t o t h e s o u t h a n d t h e coastal regions, T h e Q i n g officials faced s o m e t h i n g like t h e S o u t h e r n S o n g s i t u a t i o n while still m a i n t a i n i n g a large

they p r o f i t e d from s o u t h e r n coastal t r a d e , b u t h a d t o maintain defenses on their e x p a n d e d frontiers. Strategic c h a n g e d t r a d e flows, j u s t a s c o m m e r c i a l o p p o r t u n i t i e s i n f l u e n c e d military a n d d i p l o m a t i c relations. Regional perspectives o n C h i n a s h o u l d i n c l u d e a t t e n t i o n t o t h e c o n n e c t i o n s b e t w e e n military a n d c o m m e r c i a l o n b o t h frontiers. G i o v a n n i has a r g u e d that inter-state c o m p e t i tion a n d e c o n o m i c ) , c o m b i n e d with t h e c o n c e n t r a t i o n o f capitalist p o w e r , p r o p e l l e d t h e t h e capitalist w o r l d - e c o n o m y o v e r globe 1994: 13; A r n g h i volume). empire did not c o n q u e r the globe, but c o m b i n e d military a n d c o m m e r c i a l p o w e r effectively to e x p a n d territory in t h e e i g h t e e n t h c e n t u r y . On frontiers, w h e r e t h e n e x u s of c o e r c i o n a n d capital particularly clear, we can find useful i n f o r m a t i o n a b o u t t h e p r o c e s s e s that distinguish C h i n a ' s i m p e r i a l e x p e r i e n c e from t h a t o f t h e West.

Nationalism and its discontents Viewing C h i n a from t h e f r o n t i e r helps to h i g h l i g h t p r o b l e m s with t h e nationalist h i s t o r i o g r a p h y o f C h i n a still p r e d o m i n a n t a m o n g m a n y C h i n e s e a n d i n t e r n a t i o n a l scholars. W h e r e nationalists distinguish C h i n a s h a r p l y from t h e rest of world, wc l o o k for and other w h e r e nationalists stress fixed cultural essences, we f i n d p r o d u c t i v e hybrids a n d c o n s t r u c t e d traditions; w h e r e insist o n C h i n a ' s victimization, w e f i n d c o m p l e x including both oppression and collaboration. T h e n a t i o n a l i s t a p p r o a c h stresses C h i n a s differences from t h e rest of t h e world: vast and population, and long continuous recorded history, e p i t o m i z e d the Chinese phrase (large m a n y p e o p l e , l o n g history). I t focuses o n h o w t h e s h a r p conflict between a n d a victimized C h i n a p r o d u c e d increasingly radical r e s p o n s e s in t h e twentieth c e n t u i y . Ultimately, in account, the Communist p u t into practice t h e of t h e May 4th m o v e m e n t , d i s c a r d i n g t h e b a c k w a r d i m p e r i a l past a n d e m b r a c i n g scientific m o d e r n i t y a n d poliucs. M a n y scholars a r c now aware of t h e of conventional view. By d r a w i n g a s h a r p line b e t w e e n " t r a d i t i o n " a n d " m o d e r n i t y , " and between China and o t h e r nations, artificially f i x e s t h e e s s e n c e o f c o m p l e x cultural A g r e a t d e a l of r e s e a r c h has the intellectual, social, a n d cultural c o n t i n u i t y b e t w e e n t h e Q i n g a n d C h i n a , a n d m a n y Q i n g features have r e - e m e r g e d i n reform C h i n a of t h e 1980s a n d 1990s. R e c o g n i t i o n of C h i n a ' s participation in the world casts d o u b t o n the u t t e r u n i q u e n e s s o f h e r civilization. Yet u n t i l recently, m u c h of o u r i n t e r p r e t a t i o n of Q i n g was still d o m i n a t e d by c o n c e p t s of a distinctive, c o n t i n u o u s

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relatively by t h e o u t s i d e world until t h e late n i n e t e e n t h If we at C h i n a ' s frontiers, we c o n stantly f i n d i n t e r a c t i o n s across t h e b o r d e r s t h o s e within a n d t h o s e beyond imperial boundaries. T h e s e interactions brought new elements to C h i n e s e society t h a t r e s h a p e d h e r c o r e values. T r a d i t i o n s n e v e r s t o o d still. T h e r e i s n o o n e t r u e d e s c r i p t i o n o f C h i n a , o f c o u r s e , b u t today, m a n y p e o p l e a r e m o r e likely t o l o o k for signs o f d y n a m i c e v o l u t i o n a n d m i x i n g t h a n to o p p o s e two static e n t i t i e s of " t r a d i t i o n " a n d " m o d e r n i t y . " C h i n e s e n a t i o n a l i s t h i s t o r i o g r a p h y ironically s h a r e s Western Orientalism belief that a b a c k w a r d , c o m p l a c e n t society was u n a b l e to r e s p o n d t o W e s t e r n i m p a c t i n t h e e i g h t e e n t h a n d n i n e t e e n t h c e n t u r i e s , even though differs blaming Western imperialism for p e r p e t u a t ing a bankrupt regime. O r t h o d o x Marxist t h e o r y t h r e a t e n e d t o u n d e r c u t this focus o n u n i q u e n e s s , by p l a c i n g C h i n a a universal p a t t e r n of six stages of social e v o l u t i o n . B u t m a n y o f t h e c o m p a r a t i v e possibilities o p e n e d u p b y t h e Marxist belief in universal stages were closed off by c r e a t i n g a n o t h e r version of dynastic history. Most C h i n e s e Marxist h i s t o r i a n s d e f i n e d stage as an essentially u n c h a n g i n g , self-sufficient e c o n o m i c a n d social s t r u c t u r e lasting f r o m t h e unification the third through the end of in i m p e r i a l "feudalism" t u r n e d o u t t o b e m u c h l o n g e r t h a n t h a t o f any o t h e r a g r a r i a n e m p i r e . C h i n e s e h i s t o r i a n s d e b a t e d intensively t h e t i m i n g a n d e x t e n t "sprouts o f capitalism" within t h e feudal s t r u c t u r e , b u t they n e v e r r e f e r r e d t o t h e possibility of in e m p i r e s . Nearly of t h e m c o n c l u d e d t h a t C h i n a , u n l i k e E u r o p e , n e v e r b r o k e t h r o u g h t o a new capitalist stage b e f o r e Classifying C h i n a as "semi-colonial" in t h e n i n e t e e n t h c e n t u i y o n c e again set h e r off from t h e vast majority o f t h e n o n - E u r o p e a n world t h a t was c o n q u e r e d b y E u r o p e a n i m p e r i a l i s m . T h e o t h e r Marxist o p t i o n for C h i n a , t h a t o f t h e Asiatic M o d e o f Prod u c t i o n , o n e e n d o r s e d b y M a r x himself, did place C h i n a a l o n g s i d e o t h e r n o n - E u r o p e a n e m p i r e s . P r o p o n e n t s o f t h e Asiatic M o d e a i m e d t o b r e a k o u t of t h e l i n e a r i m p o s e d by Stalin on o r t h o d o x Marxists, so as to assert v a r i a n t r o u t e s to socialism a n d a p p r o p r i a t e political to realize B u t since t h e Asiatic M o d e r e s t e d on a basic a s s u m p t i o n of Asian stagnation, was r o u n d l y rejected by nearly all C h i n e s e 1988). In t h e view of m o s t Marxist analysts, C h i n a ' s l o n g b u r e a u c r a t i c p u t h e r in a all by herself. B o t h Marxist a n d n o n - M a r x i s t i n t e r p r e t a t i o n s e c h o e d t h e m o s t c o m m o n t r o p e s o f n a t i o n a l i s m : victimization, teleology, a n d t h e i n v e n t i o n of tradition. t h e m o s t e m o t i o n a l l y c h a r g e d t r o p e , insisted o n t h e h o r r o r s of massacres, poverty, f a m i n e , a n d invasion in late n i n e t e e n t h c e n t u i y , nationalists stressed t h e h o r r o r s o f t h e massacre of t h e r e c e n t focus on t h e N a n k i n g m a s s a c r e is m o s t obvious

example. history as toward t h e unification o f p e o p l e a n d state. W e s t e r n n a t i o n a l historians often invoked divine will; in t h e n i n e t e e n t h Social Darwinism served a comparable C h i n a by s h o w i n g that irresistible forces, verified by m o d e r n s c i e n c e , inescapably s u p p o r t e d victorious states. C h i n e s e Marxists d r e w heavily on these e v o l u t i o n a r y m o d e l s to assert t h e inevitable victory of t h e r e v o l u t i o n a r y forces in class struggle. traditions, nationalist writers on past practices to weave a common for a p e o p l e . R e j e c t i n g a n d W e s t e r n c l o t h i n g in favor of "native" like t h e newly m a n u f a c t u r e d "Sun as p a r t of b r o a d e r c a m p a i g n s to buy " n a t i o n a l p r o d u c t s " nationalists unified t h e c o n s u m i n g p u b l i c a n d p r o m o t e d C h i n e s e business C u t t i n g t h e q u e u e , as a symbol of o p p r e s s i o n , a n d invoki n g myths of a H a n resistance to b a r b a r i a n o p p r e s s o r s , t o r e e l e m e n t s of C h i n a ' s past o u t of c o n t e x t the of mass mobilization. But the features of C h i n a t h a t d e f i n e d its u n i q u e n e s s (dida, created p a r a d o x e s for a unified nationalist i d e o T h e C h i n e s e h a d a surfeit of o p p r e s s o r s . T a r g e t s of t h e victimization charge M a n c h u rulers, W e s t e r n a n d J a p a n e s e imperialists, landlords a n d wealthy b o u r g e o i s classes. Yet e a c h g r o u p was partly foreign a n d partly familiar. T h e o c c u p i e d a n especially p u z z l i n g a n d a m b i g u ous position. W e r e they "Central Asian" like t h e M o n g o l s , l o n g a hostile t h r e a t on C h i n a ' s n o r t h e r n frontiers, or they assimilated ("cooked") b a r b a r i a n s , m o r e like t h e native p e o p l e s o f t h e S o u t h w e s t a n d Taiwan, w h o voluntarily r e c o g n i z e d s u p e r i o r i t y a n d even c a m e t o m a s t e r i m p o r t a n t e l e m e n t s o f t h e high c u l t u r e . Calling t h e utterly alien i g n o r e d substantial e v i d e n c e o f t h e i r a d a p t a t i o n t o H a n C h i n e s e ways over t h e c o u r s e of t h e Q i n g dynasty. T h e M a n c h t i s fact, f r o n t i e r p e o p l e s o n t h e e d g e o f t h e M i n g e m p i r e w h o creatively m i x e d a g r a r i a n a n d pastoral m o d e s to c r e a t e a new i m p e r i a l Many H a n , especially t h o s e w h o served a s " C h i n e s e m a r t i a l " j o i n e d t h e m . M o n g o l s j o i n e d t h e M a n c h t i s also as key allies, with i m p o r t a n t military functions a n d k i n s h i p c o n n e c t i o n s t o t h e r u l i n g elite. A frontier view replaces nationalist dualities with r e c o g n i t i o n of hybrid c h a r a c t e r o f t h e r u l i n g elite. T h e teleology o f t h e nationalist narrative also r a n paradoxes, b e c a u s e o f C h i n a ' s l o n g a n d varied history. T h e vulgar Marxist m o d e l o f clear s e q u e n t i a l stages of slavery, feudalism, a n d capitalism fit very awkwardly with t h e p e r i o d of g r e a t b u r e a u c r a t i c e m p i r e s from to Q i n g . E v i d e n c e o f substantial d y n a m i c c o m m e r c i a l growth i n China m a k e s it h a r d identify specific features u n i q u e to E u r o p e that d e f i n e us trial capitalism ( F r a n k 1998; P o m e r a n z 2000; W o n g A r n g h i , e.\ v o l u m e ) . T h e e c o n o m i c narrative of m o d e r n C h i n a can

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no trace a single u n i l i n e a r p a t h from self-sufficient rural e c o n o m y t o i n t e g r a t e d industrialism; t h e r e a p p e a r t o b e early spurts, d e c l i n e s , a n d m u l t i p l e pathways i n b o t h E u r o p e a n d C h i n a . T h e c e n t e r c a n n o t h o l d t o g e t h e r a single story Similar p a r a d o x e s faced t h e issue of t h e transition from e m p i r e to n a t i o n . I f t h e c u r r e n t territorial claims o f t h e Republic resemble closely t h e b o u n d a r i e s a c h i e v e d b y t h e Q i n g rulers a r o u n d and C h i n a today i n c l u d e s within borders nationalities, ary C h i n a ' s r u l i n g ideology a n d p r a c t i c e a r e a s m u c h i m p e r i a l a s in c o n t e n t . It is h a r d l y t h e n , that u n c a n n y e c h o e s of Q i n g i m p e r i a l r h e t o r i c still r i n g g o v e r n m e n t a l p r o s e . T h e c o n t r o v e r s i e s over the n o m i n a t i o n of the Lama 1905 a n d t h e escape o f t h e Lama for e x a m p l e , a r c only t h e latest a l o n g line of events t h a t reveal striking a n a l o g i e s to Q i n g efforts in O n c e a g a i n , o n t h e frontiers o f t h e Q i n g a n d R e p u b l i c , claims to i n c o r p o r a t e clearly d e f i n e d u n d e r a multinational n a t i o n - s t a t e have m e t g r e a t resistance. H a s t h e e m p i r e really b e c o m e a n a t i o n at all? F o r China has o n l y a "relatively i n c h o a t e a n d i n c o h e r e n t form of n a t i o n a l i s m , " b e c a u s e it is a "civilization p r e t e n d i n g to be a nation-state," b u t wc can be m o r e historically specific (Pye 1993). T h e i n a d e q u a c i e s o f C h i n e s e n a t i o n alist ideology derive from its i n h e r i t a n c e of t h e of t h e Q i n g i m p e r ial r u l e r s , w i t h o u t t h e i r l e g i t i m a t i n g a p p e a l to a universal cosmology. a r c h i t e c t s of a C h i n e s e n a t i o n d i d n o t look to m o r e H a n - c e n t e r e d m o d e l s o f C h i n e s e territory a n d polity, like t h e S o n g o r M i n g dynasties. I n s t e a d , nearly all o f t h e m , w h e t h e r Comm u n i s t , o r i n d e p e n d e n t intellectuals, t o o k for g r a n t e d the boundaries and peoples included in the maximal period of the Q i n g should belong to the c o n s t r u c t i o n of t h e H a n as a distinct "nationality" i n t h e late n i n e t e e n t h c e n t u i y m e r g e d distinctive g r o u p s t h e Cantonese, Hakka, Taiwanese, and into a whole, and the p r o m o t i o n of C h i n a as a "multi-nationality n a t i o n - s t a t e " the twentieth centuiy incorporated n o n - H a n u n d e r a single n a t i o n a l ideal. B o t h i d e o l o g i e s tried to resolve t h e conflicting claims of e m p i r e a n d n a t i o n , legacies o f t h e f r o n t i e r e x p a n s i o n , b u t they c o u l d n o t r e m o v e all c o n t r a d i c t i o n s . T h e c o n t r a s t i n g perspectives o f Z h a n g and Liang the f i r s t d e c a d e o f t h e t w e n t i e t h c e n t u i y h i g h l i g h t e d this c o n t r a d i c t i o n clearly. Z h a n g , s u p p o r t i n g a strictly racial c o n s t r u c t i o n of nationality, a r g u e d t h a t t h e n o n - H a n p e o p l e s c o u l d n e v e r b e assimilated. H e even o n c e a d m i t t e d that Muslims m i g h t the as m u c h as Chinese the M a n c h t i s . A l t h o u g h h e d i d n o t s u p p o r t i n d e p e n d e n c e for Muslims u n d e r C h i n e s e r u l e , h e d i d p r o p o s e t h a t C h i n a a n d X i n j i a n g c o u l d form a n "alliance" against Russia if it suited Muslim interests. If n o t , he i m p l i e d ,

X i n j i a n g c o u l d go way from t h e C h i n e s e state 1969: 2 0 6 ) . Liang insisted o n m a i n t a i n i n g t h e Q i n g i m p e r i a l territories, while t r a n s f o r m i n g t h e e m p i r e a n d its p e o p l e s citizens of a constitutional m o n a r c h y . F o r h i m , " p r o t e c t i n g t h e race was " n o t as critical as p r o t e c t i n g t h e n a t i o n 1990: 105). Sun Yatsen after c o n v e r t e d from racialism to L i a n g s civic m o n a r c h y , b e c a u s e he c o u l d n o t allow of C h i n e s e territory by claims for a u t o n o m y from separatists. T h e p r o b l e m for was t h a t "the word failed t o a c c o m m o d a t e t h e variety o f e t h n i c c o m m u n i t i e s n o w t h o u g h t to c o m p r i s e t h e He c o n s t r u c t e d a "philosophically e m p t y " vision of u n d e r H a n d o m i n a n c e so as to m a i n t a i n claim to t h e f r o n t i e r territories (Fitzgerald 122; 1999a: 3 4 5 , 3 5 1 ) . C o n t r a r y to m a n y of n a t i o n a l i s m , East Asians have n o t h a d " h o m o g e n e o u s " societies that m a d e it easier for t h e m to d e v e l o p n a t i o n a l ist ideologies t h a n societies m o r e fractured Nationalist activists c l a i m e d their peoples a single entity, b u t t h e a p p a r e n t " h o m o g e n e i t y " of K o r e a , J a p a n , or V i e t n a m , for e x a m p l e , a p r o d u c t of successful myth n o t social p r a c t i c e . J a p a n e s e , divided a m o n g over two h u n d r e d a u t o n o m o u s d o m a i n s , a n d s e p a r a t e d b y rigid b a r r i e r s , h a r d l y saw themselves as o n e p e o p l e history, fractured a m o n g multifarious r e g i o n a l identities a n d divergent historical d i d n o t f o r m a s m o o t h f o u n d a t i o n for c o n s i s t e n t nationalist ideology e i t h e r . T h e "invention o f t r a d i t i o n " a p p r o a c h e x a m i n e s how nationalists d e p l o y selected from a s e x p e r i e n c e to c r e a t e myths of unity. F o r e x a m p l e , t h e c u t t i n g o f t h e q u e u e was t h e m o s t c o n s p i c u o u s , a n d nearly irreversible, m a r k o f rejection o f t h e M a n c h u r e g i m e . S i n c e , d u r i n g the Q i n g , t h e q u e u e really did r e p r e s e n t a c o n s p i c u o u s bodily m a r k e r i m p o s e d by a c o n q u e r i n g elite, as an effective symbol of o p p r e s s i o n . I n t h e twentieth c e n t u i y , r e s u r r e c t i n g a c c o u n t s o f t h e massacre of effectively d e m o n s t r a t e d M a n c h u barbarity. At t h e s a m e t i m e , this revival c r e a t e d a myth of u n i f o r m H a n resistance to M a n c h u c o n q u e s t , belying t h e realities o f n e g o t i a t i o n , o p p o r t u n i s m , a n d Nearly all H a n C h i n e s e a c c e p t e d t h e q u e u e w i t h o u t a n d M a n c h t i s were n o t t h e t r o o p s w h o c o m m i t t e d massacres. T h e s e invocations o f selected e l e m e n t s o f t h e past have often b e e n m o r e conv i n c i n g t o o r d i n a r y p e o p l e t h a n g r a n d s c h e m e s o f historical e x p l a n a t i o n . Hairstyles a n d c l o t h i n g s h a p e everyday life by a l t e r i n g t h e forms of t h e body. But w e n e e d t o r e c o g n i z e t h a t nationalists c o n s t r u c t e d n o t o n e single t r a d i t i o n , b u t m a n y d i s p a r a t e e l e m e n t s for p a r t i c u l a r p u r p o s e s . T h e y d i d n o t necessarily form a c o h e r e n t w h o l e . In s u m , s e e i n g C h i n a from a frontier p e r s p e c t i v e h e l p s to r e p l a c e t h e

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nationalist d i s c o u r s e with m e t a p h o r s . F o r victimization, w e may s u b s t i t u t e i n t e r a c t i o n a n d p a r a d o x : t h e m u t u a l o p p o r t u n i s m o f t h e semi-colonial e n c o u n t e r . For substitute contingency. For i n v e n t i o n of t r a d i t i o n , s u b s t i t u t e t h e active c o n s t r u c t i o n of t r a d i t i o n s in p a r t i c u l a r times, spaces, a n d social a r e n a s ,

Integrating China into world history: U n l i k e t h e n a t i o n a l i s t p a r a d i g m , several r e c e n t h i s t o r i c a l p r o j e c t s to c o n n e c t C h i n a to the world by focusing on interactions of China h e r n e i g h b o r s , o r b y c o m p a r i n g C h i n a with o t h e r societies. A f r o n t i e r perspective c o m p l e m e n t s these new Joanna s survey, for e x a m p l e , a r g u e s t h a t t h e C h i n e s e h a v e always b e e n o p e n t o f o r e i g n i n f l u e n c e ; they h a v e a d o p t e d religions, and m a t e r i a l c u l t u r e f r o m o u t s i d e r s , a n d they h a v e e x t e n d e d t h e i r i n f l u e n c e outward 1999). C h i n a s e m b r a c e of Buddhism, her eager a d o p t i o n o f m a t h e m a t i c s a n d military t e c h n o l o g y from t h e J e s u i t s , a n d t h e i n c o r p o r a t i o n o f N e w W o r l d f o o d c r o p s , i n c l u d i n g chili p e p p e r s , t h e C h i n e s e d i e t , all d e m o n s t r a t e C h i n a ' s c u l t u r a l o p e n n e s s . T r a d e and cultural interaction on borders new the C h i n a has n e v e r b e e n c o m p l e t e l y isolated n o r essentially i n w a r d - l o o k i n g . H e r o p e n n e s s varies, t o b e s u r e , o v e r t i m e a n d b y region and ethnic so we c a n n o t generalize China as a X e n o p h o b i a a n d the notion of Chinese resistance to external influence are products of particular situations, not i n h e r e n t in Chinese T w o r e l a t e d a p p r o a c h e s also h i g h l i g h t i n t e r a c t i o n with t h e Fast Asian r e g i o n a n d t h e o u t s i d e world. O n e i s t h e " t r i b u t a i y system" o f H a m a s h i t a T a k e s h i , t h e o t h e r is t h e " S o u t h e r n m o d e l " by a n u m b e r o f H o n g K o n g a n d W e s t e r n scholars. ( H a m a s h i t a 1990, 1994, 1999; F r i e d m a n 1995; 1996). H a m a s h i t a a r g u e s t h a t l o n g b e f o r e t h e h e y d a y of W e s t e r n colonialism East Asian inter-stale r e l a t i o n s w e r e based on a " t r i b u t e t r a d e system" C h i n a at t h e c e n t e r , o r i e n t e d a r o u n d ritual d e f e r e n c e a n d p r e s e n t a t i o n o f gifts t o t h e C h i n e s e e m p e r o r r e t u r n for political l e g i t i m a t i o n a n d o p p o r t u n i t i e s for t r a d e . J u s t as foreign emissaries offered gifts r e t u r n for l e g i t i m a t i o n , so officials w i t h i n t h e e m p i r e s e n t t h e e m p e r o r local p r o d u c t s a l o n g taxes a n d r e p o r t s . T r i b u t e relations were t h e p r i n c i p l e of a East Asian t r a d i n g system t h a t b o t h l i n k e d localities t o t h e c e n t e r , a n d tied s u r r o u n d i n g states t o t h e e m p i r e . J o h n outlined this c o n c e p t 1950s, a n d students developed in t h e 1960s (Fairb a n k , 1968). H a m a s h i t a , however, d o e s n o t s e p a r a t e ritualism from econ o m i c r e l a t i o n s , b u t f i n d s t h e two t o b e in contrast to F a i r b a n k , H a m a s h i t a s r e s e a r c h on East Asia d o c s

not of an t r i b u t e system by a W e s t e r n system of e q u a l states. I n s t e a d . East Asian states, especially C h i n a , Korea, V i e t n a m , a n d t h e Ryukyus, c o n t i n u e d t o c o n d u c t r e l a t i o n s with e a c h o t h e r by t r i b u t a i y n o r m s , even as also n e g o t i a t e d treaties with t h e W e s t a n d e a c h o t h e r . He finds, s h o r t , t h a t C h i n a was n o t blindly c l i n g i n g to o b s o l e t e n o t i o n s of foreign relations an a g e of "equal sovereign states." R a t h e r , it was creatively modifying its i n h e r i t e d h i e r a r c h i c a l p r i n c i p l e s to m e e t t h e c h a l l e n g e of system: o n e based on i m p e r i a l d o m i n a t i o n . His c h a p t e r i n this v o l u m e a r g u e s that Britain, t h e U n i t e d States, a n d o t h e r W e s t e r n powers s o u g h t t o i m p o s e p r i n c i p l e s o f free t r a d e a n d e q u a l d i p l o m a c y o n Asia, b u t s i m u l t a n e o u s l y r e c o g n i z e d a n d u p h e l d t r i b u t a i y relations i n t h e C h i n a - K o r e a r e l a t i o n s h i p . I would n o t e , however, that a l t h o u g h E u r o p e a n powers, after t h e P e a c e of W e s t p h a l i a in usually t r e a t e d o t h e r as h a v i n g e q u a l sovereign a u t h o r i t y flagrant e x c e p t i o n s , like t h e e l i m i n a t i o n of t h e the eighteenth they d e a l t the non-Western world o n different p r i n c i p l e s . A s E u r o p e a n s e x t e n d e d t h e i r r e a c h they c r e a t e d binary divisions b e t w e e n a n d colonies. D u t c h c o n t r o l of I n d o n e s i a , followed by t h e British c o n q u e s t of I n d i a t h e e i g h t e e n t h c e n t u i y , e s t a b l i s h e d strongly u n b a l a n c e d p o w e r r e l a t i o n s b e t w e e n t h e West a n d t h e East. B y t h e n i n e t e e n t h c e n t u i y , C h i n a n o l o n g e r was an E n l i g h t e n m e n t U t o p i a E u r o p e a n s ; instead, it l o o k e d a n o t h e r weak a n d backward Asian state. A s J a m e s argues, the C h i n e s e e n c o u n t e r with t h e British of conflicting i m p e r i a l m o d e s , n o t equality vs. h i e r a r c h y T h e Chinese tributaiy o r d e r was j u s t a s h i e r a r c h i c a l , b u t m o r e g r a d u a t e d t h a n t h e E u r o p e a n o n e . It was m o r e sophisticated t h a n simple of c o l o n i z e r a n d c o l o n i z e d , as it c o n t a i n e d m a n y p a r t i c i p a n t s a r r a n g e d c o n c e p t u a l l y in diff e r e n t d e g r e e s o f d i s t a n c e from t h e c e n t e r . Hamashita explains a c t i o n s in t h e late n i n e t e e n t h c e n t u i y as a failed effort t o displace C h i n a a n d p u t herself a t t h e a p e x o f t h e r e g i o n a l t r a d i n g system. E l a b o r a t i n g o n concept, Arnghi, Hung a n d S e l d e n f i n d links b e t w e e n m o d e r n inter-stale r e l a t i o n s h i p s a n d t h e t r i b u t a i y system. Despite vast c h a n g e s in e c o n o m i c a n d military t e c h n o l o g y , they a r g u e that r e g i o n f o r m a t i o n w i t h o u t institutionalization was c o n s i s t e n t t h e historic legacy of m a r i t i m e Asia this v o l u m e ) . Even t h o u g h t h e r e can be no r e t u r n to or d o m i n a n c e , t h e tributary legacy offers a m o d e l of a viable regional system q u i t e distinct f r o m t h a t of t h e European Union. These discussions of East Asian c o m m e r c i a l relations in a m o r e global a n d historical perspective. O t h e r historians, rejecting a n a r r o w focus on d i p l o m a c y , have likewise m a d e t h e i r field m o r e inclusive by c h a n g i n g " d i p l o m a t i c history" to " i n t e r n a t i o n a l

A frontier

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T h i s a p p r o a c h tries t o i n t e g r a t e ritual, d i p l o m a t i c , a n d political relationships at both the governmental and levels. Like t h e m , H a m a s h i t a looks at m u l t i p l e i n t e r a c t i o n s within Asia. F o r e x a m p l e , instead of l o o k i n g at W e s t e r n transmission to t h e East t h r o u g h treaty p o r t s , h e shows trade treaty ports greatly e x c e e d e d e a c h p o r t ' s with W e s t e r n powers, as c o n t e m p o r a r y East Instead of discussing Asia's "forced" from t h e " i m p a c t of t h e West," he views Asia "from a perspective t h a t focuses o n i n t e r n a l c h a n g e s t h e East Asian r e g i o n . " T h u s h e restores a g e n c y to Asian p e o p l e , n e t w o r k s , a n d institutions ( H a m a s h i t a , this v o l u m e ) . C h i n e s e m e r c h a n t s c o u l d take a d v a n t a g e o f t h e treaty p o r t system to e x t e n d t h e i r n e t w o r k s i n t o t h e rest of Overseas a n d d o m e s t i c C h i n e s e played a critical r o l e forging links b e t w e e n different a n d b e t w e e n t h e newly arrived a n d C h i n a itself. Korea, the Islands, a n d T a i w a n also acted as h i n g e s b e t w e e n t h e o f colonial p o w e r s a n d t h e C h i n e s e m a i n l a n d . Ultimately, it was J a p a n , n o t t h e W e s t e r n e r s , t h a t r e j e c t e d this hybrid treaty-tribute order, when i n t e r v e n e d t o force Korea, O k i n a w a , a n d T a i w a n exclusively i n t o its s p h e r e as p r e f e c t u r e s a n d c o l o n i e s a n d o u t of t h e i r a c c u s t o m e d dual roles. In this perspective, t h e d y n a m i c s of c h a n g e c o m e from within East Asia; t h e W e s t e r n i m p a c t is m e d i a t e d by i n t e r a c t i o n s o f East Asian states e a c h o t h e r . Asians g a m m u c h m o r e agency t h e victimization, m o d e r n i z a t i o n , o r nationalist perspectives allowed t h e m , a n d t h e East Asian r e g i o n as a w h o l e acts as an a u t o n o m o u s force. H a m a s h i t a ' s p e r s p e c t i v e , however, still p r e s u m e s t h a t a political c e n t e r i n Beijing, t h e e n d , m a d e decisions a b o u t t h e of trade and d i p l o m a c y . A l t h o u g h Beijing c o u l d n o t directly d e t e r m i n e all t r a d e flows, focus o n missions a n d d i p l o m a c y d e m o n s t r a t e s t h e significant role o f t h e c o u r t influencing international trade. T h e " H o n g Kong" or " S o u t h e r n - c e n t e r e d " i n t e r p r e t a t i o n o f t h e d y n a m i c s o f C h i n e s e history, also sees foreign t r a d e as a powerful d y n a m i c in C h i n a ' s d e v e l o p m e n t , at least from t h e S o n g dynasty t o t h e p r e s e n t , b u t t h e m a i n t r a d e links a r e c r e a t e d by S o u t h coast private t r a d e r s S o u t h e a s t Asia ( F r i e d m a n 1995; 1998; N g o 1999; P e r d u e 2000a; el As t h e East Asia W o r l d System d e v e l o p e d a c o m m e r c i a l l y o r i e n t e d society c e n t e r e d and South China, merchants m o t e d t r a d e within C h i n a a n d links t o E u r o p e a n a n d A m e r i c a n t r a d e c o o p e r a t i o n with local officials. U n d e r this system, u n t i l t h e e n d o f t h e e i g h t e e n t h c e n t u i y , C h i n a a c h i e v e d levels o f living s t a n d a r d s a n d commercialization approximately equal to those of modern Europe ( W o n g 1997; P o m e r a n z 2 0 0 0 ) . In t h e of s o m e of these scholars, gains from colonialism, c o i n c i d i n g with t h e collapse o f t h e C h i n e s e e m p i r e , e n a b l e d E u r o p e a n d o m i n a n c e . I n t h e twentieth c e n t u r y J a p a n a t t e m p t e d

to c r e a t e own East Asian system, itself as hut now m u c h o f t h e old has b e e n albeit China J a p a n as rival p o w e r c e n t e r s . New features m a r k t h e late twentieth c e n t u i y , particularly t h e of t h e USA as a r e g i o n a l and the greatly e x p a n d e d role of t r a n s n a t i o n a l capital flows d o m i n a t e d by overseas C h i n e s e , b u t m a n y o f t h e s t r u c t u r a l e l e m e n t s parallel t h e l o n g - s t a n d i n g structures that have lasted since t h e year 1200. T h e s e i n c l u d e t h e econ o m i c p r e d o m i n a n c e of t h e southern t h e key r o l e of overseas C h i n e s e a n d H o n g K o n g i n v e s t m e n t , a n d t h e close c o n n e c t i o n s of local official interests in t h e a n d t h e p r o m o t i o n of foreign t r a d e . I heartily e n d o r s e t h e efforts of these writers to beyond national b o u n d a r i e s a n d to h i g h l i g h t t h e r o l e of t r a d i n g relationships, b u t I would c a u t i o n against an exclusive focus on foreign t r a d e as t h e e n g i n e of interstate r e l a t i o n s or development. was only o n e of several factors driving t h e system as a w h o l e . Military-geopolitical c o n s i d e r a t i o n s , i n c l u d i n g diplomacy, p o w e r , a n d p e r c e p t i o n o f constantly s h a p e d the s c o p e of c o m m e r c i a l networks. t h e two imperatives conflicted. F o r e x a m p l e , c o u r t often s h u t d o w n official t r a d e t o p u t p r e s s u r e on us foreign while m e r c h a n t s e n g a g e d s m u g g l i n g to preserve t h e i r profits. O n t h e o t h e r h a n d , t r a d e a n d security often s u p p o r t e d each o t h e r . I f and openness generated wealth s u p p o r t e d c o n q u e s t . As c h o s e to d i r e c t t h e i r r e s o u r c e s in p a r t i c u l a r d i r e c t i o n s , toward specific allies a n d e n e m i e s , these strategic choices strongly t r a d e flows. In C h a r l e s terms, t h e " m a r r i a g e of a n d C o e r c i o n " set t h e boundaries which d e v e l o p e d (Tilly 1990). Military activity has always b e e n particularly p r o m i n e n t in t h e of north and northwest because of the constant presence of nomadic horsemen who raided the borders and sometimes c o n q u e r e d the capital. In t h e n i n e t e e n t h military d e f e n s e also b e c a m e a key factor inter-state a n d inter-regional r e l a t i o n s o n t h e S o u t h e a s t a n d N o r t h e a s t coasts. Wei Yuan, m o s t f a m o u s W e s t e r n s c h o l a r s h i p for reco g n i z i n g t h e i m p o r t a n c e of coastal d e f e n s e , fact derived m u c h of strategic t h i n k i n g from e x a m i n i n g Q i n g military e x p a n s i o n i n t h e west. In his ( A c c o u n t of Sacred Military he d r e w on t h e history of Q i n g e x p a n s i o n to derive lessons for r e s p o n d i n g to t h e W e s t e r n i n c u r s i o n s on t h e s o u t h coast (cf. L e o n a r d 1984).

A frontier view of

Viewing China from the frontier these i n c l u s i o n of ritual d i p l o m a c y , a n d a r e g i o n a l focus leads me to s k e t c h a f r o n t i e r p e r s p e c t i v e on C h i n a t h e world. I use h e r e as a relational c o n c e p t , n o t necessarily as a r e f e r e n c e to a fixed space. can analyze I m p e r i a l C h i n a profitably by l o o k i n g at t h e b e t w e e n two c o n t r a s t i n g usages of m e a n i n g e i t h e r a z o n e or a l i n e a r b o r d e r . T h e f i r s t usage predominantly American; the second mainly W e s t e r n E u r o p e a n and Power Perdue forthcoming b ) . Frederick Jackson T u r n e r defined the American frontier as a zone of transition b e t w e e n civilization a n d wilderness, focusing o n t h e p i o n e e r s who pushed b o u n d a r i e s o u t w a r d a s they i n t e g r a t e d t h e s e u n d e v e l o p e d areas A l t h o u g h A m e r i c a n h i s t o r i a n s now reject t h e a s s u m p t i o n s o f A n g l o - S a x o n racial s u p e r i o r i t y u n d e r l y i n g c o n c e p t , they have analysis of i n c o r p o r a t i o n . William for e x a m p l e , his study of C h i c a g o e n t i t l e d analyzed h o w t h e e c o n o m i c i n t e g r a t i o n o f t h e A m e r i c a n Far West d i r e c t e d agricultural commodities to Eastern c o n s u m p t i o n markets. While rejecting a n d cultural biases, h q r e t a i n e d T u r n e r ' s p r o c e s s of progressive e x p a n s i o n . In o p p o s i t i o n , A m e r i c a n point o u t that areas beyond the s e t t l e m e n t f r o n t i e r did n o t c o n t a i n w i l d e r n e s s o r p r i m i t i v e b a r b a r i s m , but distinctive c u l t u r e s , each d e n s e social systems a n d historical m e m o r i e s , which c o h a b i t e d , m i x e d a n d resisted i n c o r p o r a t i o n t h e c e n t e r . F o r C h i n a , w e can likewise n o t e t h e i m p e r i a l t h a t p r o m o t e d e x p a n s i o n o f t h e civilized, settled against " b a r b a r i a n " o n t h e n o r t h w e s t frontier, o r m o b i l e cultivators in t h e of t h e s o u t h . perspectives stress t h e distinctive c h a r a c t e r i s t i c s o f t h e s e p e o p l e s a n d t h e i r to maintain a u t o n o m y against i m p e r i a l p r e s s u r e 1987; C r o n o n 1991; W h i t e 1991a, 1993; on cf. 1998; P e r d u e 2 0 0 0 b ) . E u r o p e a n stories o f t h e f r o n t i e r m o v e i n a l m o s t exactly t h e o p p o s i t e d i r e c t i o n , f r o m inclusion t o e x c l u s i o n 1973). W e s t e r n E u r o p e a n d e f i n i t i o n s b e g i n with t h e f r o n t i e r as a line, d i v i d i n g two s e p a r a t e entities. This t h e original m e a n i n g of t h e t e r m F r e n c h , closer to t h e m o d e r n w o r d " b o r d e r " t h a n t o "frontier z o n e . " O u t o f t h e m u l t i p l e sovereignties of t h e medieval p e r i o d , w h e n frontiers w e r e t h e site of fields, castles, a n d new states t h e early m o d e r n age d e v e l o p e d f i x e d , n e g o t i a t e d b o u n d a r i e s . A s they c r e a t e d m o r e u n i f o r m i n t e r n a l structures, d r e w s h a r p e r lines t o divide t h e m from t h e i r n e i g h b o r s . I n Western E u r o p e frontier creation moved from i n c o r p o r a t i o n within a large e m p i r e toward division by b o r d e r s t h e e r a of states. M a n y h i s t o r i a n s a n d political scientists single o u t t h e c o n c l u s i o n o f t h e T h i r t y Years W a r at t h e P e a c e of W e s t p h a l i a as o r i g i n of t h e

"idea of In this treaty m a r k e d a decisive t u r n toward r e c o g n i z i n g t h e of fixed state b o u n d a r i e s a n d t h e principle of n o n - i n t e r f e r e n c e in e a c h state's i n t e r n a l After t h e e e n t h c e n t u i y , nationalists asserted t h a t g e o g r a p h y h a d f i x e d " n a t u r a l frontiers" for t h e i r states. N e i g h b o r i n g n a t i o n s , like F r a n c e a n d G e r m a n y , however, w h o d i s a g r e e d o n w h e r e t h e " n a t u r a l " b o r d e r r a n , w e n t t o war each other repeatedly. i n t h e twentieth c e n t u i y d i d damaging c o n c e p t o f "natural to break down. T h e career of "frontier" as a dividing line is only now b e g i n n i n g to d e c l i n e , as t h e E u r o p e a n U n i o n e x p a n d s sovereignty across n a t i o n a l b o r d e r s . T h e different c o n n o t a t i o n s o f t h e A m e r i c a n a n d E u r o p e a n of "frontier" - o n e as z o n e a n d o n e as b o r d e r - reflect two different processes of state f o r m a t i o n a n d territorial definition. E a c h , however, focuses primarily on t h e frontier as an e l e m e n t in t h e f o r m a t i o n of new states a n d n a t i o n s . C h i n a from t h e e i g h t e e n t h to twentieth c e n t u r i e s , as an empire that first and then became a with nearly t h e s a m e b o r d e r s , c o m b i n e d b o t h processes o f i n c o r p o r a t i o n a n d incorporation meant attaching territories of u n p r e c e d e n t e d to t h e c o r e administrative s t r u c t u r e ( t h e system) by c r e a t i n g new forms o f a d m i n i s t r a t i o n a n d e c o n o m i c e x c h a n g e . Division m e a n t d r a w i n g lines to p r e v e n t c o m p e t i n g links of these territories across t h e newly defined b o r d e r s , a n d d e f i n i n g t h e i r p e o p l e s a s h o m o g e n e o u s entities. I t also m e a n t restricting t h e i r mobility a n d s u p p r e s s i n g resistance. All of C h i n a ' s frontiers have these d u a l characteristics, b u t t h e west displays t h e m m o s t As t h e e m p i r e e x p a n d e d , it d r e w progressively l a r g e r r e g i o n s i n t o its own administrative h i e r a r c h i e s a n d e c o n o m i c n e t w o r k s , d e t a c h i n g t h e m from rival linkages. By t h e e n d of t h e e i g h t e e n t h c e n t u i y , Xinjiang a n d M o n g o l i a were inextricably linked t o t h e imperial c o r e by military a n d civilian s t r u c t u r e s , a n d by flows of g o o d s the Yangtze valley a n d t h e C e n t r a l Asian At t h e s a m e time, treaties, m a p s , a n d official d i s c o u r s e m a r k e d off t h e Kazakhs a n d as o u t s i d e t h e b o u n d a r i e s of t h e e m p i r e . T h e i r t r a d e was carefully a t g u a r d e d b o r d e r crossings. T h e a m b i g u o u s "Western r e g i o n s " were now d e l i n e a t e d as fixed they h a d " c o m e o n t o t h e registers" bantu). T h e c u l m i n a t i o n of this process was t h e d e s i g n a t i o n of X i n j i a n g as a p r o v i n c e in 1884 1999). C h i n a , o f c o u r s e , has m a n y frontiers. O n t h e scale, t h e i m p e r i a l viewed from Beijing, we may d i s t i n g u i s h five i n l a n d a n d two m a r i t i m e frontier regions, each special istics: M a n c h u r i a , M o n g o l i a , Xinjiang, T i b e t , a n d S o u t h w e s t C h i n a , plus t h e n o r t h e a s t a n d s o u t h - s o u t h e a s t coastal z o n e s . O n s m a l l e r scales, p e r i p h eries of m a c r o - r e g i o n s , frequently d e m a r c a t e d by m o u n t a i n s , lakes, or rivers, also display frontier characteristics. For simplicity, I will discuss

A f r o n t i e r view of C h i n e s e n e s s 63 the a n d s o u t h - s o u t h e a s t frontiers. features o f t h e m a r i t i m e frontiers r e s e m b l e t h o s e o f C h i n a ' s i n t e r i o r . I n b o t h r e g i o n s , diverse p e o p l e s t r a d e d with e a c h o t h e r in specific e c o n o m i c n i c h e s , linking g a r r i s o n s , or treaty p o r t s ) across several state b o u n d aries. T h e coastal has counterpart the borderland between settled a g r i c u l t u r e a n d t h e s t e p p e . m i g r a n t s m o v e d t o b o t h frontiers a n d m i x e d with o t h e r p e o p l e s t h e r e : A r a b s in coastal towns, Filipinos a n d E u r o p e a n s i n Manila, M o n g o l s , T u r k i c a n d T i b e t a n p e o p l e s i n t h e northwest. Much of discussion refers t o c o m m o n features o f f r o n t i e r r e g i o n s , n o t exclusively m a r i t i m e o n e s . We can d r a w useful a n a l o g i e s b e t w e e n t h e s t r u c t u r e of i n t e r a c t i o n s on e a c h of t h e s e frontiers. T h e y s h a r e t h e characteristics of costs of access from t h e c e n t e r c a u s i n g r e d u c e d c e n t r a l state c o n t r o l , g r e a t e r a u t o n o m y for m e r c h a n t s , m o b i l e p e a s a n t r i e s , g r e a t e r plurality o f e t h n i c a n d religions identification (called " h e t e r o d o x " b y t h e and multiple cross-cutting n e t w o r k s of i n t e r a c t i o n , instead of a s i m p l e vertical link of one t o o n e l o r d . A m o n g these frontiers, t h e N o r t h w e s t was always the most i m p o r t a n t o n e to Chinese rulers of the Ming a n d because they saw t h e greatest military t h r e a t to t h e i r r u l e t h e r e . As t h e m a i n focus of i m p e r i a l a t t e n t i o n , it p r o v i d e d an a r e n a of e x p e r i m e n t a t i o n often a s t h e m o d e l for o t h e r places. F o r e x a m p l e , t h e C a n t o n t r a d e system of r e g u l a t e d t r a d e was first d e v e l o p e d on t h e Russian b o r d e r by t h e Q i n g in then extended to the a n d Kazakhs i n t h e mide i g h t e e n t h c e n t u i y , a n d only t h e n a p p l i e d i n t h e S o u t h . T h e f i r s t treaty r e c o g n i z i n g e x t r a t e r r i t o r i a l i t y was n e g o t i a t e d t h e r u l e r of K o k a n d , an oasis in t h e F e r g h a n a valley, 200 km west of t h e X i n j i a n g b o r d e r , in a g r e e m e n t p r o v i d e d for K o k a n d t o political a n d c o m m e r c i a l r e p r e s e n t a t i v e s in X i n j i a n g , to c u s t o m s d u t i e s t h e r e on i m p o r t s by e i g n e r s . As J o s e p h F l e t c h e r n o t e s , "this was first u n e q u a l a n d it p a v e d t h e way in P e k i n g for t h e later u n e q u a l treaties with t h e West" 3 7 8 ) . T h i s r e c e n t interest a m o n g h i s t o r i a n s i n t h e study o f frontiers r e p r e s e n t s a cycle of e t e r n a l r e t u r n Q i n g studies. An e a r l i e r of predominantly German Russian s c h o l a r s h i p o n t h e C e n t r a l Asian c o n n e c t i o n s of C h i n e s e r u l e r s , r e p r e s e n t e d in English, by t h e early work Franz Michael, still c a r r i e d on in J a p a n today. T h e s e scholars p r a c t i c e d m e t i c u l o u s philological analysis of texts in m a n y l a n g u a g e s t o analyze o f t h e religions a n d c u l t u r e s o f C e n t r a l Asia in d e p t h . Classical C h i n e s e civilization t h e n a p p e a r e d as only o n e a m o n g m a n y t r a d i t i o n s active i n t h e r e g i o n . T h e n o n - C h i n e s e texts they s t u d i e d s u p p o r t e d t h e i m p o r t a n t thesis t h a t M o n g o l s , T i b e t a n s , T u r k i c peoples, e a c h h a d t h e i r own distinctive, c o h e r e n t values r o o t e d in sacred Owen picked up m u c h of o u t l o o k from work, a l o n g with p e r s o n a l e x p e r i e n c e s travelling across t h e C h i n e s e frontier.

In postwar U S , by c o n t r a s t , J o h n F a i r b a n k a n d m o s t of" focused on political a n d intellectual r e s p o n s e to West, t h e struct u r e o f c e n t r a l i m p e r i a l institutions, a n d local c o n t r o l i n t h e G. William S k i n n e r ' s p a r a d i g m of m a c r o r e g i o n a l analysis led m a n y to focus o n local s o c i o - e c o n o m i c systems a s b o u n d e d u n i t s . Now m a n y r e c e n t works have e i t h e r r e t u r n e d the or l o o k e d at t h e or r e v a m p e d t h e closed models to include t h e impact of outside forces. In C h i n a , t h e revival of interest frontiers has a different greatest t w e n t i e t h - c e n t u r y h i s t o r i a n , l o o k e d t o t h e n o n H a n p e o p l e s of t h e N o r t h w e s t in t h e 1930s to a decadent H a n c u l t u r e that h e h a d g r o w n i m p o t e n t t o resist J a p a n e s e a n d W e s t e r n aggression. F r o m t h e earliest he a r g u e d , C h i n e s e civilization h a d b e e n f o r m e d from a m i x t u r e of different c u l t u r e s , in which those o f t h e N o r t h w e s t c o n t r i b u t e d t h e d y n a m i c military e l e m e n t s t h a t d e f e n d e d t h e c o r e territories a n d e s t a b l i s h e d b o u n d a r i e s (Gu 1938b; S c h n e i d e r 1971; 1997). Gu s interests a r c c a r r i e d on C h i n a today by t h e B o r d e r Research I n s t i t u t e , w h e r e h i s t o r i a n s c o n tinue to explore t h e contributions of frontier peoples to China's national identity a n d Ma 1987). B u t t h e new work, s e e n i m p o r t a n t recent North American studies, takes a different a n g l e of vision from p r e d e c e s s o r s . First of the center a M a n c h u c e n t e r . P a m e l a Crossley, M a r k Elliott, a n d Evelyn Rawski have t h e i m p o r t a n c e o f s e e i n g t h e Q i n g state a s by a M a n c h u elite very c o n s c i o u s of its difference from t h e subject H a n p o p u l a t i o n , a n d constantly c o n c e r n e d t o m a i n t a i n diff e r e n c e (Crossley 1990a, 1990b; Elliott 2000; Rawski 1996, 1998). C o n t r a r y to the d o m i n a n t tradition of Chinese scholarship, the did not n a t u r a l l y assimilate to a " s u p e r i o r " majority H a n c u l t u r e . T h e y m a i n t a i n e d t h e i r distinctiveness, t h r o u g h t h e a n d i m p e r i a l rituals, while a t the s a m e they c o l l a b o r a t e d with H a n officials to m a i n t a i n legitimacy a n d e n s u r e a d e q u a t e tax c o l l e c t i o n . Even t h o u g h adopted the C h i n e s e l a n g u a g e a n d b u r e a u c r a t i c practices after settling d o w n cities, they still m a i n t a i n e d a c o n s c i o u s n e s s of themselves as a s e p a r a t e r u l i n g elite. Scholars differ o v e r exactly w h e n a n d h o w t h e M a n c h t i s c o n s t r u c t e d t h e i r identity, b u t , H o to the contrary notwithstanding, clear that they m a r k e d themselves off the H a n t h r o u g h t h e e n d o f t h e Q i n g ( H o 1998; R h o a d s 2 0 0 0 ) . S e c o n d , t h e p e r i p h e r i e s w e r e o f special c o n c e r n t o r u l i n g elite. U n d e r t h e r u b r i c o f " M a n c h u colonialism," several scholars have e x a m i n e d t h e special characteristics of Q i n g M o n g o l i a , Xinjiang, a n d T i b e t (di C o s m o 1998; 1998: Perdue Sperling 1998; 1998; 1998). T h e y suggest g r o u n d s for comp a r i s o n o f t h e Q i n g state t o o t h e r colonial e m p i r e s . Like t h e large

A

view of

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agrarian o f [he Russia, o r t h e M u g h a l s , C h i n a faced problems c o n t r o l , e x p a n s i o n , legitimacy, a n d r e v e n u e c o l l e c t i o n . C o n t r a r y to t h e n a t i o n a l i s t n a r r a t i v e , it was n o t a u n i q u e victim of W e s t e r n i m p e r i a l i s m ; or u n i q u e virtue of its long-lasting b u r e a u c r a t i c a n d cultural t r a d i t i o n . C h i n a ' s distinctive characteristics a r e m o r e like t h e features" of its c u r r e n t "socialist economy"; a r e variations within a g e n e r i c of m a r k e t n o t a radically different type. n e w interest in f r o n t i e r i d e n t i t i e s is f o u n d in m u c h o t h e r historical w r i t i n g as well. M a n y US h i s t o r i a n s have recently e x p l o r e d t h e l a n d s o f t h e A m e r i c a n West, w h e r e E u r o p e a n a n d i n d i g e n o u s , o r A n g l o a n d H i s p a n i c c u l t u r e s m i x e d t o g e t h e r ( A r o n 1994; and 1999). But is n o t a peculiarly A m e r i c a n obsession i n t e r a c t i o n . T h e s a m e issues have b e e n investigated i n W e s t e r n E u r o p e a s a n d also i n J a p a n . H a m a s h i t a T a k e s h i a n d have b o t h focused on t h e Ryukyu Islands as a vital t e r r a i n for c o n t a c t s b e t w e e n C h i n a , J a p a n , a n d Korea 1999; H a m a s h i t a 1 9 9 9 ) . S u c h parallel t r e n d s i n d i c a t e a global p h e n o m e n o n . W o r d s like fluidity, a n d c o n t i n g e n t l y c o n s t r u c t e d m u l t i p l e identities a r e i n t h e air everywhere. H o w d o these f r o n t i e r perspectives c o m p l e m e n t o t h e r e m e r g i n g critiques of n a t i o n a l i s t history? I shall give a few below of n e w ways of t h i n k i n g a b o u t C h i n a ' s military p o w e r , its c o m m e r c i a l d e v e l o p m e n t , its e c o n o m i c history, a n d state s t r u c t u r e s in a c o m p a r a t i v e framework. We now recognize a n e t w o r k of c o n s t a n t i n t e r a c t i o n s within East persisted from t h e twelfth the nineteenth and twentieth centuries. S e e i n g C h i n a from t h e n o r t h w e s t frontier, t h e m a r i t i m e perspectives, h e l p s to insert C h i n a world historical processes by m o v i n g away from t h e isolation o f c u l t u r a l essences. T h e f r o n t i e r p e r s p e c t i v e i n c o r p o r a t e s b o t h l a n d a n d sea i n t e r a c t i o n s , however, as variants of a single form, a n d it gives a s m u c h e m p h a s i s t o t h e military p o w e r o f t h e and challenges to it as d o c s to t r a d e , t e c h n o l o g y , p r o d u c t i o n processes, a n d e c o n o m i c c o m p e t i t i o n . I n t h e n o r t h a n d n o r t h w e s t , C h i n a faced m u c h m o r e powerful a n d m o r e s h a r p l y distinctive p e o p l e s t h a n o n o t h e r frontiers. H e r e i t was very clear t h a t t h e t h r e a t a n d u s e o f force the tradingr i t u a l o r d e r . T h e Q i n g c o u l d only seriously claim t o b e t h e u n c o n t e s t e d c e n t r a l p o l e of a t r i b u t e system focused on Beijing after they h a d c r e a t e d military alliances with t h e E a s t e r n M o n g o l s , e x t e r m i n a t e d t h e rival Western Mongols, c o n q u e r e d a n d s e c u r e d formal suzerainty over T i b e t . T h e e x p a n s i o n o f t h e Q i n g region brought the Chinese into contact n e w p e o p l e s i n C e n t r a l Eurasia. A d m i n i s t e r i n g e a c h o f t h e m r e q u i r e d new projects o f i n t e l l i g e n c e g a t h e r i n g a n d cultural adjustment. From a n g l e o f vision, C h i n a looks c o m p a r a b l e t o o t h e r agrarian empires, p a r t i c u l a r t h e " g u n p o w d e r e m p i r e s " t h a t rose the s i x t e e n t h c e n t u r y i n t h e wake o f t h e M o n g o l decline. T h e term

e m p i r e s " was by Marshall H o d g s o n to t h e t h r e e g r e a t empires: the Ottomans, the and the b u t i t can also i n c l u d e t h e Q i n g a n d T h e t e r m itself i s s o m e w h a t m i s l e a d i n g , since g u n p o w d e r per se was n o t really t h e critical in t h e i r e x p a n s i o n . But of t h e s e e m p i r e s f o r m e d new, disciplined military forces a n d e x p a n d e d rapidly across C e n t r a l Eurasia from t h e s i x t e e n t h to eighteenth centuries. They originated in the steppe-frontier environment, a n d all of t h e m faced a c u t e f r o n t i e r b e c a u s e of t h e of the region. Nomads and mobile peasantries roles providing resources a n d settling t h e c o n q u e r e d r e g i o n s ( H o d g s o n 1974; Bayly 1989; McNeill Both military a n d e c o n o m i c mobilization played i m p o r t a n t roles in all imperial e x p a n s i o n s , b u t t h e i r relative weight varied. L o o k i n g at t h e b a l a n c e o f military a n d c o m m e r c i a l p o w e r o n b o t h frontiers t o g e t h e r helps t o e l u c i d a t e their c o m m o n a l i t i e s a n d differences. O n C h i n a s n o r t h w e s t l a n d frontier, military forces t h e way, followed by p e a s a n t settlers a n d officially s p o n s o r e d m e r c h a n t s . Private t r a d e r s s u p p l i e d m a n y of t h e garrison forces a n d g o o d s from t h e i n t e r i o r after c a m p a i g n s drove o u t t h e n o m a d s . On t h e s o u t h e a s t coast, m e r c h a n t s usually led the way after the sixteenth c e n t u i y , w i t h o u t b a c k i n g from Q i n g military forces, e x c e p t for the c o n q u e s t o f Taiwan. Even t h o u g h Q i n g forces did n o t protect w h o w e n t across t h e seas, however, they d i d p r o v i d e coastal defense, p r o t e c t i n g t h e towns from which t h e m e r c h a n t s o r i g i n a t e d a n d w h e r e they m a i n t a i n e d c o n t i n u a l c o n n e c t i o n s . Soldiers a n d m e r c h a n t s places t h e driver's seat, b u t b o t h r o d e t h e s a m e vehicle. Careful e x a m i n a t i o n o f t h e N o r t h w e s t also h e l p s t o b r o a d e n o u r n o t i o n s of t h e system ( F l e t c h e r 1968; C o s m o 1998, 1999; 1998). T h e claim that C h i n a followed e n d u r i n g p r i n c i p l e s o f t r i b u t e d i v i d i n g t h e M i d d l e K i n g d o m versus b a r b a r i a n states, a n d lasting from " T a n g t h r o u g h Q i n g " is t r u e a b r o a d sense, b u t it implies a static framework for foreign r e l a t i o n s C h a p t e r 1, this volume). analysis in this v o l u m e a n d o t h e r work focuses almost exclusively on t h e tribute b u t for t h e c o u r t Beijing, tributaiy r e l a t i o n s Inner w e r e even m o r e salient, well the nineteenth Q i n g rulers a d a p t e d t h e t r i b u t a i y f r a m e w o r k to n e w situations. F o r e x a m p l e , in 1638, they c r e a t e d a distinctive new institution, t h e to m a n a g e the n o r t h w e s t p e o p l e s di C o s m o 1998). In fact, t r i b u t e t r a d e was a very flexible t h a t allowed for m a n y different k i n d s o f political, c o m m e r c i a l , a n d ritual relations, a n d t h e expansive Q i n g used it a r e n t way from t h e defensive Ming. Relations the D u t c h , Russians, Kazakhs, M o n g o l s , K o r e a n s , Ryukyus, a n d later British, for e x a m p l e , all fit i n t o t h e t r i b u t e system, b u t e a c h h a d a s e p a r a t e political a n d c o m m e r c i a l r e l a t i o n s h i p to t h e Q i n g empire.

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W o r l d system p r e s u m e a stable s t r u c t u r e over m a n y t e n d to i g n o r e i m p o r t a n t r e g i o n a l a n d t e m p o r a l variations C h i n a ' s political r e l a t i o n s t h e o u t s i d e world. W e s h o u l d n o t a s s u m e t h a t t h e r e was o n e c o n s i s t e n t , form tribute, and we should c o n f u s e t h e ideals o f r i t u a l texts a n d i m p e r i a l p r o n o u n c e m e n t s with practice. W h a t Chinese rulers wanted to was n o t what t h e i r n e i g h b o r s actually t h o u g h t ( F l e t c h e r 19(58). I n n e r Asians e x p l o i t e d t h e rituals o f t r i b u t e a n d t r a d e for t h e i r own e n d s , w i t h o u t necessarily a c c e p t i n g C h i n e s e p r e t e n s i o n s o f superiority. S o m e a c c e p t e d t h e i r d e p e n d e n t position r e t u r n for political s u p p o r t ; o t h e r s h a d total n o m y , b u t p r e t e n d e d t o o b e y t h e rituals for p u r e l y e c o n o m i c goals. In fact, to p u t it starkly, a systematic form of t r i b u t e - t r a d e r e l a t i o n s c o u l d successfully e n f o r c e C h i n e s e d o m i n a n c e only i n t h e late e i g h t e e n t h c e n t u i y . Before t h e n , rival, equally states a n d p e o p l e s c h a l l e n g e d h i e r a r c h i c a l o r d e r . T h e T a n g faced a major T i b e t a n e m p i r e which it c o u l d n e v e r defeat; t h e S u n g c o u l d n e v e r claim t o b e t h e u n c o n t e s t e d h e g e m o n even in i n t e r i o r C h i n a ; " t r i b u t e " was a hollow shell m a s k i n g h u g e p r o t e c t i o n p a y m e n t s t o t h e n o r t h e r n dynasties. T h e M o n g o l rulers of t h e Yuan, w h o dealt with o t h e r M o n g o l s across all of Eurasia, used t h e t e r m " t r i b u t e " with a different m e a n i n g from M i n g rulers, w h o n e v e r s u c c e e d e d i n s u b d u i n g t h e M o n g o l s o f t h e n o r t h w e s t . Until they had exterminated the Mongols a n d c o n q u e r e d Xinjiang the mid-eighteenth t h e Q i n g also faced m a j o r rival states. "system" was constantly u n d e r c h a l l e n g e , b r e a k i n g d o w n , b e i n g reconfigu r e d a n d r e b u i l t . It was n e i t h e r stable, fixed, n o r u n i f o r m . In r e g a r d to s o m e r e g i o n s , like Korea, relations fairly stable; e l s e w h e r e , particularly in t h e n o r t h w e s t , fluctuations occurred. t h a n viewing t r i b u t e as a "system" or "cultural o r d e r , " more useful to s e c t h e d i s c o u r s e of t r i b u t e a n d associated ritual a n d n o m i c practices a s a p a r t i c u l a r k i n d language, multiple p u r p o s e s for its Like "pidgins," or t r a d i n g l a n g u a g e s all m u l t i c u l t u r a l c o n t a c t zones, t r i b u t e d i s c o u r s e p e r m i t t e d extensive c o m mercial e x c h a n g e , m a s k i n g t h e different self-conceptions of its participa n t s with f o r m a ! e x p r e s s i o n s , b u t allowing e a c h , in different d e g r e e s , a m e a s u r e o f a u t o n o m y . S u c h flexible c o m m u n i c a t i o n across cultural a n d barriers not a n t i - m o d e r n ; similar l a n g u a g e s a r c even u s e d in m o d e r n Big As a vehicle for i n t e r c u l t u r a l i n t e r a c t i o n , this l a n g u a g e w o r k e d effectively to b r i n g o u t s i d e r s to t h e C e n t r a l K i n g d o m , m a i n t a i n d i p l o m a t i c relations, a n d offer c h a n c e s for profit to b o t h sides. As it s p r e a d influence b e y o n d C h i n a itself, it b e c a m e o n e of t h e p r i n c i p a l frameworks for o t h e r Asian p o w e r s w h e n they r o s e to military a n d e c o n o m i c d o m i n a n c e . It was n e v e r " h e g e m o n i c " i n t h e s e n s e o f e x c l u d i n g all o t h e r m o d e s o f c o n c e p t u alizing t h e even t h o u g h C h i n a the and

power through the end of the Each state u s e d t h e d i s c o u r s e for its own p u r p o s e s . Even t h o u g h they despised t h e M a n c h t i s as a n d r e m a i n e d secretly loyal to t h e Ming, K o r e a n s s e n t m a n y official missions to Beijing, which b o t h l e g i t i m a t e d t h e K o r e a n rulers a n d s u p p l i e d i n f o r m a t i o n a n d t r a d e Tokugawa J a p a n sent no official t r i b u t e missions, b u t m a i n t a i n e d a significant C h i n e s e m e r c h a n t c o l o n y in Nagasaki, a n d g a i n e d i n d i r e c t access to C h i n e s e m a r k e t s through and the t h e n o r t h w e s t e r n p o w e r s - Russia, the T i b e t a n s , a n d Kazakhs - f o u n d t r i b u t e missions to be valuable s o u r c e s o f c o m m o d i t i e s a n d i n t e l l i g e n c e , a s d i d t h e V i e t n a m e s e a n d S i a m e s e . A kowtow was a small p r i c e to for legitimation, p e a c e , a n d access to this g i a n t i n t e r i o r . Q i n g officials, k n o w i n g t h a t tribute missions w e r e costly to s u p p o r t a n d c o n t a i n e d as m a n y spies as m e r c h a n t s , tried t o restrict t h e i r access, b u t a t t h e s a m e the Qing learned m u c h a b o u t t h e i r f r o n t i e r from these visitors. Baying e q u a l a t t e n t i o n to m a n y frontiers h e l p s t o e n r i c h o u r u n d e r s t a n d i n g o f t h e variety o f transcultural r e l a t i o n s h i p s in which t h e e m p i r e was constantly involved. In s u m , t h e frontier p e r s p e c t i v e directs us to analyses t h a t a r e b o t h c o m p l e m e n t a r y a n d critical of world-system m o d e l s , with t h e i r focus on t h e d o m i n a t i o n o f cores a n d t h e p r e d o m i n a n t i n f l u e n c e o f e c o n o m i c incentives. In t h e b o r d e r l a n d s , even of highly effective c o r e languages of inclusion, exclusion, a n d exchange, along acts o f c o e r c i o n , m a t t e r e d a s m u c h a s r o u t i n e e c o n o m i c i n t e r a c t i o n s . Processes l o o k m o r e fluid, interactive, a n d c o n t i n g e n t t h a n i n the settled, p r o s p e r o u s c o r e r e g i o n s . A t its e d g e s ( w h e t h e r g e o g r a p h i c a l b o r d e r z o n e s o r t e c h n o l o g i c a l "culling e d g e s " ) , well-established systems constantly g r o p e t h e i r way a n u n c e r t a i n future. T h e h a z a r d s o f a n d u n p l e a s a n t reversals, supplant the smooth a n d fall of cycles of social c h a n g e . S o m e o t h e r scholars have u s e d t h e frontier m e t a p h o r in a different way t o e x a m i n e global e c o n o m i c r e l a t i o n s . T h e e c o n o m i c h i s t o r i a n for e x a m p l e , used i t t o e x p l a i n t h e of England a n d J a p a n in the n i n e t e e n t h c e n t u r y (Kawakatsu the c o m m o n meanings and he a r g u e s that b o t h E n g l a n d a n d J a p a n were "frontier" societies, highly d e p e n d e n t for vital c o n s u m p t i o n g o o d s on " c o r e " p r o d u c i n g r e g i o n s England i m p o r t e d large a m o u n t s of c o t t o n textiles from I n d i a , for e x a m p l e , just as J a p a n i m p o r t e d t h e m from C h i n a . D e t e r m i n e d t o p r e v e n t t h e silver d r a m caused by these both countries p r o m o t e d "import substitution" policies d e s i g n e d to c r e a t e i n d i g e n o u s i n d u s t r i e s to r e p l a c e t h e i r Asian suppliers. "escape from Asia" however, followed two differe n t p a t h s . E n g l a n d t o o k o v e r I n d i a as a colony, restricted handicraft textile while p r o m o t i n g English industrialized m a n u f a c t u r e s , a n d later e x t e n d e d global r e a c h by d r a w i n g on raw c o t t o n supplies from the s o u t h e r n U n i t e d States. J a p a n , by contrast, borders,

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shut down and own d o m e s t i c c o t t o n p r o d u c t i o n i n d e p e n d e n t l y o f global m a r k e t s . provocative a r g u m e n t c o r r e c t l y h i g h l i g h t s t h e p e r i p h e r a l positions of England J a p a n with r e s p e c t t o t h e large c o n t i n e n t a l Asian p r o d u c e r s , b u t it relies on an excessively static i m a g e of C h i n a , a n d similarities b e t w e e n C h i n a a n d J a p a n . C h i n a , loo, d e p e n d e d heavily o n e x t e r n a l s u p p l i e r s : h o r s e s , o b t a i n e d from M o n g o l s a n d o t h e r n o m a d s o n t h e n o r t h w e s t frontier, a n d silver, s u p p l i e d f i r s t from J a p a n a n d l a t e r from t h e N e w W o r l d . T o o v e r c o m e dependency, China took b o t h t h e English a n d J a p a n e s e p a t h s : s h e c o n q u e r e d t h e M o n g o l s , taking over o f t h e i r h o r s e p a s t u r e s , a n d d e v e l o p e d d o m e s t i c industries, so as to sell silks to t h e Kazakhs in e x c h a n g e for h o r s e s , a n d tea to t h e British for silver. H i g h l i g h t i n g how f r o n t i e r d y n a m i c s figured in all t h r e e economic development puts global e c o n o m i c system a new light. T h i s frontier perspective can also to revise m o r e g e n e r a l tions a b o u t t h e s t r u c t u r e of the Q i n g slate. As I have n o t e d , new research sharply criticizes the which asserts that the gove r n e d C h i n a b e c a u s e they rapidly assimilated to t h e C h i n e s e classical c u l t u r e . Wc still lack an effective critique of a n o t h e r c o m m o n assumption related to t h e thesis, which we call "the thesis," b e c a u s e scholars have n o t closely e x a m i n e d t h e military o n Q i n g institutions. T h e i m p a c t o f the most fundamental e n d u r e d l o n g after t h e take-over of Beijing. A c c o r d i n g to t h e civiHanization thesis, military c o n q u e r o r s establish n e w dynasties, b u t to e n s u r e l o n g - t e r m stability they m u s t t u r n to civilian a d m i n i s t r a t o r s ( C h i n e s e literati a n d O v e r t i m e , t h e rising p r e s t i g e of downgrades of t h e as s e e n in t h e i n s t i t u t i o n a l i z a t i o n of t h e civil e x a m i n a t i o n system. N a t i o n a l ists w h o p o r t r a y C h i n a as an i n n o c e n t victim of foreign invasion have a r g u e d t h a t C h i n a was f u n d a m e n t a l l y a civilian, pacifist civilization, u n l i k e t h e violent aggressive West. T h e y e c h o t h e i r W e s t e r n c o u n t e r p a r t s , from t h e e i g h t e e n t h to t h e twentieth w h o saw the officials of C h i n a t h e ideal alternative to a history of warfare a n d g r e e d . Like t h e thesis, t h e thesis has s o m e plausibility, b u t t o o easily e x a g g e r a t e d a n d simplified, a n d can be s u b j e c t e d to a similar c r i t i q u e . C h i n e s e rulers have, after all, fought a very large n u m b e r o f battles. lain J o h n s t o n has d e m o n s t r a t e d t h e persist e n c e of a strategic c u l t u r e in C h i n a based on or w h a t he calls a c u l t u r e : if you peace, for war 1 9 9 5 ) . Stressing t h e military factor allows u s t o c o m p a r e C h i n a with o t h e r e m p i r e s t h a t faced similar security a n d reveals t h e long-lasting impact of Q i n g institutions o n state s t r u c t u r e s , geopolitical behavior, political e c o n o m y , a n d t h e w r i t i n g of history.

history, h o w e v e r , s h o u l d recapitulate the heroic vision t h e e m p e r o r s h a d of n o r s h o u l d it e n d o r s e a vision of t h e past to serve a m o d e r n nationalist a g e n d a . To free history from t h e n a t i o n w c have t o d o m o r e look a t produced t h e twentieth c e n t u i y , h u t r e - e x a m i n e histories written by t h e Q i n g itself. T h e m a i n t h e m e of my c u r r e n t w o r k to p u r s u e a f r o n t i e r of Q i n g history t h a t i n c o r p o r a t e s t h e i m p o r t a n c e o f t h e military e x p e r i e n c e . Qing e x p a n s i o n was of g r e a t in r e c a s t i n g t h e t e r m s of i m p e r i a l r u l e , a n d in laying f o u n d a t i o n s for r e c o n s t r u c t i o n as a nation-state in t h e twentieth c e n t u i y . T h e e x p a n d e d Qing empire n o t assert a nationalist b u t its social a n d institutional s t r u c t u r e s f o r m e d t h e t e m p l a t e for b u i l d i n g C h i n a ' s nation-state" ( P e r d u e , f o r t h c o m i n g c). e m p h a s i s h i g h l i g h t s m a n y aspects of Q i n g policy, b u t for t h e sake of brevity 1 will a few of t h e m h e r e . Military-security c o n c e r n s c a n be found the triple alliance o f Mongols, and Chinese bannermen during conquest; p r o m o t i o n of peasant settlement o f p e r i p h e r a l regions; d e v e l o p m e n t o f t h e a g r a r i a n a n d c o m m e r c i a l infras t r u c t u r e o f t h e frontier; t h e c o n t r o l a n d d i s s e m i n a t i o n o f vital information a b o u t grain prices, harvest, a n d w e a t h e r r e p o r t s ; reforms, like t h e c r e a t i o n o f t h e G r a n d C o u n c i l ; n e w m a p p i n g s a n d spatial c a t e g o r i z a t i o n s of e m p i r e ; a n d n e w c o n s t r u c t i o n s of historical as s e e n in t h e n e w Q i n g g e n r e of c a m p a i g n histories As o n e e x a m p l e , I will briefly o u t l i n e t h e last of these a n d c o n c l u d e a discussion of t h e of c o n q u e s t for i m p e r i a l a n d n a t i o n a l identity.

Reviewing Qing history By

t h e d e a t h of the Mongol leader, the emperor convincingly claim t o s u r p a s s e d t h e military a c h i e v e m e n t s of all p r e v i o u s dynasties. He c l a i m e d to have e l i m i n a t e d for all t h e c o n t i n u a l t h r e a t of s t e p p e n o m a d s to t h e i m p e r i a l frontiers by c o n d u c t i n g a n u n p r e c e d e n t e d series o f p e r s o n a l e x p e d i t i o n s penetrated d e e p i n t o C e n t r a l After t h e he commissioned an imperial history of t h e c a m p a i g n u n d e r t h e supervision of several t o p G r a n d Councillors, e n t i t l e d of t h e Personal to Pacify t h e N o r t h w e s t ) . T h i s history, p u b l i s h e d in 1708, d e s c r i b e d e m p e r o r ' s victories as inevitably d e t e r mined by Heaven. d e f e a t b e c a u s e h e h a d defied b o t h t h e emperor's a n d c o s m i c fate ( Z h a n g 1708, T h e e m p e r o r thought that he had e n d e d the Mongolian menace, but in fact t h e Z u n g h a r stale was n o t d e s t r o y e d . It flourished for a n o t h e r sixty years until final elimination by the emperor. emperor likewise c o m m i s s i o n e d a n o t h e r i m p e r i a l c a m p a i g n histoiy to

A frontier

of

his a c h i e v e m e n t s , t o o , w e r e But neither e m p e r o r c o u l d have p r e d i c t e d t h e Q i n g victory M o n g o l d e f e a t d e p e n d e d o n " e x o g e n o u s " factors like t h e w e a t h e r , food supply, p e r s o n a l i t i e s , a n d psychology o f p a n i c a m o n g soldiers. T h e d e t a i l e d historical m a t e r i a l s c o n t a i n e d in b o t h allow us to write an alternative, m o r e account t h e explicit ideology that directed their O n l y after t h e fact w e r e t h e victories m a d e to s e e m a c c o u n t in t h e Military published 1842, b u i l t u p o n t h e histoiy sponsored by the and T h e s e a c c o u n t s f i x e d i n t h e m i n d s o f officials a n d C h i n e s e t h e idea t h a t t h e m a x i m a l b o u n d a r i e s a c h i e v e d b y Q i n g i n 1760 w e r e " n a t u r a l frontiers," as E u r o p e a n s w o u l d heavenly m a n d a t e d definitions of imperial space. definition of space d e t e r m i n e d the identity o f t h e e m p e r o r , w h o c l a i m e d t o i n c o r p o r a t e m u l t i p l e p e o p l e s u n d e r a single universal h e g e m o n . H e h a d m a n y faces for m a n y p u r p o s e s : for he was t h e s u p e r i o r k i n s m a n , for M o n g o l s i n h e r i t o r of t h e i m p e r i a l seal o f K h a n (which h e h a d c a p t u r e d ) , for lian a n d T i b e t a n clergy t h e ( B u d d h i s t wheel t u r n i n g k i n g ) , for Muslims t h e p r o t e c t o r o f a n d for H a n t h e s p o n s o r o f t h e i m p e r ial version of orthodoxy. c h a r a c t e r of t h e Q i n g state rested f i r s t a n d f o r e m o s t o n military c o n q u e s t a n d econ o m i c p o w e r , n o t o n any n a t u r a l s u p e r i o r i t y o r of H a n C o n f u c i a n c u l t u r e ( H o 1008: 151). E a c h o f t h e p e o p l e s within t h e e m p i r e was assigned a fixed identity, w h i c h b e c a m e t h e basis for t u r n i n g t h e m i n t o " n a t i o n a l i t i e s " i n t h e twentieth c e n t u i y . form of was a c e n t r a l l e g i t i m a t i n g ideology of t h e Q i n g state, b u t n o t e v e r y o n e a c c e p t e d t h e Q i n g claims. Each o f the major Northwestern peoples - Mongols. C h i n e s e Muslims, Tibetans g e n e r a t e d r e p e a t e d resistance a n d in e a c h case revolt was p u t d o w n by force. T h e s e p e o p l e s were divided themselves over resistance to t h e Q i n g , b u t they d i d n o t uniformly s u b m i t w i t h o u t protest. A p p a r e n t s t a t e m e n t s of voluntary submission to s u p e r i o r C h i n e s e c u l t u r e g e n e r a l l y followed only u p o n military Each of these p e o p l e s also h a d alternative cultural foci. T h e M o n g o l s m a i n t a i n e d a n a u t o n o m o u s link to h e r i t a g e , a s t e p p e - c e n t e r e d focus, n e i t h e r M a n c h u n o r H a n - c e n t e r e d . M o n g o l i a n state builders like u s e d t h e i r T i b e t a n c o n n e c t i o n to u p h o l d B u d d h i s t as a counter C o n f u c i a n claims. also a t t e m p t e d to n e g o t i a t e a Russian military alliance, which was p r e v e n t e d by Q i n g d i p l o m a c y . the t e r m s of t h e N e r c h i n s k treaty of and t r a d e treaty of t h e Russians were o b l i g e d to refuse s u p p o r t to M o n g o l i a n state in o r d e r to m a i n t a i n profitable t r a d e t h e Q i n g . T i b e t a n links to I n d i a o p e n e d u p t o t h e m a b r o a d e r r e a l m b e y o n d C h i n a . T h e y viewed M o n g o l i a n Khans

and

e m p e r o r s equally a s B u d d h i s t believers w h o s u p p o r t e d t h e institutions alms Even t h o u g h t h e Q i n g t h e i r Mongolian alliances a n d lavished p a t r o n a g e o n t h e m o n k s , T i b e t a n sources e v i d e n c e that T i b e t a n s d i d n o t view t h e i r r e l a t i o n s h i p t o Q i n g p o w e r as submission to s u p e r i o r cultural m i g h t 1903; Sperling Likewise, t h e Muslim p e o p l e s of T u r k e s t a n r e s p o n d e d to Middle Eastern Islamic claims, as -well as T u r k i c C e n t r a l Asian o n e s : a n d Q i n g i m p e r i a l r e l a t i o n s h i p s t o these c o m p e t i n g ties w e r e and variable. Generally s p e a k i n g , Q i n g rulers first c o n c e n t r a t e d on forcibly e l i m i n a t i n g alternatives t h a t c o u l d seriously c h a l l e n g e t h e i r political a n d military d o m i n a n c e . T h e y p r o m o t e d t h e i r own claims t o b r i n g p e a c e a n d p r o s p e r i t y to subject p e o p l e s as t h e m o s t beneficial for subjects. T h e y did n o t , however, g e n u i n e l y p u r s u e a single "civilizing mission" that classified n o n - H a n as primitive p e o p l e s w h o n e e d e d to be raised up to a u n i f o r m s t a n d a r d (cf. 1905). T h e y c l a i m e d to r e s p e c t B u d d h i s m as an equally "civilized" force, a n d t h e Dalai L a m a as having c o m m o n ideals t h e e m p e r o r . T h e y left local elites place, a n d d i d n o t try to r e p l a c e local religious or c u l t u r a l institutions. Q i n g tole r a t i o n of diversity on t h e frontiers contrasts m a r k e d l y c e n t u i y efforts by C h i n e s e l e a d e r s a n d intellectuals to e l i m i n a t e signs of t h r o u g h attacks o n "superstition." T h e Q i n g d i d p r o m o t e s t a n d a r d i z a t i o n a n d formalization of institutions a n d cultural forms, b u t did n o t a t t e m p t t h e wholesale e r a d i c a t i o n o f diverse c u l t u r e s . N e v e r t h e less, cultural n o r m a l i z a t i o n - t h e classification of p e o p l e s distinct e t h n i c types - a n d security goals were closely tied t o g e t h e r in t h e Q i n g imperial formation. T h e s e Q i n g practices p o s i t i o n e d t h e e m p i r e within a system, as t h e stale which e n c o m p a s s e d a m u l t i t u d e of p e o p l e s u n d e r its a n d e m b r a c e d m a n y foreign powers as tributaiy vassals. By f i x i n g t h e i r b o u n d a r i e s , classifying t h e i r systematizing t h e i r t r a d e a n d d i p l o m a t i c practices, a n d e x t e n d i n g c o m m e r c i a l n e t w o r k s within and beyond the borders, the Qing by the eighteenth centuiy had put p l a c e t h e basic s t r u c t u r e s which all C h i n e s e nationalists w o u l d s t r u g g l e to I have s k e t c h e d h e r e only a few links b e t w e e n military e x p a n s i o n a n d t h e c u l t u r e of t h e Q i n g r e g i m e . By e x t e n d i n g o u r s c o p e to t h e C e n t r a l Asian r e g i o n s within a n d b e y o n d t h e C h i n e s e r e a l m , a n d b y i n c l u d i n g security c o n c e r n s as factors t h e Q i n g state's f o r m a t i o n , we can g e n e r a t e new insights t h a t will h e l p us place C h i n a ' s experience a m o n g t h e i n t e r c o n n e c t e d p e o p l e s o f t h e world.

A f r o n t i e r view of

Notes "China, Korea a n d historic state

are i n d e e d the rare of a of a p o p u l a t i o n that is ethnically almost or entirely 1990: 6 6 ) . 2 questions the ideas immediately look in 1648, hut notes their gradual the period. Scholars in this tradition i n c l u d e Erich Okada and 4 On the multiplicity of practices e n c o m p a s s e d ritual language, cf. Bell 191): Ideology is not a c o h e r e n t of ideas, or attitudes on p e o p l e w h o dutifully internalize N o r are societies themselves a m a t t e r of unitary social systems or totalities that act as Any ideology dialogue a n d thus s h a p e d a n d c o n s t r a i n e d by, the voices it suppressing, m a n i p u l a t i n g , e c h o i n g . Also cf. Hevia (1995);

(1997).

Peter uses the concept of "trading languages" to the n e e d for a c o m m o n discourse multiple of twentiethcentury physics. 6

Koreans that civilization was or at least compromised a dominated China conquest), a n d that this civilization h a d to be a n d transmitted in Korea Despite K o r e a s for it the of the Chinese e m p i r e p e r f o r m i n g to the Q i n g court the same rituals of d e f e r e n c e as a tributary slate which it had to the Ming c o u r t . cf. C h u n

7 For critical of theses, sec and (1993). 8 P e r d u e ( f o r t h c o m i n g c) discusses rewriting of histoiy in the compilation of the gives a m o r e account of editorial changes.

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t h e World Economy: Exports, Regions a n d T h e Studies 60 (1): 2 5 9 - 7 5 . 2000b. "Culture, History, a n d Imperial Chinese Legacies Conquests," H a n s van de War Chinese. Histoiy. pp. 252-87. F o r t h c o m i n g a. "The Qing E m p i r e in Eurasian T i m e a n d Space," in The Qing Formation MA: Press. P e r d u e , Peter F o r t h c o m i n g b. "From to Taiwan: T r a d e a n d War on Two Chinese Frontiers," in P a r k e r a n d Lars Through Space and Time. Salt Lake City: University of Utah Press. P e r d u e , Peter Forthcoming " T h e Q i n g C o n q u e s t of Central Eurasia," book Harvard University Press. P o m e r a n z , K e n n e t h . 2000. The Great Europe, and the of the Economy. P r i n c e t o n , NJ: P r i n c e t o n Press. W. "How Nationalism was S h a n g h a i e d , " Chinese. Affairs 29: Rawski, Evelyn. 1996. T h e Significance of Qing Period in C h i n e s e of Asian Studies 55 (4): 8 2 9 - 5 0 .

A frontier Rawski, Berkeley, CA:

The J.M.

Late Qing and ton Press.

of C h i n e s e n e s s 77 of

of California Press. Manchns Han: China, 1861-1928.

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S c h n e i d e r , L a u r e n c e . 1971. and New Histoiy. CA: of California 1990. Pioneer of (he and ism. Stanford, CA: Stanford University Press. Elliot. 1998. "Awe a n d Submission: A T i b e t a n Aristocrat C o u r t of 20 N a o m i a n d Daniel Power Eurasian York: St. Martin's Press. 1998. "An Island of W o m e n : Discourse of G e n d e r in Qing of Taiwan," 20 353-70. Tilly. Capital, and States, Oxford: Basil Blackwcti. J o a n n a . 1998. "Religion, War, a n d E m p i r e in HIT China," 1999. The of Beijing: Global in Histoiy. New York: N o r t o n . Yuan. 1984. ( R e c o r d of Sacred Victories). Beijing: Richard. It's Your and None of my Own: New of the American O k l a h o m a : N o r m a n : University of Press. White, Richard. The Ground: Indians, Empires and Republics the. Region, Cambridge: Cambridge R. Bin. 1997. Change and Limits of Ithaca, NY: Cornell University Press. Zhang l e d . ) 1708. of Expeditions to Pacify t h e Northwest Zito, Angela. 1997. Of Body Sacrifice as Chicago: of Chicago Press.

~

T h e E a s t A s i a n path of economic development A long-term perspective Sugihara

a t t e m p t s to e x p l a i n h o w why East s h a r e in world G D P i n c r e a s e d b e t w e e n 1500 a n d d e c r e a s e d b e t w e e n 1820 a n d 1945, a n d t h e n i n c r e a s e d rapidly over last half c e n t u r y . T a b l e 3.1 b e t w e e n 1500 a n d 1820 t h e r e was only a marginal i n c r e a s e t h e w o r l d ' s p e r capita G D P , while after 1820 t h e r e was b o t h an a c c e l e r a t e d i n c r e a s e in a n d a d r a m a t i c rise in p e r capita G D P . T h e m o s t plausible i n t e r p r e t a t i o n of t h e first shift that t h e industrial in c o n s t i t u t e d a m a j o r w a t e r s h e d in global ushering a d e e p e n i n g of t h e p e n e t r a t i o n of t h e m o d e r n world system, e m a n a t i n g from W e s t e r n E u r o p e a n d e n c o m p a s s i n g t h e rest o f t h e g l o b e from t h e n i n e t e e n t h c e n t u i y . T h e s a m e table, however, reveals a significant i n c r e a s e in world G D P a n d a m u c h slower i n c r e a s e in p e r capita G D P b e t w e e n 1500 a n d 1820. p r i m a r i l y b e c a u s e world p o p u l a t i o n was on t h e m u c h of this c o m i n g from C h i n a a n d I n d i a . A c c o r d i n g to 1995 data, as m u c h as 52 p e r c e n t of world G D P in 1820 c a m e from of China contributed 29 p e r a n d India 1 6 p e r c e n t . 3.2 shows t h a t 1820 East a n d S o u t h e a s t Asian c o u n t r i e s a c c o u n t e d for 35 p e r c e n t of world while t h e s h a r e of six a d v a n c e d W e s t e r n c o u n t r i e s was 18 p e r c e n t . A n g u s M a d d i s o n ' s figures, d r a w i n g on t h e work of r e g i o n a l my view, reflects t h e g e n e r a l t r e n d of recent (for a s u m m a r y of p r o g r e s s in d e m o g r a p h y , s e e Table

World

World economic performance,

(million)

World GDP per capita World GDP Sources:

425 565 240 for the data for

5,664 673 706

5,194 29,412 40) for

and

East Asian e c o n o m i c

79

Relative economic performance: the W e s t vs in billion 1990$)

128

Six advanced W e s t e r n Six East and Southeast Asian

435

b

9,781

603

7,487

336

China Japan Source: Maddison

2,422

22

69

and

T h e U K . U S A , France. Italy. Austria. South Korea. Taiwan, China, Indonesia, figures for South Korea. Taiwan and Thailand In are not available, but have been estimated as $2bllllon and $3,5 billion respecTerritorial are as in the For see Maddison

1997). T o C h i n a a s a n e x a m p l e , r e c e n t w o r k has findings, w h i c h originally e m e r g e d a r o u n d t h e m i d d l e o f t h e n i n e t e e n t h c e n t u r y a n d w e r e s u m m a r i z e d by D . H . P e r k i n s t h e 1960s, China's population rapidly d u r i n g t h e e i g h t e e n t h p o p u l a t i o n , w h i c h h a d previously risen several to a p e a k of 100 to million only to i n c r e a s e d to nearly 4 0 0 million by t h e e n d of t h e eighteenth was a world d e m o g r a p h i c l a n d m a r k 1969; Liu a n d H w a n g 1977; a n d Rawski 1987; Van de 1996), a n d i m p a c t on world G D P far o u t w e i g h e d that of i n d u s t r i a l r e v o l u t i o n Britain, w h o s e s h a r e of world G D P in 1820 was less t h a n (5 p e r c e n t . T h e r e an i m p o r t a n t , relatively u n e x p l o r e d q u e s t i o n of the here, that how China m a n a g e d to escape c h e c k s , a n d m a i n t a i n s u c h a vast p o p u l a t i o n w i t h o u t s e r i o u s d e t e r i o r a t i o n in t h e s t a n d a r d of living. Essentially t h e s a m e can m a d e with r e g a r d t o d e v e l o p m e n t s i n J a p a n i n t h e s e v e n t e e n t h c e n t u i y , w h i c h , as will be a r g u e d below, t o o k place u n d e r t h e i n f l u e n c e of t h e C h i n a - c e n t r e d i n t e r n a t i o n a l e c o n o m y of East Furthermore, during the eighteenth centuiy Japanese standard of living b e g a n to rise, if slowly, a n d t h e t r e n d c o n t i n u e d i n t o ninet e e n t h . In a d d i t i o n , m u c h of t h e e c o n o m i c p r o g r e s s m a d e East d u r i n g t h e s e c o n d half o f t h e n i n e t e e n t h c e n t u i y was based o n t h e i n d i g e n o u s d e v e l o p m e n t o f l a b o u r - i n t e n s i v e industry r a t h e r t h a n o n t h e introduction of Western How can o n e explain the sequence of p o p u l a t i o n g r o w t h followed by a rise t h e s t a n d a r d of living, b o t h in t h e a b s e n c e of any s t r o n g W e s t e r n i n f l u e n c e ? first q u e s t i o n addressed, in the next section of chapter. B e t w e e n 1820 a n d 1945 t h e West, i n c l u d i n g r e g i o n s o f r e c e n t E u r o pean settlement t h e A m e r i c a s , Australasia a n d S o u t h Africa, achieved

T h e industrial r e v o l u t i o n , t h e t r a n s p o r t a n d c o m m u n i cations r e v o l u t i o n , t h e o p e n i n g up of vast l a n d a r e a s m the new c o n t i n e n t s a n d t h e utilization of n a t u r a l r e s o u r c e s s u c h as coal a n d oil, all benefited the Western whose p e r capita i n c o m e i n c r e a s e d e n o r m o u s l y , r e s u l t i n g in a gap between the West a n d p o o r non-West 3.3). T h e growth o f t r a d e b e t w e e n t h e W e s t a n d was often a c c o m p a n i e d by colonialism, which t e n d e d to r e i n f o r c e inequality, particularly b e t w e e n a n d tropical z o n e s (Lewis T h e t h i r d section o f this c h a p t e r a t t e m p t s t o a c c o u n t for t h e a m b i g u o u s p e r f o r m a n c e o f East Asian during period. On the o n e h a n d , t h e c o r e o f t h e r e g i o n e s c a p e d W e s t e r n colonialism a n d was able t o pursue industrialization. In C h i n a after 1870 a n d J a p a n t h r o u g h o u t , t h e r e was a slow b u t relatively steady rise in p o p u l a t i o n without a deterioration t h e s t a n d a r d of living. At t h e s a m e t i m e , East was u n a b l e to catch up with t h e a d v a n c e d W e s t e r n which w e n t t h r o u g h a p e r i o d of f u r t h e r t e c h n o l o g i c a l a d v a n c e second industrial r e v o l u t i o n ) , a n d t h e g a p p e r capita i n c o m e b e t w e e n t h e West and Asia i n c r e a s e d u n t i l a b o u t T h e J a p a n e s e s t a n d a r d o f living did slightly, a n d t h e a t t e m p t to c o m p e t e Western manu f a c t u r e r s in t h e i n t e r n a t i o n a l m a r k e t was widely viewed in t h e West as an e x a m p l e of u n f a i r c o m p e t i t i o n c o m i n g from a low wage e c o n o m y . B u t t h e West c o n t i n u e d t o d o m i n a t e t h e heavy a n d c h e m i c a l industries, which required high technology, a m o u n t s o f capital a n d access t o n a t u r a l resources. After t h e t r e n d was reversed, a n d East G D P g r e w faster t h a n that of t h e West. T h e p r e c i s e t i m i n g of this reversal is to d e t e r mine, as the Great Depression and the Second World War m a k e hard to o b t a i n reliable i n f o r m a t i o n o n e x c h a n g e (or o t h e r forms o f c o n v e r s i o n ) Per capita GDP in selected countries, I9S0

USA

2,457

Germany France UK Japan

5,307

9,573

3,833 3.263

5,032

6.847

704

Taiwan

794

922

3.669

South Korea China Indonesia

948 688

876

2,840

Source: Maddison

523

523 657

874

3,098 2,749

East Asian e c o n o m i c d e v e l o p m e n t or G D P itself for a n u m b e r of c o u n t r i e s . But, at s o m e p o i n t the m i d d l e of t h e t w e n t i e t h c e n t u r y , a n d certainly by p e r capita i n c o m e of East Asian c o u n t r i e s b e g a n to g r o w faster t h a n that of a d v a n c e d W e s t e r n c o u n t r i e s as well as o t h e r d e v e l o p i n g T h e growth of s p e r capita G D P d u r i n g t h e p e r i o d from t o 1973 was t h e m o s t conspicuous example of new t r e n d . growth rate o f a r o u n d 1 0 p e r c e n t for long a period had never occurred anywhere 3.3). F u r t h e r m o r e , t h e s a m e the was fact t h e b e g i n n i n g of an Asian in w h i c h a n u m b e r o f o t h e r Asian c o u n t r i e s h a v e b e g u n t o p a r t i c i p a t e (World B a n k 1 9 9 3 ) . In t h e final d e c a d e of t h e t w e n t i e t h c e n t u r y , East s h a r e in world G D P (as d e f i n e d T a b l e 3.2) a p p a r e n t l y e x c e e d e d that t h e six largest W e s t e r n e c o n o m i e s . Geopolitical considerations t h e early stages of t h e War were crucial t o t h e c h a n g e s i n t h e A m e r i c a n a t t i t u d e towards J a p a n ' s e c o n o m i c future. In to t h e pre-war J a p a n was to use e c o n o m i c strength to c o u n t e r c o m m u n i s t penetration in a n d was now able i m p o r t all raw m a t e r i a l s a n d r e s o u r c e s , i n c l u d i n g oil, from t h e rest of t h e world (by c o n t r a s t , t h e US b a n on e x p o r t s to J a p a n i n 1941 was a n i m m e d i a t e cause o f t h e o u t b r e a k o f t h e S e c o n d World I n t h e post-war p e r i o d J a p a n also enjoyed favourable opportunities to increase exports of manufactured goods to advanced Western countries. This c h a n g e in international circumstances J a p a n , a n d later a n u m b e r o f o t h e r Asian c o u n t r i e s , t o p u r s u e t h e systematic i n t r o d u c t i o n of capital-intensive a n d r e s o u r c e - i n t e n s i v e heavy a n d c h e m i c a l i n d u s t r i e s to an e c o n o m y relatively c h e a p a n d disciplined T h e f o u r t h section discusses h o w W e s t e r n a n d East Asian p a t h s of e c o n o m i c d e v e l o p m e n t fused to p r o d u c e h i g h - s p e e d g r o w t h East Asia. T h e final section summarizes the a r g u m e n t , a n d attempts to place the Asian in t h e c o n t e x t of global histoiy. will be a r g u e d that of the Western E u r o p e a n the mainstay of the g r o w t h o f t h e world e c o n o m y b e t w e e n 1820 a n d 1945, c r e a t e d t h e divide, a n d failed to p u s h up world G D P in a b a l a n c e d until East initiated an pattern, emphasizing m o r e thoro u g h utilization o f h u m a n r e s o u r c e s t h r o u g h l a b o u r - i n t e n s i v e t e c h n o l o g y and i n s t i t u t i o n s . T h e c h a p t e r will suggest that, while East Asia w o u l d n o t have i n d u s t r i a l i z e d w i t h o u t t h e West's i m p a c t , was t h e East Asian p a t h of e c o n o m i c d e v e l o p m e n t t h a t m a d e it possible the majority of t h e w o r l d ' s p o p u l a t i o n to benefit from global T h i s c h a p t e r will n o t a t t e m p t t o rigorously d e f i n e t h e t e r m I n s t e a d i t c o n c e n t r a t e s o n d e s c r i b i n g t h e e x p e r i e n c e s o f t h e area o r t h e c o u n t r y w h i c h led t h e t e c h n o l o g i c a l a n d institutional i n n o v a t i o n s a t e a c h stage of d e v e l o p m e n t . T h e a p p r o a c h a d o p t e d h e r e is to abstract a

historically m o b i l e b u t a u t o n o m o u s core of economic of t h e r e g i o n (initially t h e delta C h i n a , s u b s e q u e n t l y pria n d identify t h e features c o m m o n t o t h e r e g i o n b u t distinct from o t h e r regions of t h e I use m a c r o - d a t a g o i n g as far back as for t h e p u r p o s e of a b r o a d b e t w e e n East Asia a n d E u r o p e a n d cite for in a m o r e g e n e r a l way. I h a v e also referred t o t h e relatively areas o f p r e s e n t East a n d S o u t h e a s t as for t h e m o s t for t h e sake of simplicity. B u t this s h o u l d n o t suggest t h a t all areas of. East have b e e n influenced, t h r o u g h o u t the period, by the pattern of development described Nor should that accumulation c o u n t r y - b a s e d studies sufficient for u n d e r s t a n d i n g t h e r e g i o n s l o n g - t e r m d e v e l o p m e n t (for c o m m e n t s on the o f country-based sec 1996b). Rather, a s s u m e d h e r e t h a t a substantial d e g r e e of e c o n o m i c interaction l o n g existed in t h e r e g i o n , for e x a m p l e b e t w e e n C h i n a a n d J a p a n , a n d t h a t they i n f l u e n c e d t h e long-term p a t t e r n o f development a f u n d a m e n t a l way ( S u g i h a r a for a of position, see S u g i h a r a 1996a). O t h e r key t e r m s such Europe and t h e West a r e t r e a t e d in t h e s a m e spirit.

The development of labour-intensive technology The i n d u s t r i o u s already stated, East e x p e r i e n c e d a s u s t a i n e d p e r i o d of p o p u l a t i o n growth a c c o m p a n i e d by a m o d e s t rise t h e s t a n d a r d of living from t h e s i x t e e n t h to t h e e i g h t e e n t h T h e a r g u m e n t of this section is that it did because successfully r e s p o n d e d to n a t u r a l r e s o u r c e particularly t h e scarcity of l a n d , by d e v e l o p i n g a set of t e c h n o l o g i c a l a n d institutional devices for full of family l a b o u r . I shall call t h e s e devices l a b o u r - a b s o r b i n g institutions a n d technology. T h e term t e c h n o l o g y d o e s n o t imply East Asian t e c h n o l o g y d e v e l o p e d in t h e scientific so influential in t h e West. T h e great Chinese m a n u a l s , offering i n f o r m a t i o n , for e x a m p l e , on t h e m e t h o d s of seed for different types of or on the use of a variety of agricultural tools, were t r a n s m i t t e d in different lang u a g e s a n d across for e x a m p l e , from C h i n a t o J a p a n . set t h e m a i n p a t t e r n o f d i s s e m i n a t i o n o f e c o n o m i c k n o w l e d g e across East During the sixteenth and seventeenth centuries international contact East was driven by massive silver flows from J a p a n to C h i n a . Even d u r i n g e i g h t e e n t h century, w h e n b u l l i o n flows were r e d u c e d t o insignificance a n d t h e v o l u m e o f J a p a n e s e t r a d e d e c l i n e d u n d e r t h e seclusion policy, t h e transfer o f e c o n o m i c k n o w l e d g e c o n t i n u e d t h r o u g h written i n f o r m a t i o n . However, this k n o w l e d g e consisted

East Asian e c o n o m i c d e v e l o p m e n t 83 o f t e c h n i c a l rules o f wisdom r o o t e d i n t h e tion o f e x p e r i e n c e . Equally, s p e a k i n g o f l a b o u r - a b s o r b i n g institutions w c d o n o t imply of a set of i n s t i t u t i o n s a m o d e of d u c t i o n in a p a r t i c u l a r stage of e c o n o m i c d e v e l o p m e n t . N o r do we refer t o feudalism o r t h e e m e r g e n c e ( o r a b s e n c e ) o f when wc talk of t h e key e c o n o m i c i n s t i t u t i o n s w h i c h t h e East Asian path of economic w e have i n m i n d i s t h e d e v e l o p m e n t o f m u c h s m a l l e r u n i t s , n a m e l y t h e h o u s e h o l d (often, t h o u g h n o t always, t h e family), a n d , to a lesser e x t e n t , t h e village c o m m u n i t y . In m a n y cases t h e s e u n i t s survived political t u r m o i l a n d c h a n g e s i n t h e m o d e o f p r o d u c tion a n d r e m a i n e d a s t h e r e g i o n ' s key u n d e r p i n n i n g the t e c h n o l o g i c a l a n d i n s t i t u t i o n a l p a t h . It is i m p o r t a n t to r e c o g n i z e a s p e c t of p a t h in o r d e r to u n d e r s t a n d t h e rise of East in a long-term perspective. In 1967 article d r e w a figure, r e p r o d u c e d h e r e as F i g u r e 3 . 1 , t o d e s c r i b e t h e different p a t h s w h i c h E n g l a n d a n d T o k u g a w a J a p a n followed, c a l l i n g t h e m t h e industrial and the industrious r e v o l u t i o n respectively (Akira H a y a m i 1967; for English versions Akira H a y a m i 1986 a n d 1992). W i t h t h e i r different m i x o f f a c t o r e n d o w m e n t s , in this case of capital a n d l a b o u r , a n d a s s u m i n g t h a t no transfer of factor inputs took place between England and J a p a n , Hayami that was n a t u r a l for societies as as t h e s e two c o u n t r i e s to p u r s u e different p a t h s , a n d for t o e x p l o i t t h e p o t e n t i a l benefit o f i n c r e a s i n g l a b o u r a b s o r p t i o n . However, g r a p h has often b e e n

figure

T h e industrial revolution and the industrious revolution

Source: Hayami

to imply that t h e i n d u s t r i o u s did n o t lead to a rise in l a b o u r productivity a m a g n i t u d e c o m p a r a b l e to t h e industrial revolution. It was d r a w n to how was relatively p r e p a r e d for late n i n e t e e n t h It is possible to apply t h e i n d u s t r i o u s r e v o l u t i o n t h e o r y to t h e C h i n e s e case, for t h e p u r p o s e o f c o m p a r i n g i t with t h e W e s t e r n E u r o p e a n p a t h . Well b e f o r e p r o b a b l y d u r i n g t h e twelfth a n d t h i r t e e n t h c e n t u r i e s , C h i n a d e v e l o p e d a set of labour-intensive methods, involving seed selection, irrigation a n d water c o n t r o l , d o u b l e c r o p p i n g a n d t h e extensive use of a g r i c u l t u r a l tools. C e n t r a l to was t h e o p e n i n g up of l a n d n e a r t h e Yangzi River delta for rice Of course, Chinese development had ups and downs, and the commercialization o f a g r i c u l t u r e , t h e o f l a n d tax, a n d t h e i n t r o d u c tion of new world c r o p s played an i m p o r t a n t p a r t the increase p o p u l a t i o n a n d agricultural o u t p u t d u r i n g t h e s i x t e e n t h t o t h e e i g h t e e n t h c e n t u r i e s . But t h e essential characteristics of cent r i n g on irrigated rice established lower Yangzi r e g i o n in t h e twelfth a n d t h i r t e e n t h c e n t u r i e s (Shiba 1989), were e x t e n d e d to o t h e r p a r t s o f C h i n a a n d t r a n s m i t t e d t o J a p a n b y t h e late s i x t e e n t h W h i l e a d a p t i n g t o ecological diversity a n d d e v e l o p i n g g e o g r a p h i cal specialization (see Buck 2 7 ) , East Asian a g r i c u l t u r e the sixteenth n e v e r t h e l e s s e x h i b i t e d a c l e a r t e n d e n c y towards regional c o n v e r g e n c e , driven b y t h e diffusion o f intensive agriculture and several key c o m m e r c i a l c r o p s , notably c o t t o n , a n d sugar. T h e East Asian p a t h o f i n d u s t r i o u s revolution m u s t b e d i s t i n g u i s h e d from t h a t Europe and North America r e s p e c t to labour-intensity. T h e size of l a n d h o l d i n g s was far smaller in East than for W e s t e r n E u r o p e a n p e a s a n t society. T h e average farm in East Asia in t h e n i n e t e e n t h a n d early twentieth c e n t u r i e s ranged from 1 to 3 h e c t a r e s (Bray 1986: Buck 103). A b o u t 70 p e r c e n t farms h a d 0.5 h e c t a r e s of land or less, a n d n e a r l y 90 p e r c e n t h a d 1 h e c t a r e or less at t h e time of industrialization the n i n e t e e n t h c e n t u r y . In c o n trast, t h e average size of farm France, a a strong peasant was 14 h e c t a r e s in 1882 ( H e y w o o d 1996: S e c o n d , t h e r e were substantial differences i n t h e d e g r e e o f l a b o u r a b s o r p t i o n within a g r i c u l t u r e . F i g u r e 3.2 h i g h l i g h t s t h e i m p o r t a n c e of l a b o u r a b s o r p t i o n at t h e stage of d e v e l o p m e n t of technology rice a g r i c u l t u r e (Ishikawa 1978: 34; see also Ishikawa Chapter 1; C h a p t e r 1). Before m e c h a n i z a t i o n , g r e a t e r l a b o u r i n p u t was to raising l a n d productivity. t h e i n t r o d u c t i o n of tractors and other o f capital, t h e size o f h o l d i n g s b e c a m e larger, a n d l a b o u r i n p u t s smaller. T h u s t h e t e c h n o l o g y o f land-use h a d two p h a s e s i n t e r m s of first, l a n d productivity rose a proportionately g r e a t e r i n p u t of l a b o u r , a n d t h e n after a c e r t a i n p o i n t it was i m p r o v e d

East Asian

development

85

\

i

Labor input per ha

Figure

The

Source: Ishikawa

curve 34).

with p r o p o r t i o n a t e l y smaller i n p u t o f l a b o u r . B o o t h a n d (1984: C h a p t e r 1 ) called On path, labour ity was unlikely to rise fast, if at at t h e initial stage of agricultural o p m e n t (in F i g u r e 3.2 this p a r t of t h e J a p a n e s e p a t h , mainly the Tokugawa period, shown b r o k e n lines, it is conjecBut m e a n t that society could m a i n t a i n a m u c h g r e a t e r n u m b e r of p e o p l e p e r area of arable land. essentially, was t h e East Asian answer t o checks, which applies to m u c h of J a p a n a n d t h e wet-land f a r m i n g areas o f C h i n a . Third, land c o u l d b e raised prior to mechanization, a n d supply-side c h a n g e that was crucial to t h e industrio u s r e v o l u t i o n . T a b l e 3.4 suggests how a d v a n c e d land productivity was by t h e late n i n e t e e n t h c e n t u i y (for a historical c o m p a r i s o n b e t w e e n I n d i a a n d J a p a n , see S u g i h a r a 1996). A l a r g e of t h e of labour-intensive t e c h n o l o g y in Asian rice since t h e n has b e e n associated with t h e a d a p t a t i o n o f J a p a n e s e rice t e c h n o l o g y to different soils a n d climates, first K o r e a a n d T a i w a n a n d l a t e r in o t h e r parts of After t h e S e c o n d W o r l d War, t h e Ishikawa curve b e c a m e t h e basis of a policy r e c o m m e n d a t i o n emphasized labour a t t h e initial stage o f and became o n e of the guiding principles b e h i n d p r o g r a m m e for Asian a g r i c u l t u r e . A n i m p o r t a n t c o n c l u s i o n w e s h o u l d d r a w from t h e above discussion, particularly from F i g u r e 3 . 1 , is t h a t t h e i n d u s t r i o u s revolution p a t h was m u c h m o r e successful m a i n t a i n i n g t h e r e g i o n s large s h a r e i n world G D P t h a n t h e industrial r e v o l u t i o n p a t h was for E n g l a n d up to If

Table 3.4

of

and other Asian countries

Country

Date

Tons per ha

Japan

2.53

China

2.56

2.24 2.75 2.93 Sources:

and

For

Buck

204).

Notes T h e above tons/ha. a FAO

figure

the

official

O t h e r estimates range from 2.36 to 3.22

had to exist in 1820, a h y p o t h e t i c a l would surely written a n e c o n o m i c history c e n t r i n g o n t h e revolution p a t h , an additional chapter on the recent rise o f W e s t e r n E u r o p e . W e s h o u l d avoid a c c e p t i n g t h e which was i n c l i n e d to p r o j e c t E u r o p e a n superiority, n o r s h o u l d be u n d u l y i n f l u e n c e d by t h e o b s e r v a t i o n s on C h i n a by s u c h c o n t e m p o r a r y writers a s A d a m S m i t h a n d T h o m a s R o b e r t They were clearly h a n d i c a p p e d by t h e lack of i n f o r m a t i o n , a n d believed that C h i n a ' s p o p u l a t i o n was c i t h e r s t a g n a n t or d e c l i n i n g A. 1798). By t h e time M'Culloch edited the Principal National Objects the in 1868, p e o p l e were m u c h b e t t e r i n f o r m e d . I n d e e d dictionary most o f t h e relevant i n f o r m a t i o n o n C h i n e s e p o p u l a t i o n which f o r m e d t h e basis of later s t u d i e s e x a m p l e , Perkins 1 9 6 9 ) . U n f o r t u n a t e l y , h e , like s u c h c o n t e m p o r a r i e s as Karl M a r x a n d C h a r l e s Darwin, was at a loss to i n t e r p r e t these e n o r m o u s p o p u l a t i o n f i g u r e s a n d failed t o s e e t h e i r global significance.

Sources

of dynamism

Both Marxist h i s t o r i o g r a p h y a n d t h e m o r e r e c e n t l i t e r a t u r e o f institutional e c o n o m i c s have a s s u m e d t h e i m p o r t a n c e o f t h e e s t a b l i s h m e n t o f p r o p e r t y rights as a c o n d i t i o n of e c o n o m i c c h a n g e 1867; N o r t h a n d T h o m a s 1 9 7 3 ) . O n c e p r o p e r t y rights were clarified a n d l a n d bought a n d sold, a g r i c u l t u r e w o u l d b e c o m e m o r e efficient, a s m a r k e t forces w o u l d allocate r e s o u r c e s , s p r e a d t e c h n o l o g y a n d select t h e o p t i m u m of W i t h o u t the of p r o p e r t y rights, t h e transaction

East Asian e c o n o m i c

87

cost w o u l d n o t b e lowered sufficiently t o e n a b l e these d e v e l o p m e n t s . M o r e o v e r , o n t h e basis o f t h e e s t a b l i s h m e n t o f t h e r i g h t t o i n c o m e from p r o p e r t y , classical political e c o n o m i s t s in E n g l a n d saw t h e e m e r g e n c e of a class society a n d d i s t i n g u i s h e d t h e m a i n c a t e g o r i e s of i n c o m e , with wages given to w o r k e r s , to capitalists, a n d r e n t to l a n d l o r d s . T h i s w o u l d e n a b l e t h e r u l i n g classes t o a c c u m u l a t e capital a n d more productive large-scale f a r m i n g . U s i n g this yardstick, East d o e s n o t fare as m u c h of t h e m o s t fertile l a n d c o n t i n u e d to be cultivated by family l a b o u r , a n d f a r m i n g r e m a i n e d small-scale. A n d t h e t r a d i t i o n a l c h a r a c t e r i zation of small-scale p r o d u c t i o n has b e e n that it i n t e r n a l forces for c h a n g e , b e c a u s e i t n e i t h e r faced c o n s t a n t p r e s s u r e for t e c h n o l o g i c a l i m p r o v e m e n t n o r was d r i v e n by t h e capitalist p r i n c i p l e of relentless profit maximization. T h e a r g u m e n t against this has b e e n e x p r e s s e d i n various forms w h e n e v e r t h e d y n a m i s m o f t h e p e a s a n t e c o n o m y was r e c o g n i z e d . for i n s t a n c e , tried t o u n d e r s t a n d t h e b e h a v i o u r o f t h e p e a s a n t as if he w e r e m a x i m i z i n g his e a r n i n g s a n d welfare Such an a t t e m p t can e x p l a i n t h e responsiveness of p e a s a n t society to s o m e extent, but stops short of pointing o u t s o m e of the problems i n h e r e n t in t h e W e s t e r n (in this case m o r e specifically English) m o d e l of class society. T h e East Asian p e a s a n t family w o r k e d a small p l o t of l a n d , a n d a t t e m p t e d t o harvest t h e m a x i m u m a m o u n t o f through a greater d e g r e e o f l a b o u r i n p u t . T h e y n e e d e d t o p e r f o r m a n u m b e r o f different tasks a c c o r d a n c e with t h e a g r i c u l t u r a l c a l e n d a r , from t r a n s p l a n t i n g to w e e d i n g to h a r v e s t i n g . T h e y a l l o c a t e d family l a b o u r , a n d cultivated differe n t varieties o f rice t o even o u t seasonal l a b o u r r e q u i r e m e n t s a n d avoid h i r i n g o u t s i d e l a b o u r . T h e y also e x p l o i t e d t h e i r own off-peak s u r p l u s l a b o u r for T h u s an to p e r f o r m m u l t i p l e tasks r a t h e r t h a n specialization in a p a r t i c u l a r task, was p r e f e r r e d , a n d a will to c o o p e r a t e with o t h e r m e m b e r s of t h e family r a t h e r t h a n t h e f u r t h e r i n g of individual t a l e n t was e n c o u r a g e d . Above all, was i m p o r t a n t for m e m b e r of t h e family to try to fit t h e w o r k p a t t e r n of t h e farm, r e s p o n d flexibly t o e x t r a o r e m e r g e n c y n e e d s , s y m p a t h i z e with t h e problems relating to the m a n a g e m e n t of production, a n d anticipate and p r e v e n t p o t e n t i a l p r o b l e m s . M a n a g e r i a l skill, a general background of t e c h n i c a l skill, was an ability w h i c h was actively s o u g h t after at t h e family level. Looking at the separation w o r k e r s from m a n a g e m e n t after t h e d i s a p p e a r a n c e of p e a s a n t society in E n g l a n d from this p e r s p e c t ive, s e e m s obvious t h a t class division based on specialization h a d its own costs. A g r i c u l t u r a l w o r k e r s i n E n g l a n d w e r e d e p r i v e d o f t h e o p p o r t u n i t y t o s h a r e i n m a n a g e r i a l c o n c e r n s , while specialist artisans c a m e t o despise t h e Division of l a b o u r , g u i d e d by t h e v e n t e d t h e d e v e l o p m e n t of i n t e r - p e r s o n a l skills n e e d e d for flexible

specialization. T h e a d v a n t a g e t h e visible of head of the p e a s a n t h o u s e h o l d was t h a t h e c o u l d allocate l a b o u r for p r o d u c t i o n , disincome among of family for c o n s u m p t i o n a n d saving, a n d even c o n t r o l t h e n u m b e r o f c h i l d r e n , h e n c e t h e of the family, all at t h e s a m e Thus f a r m e r s , even if they did n o t own l a n d , h a d m o r e reason t h a n farm m a n a g e r s to i n c r e a s e or i n c o m e by l i n k i n g effort to reward, n o t t h r o u g h t h e market, but T h e main reinforcement of d y n a m i s m c a m e from t h e family a n d t h e village c o m m u n i t y , r a t h e r t h a n from forces o u t s i d e t h e village s u c h as t h e n a t i o n - s t a t e ' s a t t e m p t establish p r o p e r t y Effective s a n c t i o n s were rather legal. the enforcem e n t of p a t e r n a l i s m a n d social c o h e s i o n c o u l d be as harsh as s t r a i g h t rejection or physical c o e r c i o n , it did n o t necessarily imply t h e e x i s t e n c e of n e p o t i s m a n d p e r s o n a l favours. O n t h e c o n t r a r y , r a t i o n a l , m e r i t o c r a t i c , a n d m a r k e t c o n s i d e r a t i o n s all s e e m to have b e e n as i m p o r t a n t for t h e East Asian p e a s a n t as for t h e i r E u r o p e a n c o u n t e r p a r t s . from feudal restrictions, C h i n e s e p e a s a n t s w e r e n o t rigidly to land, a n d could become was n o t that at least theory, a n y o n e c o u l d take t h e official to b e c o m e a civil servant. J a p a n e s e p e a s a n t s were free, b u t in t h e c o u r s e of t h e T o k u g a w a period they enjoyed an l o n g p e r i o d of p e a c e , stability a n d a n d e c o n o m i c i n d e p e n d e n c e from o u t s i d e forces, p e r h a p s m o r e t h a n a n y b o d y else did. C o m p a r e d t o the family system in J a p a n was less lineage-based ( a d o p t i o n was c o m m o n ) a n d more inclined c o n c e r n s w e r e t a k e n seriously), a n d this h e l p e d t h e p e a s a n t family a n effective p r o d u c t i o n , distribution and unit 1907). T h e i r s t a n d a r d o f living rose, if slightly, a n d m a n y of t h e m s e n t sons to local schools to learn r e a d i n g a n d abacus b y t h e early n i n e t e e n t h c e n t u r y 1965; 1997; b u t for criticism Saito 1998). U n d e r these circ u m s t a n c e s it was n a t u r a l for the East Asian p e a s a n t to b e c o m e m o t i v a t e d to i n c r e a s e a g r i c u l t u r a l o u t p u t or family i n c o m e . So l o n g as they observed social c o d e s , t h e cost of t r a d e was small, a n d t h e risk technical i n n o v a t i o n s was relatively low. W h i l e t h e r e was little r o o m for i n n o v a t i o n s or for i n v e s t m e n t fixed capital or long-distance t r a d e , these East Asian institutions p r o v i d e d t h e best o p p o r t u n i t y for t h e develo f labour-intensive t e c h n o l o g y .

growth In m o d e r n e c o n o m i c s , a distinction has b e e n m a d e b e t w e e n extensive growth a n d intensive g r o w t h , to investigate w h e t h e r growth o c c u r r e d as a result o f g r e a t e r factor i n p u t s o r t h a n k s l o t e c h n o l o g i c a l a n d institutional

East Asian e c o n o m i c d e v e l o p m e n t 89 5 and 6). T h e point the industrial r e v o l u t i o n was t e c h n o l o g i c a l a d v a n c e , with o r w i t h o u t t h e sponding accumulation capital. But t h e idea o f d i s t i n g u i s h i n g b e t w e e n extensive ( i n p u t - b a s e d ) g r o w t h a n d intensive (efficiency) g r o w t h can b e applied to the r e v o l u t i o n e c o n o m y . Was t h e r e efficiency g r o w t h in t h e i n d u s t r i o u s r e v o l u t i o n p a t h ? C a n we find o u t p u t g r o w t h in spite of t h e e x h a u s t i o n of factor i n p u t s s u c h as l a n d a n d l a b o u r ? T h e best case for answers to this q u e s t i o n Japan from to 1850. By t h e e n d of t h e s e v e n t e e n t h t h e possibilities for o p e n i n g u p n e w a r e a s exhausted, and a strong demographic p r e s s u r e o n l a n d built u p . T h e use o f h o r s e s for cultivation a n d t r a n s p o r t d e c l i n e d , as t h e p r e s s u r e on l a n d left less a n d less available for raising a n i m a l s . Already, the official the household illustrated in t h e is a s s u m e d to cultivate less t h a n a h e c t a r e of l a n d . T h e r e was n o w very little c h a n c e to a m o n g sons. It b e c a m e increasingly difficult to get a new h o u s e h o l d the village, a n d , if it was a p p r o v e d , its status was likely to be inferior to t h a t of existing h o u s e h o l d s . Status m a t t e r e d n o t j u s t in village politics and rights b u t t h e allocation o f w a t e r a n d s h a r i n g o f l a b o u r . T h u s t h e r e w e r e g o o d r e a s o n s for t h r o u g h infanticide a n d a b o r t i o n . T h e f o r m e r i m p l i e d sex selection (in favour of males) as well as c o n t r o l o f t h e n u m b e r o f c h i l d r e n ( S m i t h , T . 1977). S o m e e c o n o m i c suggest that this was t h e result of c o n s c i o u s a t t e m p t s to raise t h e i r s t a n d a r d o f living and 1 9 7 7 ) . B u t infanticide and a l o n e a r e unlikely to explain t h e low In s o m e cases marital fertility itself was lower t h a n t h e n a t u r a l level, d e s p i t e t h e fact t h a t t h e a v e r a g e caloric i n t a k e was p r o b a b l y a d e q u a t e . It possible t h a t t h e d e v e l o p m e n t o f l a b o u r - i n t e n s i v e t e c h n o l o g y m e a n t that women worked harder d u r i n g their pregnancy in the eighteenth centuiy, c o n t r i b u t i n g to lower fertility (Saito 1 9 9 2 ) . In any case, T o k u g a w a d e m o g r a p h i c histoiy lacked drastic c h e c k s on a n a t i o n w i d e scale. A l t h o u g h t h e r e w e r e s o m e f a m i n e s , c a t a s t r o p h e s s u c h a s e p i d e m i c s a n d warfare played p a r t i n d e t e r m i n i n g t h e overall t r e n d , a n d m o r tality r e m a i n e d relatively low. p o p u l a t i o n r e m a i n e d stable b e t w e e n 1721 a n d at a little o v e r m i l l i o n . In o t h e r words, t h e r e was no i n c r e a s e i n t h e availability o f e i t h e r l a n d o r p e o p l e . Yet i n T o k u g a w a J a p a n , p e r capita a g r i c u l t u r a l o u t p u t s t o p p e d declini n g a r o u n d 1730, a n d b e g a n to c o n t i n u o u s l y t h e r e a f t e r . By 1850 it was 25 per cent higher than in T h e annual rate of increase is estimated t o have b e e n 0.38 p e r c e n t for 0.25 p e r c e n t for 1 7 5 0 - 1 8 0 0 , a n d 0.08 p e r c e n t for a n d M i y a m o t o 1988: 44). m o r e l a b o u r was a b s o r b e d for t h e cultivation o f t h e s a m e a c r e a g e o f l a n d . T h e trick was without population increase. T h e n u m b e r of days a late T o k u g a w a p e a s a n t w o r k e d p e r year was g r e a t e r t h a n

t h a t in m o s t Asian c o u n t r i e s the nineteenth century and 1991: However, i f m a r g i n a l productivity h a d d e c l i n e d considerably, c o u l d h a v e easily offset l o n g e r work days, a n d p r o d u c e r s w o u l d s o o n have r e a c h e d a p o i n t w h e r e f u r t h e r l a b o u r i n p u t would n o t be w o r t h w h i l e . It was t h e d e v e l o p m e n t of labour-intensive t e c h n o l o g y a n d l a b o u r - a b s o r b i n g institutions t h a t o v e r c a m e this t r a p . To take a well-known from t h e period the development of o f c o c o o n s e n a b l e d farmers t o c o m b i n e rice p r o d u c t i o n with s e r i c u l t u r e , unlike the r e a r i n g , it avoided t h e p e a k season of work in t h e rice fields P r o g r e s s in t h e T o k u g a w a p e r i o d , if m o r e m o d e s t t h a n dining was clearly d e v e l o p i n g t h e East Asian path. While would be h a r d to p r o v e t h e p r e s e n c e of intensive g r o w t h in t e r m s of o u t p u t p e r day o r p e r h o u r , t h e c o n t r i b u t i o n o f labour-intensive t e c h n o logy to t h e i n c r e a s e p e r capita a n n u a l o u t p u t is u n m i s t a k a b l e . In o t h e r words, t h e East Asian p a t h also h a d g r o w t h in efficiency w i t h o u t a d d i t i o n a l inputs of land and T h e difference from t h e Western p a t h was t h a t it mobilized h u m a n rather than n o n - h u m a n resources. After t h e s e c o n d half o f t h e e i g h t e e n t h c e n t u r y , m a j o r u r b a n c e n t r e s a n d casde towns d e c l i n e d , while rural i n d u s t r i e s b e g a n t o grow. Rural m e r c h a n t s e n g a g e d i n r e g i o n a l c o m m e r c e , while feudal d o m a i n s actively p u r s u e d policies t o p r o m o t e a g r i c u l t u r e , c o m m e r c e a n d industry to e a r n e x c h a n g e . Both of t h e s e activities gave farmers a c h a n c e to e x p l o i t n o n - a g r i c u l t u r a l as as a g r i c u l t u r a l e c o n o m i c o p p o r t u n i t i e s . T h e rural h o u s e h o l d m o b i l i z e d c h e a p l a b o u r , t o p r o d u c e m o r e i n r e s p o n s e to t h e d e m a n d arising from t h e g r a d u a l rural i n c o m e . By t h e e n d of t h e c e n t u r y t h e d a u g h t e r of a rich f a r m e r was likely to i n c l u d e a silk k i m o n o in h e r dowry, b u t this d i d n o t have to be p r o d u c e d i n t h e city o f Kyoto w h e r e t h e m o s t e l a b o r a t e k i m o n o s were m e r c h a n t s could bypass t h e m e r c h a n t guilds i n O s a k a a n d E d o t o cut t h e i r m a r g i n s , which h e l p e d t h e e x p a n s i o n o f t h e m a r k e t for mass c o n s u m e r g o o d s . F r o m t h e p o i n t of view of t h e rural h o u s e h o l d , this work was m e r e l y an e x t e n s i o n of t h e i r l a b o u r a b s o r p t i o n strategy. For e x a m p l e , t h e rural m e r c h a n t would b r i n g a l o o m a n d yarn to t h e p e a s a n t h o u s e h o l d a n d collect t h e cloth a m o n t h later, thus p r o v i d i n g a small i n c o m e for t h e Or i n d u s t r i e s would workers together o n e place t o m a n u f a c t u r e sake, u s i n g s i m p l e tools a n d For the rural h o u s e h o l d , t h e agricultural work r e m a i n e d rice cultivation. Both n o n - r i c e cash c r o p p r o d u c t i o n a n d w o r k of w e r e called work, w h e t h e r perf o r m e d b y h o u s e h o l d m e m b e r s o r h i r e d l a b o u r (Sugihara 1997a). T h e g r o w t h of East differed from t h e E u r o p e a n p a t t e r n , w h e r e g e o g r a p h i c specialization o c c u r r e d a n d t h e h o u s e h o l d

East Asian economic development

combination of and industry geographic did occur, East grew as a f u r t h e r d e v e l o p m e n t o f t h e p e a s a n t family e c o n o m y . T h e division o f l a b o u r b e t w e e n a g r i c u l t u r e a n d i n d u s t i y o c c u r r e d t h r o u g h t h e allocation o f family l a b o u r , particularly in t h e form of t h e g e n d e r division of l a b o u r . The a g r i c u l t u r a l w o r k was c o n s i d e r e d t o primarily a while e n g a g e d in work as well as p r o toindustrial e m p l o y m e n t , particularly a n d c o t t o n weaving fSailo 1983: 3 0 - 5 4 ) . Farm family b y - e m p l o y m e n t , carefully s c h e d u l e d and organized around the c o n s t i t u t e d t h e bulk o f East Asia's p r o t o - i n d u s t r y . T h e r e was relatively little n e e d for u r b a n and In fact brought about a relative d e c l i n e of u r b a n industry in late T o k u g a w a J a p a n . T h u s in try t o o , efficiency g r o w t h i n p u t s of l a n d , a n d capital. T h e persistence of traditional industiy is well n o t e d in C h i n e s e e c o n o m i c especially for t h e p e r i o d after t h e m i d d l e of t h e n i n e t e e n t h c e n t u i y 1970; C h a o 1977). Figure 3.3 explains how t h e traditional sector, in this case t h e c o t t o n weaving industiy, survived in t h e face of c o m p e t i t i o n from t h e m o d e r n p o w e r l o o m sector. W h e n the m o d e r n s e c t o r was able to supply c o t t o n cloth m o r e t h e traditional s e c t o r was a b l e to r e s p o n d by prices, b e c a u s e of t h e n a t u r e of farm family Insofar as o n e could find surplus labour, e i t h e r at night or d u r i n g periods, w i t h o u t disturbing t h e work of the (handicraft)

Output Figure 3.3

T h e s u r v i v a l of

Source: C h a o

200).

industry

Q

family, could down to a level i n d e e d , as t h e r e was virtually no extra cost involved this e m p l o y m e n t . T h i s was s o m e t h i n g which n o m o d e r n factory c o u l d The

trap

Efficiency growth c o n t r i b u t e d to East successful e s c a p e from checks the f a m i n e , e p i d e m i c s a n d war, b u t failed to significantly i n c r e a s e l a b o u r productivity. a society m a i n t a i n e d a vast p o p u l a t i o n w i t h o u t b e i n g able to i m p r o v e t h e of welfare a l o n g t i m e , it c o u l d be a r g u e d t h a t it fell i n t o a even if disasters were a v o i d e d . By t h e n i n e t e e n t h - c e n t u r y W e s t e r n s t a n d a r d , p o p u l a t i o n press u r e on stifled East Asian g r o w t h , a n d t h e East Asian p a t h fell i n t o a t r a p , often r e s u l t i n g in a significant d e g r e e of r e s o u r c e tion. B u t was a p a r t i c u l a r k i n d of M a i t h u s i a n t r a p , b e c a u s e t h e society r e a c h e d d e a d l o c k only after it h a d e x h a u s t e d all t h e p o t e n t i a l for ciency growth. T h e h i g h e r t h e level o f t e c h n i c a l a n d institutional sophistication a t t a i n e d , t h e g r e a t e r t h e d e g r e e o f p a t h d e p e n d e n c e a n d t h e less Thus g e t t h e s e n s e that t h e resulted from d y n a m i s m r a t h e r t h a n from s t a g n a t i o n . R e f e r r i n g to C h i n a from t h e f o u r t e e n t h to early n i n e t e e n t h c e n t u r i e s , Mark called s u c h a situation t h e 1996: C h a p t e r 2 ) . His p o i n t was t h a t C h i n e s e a g r i c u l t u r e m a d e various technological and organizational improvements aiming at land productivity, b u t by t h e e n d of t h e p e r i o d it h a d m o r e or exhausted the possibility f u r t h e r i m p r o v e m e n t s w i t h o u t t h e i n t r o d u c t i o n of a radically new t e c h n o l o g y , s u c h as p u r s u e d by t h e W e s t e r n p a t h , w h i c h required a different of factor i n p u t s . Given t h e p a t h d e p e n d e n c y , t h e c h a n c e s of s u c h a radical c h a n g e t a k i n g place from within p r o g r e s lessened. By m e a s u r e , T o k u g a w a J a p a n fell m u c h m o r e d e e p l y trap than China d u r i n g the same period. By the e n d of the Tokugawa period J a p a n e s e e n t r e p r e n e u r s regarded J a p a n as the universe, lacked t h e i m a g i n a t i o n t o initiate changes. T h e g o v e r n m e n t was powerless to tackle t h e issue t o o . C e n t r a l a n d local played a n i m p o r t a n t role, b o t h China and J a p a n , in reduc i n g t h e risk of attacks from o u t s i d e control J a p a n e s e pirates was o n e such example) a n d maintaining internal peace. also c r e a t e d a b u r e a u c r a c y , a n d with i t u r b a n a n d d e m a n d for f o o d a n d clothing, in r e t u r n for collecting l a n d lax. s o m e t h i n g of a b a l a n c e of p o w e r was established in East Asia the Chinese t r a d e system the centre, which helped p e a c e . But, as 7 by el in this v o l u m e a r g u e s , t h e r e was no international o r d e r East Asia, c o m p a r a b l e to t h e o n e c r e a t e d in E u r o p e by t h e treaties of W e s t p h a l i a after that was a b l e to back t h e g r o w t h of a

East Asian e c o n o m i c

93

a s t h e o n e built b y t h e Zheng family in t h e c e n t u i y . W h a t was crucially the region was t h e s t r o n g g o v e r n m e n t of t h e nation-state in p u r s u i t of territorial e x p a n s i o n a n d l o n g - d i s t a n c e t r a d e , willing t o b o r r o w heavily for t h a t p u r p o s e a n d ready t o p r o m o t e big business a n d i n v e s t m e n t i n f i x e d capital. W i t h o u t s u c h initiatives, t h e r e was n o c h a n c e t o d e v e l o p t h e navig a t i o n a n d military t e c h n o l o g y , w h i c h E u r o p e p r e p a r e d a scientific a n d a n industrial

Labour-intensive industrialization Patterns

of

global

Industrialization

T h e s t a n d a r d u n d e r s t a n d i n g of t h e global diffusion of i n d u s t r i a l i z a t i o n that d u r i n g the first o f t h e n i n e t e e n t h c e n t u i y , Britain b e c a m e t h e workshop of the while t h e rest o f t h e world c a m e t o b e specialized in the export of products. Countries continental Europe and t h e r e g i o n s o f r e c e n t E u r o p e a n s e t t l e m e n t a r e t h o u g h t t o have a c h i e v e d i n d u s t r i a l i z a t i o n b y l e a r n i n g new t e c h n o l o g y b y i m p o r t i n g capital, labour and machinery their export earnings a n d Williamson Woodruff Kenwood and I n c o n t i n e n t a l E u r o p e , old b a r r i e r s t o t r a d e a n d t h e transmission o f k n o w l e d g e w e r e gradually r e m o v e d , a n d a n i n t e r n a t i o n a l r e g i m e w h i c h w o u l d facilitate, r a t h e r t h a n t h e diffusion o f industrialization emerged. T h e formation of the Customs Union in Germany and t h e a d o p t i o n of t h e gold s t a n d a r d by a n u m b e r of c o u n t r i e s of W e s t e r n Europe t h e late n i n e t e e n t h c e n t u i y were a m o n g s u c h moves. T u r n i n g t o t h e N e w W o r l d , t h e i n t e g r a t i o n o f vast n a t u r a l r e s o u r c e s the international economy as the engine of economic growth. L a b o u r was s c a r c e a n d l a n d was a b u n d a n t , a n d t h e d i f f e r e n c e in factor e n d o w m e n t s b e t w e e n t h e old a n d t h e n e w worlds i n d u c e d a g r o w t h o f trade, migration and Thus in the nineteenth centuiy, the growth o f t h e Atlantic e c o n o m y d o m i n a t e d long-distance t r a d e . Falling t r a n s p o r t a t i o n costs were a crucial factor facilitating process. implied that the regions of recent E u r o p e a n settlement had a greater i n c e n t i v e t h a n Britain t o raise l a b o u r productivity, u s i n g a b u n d a n t r e s o u r c e s a n d e m p l o y i n g i m p o r t e d capital. T h e m o v e m e n t towards t h e d e v e l o p m e n t o f labour-saving, capital-intensive a n d resource-intensive t e c h n o l o g y was m o s t clearly o b s e r v e d in t h e U n i t e d States 1962; 1970; David 1975). T h e to save skilled l a b o u r led to stand a r d i z a t i o n of industrial p r o d u c t i o n s u c h as t h e use of t r a n s f e r a b l e parts, which t u r n facilitated t h e transfer of across i n d u s t r i e s a n d mass p r o d u c t i o n , as as t h e of l a b o u r . Industrialization b e c a m e associated with t h e e x p l o i t a t i o n o f e c o n o m i e s o f scale.

I n r e c e n t g r o u n d - b r e a k i n g work. a r g u e d that this was n o t really t h e result of t h e a c c u m u l a t i o n of t e c h n o l o g y a n d W e s t e r n E u r o p e before 1800. t h e s u d d e n rise of t h e West in t h e n i n e t e e n t h c a m e from t h e i n c o r p o r a t i o n by W e s t e r n E u r o p e of two highly c o n t i n g e n t factors i n t o orbit: t h e availability of coal t h e relatively d e v e l o p e d r e g i o n s of W e s t e r n and (2) n a t u r a l r e s o u r c e s of t h e N e w W o r l d . Until t h e e n d of t h e eenth the core E u r o p e a n d East were b o t h e x h i b i t i n g equally p r o m i s i n g signs of d e v e l o p m e n t of c o m m e r c i a l agriculture and and the o f living o f regions were above subsistence. for P o m e r a n z t h e West's rise d u r i n g t h e n i n e t e e n t h c e n t u r y was t h e from t h e g e n e r a l p a t t e r n . The f r o n t i e r was e x h a u s t e d a r o u n d a n d b y t h e early 1920s m i g r a t i o n from E u r o p e censed to e n c o u r a g e d . But A m e r i c a n t e c h n o l o g y c o n t i n u e d to lead t h e world, raising l a b o u r productivity t h r o u g h a u t o m a t i o n , t h e i n t r o d u c t i o n o f m o r e systematic l a b o u r m a n a g e m e n t a n d mass m a r k e t i n g . L o o k i n g back from t h e twenty-first c e n t u r y , t h e British industrial only b e g a n to show t h e explosive p o w e r of labour-saving t e c h n o l o g y t h r o u g h t h e use o f coal a n d steam e n g i n e s , a n d m e r e l y paved t h e way for a of skilled l a b o u r by and technology. Therefore, although the revolution may have b e e n before the with an e m p h a s i s on capital-intensive a n d t e c h n o l o g y , a r g u a b l y only b e c a m e fully as a result of t h e Differences b e t w e e n East a n d E u r o p e b e c a m e m u c h c l e a r e r in t h e way industrialization o c c u r r e d . In t h e process d u r i n g the 1850s w h e n I n d i a b e g a n m o d e r n c o t t o n i n Bombay, a n d was followed J a p a n e s e efforts in t h e a n d t h e 1870s. In these cases t h e d i r e c t transfer of W e s t e r n t e c h n o l o g y a n d institutions was t h e n o r m . By t h e 1880s, however, t h e J a p a n e s e g o v e r n m e n t h a d d e v e l o p e d a n industrialization strategy q u i t e different from attempts preceding d e c a d e s (for t h e significance of c h a n g e , s e e S u g i h a r a 1995). Recognizing that b o t h l a n d a n d capital w e r e scarce, while l a b o u r was a b u n d a n t a n d of relatively g o o d quality, t h e new strategy was lo e n c o u r a g e active of t h e tradition of m o d e r n i z a t i o n of traditional a n d c o n s c i o u s a d a p t a t i o n of W e s t e r n t e c h n o l o g y to differe n t c o n d i t i o n s o f factor e n d o w m e n t . T h e p a t h J a p a n d e v e l o p e d can b e termed as a b s o r b e d a n d utilized l a b o u r m o r e fully a n d d e p e n d e d less o n t h e r e p l a c e m e n t o f l a b o u r b y m a c h i n e r y a n d capital t h a n t h e W e s t e r n p a t h . This p a t t e r n was essentially r e p e a t e d in C h i n a a n d Korea, with state reinforcement, and the geese of economic 1962) e m e r g e d by t h e period. Both the development

East Asian e c o n o m i c d e v e l o p m e n t of which o c c u r r e d in East Asia in t h e previo u s p e r i o d , a n d t h e colonial rule b y W e s t e r n powers i n S o u t h a n d east which d i s c o u r a g e d s u c h a d e v e l o p m e n t the period m a d e East Asian p r o d u c e r s of industrial g o o d s c o m p e t i t i v e those of o t h e r Asian c o u n t r i e s . A n u m b e r of relatively labour-intensive i n d u s tries in East Asia to be In particular, t h e J a p a n e s e c o t t o n textile i n d u s t i y c o m p e t e d in t h e Asian m a r k e t with o t h e r Asian m a n u f a c t u r e r s as well as with L a n c a s h i r e a n d o t h e r Western competitors. Thus there developed an i n t e r n a t i o n a l division o f l a b o u r within and and to some extent C h i n a , was t o e x p l o i t t h e S o u t h a n d S o u t h e a s t Asian m a r k e t s for industrial g o o d s . was reflected in a m u c h faster of growth of t r a d e t h a n of world t r a d e b e t w e e n 1880 a n d (Sugihara 1996a: C h a p t e r s 4; English versions s e e S u g i h a r a 1986a a n d 1998). After in spite of t h e d i s r u p t i o n s caused t h e war, t h e growth t h e i n t e r n a t i o n a l c o m p e t i t i v e n e s s of East Asia's l a b o u r - i n t e n s i v e i n d u s t r i e s c o n t i n u e d . By t h e early J a p a n h a d r e g a i n e d t h e position of t h e w o r l d ' s largest e x p o r t e r of c o t t o n textiles t h a t it h a d h e l d in t h e 1930s, a n d was r e p l a c e d by C h i n a t h e early 1970s. T h e c h a i n of d e v e l o p m e n t of l a b o u r - i n t e n s i v e i n d u s t r i e s across o t h e r Asian has b e e n impressive, s t a r t i n g from H o n g K o n g a n d s p r e a d i n g t o T a i w a n . S o u t h Korea, T h a i l a n d , Pakistan a n d I n d o n e s i a , a n d has b y n o w r e a c h e d m a n y o t h e r c o u n t r i e s , i n c l u d i n g t h o s e with t h e lowest o f p e r capita i n c o m e (Hayami 1998). W h i l e t h e effects of this c h a i n of diffusion c a n n o t be s e e n as c o m p a r a b l e to t h o s e of t h e global diffusion high t e c h n o l o g y in a n u m b e r of o t h e r respects (such as t h e effects on capital accumulation or on i n t e r n a t i o n a l political a n d military o r d e r ) , i t has surely b e e n significant in t e r m s of t h e c r e a t i o n of global e m p l o y m e n t . In fact, t h e majority o f t h e w o r l d ' s industrial p o p u l a t i o n m u s t have b e e n e m p l o y e d in t h o s e s e c t o r s primarily i n f l u e n c e d by this k i n d of d e v e l o p m e n t . By n o w l a b o u r - i n t e n s i v e i n d u s t r i a l i z a t i o n c o n s t i t u t e s o n e of t h e two m a j o r r o u t e s to global diffusion of G o i n g b a c k to t h e p e r i o d from to 1945, t h e f u n d a m e n t a l diff e r e n c e with t h e p e r i o d p r i o r to t h a t W e s t e r n i m p a c t on t h e East Asian p a t h o f d e v e l o p m e n t b e c a m e m u c h m o r e i m p o r t a n t . T h i s the case, in spite of t h e g r e a t influx of silver from t h e N e w W o r l d to C h i n a a n d t h e c o n t r i b u t i o n o f t h e D u t c h East I n d i a C o m p a n y t o t h e g r o w t h o f t r a d e , particularly, t h o u g h n o t exclusively, d u r i n g t h e seventeenth centuiy. By the middle of n i n e t e e n t h centuiy the impact of h a d b e c o m e world-wide. T h e key to t h e East Asian success was t h e r e g i o n was able to r e s p o n d to t h e g r o w t h of r e s o u r c e intensive a n d capital-intensive i n d u s t r i e s across t h e Atlantic r e s u l t i n g from the by c r e a t i n g a resource-saving a n d p a t h to As a result, a new i n t e r n a t i o n a l division of l a b o u r

between advanced countries, manufacturing competitiveness in industry, a n d East Asian a n d o t h e r c o u n t r i e s , with m a n u f a c t u r i n g ness in (labour-intensive) t e c h n o l o g y industry. I n d e e d , was t h e only way t h e n o n - W e s t e r n world c o u l d industrialize b e f o r e 1945, given t h e i n t e r n a t i o n a l c l i m a t e of that by s h o w i n g t h e West a n e w way of c r e a t i n g which would i n c r e a s e world t r a d e a n d o u t p u t for m u t u a l t h o s e Asian a n d African c o u n t r i e s s u b j e c t e d to W e s t e r n colonialism with a l o n g t r a d i t i o n of l a b o u r intensive t e c h n o l o g y , s u c h as I n d i a , suffered from t h e i m p o s i t i o n of t e c h n o l o g y a n d institutions associated the Western path on an e n v i r o n m e n t q u i t e ill-suited t o t h e m .

The

Japanese

experience

Let u s now at the J a p a n e s e experience in the World War p e r i o d to see t h e o r i g i n s of s o m e of t h e characteristics of labour-intensive industrialization. First, was rural-based. T h e first J a p a n e s e c e n s u s c o n ducted 1920 f o u n d t h a t t h e p r o p o r t i o n of p e o p l e living in cities was 18 per cent. Although figure h a d risen to 38 p e r c e n t by was still small c o m p a r e d to m o s t c o u n t r i e s in W e s t e r n E u r o p e at a similar stage o f d e v e l o p m e n t . T h e r a t e o f u r b a n i z a t i o n Britain e x c e e d e d 4 8 p e r c e n t b y 1840 a n d p e r c e n t b y 1870, while t h e was 3 1 p e r c e n t i n 1840 a n d 4 5 p e r c e n t i n 1870. P u t a n o t h e r way, t h e b u l k o f J a p a n ' s i n d u s t r y was a m o d e r n i z e d of t h e c o t t a g e industries, p r e d o m i n a n t l y situated areas. B e t w e e n and 61 p e r c e n t the were engaged while t h e n o n - a g r i c u l t u r a l sector consisted of a large t r a d i t i o n a l sector (32 p e r c e n t ) a n d a small m o d e r n sector (7 C o t t a g e - i n d u s t r y p r o d u c t i o n a c c o u n t e d for 5 1 p e r c e n t of total industrial p r o d u c t i o n as fate as 1909, a n d c o n t i n u e d to grow in a b s o l u t e Takafusa illustrated p r o c e s s by showing the i n t e r d e p e n d e n c e between industry a n d m o d e r n i n d u s t r y ( N a k a m u r a 1983: 28 a n d 8 0 . S e e also F i g u r e 3.4). T h u s , in its fully d e v e l o p e d form in t h e early 1930s, t h e J a p a n e s e m a n u f a c t u r i n g industry h a d a relatively small, fast-growing m o d e r n u r b a n s e c t o r a n d a large, slow-growing b u t steadily rural sector. J a p a n e s e m a n u f a c t u r i n g c o m p e t i t i v e n e s s , reflected in t h e r a p i d g r o w t h of to o t h e r Asian c o u n t r i e s i n t h e 1930s, c a m e n o t from t h e m o d e r n u r b a n sector. T h e initiatives o f t h e rural weaving i n d u s t r y played a n i m p o r t a n t p a r t in t h e e x p a n s i o n . In it was m o r e cooperation between the rural a n d u r b a n t h a t was r e s p o n s i b l e for r a p i d e x p o r t g r o w t h ( S u g i h a r a 1989). Why was t h e m o d e r n i z a t i o n of rural so crucial? An obvious a n s w e r is that, given t h e t e c h n o l o g y g a p , t h e relative a b u n d a n c e of c h e a p

East Asian e c o n o m i c

97

and scarcity of capital, it was sensible to the cost o f b u i l d i n g u r b a n a n d specialize i n t h e rural p r o d u c tion of i n d u s t r i a l g o o d s . It was possible to p r o d u c e m a n y t r a d i t i o n a l c o m m o d i t i e s (such a s o r d i n a r y k i m o n o cloth a n d p o t t e r y ) i n b u l k a n d m a s s - m a r k e t t h e m , p r o v i d e d t h e p r o d u c t was s t a n d a r d i z e d a n d quality was c o n t r o l l e d . T h e r e w e r e also a t t e m p t s at p r o d u c t i o n of ferable (Suzuki the meantime, Western countries could supply capital a n d a d v a n c e d m a c h i n e r y t o J a p a n , s o l o n g a s t r a d i t i o n a l c o m m o d i t i e s s u c h a s raw silk e a r n e d foreign e x c h a n g e . T h u s , t h e b u l k o f i n d u s t r i a l g o o d s p r o d u c e d in J a p a n w e r e h y b r i d in c h a r a c t e r . Lowc o u n t yarn was p r o d u c e d in m o d e r n c o t t o n mills in cities, while rural f e m a l e w o r k e r s hand-wove m a c h i n e - m a d e yarn o n traditional l o o m s ( a n d later p o w e r S e c o n d , a crucial factor in process was t h e c o n c e r t e d by local a n d c e n t r a l g o v e r n m e n t s t o foster rural (Sugihara 1994). Rural p r o m o t i o n policies were first d e v e l o p e d in t h e 1880s u n d e r French influence, a heavy e m p h a s i s on protection. Following t h e J a p a n e s e W a r victory of however, t h e Ministry of A g r i c u l t u r e a n d C o m m e r c i a l Affairs staged a of t h r e e conferences between a n d 1898, in which a n u m b e r of i m p o r t a n t policy p r o p o s a l s w e r e m a d e . this time t h e priority was clearly o n fostering i n t e r n a t i o n a l l y c o m p e t i t i v e e x p o r t i n d u s t r i e s , while a b a n d o n ing protection of uncompetitive branches of agriculture, such as raw c o t t o n a n d sugar. With t h e e x c e p t i o n o f a d m i n i s t r a t i v e r e f o r m (i.e. d e r e g ulation a n d reduction of the n u m b e r of bureaucrats), most of the proposals were p u t p r a c t i c e , t h o u g h often d i l u t e d forms a n d n o t immediately.

T h i s rural o r i e n t a t i o n r e q u i r e d t h e of a set of policy tools different from t h e o n e s s e e n in E u r o p e . It m e a n t t h a t t h e r e was a g r e a t e r n e e d t o p r o v i d e m a r k e t i n f o r m a t i o n a n d t e c h n i c a l assistance for t h e m a n u f a c t u r e o f local o r r e g i o n a l i n d u s t r i a l g o o d s . O n l y those w h o w e r e familiar local c o n s u m e r taste, societal values a n d mentality h a d a c h a n c e of suitable m a r k e t s a n d p r o d u c t i o n m e t h o d s , so m e m b e r s of t h e elite a Western educational background or W e s t e r n e r s g o o d local n e e d e d a n e t w o r k of p e o p l e w h o would c o o p e r a t e T h e g o v e r n m e n t h e l p e d r e o r g a n i z e networks o f local o r regional m e r c h a n t s , a n d c r e a t e d a n u m b e r o f s u p p o r t i n g institutions s u c h as t e c h n i c a l a n d c o m m e r c i a l schools, c o m m e r c i a l m u s e u m s a n d r e g u l a r e x h i b i t i o n s a t t h e local, r e g i o n a l a n d n a t i o n a l levels. Third, turning to the development of m o d e r n early governm e n t mills were ill-conceived a n d financially unsuccessful, b u t t h e success of the Osaka Spinning Company, which started production 1883 with m u l e s o f m o r e t h a n 10,000 s p i n d l e s , d e m o n s t r a t e d t h e e c o n o m i c viability of m o d e r n factory o p e r a t i o n . A few of t h e c o m p a n y ' s J a p a n e s e e n g i n e e r s m a n a g e d to p r o d u c e to 20 c o u n t yarn, w h i c h was t h e suitable flow) c o u n t for t h e d o m e s t i c m a r k e t , w i t h o u t t h e p r e s e n c e o f foreign e n g i n e e r s . Following t h e success of c o m p a n y , m a n y mills were established the late 1880s. T h e frame, which was n e w a n d suited to t h e p r o d u c t i o n of low c o u n t yarn, was i m p o r t e d t h r o u g h Mitsui a general trading c o m p a n y , from Piatt B r o t h e r s , a n d rapidly a d o p t e d within t h e industry. T h e invitation of foreign e n g i n e e r s was e x p e n s i v e , b u t t h e availability J a p a n e s e - l a n g u a g e m a n u a l s m a d e it possible for local factories to o p e r a t e n e w m a c h i n e s a i d e d t?y t h e visits by J a p a n e s e e n g i n e e r s S h o r t staple c o t t o n suited for t h e p r o d u c t i o n c o u n t yarn was initially i m p o r t e d from C h i n a , b u t in t h e 1890s d i r e c t links Indian p r o d u c e r s were e s t a b l i s h e d to s e c u r e a stable c o t t o n supply. A c o t t o n spinners was f o r m e d partly to press t h e g o v e r n m e n t to lift t h e i m p o r t duty on raw c o t t o n a n d p r o v i d e freight subsidies for i m p o r t s of c o t t o n from I n d i a . In t h e 1890s, J a p a n e s e mills enjoyed e x t r e m e l y favourable c i r c u m s t a n c e s e x p o r t s w h e n I n d i a n e x p o r t s of c o t t o n yarn t o C h i n a w e r e m a d e difficult b y t h e a d o p t i o n o f t h e g o l d e x c h a n g e d a r d in British causing a in t h e value of t h e r u p e e against t h e silver-linked and In t h e 1900s t h e i n g e n i o u s of m i x i n g s h o r t staple I n d i a n c o t t o n a small a m o u n t of staple A m e r i c a n c o t t o n was d e v e l o p e d J a p a n to cut costs a n d also to shift p r o d u c t i o n gradually towards slightly h i g h e r c o u n t S o m e mills b e g a n t o set u p t h e i r own weaving o p e r a t i o n s , while t h e d e m a n d for i m p r o v e d ( a n d eventually p r o v i d e d t h e basis for t h e d e v e l o p m e n t o f t h e m a c h i n e r y sector ( N a k a o k a 1982: Sugihara 1990). An o v e r r i d i n g c o n c e r n

this p r o c e s s was to

t h e cost of

East Asian e c o n o m i c d e v e l o p m e n t capital, w h i c h was T h e introduction foreign was thus a c c o m p a n i e d by a variety of capital-saving devices. A l o n g the spread in use of t h e f r a m e , w h i c h was relatively s i m p l e to o p e r a t e , y o u n g c o u n t r y girls of to 20 of a g e w e r e r e c r u i t e d from p o o r p e a s a n t i n relatively d i s t a n t places, a n d w e r e p u t d o r m i t o r i e s for t h e p e r i o d of t h e i r ( n o r m a l l y two to t h r e e years) as factoiy w o r k e r s . T h e i n d u s t i y was a b l e to save wage selecting section of t h e l a b o u r force, was e x p e c t e d to play only a p e r i p h e r a l the m a i n t e n a n c e a n d reproduction of the rural household. was a n effective way o f r e c r u i t i n g a n d m a n a g i n g l a b o u r , albeit o n e whose working hours, harsh conditions a n d the prevalence of tuberculosis c a u s e d m u c h c o n c e r n . T h e d o r m i t o r i e s also suited t h e night-shift system, w h i c h was a n o t h e r capital-saving device. T o t h e e x t e n t t h a t J a p a n e s e c u l t u r e was l a b o u r - i n t e n s i v e , t h e s e girls were u s e d t o h a r d w o r k a n d l o n g w o r k i n g h o u r s . T h i s gave J a p a n e s e mills a distinct a d v a n t a g e o v e r t h e c o m p e t i n g I n d i a n mills, w h i c h suffered f r o m lack of discipline in t h e i r workers. J a p a n e s e u n d e r s t o o d t h e c o n c e p t of loyalty a n d filial piety, b o t h p r e v a l e n t rural society, a n d t h e k n o w l e d g e t h a t t h e i r performance t h e factoiy would b e r e p o r t e d t o t h e i r p a r e n t s a n d t h e village c o m m u n i t y a t large, n o t only p r e v e n t e d t h e m from r u n n i n g away from t h e factoiy w h e n w o r k i n g c o n d i t i o n s were h a r s h , but m o t i v a t e d t h e m to c o m p e t e fellow w o r k e r s to be d e s i g n a t e d a ese mills t o o k a d v a n t a g e of this rural societal and attempted to b u i l d on t h e s e traditional values to establish t h e i r a u t h o r i t y (Sugihara I n s u m , t h e p r o c e s s involved c o m p l e x i n t e r a c t i o n s b e t w e e n t h e t r a n s p l a n t a t i o n of W e s t e r n t e c h n o l o g y (in c o t t o n s p i n n i n g , for e x a m p l e , w h i c h d r a m a t i c a l l y r a i s e d l a b o u r productivity) a n d t h e m o d e r n i z a t i o n o f t r a d i t i o n a l t e c h n o l o g y (for e x a m p l e , in w h i c h offered women peasant households ample employment, d u e to the improvem e n t in weaving m e t h o d s ) . But a n o t a b l e u n d e r l y i n g characteristic was that, u n l i k e m o s t of its W e s t e r n c o u n t e r p a r t s , East Asian aimed at most effective use o f l a b o u r w h e r e v e r capital a n d l a b o u r were the definition industrialization a d o p t e d here.

The

experience

C h i n a d i d n o t f r a m e a systematic i n d u s t r i a l i z a t i o n plan the a n d t h e 1930s, w h e n t h e N a t i o n a l i s t g o v e r n m e n t g a i n e d tariff a u t o n o m y , unified t h e c u r r e n c y a n d l i n k e d it to t h e i n t e r n a t i o n a l and a n n o u n c e d c o m p r e h e n s i v e i n d u s t r i a l policies. T h e s e plans were d a s h e d by t h e G r e a t D e p r e s s i o n , t h e political s n u g g l e s b e t w e e n nationalists a n d c o m m u n i s t s , a n d , above aggression a n d t h e S e c o n d

W o r l d War. a r g u e s that t h e N a t i o n a l i s t g o v e r n m e n t did little to the Shanghai b e t w e e n 1927 a n d 1937, as it was pied p r e s s i n g s h o r t - t e r m n e e d t o f i n a n c e t h e war. T h e governm e n t failed to c r e a t e an efficient b u r e a u c r a c y , in b e c a u s e officials often c o n f l a t e d t h e i r d u t i e s with p e r s o n a l (Coble On t h e o t h e r h a n d , t h e r e is s t r o n g e v i d e n c e lo suggest t h a t a n u m b e r of successful a t t e m p t s were m a d e by local, provincial a n d n a t i o n a l m e n t s to p r o m o t e rural early twentieth c e n t u r y o n . In n o r t h C h i n a , for e x a m p l e , a of new policies, i n c l u d i n g a rural industrialization p r o g r a m m e , were in 1903 by Yuan the Governor General; I n s p e c t i o n teams were s e n t t o J a p a n w h e r e they discovered t h e automatic g e a r l o o m . P r o t o t y p e l o o m s were i m p o r t e d a n d J a p a n ese t e c h n i c i a n s invited to serve as i n s t r u c t o r s at a t e c h n i c a l t r a i n i n g s c h o o l set up Weavers in G a o y a n g b e g a n to use t h e l o o m in 1908, a n d by 1910 G a o y a n g h a d b e c o m e t h e m o d e l for t h e n e w textile districts. By 1910, 20 p e r c e n t of t h e l o o m s in use were gear looms, and by the middle of the next d e c a d e there had been a full c o n v e r s i o n to t h e s e m i - a u t o m a t i c l o o m s . (Grove 1993: 3) T h e r e i s n o d o u b t a b o u t t h e resilience o f C h i n e s e rural industry most of the World W a r p e r i o d 1989: T h e cotton t r a d e b e t w e e n S h a n g h a i a n d the rest of C h i n a grew particularly t h e 1920s. Raw c o t t o n c a m e to S h a n g h a i w h e r e was m a c h i n e - s p u n ; s o m e of t h e yarn was s e n t to weaving c e n t r e s various r e g i o n s of C h i n a , while s o m e was woven t h e r e a n d t h e cloth s e n t to t h e c o u n t r y s i d e forthc o m i n g ) . T h e i n t e r d e p e n d e n c e b e t w e e n traditional a n d m o d e r n i n d u s tries was clearly d e v e l o p i n g . An e x a m i n a t i o n of various d o c u m e n t s a n d periodicals p u b l i s h e d b y t h e Nationalist g o v e r n m e n t d u r i n g t h e s e c o n d half of t h e 1920s a n d t h e first half of t h e reveals t h a t a large n u m b e r o f technical a n d vocational schools were b e i n g s u p p o r t e d b y local g o v e r n ments to improve production methods, s o m e n o t a b l e results (for example, 1928: A c o m p r e h e n s i v e industrial policy drafted by t h e D e p a r t m e n t of I n d u s t r y a n d C o m merce 1928, i n c l u d e d t h e p r o m o t i o n of i n v e n t i o n s , t h e p r o m o t i o n of foreign t r a d e , t h e e s t a b l i s h m e n t o f c o m m e r c i a l a n d industrial b a n k s , t h e organization and reorganization of commercial and trade associations, t h e a r b i t r a t i o n o f m a n a g e m e n t - l a b o u r relations 1930: m a n i f e s t o in 1930 was a similar spirit, a n d particularly e m p h a s i z e d t h e i m p o r t a n c e o f industrial e x h i b i t i o n s a n d commercial museums. Although

these

plans were only partially realized,

t h e Nationalist

East Asian e c o n o m i c d e v e l o p m e n t g o v e r n m e n t was t o c o n t r o l C h i n a ' s e x c h a n g e r a t e reasonably well a n d raise i m p o r t tariffs selectively to foster i n d u s t r i a l d e v e l o p m e n t (Sugihara 2001). A of boycotts against foreign ( m a i n l y goods the d e c a d e s of t h e t w e n t i e t h c e n t u r y c a n be s e e n as of this industrialization strategy By t h e 1930s C h i n a effectively h a d b e c o m e a rational i m p o r t i n g m a c h i n e r y from m a n y different c o u n t r i e s , w i t h o u t necessarily b e i n g tied t o imports from a p a r t i c u l a r or affected by foreign p r e s s u r e s in ways e x p e r i e n c e d by t h e colonial states of S o u t h e a s t Asia. For a c o u n t r y like C h i n a with a l a r g e population, was difficult to d e t e r m i n e w h e t h e r to c o m m i t n o t only t o i m p o r t s u b s t i t u t i o n b u t also t o e x p o r t - o r i e n t e d g r o w t h . In t h e t h e r e was a clear a t t e m p t at e x p o r t p r o m o tion, s o m e success 1999). In o t h e r words, t h e basic framework for e c o n o m i c n a t i o n a l i s m was set, t h o u g h policies w e r e p u r s u e d largely by local g o v e r n m e n t s a r a t h e r u n c o o r d i n a t e d fashion.

Constraints

on

growth

L a b o u r - i n t e n s i v e industrialization in East Asia c o n t r i b u t e d to a m o d e s t b u t n o t a b l e rise p e r capita b u t it did n o t t h e growth per capita i n c o m e advanced Western countries. This because the d e v e l o p m e n t a l p a t h was c o n d i t i o n e d b y b o t h t h e i n t e r n a t i o n a l o r d e r d o m i n a t e d b y W e s t e r n p o w e r s a n d i n t e r n a l c o n s t r a i n t s o n land. As l o n g as was willing to accept t h e division of labour, w h i c h t h e West specialized in resource-intensive a n d capitalintensive t e c h n o l o g y , a n d East specialized labour-intensive logy, t h e logic o f c o m p l e m e n t a r i t y w o r k e d . B u t w h e n J a p a n a t t e m p t e d heavy a n d c h e m i c a l industrialization in t h e 1930s, it faced t h e f o r m i d a b l e p r o b l e m of s e c u r i n g a s u p p l y of r e s o u r c e s . It well k n o w n that a variety of - i n v e s t m e n t , m a r k e t s , e m i g r a t i o n , a n d t h e availability of materials a n d o t h e r resources - motivated advance into M a n c h u r i a . However, in t h e 1930s at least, M a n c h u r i a , while a b s o r b i n g vast a m o u n t s o f capital a n d m a n p o w e r , failed t o b e c o m e a n a d e q u a t e s u p p l y base t h e raw m a t e r i a l s a n d r e s o u r c e s t h a t J a p a n n e e d e d . In fact, the n e e d t o i m p o r t key raw m a t e r i a l s from o u t s i d e t h e yen bloc As Nawa has m a d e clear, J a p a n ' s e c o n o m i c motive the a d v a n c e i n t o N o r t h C h i n a was t o s e c u r e t h e long-staple raw cotton produced there, and was o n e o f t h e most i m p o r t a n t r e a s o n s why t h e C h i n e s e s p i n n e r s o f S h a n g h a i a n d t h e Nationalist governm e n t resisted it. Asian c o m p e t i t i o n t h e c o t t o n t r a d e was t h e m o s t i m p o r t a n t e c o n o m i c factor b e h i n d t h e o u t b r e a k of t h e J a p a n e s e W a r i n 1937. F u r t h e r m o r e , t h e s t r o n g e r C h i n a ' s heavier b u r d e n b e c a m e . Even i f t h e conflict h a d resolved,

Sugihara

J a p a n would still d e p e n d e n t on t h e West for raw fibres a n d for t h e raw for us heavy a n d c h e m i c a l industries. With r e g a r d t o t h e latter, J a p a n relied o n British Malaya a n d Australia for o r e , I n d i a for i r o n , C a n a d a for a n d lead, C a n a d a a n d tralia for British Malaya for a n d t h e U n i t e d States a n d t h e D u t c h East I n d i e s for oil. In s h o r t , was impossible lo envisage autarky or even a significant r e d u c t i o n r e s o u r c e d e p e n d e n c y while at t h e s a m e p u r s u i n g r a p i d heavy industrialization ( S u g i h a r a 1998). Even m o r e i m p o r t a n t w e r e t h e d o m e s t i c difficulties, particularly t h e relative s h o r t a g e o f l a n d . T h e level o f a g r a r i a n r e n t s was e x t r e m e l y and, spite of h i g h l a n d productivity, l a b o u r productivity r e m a i n e d low by i n t e r n a t i o n a l s t a n d a r d s (sec 3.5). T h i s set a c e i l i n g for t h e i n rural p u r c h a s i n g p o w e r a n d t h e o f living o f t h e p e a s a n t h o u s e h o l d . B e c a u s e t h e b u l k o f industrial l a b o u r c o n t i n u e d t o c o m e from the industrial wages were k e p t d o w n as well. U n d e r t h e s e c i r c u m s t a n c e s , t h e r e was a limit to t h e e x p a n s i o n of t h e d o m e s t i c m a r k e t . T h e m o r e East Asia a c c o r d a n c e with t h e n e w type of i n t e r n a t i o n a l division o f l a b o u r m e n t i o n e d a b o v e , t h e g r e a t e r t h e p r o d u c tivity g a p b e t w e e n East Asia a n d t h e West b e c a m e . T h i s c o n s t i t u t e d t h e b a c k g r o u n d of t h e J a p a n e s e d i l e m m a in 1930s, which led to aggresa n d war ( S u g i h a r a 1 9 9 7 b ) .

Table 3.5 Land rent in different countries of the world Country

Date

the First World W a r

Type of

Japan

Paddy field (two crops) Dry field Mulberry field

Yen per ha crop) 396.0 232.8

England

before the First World W a r

Scotland Ireland Germany Austria France USA

25.0 20.0

before the First World War before the First World W a r before the First World W a r

24.6

Source:

67).

Note Japanese data are taken from O t h e r data are from no oyobi Nogyo (Agriculture and Agrarian Problems in et Nihon no vol. 2, 635). T h e data in this table has been assembled in this form Yamada. Nihon (The Analysis of Japanese Capitalism), Shoten and was cited in article have converted the figures from per tan to p e r ha, assuming that tan equals one hectare.

East Asian e c o n o m i c

The fusion of the two paths The

of the

East

Asian

path

Figures 3.5 a n d 3.6 have b e e n c a l c u l a t e d from M a d d i s o n ' s work to show the changes t h e p a t t e r n s of global d i s t r i b u t i o n of i n c o m e . is a originally d e s i g n e d to t h e d e g r e e of i n c o m e ity for a p a r t i c u l a r society. If e v e r y o n e in society h a d t h e s a m e income, the would be a s t r a i g h t l i n e from t h e bottom-left to top-right c o r n e r . I n reality s o m e p e o p l e a r e r i c h e r t h a n o t h e r s , s o i f w e c h a r t on t h e g r o u p s of p e o p l e different levels of income with t h e p o o r e s t g r o u p o n t h e left c o r n e r a n d m o v e from left t o r i g h t , a n d p l o t t h e p e r c e n t a g e o f total i n c o m e t h e p o o r e s t 1 0 p e r c e n t have e a r n e d , t h a t t h e p o o r e s t 2 0 p e r c e n t have, a n d s o o n , w e can

0.9

0.8

0.7

-

0.6 *

0 Figure 3.5 Source: Maddison

0.2

0.3

0.4

Lorenz curve (thirty

0.5

0.6 in

0.7 and

0.8

0.9

t

t

0

0.2 3.6

Source:

0.3

0.4

Lorenz

0.5

0,6

0.7

0.8

0.9

in and

d r a w a curve which will have a d o w n w a r d b u l g e . T h e bulge, the g r e a t e r t h e inequality. F i g u r e 3.5 from t h e Lorenz in that global, r a t h e r t h a n n a t i o n a l , i n c o m e r a n k s thirty c o u n t r i e s in t e r m s o f p e r capita G D P i n a s c e n d i n g a n d allocates s p a c e for e a c h c o u n t r y , p r o p o r t i o n a t e to on t h e h o r i z o n t a l axis. T h e n the percentage of income the poorest 10 per cent had earned global G D P , that t h e p o o r e s t 20 p e r c e n t h a d , a n d so o n , ft is clear from F i g u r e 3.5 that t h e b u l g e was m u c h l a r g e r t h a t 1870. In o t h e r words, b e t w e e n 1870 a n d 1950 t h e r e was a substantial i n c r e a s e in income However, if we lake 199 c o u n t r i e s 1950 a n d 1990 a n d do t h e s a m e exercise, see that t h e b u l g e 1990 was a b o u t the as t h a t 1950 (see Figure 3.0).

East Asian e c o n o m i c This in t h e t r e n d of t h e global was the result of t h e Asian T a b l e s 3.2 a n d 3.3 suggest t h a t t h e sust a i n e d rise in p e r capita G D P in East Asian c o u n t r i e s was t h e m a i n cause o f this c h a n g e . First, J a p a n m o v e d u p t h e l a d d e r world of per capita G D P , j o i n i n g t h e h i g h - i n c o m e g r o u p . m o v e was t h e n quickly followed by o t h e r c o u n t r i e s in East Asia, a n d eventually r e a c h e d C h i n a . T h e overall effect of this on t h e was t h a t a large number East a n d S o u t h e a s t Asian c o u n t r i e s m o v e d u p t h e l a d d e r from t h e low to t h e as well as from t h e m i d d l e to t h e h i g h income groups, ironing o u t the In my view, this has a global significance w h i c h has n o t b e e n well recognized. W h e n A r t h u r Lewis w r o t e D e v e l o p m e n t with U n l i m i t e d Supplies of in 1954, he d e v o t e d t h e latter half of t h e article to t h e economy a n d discussed why p o o r countries were a n d t h e i n c o m e g a p p e r s i s t e d . His message in the first half of t h e article was t h a t e c o n o m i c d e v e l o p m e n t w o u l d be possible if p o o r c o u n t r i e s w e r e a b l e t o a b s o r b l a b o u r from t h e c o u n t r y s i d e a t t e n c e wages. B u t in t h e latter half, he s u g g e s t e d t h a t t h e e q u a l i z a t i o n of global d i s t r i b u t i o n w o u l d b e impossible unless ( l a b o u r ) productivity in p o o r c o u n t r i e s was raised. t h o u g h t it unlikely t h a t s u c h an e q u a l i z a t i o n was a c h i e v a b l e in a s h o r t s p a c e of He h a d primarily tropical c o u n t r i e s in a n d t h e s i t u a t i o n t h e r e , as well as t h e g r o w i n g inequality b e t w e e n rich a n d p o o r c o u n t r i e s , was t o o serious t o make him optimistic a b o u t t h e f u t u r e . In fact, it t u r n e d o u t that East Asia realized his d r e a m , largely c o n f o r m i n g to of e c o n o m i c d e v e l o p m e n t . If t h e was a m i r a c l e of p r o d u c t i o n which t h e transformation of the economy, the Asian has b e e n a of w h i c h b r o u g h t t h e benefit of t h a t t r a n s f o r m a t i o n t o t h e majority o f t h e w o r l d ' s p o p u l a t i o n . If t h e r e was a missing e l e m e n t in vision, it was t h e of t h e two p a t h s t h a t e n a b l e d East to o v e r c o m e r e s o u r c e c o n s t r a i n t s . In p a r t , this was m a d e possible b y t h e C o l d W a r r e g i m e a n d f u r t h e r d e v e l o p m e n t i n t h e i n t e r n a t i o n a l division O n e o f t h e m o s t striking feat u r e s o f global d e v e l o p m e n t b e t w e e n 1945 a n d 1973 was t h e s t r o n g g r o w t h o f capital-intensive a n d r e s o u r c e - i n t e n s i v e both in the U n i t e d Stales a n d t h e Soviet U n i o n . O n e t h i n g t h e two c o u n t r i e s h a d i n c o m m o n was that they w e r e a b l e t o translate a b u n d a n t m i n e r a l r e s o u r c e s i n t o t e c h n o l o g i c a l a n d military s t r e n g t h . Large-scale factories were built t h e steel, aircraft, military, s p a c e a n d industries, a n d the technology race constituted a major in t h e c o m p e t i t i o n b e t w e e n t h e two t h e i r different ideological s t a n c e s t h e 1950s a n d 1960s. T h i s c r e a t e d r o o m for a n e w i n t e r n a t i o n a l division of l a b o u r in which East Asia n o t only specialized in i n d u s t r i e s , b u t in t h e relatively resource-saving s e c t i o n of i n d u s t r i e s . After its

Sugihara the Second W a r , t h e J a p a n e s e g o v e r n m e n t was m i n e d to p u r s u e a p r o g r a m m e of economic primarily e x p a n s i o n o f t h e d o m e s t i c m a r k e t . But t h e p r o b l e m o f r e s o u r c e c o n s t r a i n t s m e n t i o n e d above r e m a i n e d a critical b o t t l e n e c k . T h e e m e r g e n c e of t h e War t h e political b a c k g r o u n d for a n e w A m e r ican a t t i t u d e towards e c o n o m i c future. By t h e late 1940s t h e USA viewed J a p a n as a c o u n t r y w h o s e s t r e n g t h s h o u l d be d e p l o y e d to protect and further the zone East Asia, a n d was allowed t o p u r s u e t h e systematic i n t r o d u c t i o n o f capital-intensive heavy a n d c h e m ical industries. A l t h o u g h heavy a n d c h e m i c a l industrialization was attempted t h e 1930s a n d in s o m e ways a c c e l e r a t e d d u r i n g t h e p e r i o d of t h e w a r t i m e c o n t r o l l e d e c o n o m y , it was at this p o i n t that t h e c h a r a c t e r of J a p a n e s e g r o w t h shifted from labour-intensive industrialization t o t h e fusion of t h e two p a t h s , a n d e x p e r i m e n t b e g a n to a s s u m e Even after t h e J a p a n e s e was r e c o g n i z e d , c o n t e m p o r a r y observers w e r e slow t o a p p r e c i a t e t h e e c o n o m i c p o t e n t i a l o f o t h e r Asian c o u n t r i e s . T h i s was part because political c h a n g e s h a d taken place in Asia since t h e s e c o n d of t h e 1940s. M a i n l a n d C h i n a , I n d i a a n d s o m e S o u t h e a s t Asian c o u n t r i e s entirely o r largely c e a s e d t o t r a d e i n t e r n a t i o n a l l y , as a result of t h e policies of newly i n d e p e n d e n t gove r n m e n t s or as a c o n s e q u e n c e of t h e e s t a b l i s h m e n t of c o m m u n i s t r e g i m e s a n d US-led e m b a r g o e s . S o m e c o u n t r i e s f o u g h t for t h e i r while o t h e r s achieved it by political n e g o t i a t i o n , a n d t h e 1950s saw t h e r a p i d p r o g r e s s of d e c o l o n i z a t i o n a n d a s u r g e of Although South Korea, Taiwan, H o n g Kong, Singapore called newly economies, a n d Malaysia c a m e to be associated the at a relatively early stage, t h e c l e a r e n t r y of f o u r ASEAN c o u n t r i e s ( t h e P h i l i p p i n e s , I n d o n e s i a , Malaysia a n d T h a i l a n d ) i n t o t h e o p e n economy zone had to u n t i l t h e m i d d l e o f t h e 1960s. T h e n C h i n a , which h a d b e e n heavily i n f l u e n c e d by Soviet m o d e l at t h e initial stage o f t h e c o m m u n i s t r e g i m e a n d h a d r e m a i n e d o u t s i d e t h e for thirty years, r e o p e n e d t h e d o o r t o economic contacts in t h e 1970s. By t h e early 1990s m o s t East a n d S o u t h e a s t Asian c o u n tries w e r e p a r t i c i p a t i n g t h e d y n a m i s m of t h e Asian i n t e r n a t i o n a l economy. East Asian g r o w t h was also r e l a t e d to t h e rise a n d d e m i s e of t h e Cold War regime. American h e g e m o n y provided an international work i n which NIEs a n d ASEAN c o u n t r i e s p u r s u e d They developed a of c o m b i n i n g A m e r i c a n t e c h n o l o g y a n d aid with c h e a p a n d relatively g o o d quality l a b o u r . D u r i n g t h e 1970s a n d 1980s s o m e Asian c o u n t r i e s such a s S o u t h Korea a n d I n d o n e s i a gradually a b a n d o n e d t h e heavy a n d c h e m i c a l industrialization strategy, a n d tried t o focus m o r e o n a exploitation of h u m a n resources. What

East Asian e c o n o m i c d e v e l o p m e n t was t h e e m e r g e n c e a n e w Asian division of l a b o u r in w h i c h J a p a n specialized industries a n d t h e rest of Asia p r o d u c e d relatively l a b o u r - i n t e n s i v e g o o d s . But a crucial c h a n g e o c c u r r e d w h e n C h i n a c h a n g e d its e c o n o m i c policy towards a more open and outlook, as dramatically b r o a d e n e d the industrial base. T h e f u n d a m e n t a l p r o b l e m o f t h e Soviet m o d e l was that, e m p h a s i s on state allocation of resources, lacked an effective m e c h a n i s m for p r o d u c t i o n , dist r i b u t i o n a n d c o n s u m p t i o n u n i t s (Hayami 1997: C h a p t e r 8 ) . T h e r e fore, C h i n a ' s r e - i n t e g r a t i o n t h e r e g i o n a l d y n a m i s m of East has inevitably b e e n a g r a d u a l N e v e r t h e l e s s , in its fully d e v e l o p e d form in t h e 1980s a n d t h e half of t h e 1990s, t h e r e - e m e r g e n c e of a p o w e r ful East Asian regional e c o n o m y r e p r e s e n t e d t h e fusion of t h e two p a t h s , within t h e i n t e r n a t i o n a l o r d e r d o m i n a t e d b y t h e U n i t e d States. I n t h e 1950s a n d 1960s J a p a n c h o s e t o d e v e l o p (such as automobiles a n d c o n s u m e r electronics) which were neither too r e s o u r c e - i n t e n s i v e n o r t o o labour-intensive, t o achieve t h e fusion o f t h e two p a t h s . In this narrowly focused e x p e r i m e n t , t h e r e not m u c h scope for a c o m p r e h e n s i v e fusion t h a t w o u l d e m b r a c e t h e diversity of econ o m i c allocation of r e s o u r c e s . In the 1970s a n d 1980s, t h e r a n g e of industries w h i c h b e n e f i t e d from t h e fusion b e c a m e b r o a d e r , a n d started to take p l a c e t h r o u g h o u t M e a n w h i l e , t h e success of t h e C o l d War r e g i m e , that is, t h e r e t e n t i o n of a p e r i o d of l a n d this t r e n d n o t only c o n t i n u e d b u t was r e i n f o r c e d after t h e collapse o f t h e C o l d War r e g i m e i n 1989), p a r a d o x i c a l l y r e d u c e d t h e i m p o r t a n c e o f resourceintensive a n d capital-intensive t e c h n o l o g y . As a result, t h e relative influe n c e o f t h e two p a t h s o n t h e d i r e c t i o n o f global e c o n o m i c d e v e l o p m e n t b e c a m e m o r e e q u a l . B y t h e late 1980s, t h e transfer J a p a n e s e technology was no c o n f i n e d to Asia. A p a r t of t h e of t h e American a u t o m o b i l e i n d u s t r y in t h e 1990s c a m e from a c o n s c i o u s a d a p t a t i o n of J a p a n e s e p r o d u c t i o n m e t h o d s (Abo In this m o s t r e c e n t p e r i o d it a p p e a r s t h a t t h e s h e e r diversity o f t h e Asia-Pacific r e g i o n , i n institutional, and t e r m s , h a s offered t h e best o p p o r t u n i t y t o from t h e fusion, e n a b l i n g s u s t a i n a b l e d e v e l o p m e n t on a global

high-speed

growth

The source of energy for the Japanese economy in the immediate post-war p e r i o d was coal, a n d t h e coal a n d steel i n d u s t r i e s were prioritized a s t h e l e a d i n g sectors for n a t i o n a l e c o n o m i c r e h a b i l i t a t i o n . B u t i t s o o n b e c a m e clear t h e d o m e s t i c coal i n d u s t r y c o u l d n o t m e e t g r o w i n g d e m a n d . F o l l o w i n g t h e pre-war p a t t e r n , m o s t oil f i r m s Japan depended heavily o n and T h e shift t o oil b e g a n a r o u n d and

t h e early t h e Ministry International Trade and (MITT) f o r m u l a t e d a new policy for fostering t h e J a p a n e s e oil industiy, in view of t h e vital i m p o r t a n c e o f s e c u r i n g supplies. T h e biggest for 1950s c a m e from t h e steel industiy, b u t after 1960 t h e p o w e r stations b e c a m e t h e m o s t i m p o r t a n t c o n s u m e r s . T h e g r o w t h o f d e m a n d i n t h e t r a n s p o r t s e c t o r a n d t h e p e t r o c h e m i c a l industiy was also s t r o n g (Saito 1990). In 1953 oil a c c o u n t e d for 18 p e r c e n t of total c o n s u m p t i o n . Its s h a r e per cent 1960 a n d to 71 p e r in all of it i m p o r t e d J a p a n ' s d o m e s t i c t r a n s f o r m a t i o n i n t o a n oil-based e c o n o m y involved f u n d a m e n t a l structural c h a n g e s . Pre-war J a p a n e s e industrialization was essentially based on textiles a n d m a c h i n e r y a n d m u c h of this activity was l o c a t e d in rural areas. T h e oil supply e n a b l e d J a p a n to e x p a n d its relatively small material-based s e c t o r a l e a d i n g s e c t o r of t h e e c o n o m y . Major refineries a n d c o m p l e x e s were lished a l o n g t h e Pacific coast, often u s i n g t h e sites of f o r m e r arsenals a n d naval bases. Textile f i r m s d e v e l o p e d m a n - m a d e f i b r e businesses. T h e steel i n d u s t i y invested heavily in large p l a n t s e q u i p p e d with t h e latest logy, shifting r e s o u r c e base from to T h e machinery d e v e l o p e d major new b r a n c h e s for t h e m a n u f a c t u r e o f t r a n s p o r t m a c h i n e r y (tankers, trucks, p a s s e n g e r a n d railway c a r r i a g e s ) , electrical m a c h i n e r y ( b o t h industrial m a c h i n e r y a n d c o n s u m e r electrical g o o d s ) , heavy m a c h i n e r y for t h e c o n s t r u c t i o n i n d u s t i y ) a n d precision for industrial use. T h e s h i p b u i l d i n g a n d s h i p p i n g i n d u s t r i e s were e n c o u r a g e d to build tankers a n d s e c u r e a level of t o n n a g e sufficient to J a p a n ' s n e e d s as well as to e a r n foreign e x c h a n g e . Large p o r t s a n d r e l a t e d facilities were built or r e n o v a t e d n e a r m a j o r cities to m e e t t h e d e m a n d from t h e g r o w t h o f t r a d e . It is a b s u r d to this d e v e l o p m e n t as an a t t e m p t to or c h a l l e n g e t h e U n i t e d States (or t h e Soviet U n i o n for t h a t m a t t e r ) , ignoring t h e f u n d a m e n t a l difference factor e n d o w m e n t s b e t w e e n t h e U n i t e d States a n d J a p a n . It is well k n o w n t h a t t h e and chemical industries lacked a military ( J a p a n ' s aircraft a n d space industries were also w e a k ) . A l t h o u g h m a n y p a r t s of t h e heavy a n d c h e m i c a l i n d u s t r i e s were r e l a t e d t o t h e d e v e l o p m e n t o f infrastructure a n d were capital-intensive, t h e b u l k o f t h e m a c h i n e i y ( i n c l u d i n g s h i p b u i l d i n g a n d automobile manufacturing chemical and industries favoured labour-intensive processes, was these i n d u s t r i e s that eventually b e c a m e i n t e r n a t i o n a l l y c o m p e t i t i v e . T h e J a p a n e s e a u t o m o b i l e industiy, for e x a m p l e , d e v e l o p e d an efficient mass p r o d u c t i o n system, with p r o g r a m m e s of skill f o r m a t i o n a n d a o f s u b c o n t r a c t i n g f i r m s . T h e s e industries a t t e m p t e d t o g o b e y o n d t h e c o n straints of Fordism, a no which p u r s u e d a u t o m a t i o n , scientific labour management of scale in a a n d labour-

East Asian economic development

and Wada In t h e lower layers of t h e h i e r a r c h y of s u b - c o n t r a c t i n g firms t h e r e was a growth of small a n d m e d i u m - s i z e d businesses, which offered t h e bulk of employment. In o t h e r words, t h e fusion of t h e two p a t h s o c c u r r e d , n o t by a t t e m p t i n g a d i r e c t a r t i c u l a t i o n of t h e (originally labour-saving) i m p o r t e d t e c h n o l o g y a n d c h e a p l a b o u r ( t r a i n e d t o r e p l a c e capital) i n any p a r t i c u l a r industry o r factory, b u t t h r o u g h t h e d e v e l o p m e n t o f inter-linked i n d u s t r i e s a n d f i r m s with different factor T h e e x t r e m e s at b o t h e n d s , such as t h e space industry a n d t r a d i t i o n a l c o t t a g e industry, were a b a n d o n e d a n d a b a l a n c e d growth of i n d u s t r i e s in-between was a t t e m p t e d . F i g u r e 3.4 was originally c r e a t e d by N a k a m u r a to d e m o n s t r a t e t h e rationality of t h e g r o w t h of t r a d i t i o n a l industry, a n d that, in fact, the period modern a n d t r a d i t i o n a l industry coexisted a n d r e i n f o r c e d e a c h o t h e r ' s d e v e l o p m e n t . B u t it can also be used to illustrate t h e process of fusion in which different types of i n d u s t r i e s s i m u l t a n e o u s l y linking a n d reinforcing o n e a n o t h e r , d u r i n g the period of high-speed growth. As such linkages f o r m e d , a massive m i g r a t i o n took t h e 1950s a n d T h e p r o p o r t i o n of t h e total lation r o s e from 38 p e r c e n t to 76 p e r c e n t In a d d i t i o n to the for industrial workers, h u g e d e m a n d for l a b o u r was c r e a t e d by t h e p r o c e s s of u r b a n i z a t i o n . T h e e c o n o m y shifted from t h e rural h o u s e h o l d to u r b a n h o u s e h o l d , c o i n c i d i n g with a persistent rise in wages. B u t t h e s t a n d a r d of living d i d n o t rise as fast as n o m i n a l wages, since t h e u r b a n i n f r a s t r u c t u r e was p o o r , a n d living a n d e n v i r o n m e n t a l c o n d i t i o n s w e r e frequently a p p a l l i n g . O n t h e o t h e r h a n d , the government m a d e sure that o v e r h e a d capital, particularly g o o d s a n d p u b l i c t r a n s p o r t , was a b l e t o c o p e with t h e d e m a n d arising from g r o w t h . G o o d c o m m u n i c a t i o n n e t w o r k s also c o n t r i b u t e d to t h e diffusion of mass c o n s u m e r As a result, i n c o m e d i s t r i b u t i o n was k e p t r e m a r k a b l y egalitarian. time was politically to avoid c r e a t i n g a dual of any kind. An was m a d e to r e d u c e r e g i o n a l inequality, while t h e g r o w t h of small a n d m e d i u m - s i z e d businesses was e n c o u r a g e d . W h i l e t h e i n c r e a s e in agricultural ( l a b o u r ) productivity, particularly farming, contributed c o n t a i n i n g t h e rise in imports, m u c h o f t h e n e w u r b a n d e m a n d was a b s o r b e d b y t h e growth o f mass c o n s u m e r goods. r a n g e d from t h e diverse a t t e m p t s t o m i x e l e m e n t s o f W e s t e r n a n d J a p a n e s e food t o t h e d e v e l o p m e n t o f space-saving c o n e l e c t r o n i c s . In o r d e r to m a i n t a i n t h e quality of l a b o u r with reasonable wage costs, it was necessary to form t h e stable u r b a n h o u s e h o l d quickly a n d s m o o t h l y , a n d t h e m a n a g e m e n t o f big business s o u g h t t o respond to n e e d . T h e diffusion o f c o m p a n y h o u s i n g a n d o t h e r

facilities, of p e n s i o n s a n d of as an i d e o h e l p e d to fill t h e g a p c r e a t e d by t h e r a p i d d i s a p p e a r a n c e of t h e rural h o u s e h o l d a n d t h e village Equally i m p o r t a n t was the r a p i d rise t h e level of universal e d u c a t i o n . By t h e e n d of t h e p e r i o d t h e majority of t h e c o r e industrial workforce were r e c r u i t e d from school graduates t h e a g e o f a b o u t 18), r a t h e r t h a n from j u n i o r high s c h o o l g r a d u a t e s (at a b o u t 15). T h e i n v e s t m e n t i n h u m a n capital was n o t c o n f i n e d education. Large corporations a d o p t e d institutions s u c h a s lifetime e m p l o y m e n t , t h e seniority wage a n d t h e e n t e r p r i s e u n i o n , w h i c h suited t h e i r c o m m i t m e n t t o training and their for w o r k e r s . In t h e s e c o n d half of 1960s, t h e wage g a p b e t w e e n white-collar a n d blue-collar e m p l o y e e s narrowed, but what h a p p e n e d was t h a t all w o r k e r s increasingly c a m e t o b e t r e a t e d like salaried white-collar e m p l o y e e s . Culturally a n d institutionally, b o u n d a r i e s b e c a m e very b l u r r e d .

The

fusion

in

East

and

Southeast Asia

C o i n c i d i n g with political splits arising from t h e s u r g e of n a t i o n a l i s m a n d t h e Cold W a r . fierce inter-Asian c o m p e t i t i o n existed t h r o u g h o u t t h e postwar p e r i o d . T u r n i n g to t h e case of t h e c o t t o n textile i n d u s t i y a g a i n , was C h i n e s e c o m p e t i t i o n ( a n d its e x p o r t strategy) t h a t the r a p i d i n c r e a s e of l a b o u r productivity J a p a n e s e i n d u s t i y in t h e 1950s ( S u g i h a r a 1999), a n d S o u t h Korea a n d T a i w a n w e r e competitors t h e m a n - m a d e fibre m a r k e t t h e 1960s. M o r e generally, relatively wage c o m p e t e d well for t h e i r s h a r e in t h e world m a r k e t for textiles, s u n d r i e s a n d m a c h i n e i y , by u s i n g a t e c h n o l o g y similar to t h e m o r e a d v a n c e d c o u n t r i e s . In way, i n d u s t r i a l i z a t i o n to wage c o u n t r i e s , e n c o m p a s s i n g a b r o a d r a n g e of i n d u s t r i e s across East and Southeast As s o o n as wages one rose even fractionally, it h a d to seek a new i n d u s t i y which w o u l d p r o d u c e a h i g h e r quality c o m m o d i t y to survive t h e c o m p e t i t i o n , c r e a t i n g an effect similar to t h e geese p a t t e r n o f e c o n o m i c A t t h e s a m e t i m e , successive e n t r a n c e o f new low wage c o u n t r i e s e n s u r e d t h e l e n g t h e n i n g o f t h e c h a i n of It is this a s p e c t of industrialization, p a r t of t h e e n l a r g e m e n t of t h e East Asian p a t h , t h a t has b e e n r e s p o n s i b l e for t h e i n c r e a s e East s h a r e in world A s for i n c o m e inequality, t h e r e has b e e n a n u n m i s t a k a b l e rising t r e n d i n p e r capita i n c o m e lower t o m i d d l e i n c o m e g r o u p s a m o n g t h e participants the Asian A l t h o u g h super-rich classes e m e r g e d in a n u m b e r of S o u t h e a s t Asian c o u n t r i e s , t h e overall c h a r a c t e r of e c o n o m i c d e v e l o p m e n t was that of egalitarian i n c o m e d i s t r i b u t i o n . Under e n v i r o n m e n t o f r e s o u r c e c o n s t r a i n t s , East a n d S o u t h e a s t Asian c o u n t r i e s invested heavily in h u m a n capital, which yielded a g e n e r a l

East Asian e c o n o m i c d e v e l o p m e n t in l a b o u r productivity. is a t e n d e n c y inequality to i n c r e a s e to a p e a k b e f o r e s t a r t i n g to i m p r o v e as e c o n o m i c d e v e l o p m e n t o c c u r s , t h e p e a k was r e a c h e d in Asia w h e n t h e level of p e r capita i n c o m e was m u c h lower t h a n t h e West. As a result, i n c o m e d i s t r i b u t i o n in East h a s g e n e r a l l y b e e n m o r e egalitarian t h a n i n a d v a n c e d W e s t e r n c o u n tries a t similar stages o f d e v e l o p m e n t ( O s h i m a 1993: C h a p t e r 9 ) . A l t h o u g h like t h e rise i n t h e s t a n d a r d o f lagged b e h i n d d u e t o p o o r u r b a n infrastructure, a of rising e x p e c t a t i o n s in t h e s t a n d a r d of has b e e n set a m o n g t h e majority o f t h e p o p u l a t i o n . A n d , with g r o w t h , e x p e c t a t i o n s a n d living s t a n d a r d s rose m u c h faster t h a n had e a r l i e r i n t h e case o f W e s t e r n p o p u l a t i o n s . Even t h e informal s e c t o r c a m e to look like a of with a small p r o p o r t i o n of p e o p l e a b l e to get o u t o f t h e s l u m t o m o v e u p t h e social l a d d e r . Another is that East Asian c o u n t r i e s w e n t t h r o u g h industrialization with a c o m p a r a t i v e l y level of e n e r g y intensity, b e c a u s e , in t h e stages of i n d u s t r i a l i z a t i o n , t h e r e g i o n i m p o r t e d t h e b u l k of its steel a n d heavy m a c h i n e r y from t h e West, a n d resource-intensive a n d capitalintensive i n d u s t r i e s n e v e r d o m i n a t e d t h e r e g i o n ' s i n d u s t r i a l s t r u c t u r e . was t h e case of t h e wars in Korea a n d V i e t n a m , a n d d e s p i t e the popularity of authoritarianism and the influence of the Soviet m o d e l of heavy a n d c h e m i c a l i n d u s t r i a l i z a t i o n in s o m e c o u n t r i e s . If w e take t h e p e r i o d from t h e 1950s t o t h e 1970s a n d c o m p a r e t h e p e r f o r m a n c e o f Asian c o u n t r i e s , t h o s e c o u n t r i e s that p l a c e d m o r e e m p h a s i s o n heavy a n d c h e m i c a l i n d u s t r i e s o r d i d n o t p r o m o t e a g r i c u l t u r e a n d o t h e r l a b o u r - i n t e n s i v e s e c t o r s of t h e e c o n o m y g e n e r a l l y fared less well t h a n t h o s e t h a t p u r s u e d b a l a n c e d g r o w t h with a m o r e egalitarian profile of i n c o m e d i s t r i b u t i o n ( O s h i m a 1 9 8 7 ) . T h u s T a i w a n i n t h e 1950s a n d 1960s grew faster t h a n S o u t h Korea, a n d C h i n a p l a c e d m o r e e m p h a s i s o n equality a n d e d u c a t i o n t h a n I n d i a , b e t t e r results. T h a i l a n d o u t p e r f o r m e d t h e P h i l i p p i n e s , a n d Malaysia fared b e t t e r t h a n L a n k a in t e r m s of t h e i m p r o v e m e n t s in a g r i c u l t u r a l productivity. As a the growth of East a n d S o u t h e a s t Asia a c q u i r e d a less profile t h a n t h o s e following t h e strategy o r t h e Soviet m o d e l o f e c o n o m i c d e v e l o p m e n t . Clearly, t h e lack o f p r o p e r i n f r a s t r u c t u r e a n d d e p e n d e n c e o n c h e a p l a b o u r was a s o l u t i o n to r e s o u r c e c o n s t r a i n t s with t h e serious consequences of pollution, poor urban health a n d congestion. And, as T a b l e 3.6 suggests, m a n y Asian c o u n t r i e s w e r e still g o i n g t h r o u g h t h e process of u r b a n i z a t i o n in p e r i o d . With t h e e x c e p t i o n of J a p a n , a significant p a r t o f t h e b u i l d i n g u p o f social o v e r h e a d capital has b e e n f i n a n c e d a n d / o r g u i d e d b y foreign T h e East Asian r e g i o n a l e c o n o m y has b e e n c o n d i t i o n e d by t h e d e v e l o p m e n t of a framework of t h e division of l a b o u r , particularly in t h e It w o u l d be w r o n g to a s s u m e t h a t t h e g r o w t h of t r a d e a n d a new

Sugihara

i

T h e rate of

Table 3.6

comparative perspective

Country 77 South K o r e a Malaysia

78 34

52

33

52

Thailand T h e Philippines Indonesia

33

China

29

India

20

Bangladesh

26

8

Britain

34

65

79

European norm

23

45

55

Sources: W o r l d

World

Report ( 9 9 5 , and Crafts et of.

Note T h e rate refers to the urban population as a proportion of total population. As the concept of urban population differs country by country, these figures should be taken as a rough guide. is well known that the Japanese definition too strict (hence the figures are too low) and the C h i n e s e even stricter, the tens of millions of people living and working cities residence permits, confounding comparative analysts.

Asian division o f c o u l d have o c c u r r e d w i t h o u t t h e s i m u l t a n e o u s g r o w t h o f Pacific a n d world t r a d e a n d t h e e n l a r g e m e n t o f the r e s o u r c e base. T h e fusion East a n d S o u t h e a s t Asia was a truly global p h e n o m e n o n .

The

development

of

F r o m t h e first oil crisis of 1973 J a p a n e s e t e c h n o l o g y s h o w e d a distinctive r e s p o n s e to severe r e s o u r c e c o n s t r a i n t s . T h e r e was a c o n c e r t e d effort to diversify e n e r g y s o u r c e s , t h e m o s t i m p o r t a n t of which was an i n c r e a s e d use o f n u c l e a r p o w e r stations. T h e e x p l o i t a t i o n o f L N G (liquefied n a t u r a l gas) also played a part. F u r t h e r m o r e , m o r e use of e n e r g y the a p p l i c a t i o n of h i g h t e c h n o l o g y a n d new m a t e r i a l s b e c a m e a priority. Between and t h e oil intensity, m e a s u r e d by t h e ratio of c o n s u m p t i o n t o G D P , fell b y a b o u t 5 7 p e r c e n t ( H a m a u z u 1990: 5 0 - 1 ) . Overall, e n e r g y intensity, t h e ratio of all e n e r g y c o n s u m p t i o n to G D P , d e c l i n e d substantially. In t e r m s of t h e level of p e r capita e n e r g y intensity, J a p a n d i d far b e t t e r t h a n a d v a n c e d W e s t e r n c o u n t r i e s . T h u s t h e r e was a significant shift from oil-using to energy-saving t e c h n o l o g y in t h e i n d u s t r y , a n d a new industrial s t r u c t u r e was built in t h e 1970s a n d 1980s. T h e relative i m p o r t a n c e of t h e steel, c h e m i c a l , c e m e n t a n d a l u m i n i u m i n d u s t r i e s d e c l i n e d . W i t h i n the m a c h i n e i y sector, t h e t r a n s p o r t m a c h i n e i y a n d heavy m a c h i n e i y sectors

East Asian economic

shrank, t h e electric m a c h i n e r y a n d precision m a c h i n e r y sectors grew. T h e i n d u s t r y shifted m a t e r i a l base t o h a r d e r a n d t h i n n e r steel a s well a s t o plastics a n d o t h e r materials', t h u s m a k i n g cars l i g h t e r a n d m o r e fuel-efficient, while t h e c o n s u m e r electronics i n d u s t r y d e v e l o p e d s m a l l e r a n d l i g h t e r p r o d u c t s . T h e d e v e l o p m e n t o f t h e m a c h i n e tool industry e n a b l e d t h e p r o d u c t i o n process i n t h e s e sectors to b e c o m e less as well. At t h e c o r e of this n e w e c o n o m i c s t r u c t u r e was t h e d e v e l o p m e n t of t h e e l e c t r o n i c s industry. T h e c o m p u t e r , s e m i - c o n d u c t o r , t e l e c o m m u n i c a t i o n s e q u i p m e n t and general p a r t s sectors i n t e r a c t e d with o n e a n o t h e r , r e s u l t i n g in t h e c r e a t i o n of a s o p h i s t i c a t e d c o m m u n i c a t i o n s n e t w o r k t o which m a n y m a n u f a c t u r i n g i n d u s t r i e s c o u l d link t h e i r p r o d ucts a n d services. T h e d y n a m i c growth of t h e service sector, n o t just in banking and distribution but software i n d u s t r y as well as in m e d i c i n e , e d u c a t i o n a n d m a n a g e m e n t c o n s u l t i n g , was also partly d e p e n d e n t o n this e n v i r o n m e n t . A l t h o u g h t h e e l e c t r o n i c s i n d u s t r y was n e i t h e r l a r g e in n o r always i n t e r n a t i o n a l l y c o m p e t i t i v e , it p r o v i d e d o t h e r i n d u s t r i e s with b o t h vital t e c h n o l o g y a n d a n i n f o r m a t i o n a l infrastructure. This application of the electronics new a n d knowl e d g e to o t h e r m a n u f a c t u r e d g o o d s played a significant p a r t enhancing t h e i n t e r n a t i o n a l c o m p e t i t i v e n e s s o f J a p a n e s e industry. E x p o r t s o f a u t o m o b i l e a n d c o n s u m e r e l e c t r o n i c s t o t h e U n i t e d States a n d t h e rest o f t h e world grew d e s p i t e t h e a p p r e c i a t i o n of t h e yen from 198(5. T h e s t r o n g yen adversely affected e x p o r t i n d u s t r i e s , b u t also l o w e r e d t h e price of yen t e r m s . Equally i m p o r t a n t this c o n t e x t was t h e survival of J a p a n e s e oil-using i n d u s t r i e s . T h e steel a n d s h i p b u i l d i n g i n d u s t r i e s a t t e m p t e d a r e d u c t i o n in e n e r g y c o n s u m p t i o n as as a diversification i n t o n e w f i e l d s o n t h e i r own initiative ( H a s h i m o t o 1 9 9 1 : 7 1 - 1 4 3 ) . T h e y t o u g h c o m p e t i t i o n from o t h e r Asian c o u n t r i e s by a c h i e v i n g p r o ductivity increases, partly t h r o u g h t h e a p p l i c a t i o n of h i g h t e c h n o l o g y to t h e p r o d u c t i o n process. In o t h e r words, t h e p a t h did n o t fully c o n v e r g e with t h e W e s t e r n p a t h , which h a d a m u c h h i g h e r level o f e n e r g y intensity. T h e J a p a n e s e level o f e n e r g y c o n s u m p t i o n p e r capita p e r G D P r e m a i n e d a m o n g t h e lowest i n a d v a n c e d c o u n t r i e s , a n d stayed a t a b o u t half t h e A m e r i c a n level, in spite of t h e steady i m p r o v e m e n t in e n e r g y effiRather than finding new s o u r c e s o r f i n a n c i n g new t e c h n o logy which w o u l d r e q u i r e i n p u t s o f a d d i t i o n a l resources, J a p a n e s e efforts were c o n c e n t r a t e d on d e v e l o p i n g n e w industrial linkages within t h e m a c h i n e r y sector, in t h e c o n t e x t of severely c o n s t r a i n e d factor e n d o w m e n t s ( H a s h i m o t o 1996). Of c o u r s e , as J a p a n e s e wages in d o l l a r t e r m s rose q u i t e r a p i d l y d u r i n g this p e r i o d , labour-saving t e c h n o l o g y a d v a n c e d , a n d t h e s i m p l e r types o f w o r k w e r e r e p l a c e d b y r o b o t s o r transferred t o

countries. More importantly, Japanese industries ( a n d society at large) to increase productivity, n o t by d e p l o y i n g m o r e capital a n d r e s o u r c e s , b u t t h r o u g h t h e m o r e efficient use of l a b o u r manufacturing and i n d u s t r i e s . It these areas t h a t t h e r e c e n t transfer of J a p a n e s e to t h e rest of t h e world has b e e n t a k i n g place. F u r t h e r m o r e , by t h e these t e n d e n c i e s c a m e to be widely s h a r e d by o t h e r r e s o u r c e - p o o r Asian c o u n t r i e s a n d city slates, i n c l u d i n g Taiwan a n d S o u t h of mechanical a n d e l e c t r o n i c s h e l p e d t h e m t o build m a c h i n e i y i n d u s t r i e s ( Z h o u 1997). Of c o u r s e , t h e r e r e m a i n s a h u g e g a p b e t w e e n t h e frontline t e c h n o l o g y a n d t h e reality of East Asian e c o n o m i e s , and s o m e respects t h e g a p may well be w i d e n i n g r e c e n t years. But innovative c o r e of East Asian t e c h n o l o g y r e m a i n s firmly the resource-saving t r a d i t i o n of t h e East Asian p a t h . T o s o m e e x t e n t , t h e r e s u r g e n c e o f t h e East Asian p a t h was r e i n f o r c e d by t h e c h a n g e s in t h e n a t u r e of t h e i n t e r n a t i o n a l division of l a b o u r itself. Between 1974 a n d 1985 J a p a n d e v e l o p e d a h u g e t r a d e all t h e o i l - p r o d u c i n g c o u n t r i e s , especially of t h e M i d d l e East, a n d settled an equally large t r a d e s u r p l u s with t h e rest of t h e world, especially advanced Western Faced with s t r o n g c o m p e t i t i o n from J a p a n a n d o t h e r East Asian c o u n t r i e s the international automobile a n d cons u m e r e l e c t r o n i c s m a r k e t s , t h e U n i t e d States a n d W e s t e r n E u r o p e were inclined t o focus o n e x p o r t i n g a r m s a n d military-related e q u i p m e n t , especially to t h e M i d d l e East. consisting Japanese imports of oil from t h e M i d d l e East, W e s t e r n i m p o r t s of J a p a n e s e m a n u f a c t u r e d g o o d s a n d M i d d l e Eastern i m p o r t s o f W e s t e r n a r m s , c o n s t i t u t e d t h e largest single p a t t e r n of trade settlement this p e r i o d (Sugih a r a 1993). d e v e l o p m e n t r e i n f o r c e d t h e new i n t e r n a t i o n a l division of labour where the specialized military-related t e c h n o l o g y a n d J a p a n specialized h i g h - t e c h n o l o g y mass c o n s u m e r g o o d s , m a i n t a i n i n g t h e difference in t h e level of energy intensity, particularly between t h e U n i t e d States a n d J a p a n . W h i l e East d e p e n d e d critically o n t h e U n i t e d States for t h e r e g i o n ' s security, A m e r i c a n h e g e m o n y in t u r n d e p e n d e d increasingly o n ability t o m o n i t o r t h e c h a n g i n g intern a t i o n a l division of l a b o u r , as East s share global m a n u f a c t u r i n g o u t p u t increased. This explains the t r a d e conflict, o n t h e face of it no m o r e t h a n a bilateral t r a d e i m b a l a n c e , b e c a m e an issue of global significance.

Conciusion I n t h e s t a n d a r d l i t e r a t u r e o n t h e evolution o f t h e m o d e r n world system, industrialization is u n d e r s t o o d to have e m a n a t e d from Western E u r o p e a n d s p r e a d to t h e rest of t h e world, a n d all industrialization simply

East Asian e c o n o m i c d e v e l o p m e n t taken as a of t e c h n o l o g i c a l diffusion. In c h a p t e r , we l o o k e d at the East Asian a n d a r g u e d t h a t in fact t h e r e were two p a t h s of e c o n o m i c d e v e l o p m e n t , t h e industrial revolution p a t h , which started Western E u r o p e , a n d the industrious revolution path, which developed in East Asia. F r o m this p e r s p e c t i v e , global d e v e l o p m e n t c o n s i s t e d of t h r e e p h a s e s . In t h e first p e r i o d , from a b o u t 1500 to 1820, t h e two p a t h s d e v e l o p e d i n d e pendently of each other, but broadly similar results. T h e r e were significant c o n n e c t i o n s b e t w e e n t h e s e r e g i o n s , for e x a m p l e , t h r o u g h world silver b u t they d i d n o t result in t h e c o n v e r g e n c e of t h e two p a t h s . We have e m p h a s i z e d t h e fact that t h e East Asian p a t h was m o r e successful in m a i n t a i n i n g t h e r e g i o n ' s large s h a r e world G D P , as it was able to i n c r e a s e t h e size of p o p u l a t i o n t h r o u g h t h e d e v e l o p m e n t of c h a r a c teristically l a b o u r - i n t e n s i v e t e c h n o l o g y a n d l a b o u r - a b s o r b i n g C o r e r e g i o n s o f East n o t a b l y J a p a n a n d coastal C h i n a , the West in p e r capita G D P as well. T h e s e c o n d p h a s e was by British industrialization, during the first half of t h e n i n e t e e n t h and is a c c e p t e d that s p r e a d principally to E u r o p e a n d t h e r e g i o n s of r e c e n t E u r o p e a n settlement. is a based on t h e growth of t h e Atlantic e c o n o m y . In particular, t h e growth of t h e US e c o n o m y b r o u g h t Western t e c h n o l o g y to a n e w h e i g h t , e x p l o i t i n g a b u n d a n t resources, e c o n o m i e s of scale a n d a liberal o r d e r backed by military t e c h n o l o g y . In fact, we suggest, t h e r e were two r o u t e s of global industrialization, o n e r e p r e s e n t e d by t h e A m e r i c a n e x p e r i e n c e which d e v e l o p e d a n d resourceintensive technology, the o t h e r r e p r e s e n t e d by t h e East Asian e x p e r i e n c e which d e v e l o p e d a n d resource-saving technology. T h e West E u r o p e a n variety o f industrialization not spread into world in original f o r m , as t h e ratio was very different t h e r e , a n d t h e s t r a i g h t f o r w a r d i n t r o d u c t i o n o f W e s t e r n logy p r o v e d t o b e p r o b l e m a t i c . T h u s J a p a n , a s well a s C h i n a a n d K o r e a , p u r s u e d a n a l t e r n a t i v e p a t t e r n o f i n d u s t r i a l i z a t i o n , with g r e a t e r l a b o u r i n p u t s relative to we call labour-intensive i n d u s t r i a l i z a t i o n . B e g i n n i n g in t h e created a r a n g e of m o d e r n Asian industrial g o o d s s u c h a s c h e a p c o t t o n textiles a n d n o o d l e - m a k i n g m a c h i n e s , t o a c c o m m o d a t e Asian c u l t u r a l n e e d s . J a p a n also reactivated t r a d i t i o n a l Asian local w h i c h eventually e m e r g e d as m o d e r n c o r p o r a t i o n s c o m m i t t e d t o raising t h e quality o f During the first half of t h e twentieth o t h e r East Asian c o u n t r i e s followed despite an increase l a n d productivity, a n d t h e g r o w t h o f labour-intensive industries, d u r i n g second phase of developm e n t East l a b o u r productivity l a g g e d b e h i n d t h a t o f t h e West, a n d t h e l e g i o n s s h a r e i n world G D P d e c r e a s e d . I n t h e s e c o n d half o f t h e t w e n t i e t h Japan heavy a n d

chemical industrialization, a n d acquired level o f W e s t e r n r e t a i n i n g t h e East Asian institutional framework, w h i c h permitted a m o r e thorough exploitation of h u m a n resources than had b e e n possible following t h e A m e r i c a n p a t h . By this t i m e t h e mass cons u m e r g o o d s J a p a n p r o d u c e d (small cars a n d fax for e x a m p l e ) were no l o n g e r t a r g e t e d at Asian cultural n e e d s a l o n e . It was n o t t h e i n d u s t r i a l revolution i n Britain o r t h e technological a d v a n c e a l o n e , b u t t h e fusion s u c h t e c h n o l o g y a n d East Asian h u m a n r e s o u r c e e x p l o i t a t i o n that p r o d u c e d t h e r a t e o f econ o m i c g r o w t h in East Asia. fusion did n o t o c c u r easily. A l t h o u g h a n d c h e m i c a l industrialization b e g a n b e f o r e t h e S e c o n d W o r l d War, was n o t u n t i l full i n t e r a c t i o n b e t w e e n t h e two p a t h s o c c u r r e d across t h e Asia-Pacific region. fusion t u r n e d o u t t o b e m u c h m o r e powerful t h a n t h e develo p m e n t of involving d e e p e r clashes a n d articulations of a n d institutions. I t r e p r e s e n t s t h e t h i r d p h a s e of global d e v e l o p m e n t . Strictly s p e a k i n g , t h e t h r e e phases sketched above a r e n e i t h e r mutually exclusive n o r geographically s e p a r a t e . T h e two p a t h s b o t h a t t e m p t to utilize capital a n d l a b o u r efficiently, a n d c r e a t e institutions t o d o so. D e p e n d i n g o n ecological a n d cultural e n d o w m e n t s , different institutions a r e c r e a t e d a t different times in different places, a n d they set the p a t t e r n a n d p a c e of econ o m i c g r o w t h . W h a t has n o t b e e n well r e c o g n i z e d is that t h e g r e a t e r the difference in the n a t u r e of t h e two paths, t h e g r e a t e r t h e for growth. T h e different technological p a t h s followed by E u r o p e ( a n d its offshoots) a n d East between 1500 a n d 1945 c r e a t e d best o p p o r t u n i t y for explosive especially t h e Asia-Pacific region. development of the p h a s e h a s h a d major i m p l i c a t i o n s for global histoiy. First, it suggests t h e possibility of a m o v e to e n d w o r s e n i n g global i n c o m e inequality. T h e possibility o f labour-intensive tion is n o w a o n e for t h e of d e v e l o p i n g c o u n t r i e s . If t h e was a m i r a c l e of p r o d u c t i o n which initiated t h e transf o r m a t i o n of t h e world e c o n o m y , t h e Asian has been a miracle of which b r o u g h t t h e benefits o f global industrializat i o n t o t h e majority o f t h e population. Second, the resurgence of t h e East Asian p a t h has c o n t r i b u t e d to t h e diffusion of industrialization by retaining and energy-saving I n spite o f t h e rising c o n c e r n a b o u t e n v i r o n m e n t a l d e s t r u c t i o n as a result of t h e diffusion of and very level of e n e r g y c o n s u m p t i o n a d v a n c e d c o u n t r i e s , few would a r g u e for a c o m p l e t e halt of this process. T h e only way to m a k e global industrialization possible is a f u r t h e r improvement e n e r g y efficiency on a global scale. o r d e r to allow t h e m i r a c l e o f d i s t r i b u t i o n t o c o n t i n u e , t h e W e s t e r n p a t h m u s t c o n v e r g e with t h e East Asian n o t t h e o t h e r way r o u n d .

East Asian economic development

Acknowledgements This was originally p r e s e n t e d a t t h e c o n f e r e n c e Rise o f East Asia: 50, 150 a n d 5 0 0 y e a r on 27-29 1998, a t t h e C h i n e s e University o f H o n g K o n g , a n d was f u r t h e r discussed a t t h e followup conference J o h n s H o p k i n s University o n D e c e m b e r 1999. I a m grateful to t h e o r g a n i z e r s a n d of t h e s e c o n f e r e n c e s , as well as lo Austin, M a r k Elvin, Yukio I k e m o t o , A l a n Angus Patrick O ' B r i e n a n d Saito, for t h e i r useful I have b e e n t o r e s p o n d t o t h e i r c o m m e n t s a n d criticisms only at a superficial level. N o n e of t h e m s h o u l d be a c c u s e d of n o t p o i n t i n g o u t t h e factual e r r o r s o r m i s s i n g r e f e r e n c e s t h a t r e m a i n .

Notes 1

of the fact that most regions of E u r o p e failed to initiate the industrial (Pollard Even so, they have h a d a g r e a t e r c h a n c e t h a n their East Asian c o u n t e r p a r t s in o n e , if exploited there, the on a n d labourabsorbing was that weaker. 2 Although that capital accumulation the scientific were both c o n d i t i o n s for industrial does not sec East a n d Western E u r o p e before 1800, argues that, far the Maithusian t r a p , Western E u r o p e was h e a d i n g towards of growth, d i m i n i s h i n g r e t u r n s land a n d the t e n d e n c y towards labourintensive way as h a d b e e n . T h u s the could only be rescued by the factors and New W o r l d ) . I substantially a g r e e with but to retain my e m p h a s i s on the ant differences in m a n - l a n d ratio core of Easl and those Western E u r o p e before 1800 tsee 2000: for his comm e n t s on my core regions of Western E u r o p e never e x p e r i e n c e d the type of land scarcity seen in Japan, and was in Japan, not Europe, productivity rose the e x t r e m e a n d the p e r c e p t i o n of work was most around technology 1997). It is as to formulate t h e of the industrious revolution on of the typical East (Japanese) as formulate the c o n c e p t of the industrial revolution on the basis of the typical E u r o p e a n (English) e x p e r i e n c e . surely possible plot the a of the e x p e r i e n c e with on see 1993. and East Asian e x p e r i e n c e of capital (sec P o m e r a n z 2000: C h a p t e r 4) in the comparative perspective suggested by (see also W o n g gences in Japan a n d E n g l a n d in this chapter. Pomeranz 4, volume) observes a similar p a t t e r n e m e r g i n g in the region of China. 3 It likely that the s h a p e of global curves for the p e r i o d from 1500 a n d 1820, if they could be drawn would look m o r e that in 1950 or

a

Sugihara

even in 1870,

a m o u n t of global s u r p l u s over a n d above East Asian societies in earlier period looked m o r e egalitarian. If is t h e case, t h e post-war Asian was a correction of on a scale, arising from 4 If P o m e r a n z correct in suggesting that t h e industrial was unlikely to occur anywhere in world without p r e s e n c e of c o n t i n g e n t factors, can expressed regard fusion of two On the face of it, when world lo allocated trade a n d t h e p r e s s u r e on land eased, East could have converged as theory In practice, however, t h e p o p u lation of East Asia a n d t h e of world was so large that it would have impossible to raise of living lo Western level, given t h e level of a n d available world resources. In any case, was so biased towards resource-intensive a n d technology that it was ill-suited to t h e n e e d s of d e v e l o p i n g c o u n t r i e s . But to lower s t a n d a r d s of living for a m o r e work! would have politically u n a c c e p t a b l e (o p o p u l a t i o n of advanced countries. T h u s , a m u c h m o r e likely s c e n a r i o would b e e n t h e persistence of t h e divide, a n d continued for a g r e a t e r s h a r e of i n c o m e a n d resources a m o n g nations, l e a d i n g a n d political tension. Fusion only took place because of t h e p r e s e n c e of two highly factors; War regime a which allowed growth, a n d the J a p a n e s e lo achieve tion using t h e fewest was an instinctive lo consequences War.

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Pomeranz

Scholars of differences East Asian a n d W e s t e r n E u r o p e a n d e v e l o p m e n t have often focused o n family s t r u c t u r e a n d g e n d e r roles. T h e e a r l i e r l i t e r a t u r e , d a t i n g hack a t least t o t h e ninet e e n t h c e n t u r y classics of W e s t e r n social theory, a r g u e d t h a t psychological differences c a u s e d p a r t by kinship o r g a n i z a t i o n i n h i b i t e d capitalist development Asia. T h e s e t h e o r i e s have now b e e n largely d i s c a r d e d , u n d e r m i n e d by b o t h t h e success of various East Asian e c o n o m i e s since t h e 1960s a n d a g r o w i n g historical l i t e r a t u r e s h o w i n g how various n o n W e s t e r n ideas c o u l d as functional of t h e " P r o t e s t a n t ethic." M o r e recently, scholars perfectly willing to c o n c e d e that East Asian h o u s e h o l d s s o u g h t e c o n o m i c a d v a n c e m e n t have shifted t h e g r o u n d s o f discussion, a r g u i n g that East Asian family s t r u c t u r e s powerfully i n f l u e n c e d t h e ways in which families d e p l o y e d t h e i r l a b o r - especially female l a b o r and these patterns t u r n h e l p explain t h e e c o n o m i c d i v e r g e n c e o f these two r e g i o n s over t h e past 200 years, a n d (to a lesser e x t e n t ) t h e p r o m i n e n t r o l e of low-wage female l a b o r in m u c h of C h i n a , T a i w a n , Korea ( a n d for s o m e S o u t h e a s t Asia as well) For reasons that b e c o m e c l e a r below, m o s t of this l i t e r a t u r e has focused on C h i n a ; a n d m o s t has c o m b i n e d , in a set of about Chinese c u l t u r e in p a r t i c u l a r a set of a r g u m e n t s a b o u t t h e s u p p o s e d characteristics o f p e a s a n t h o u s e h o l d s general. And to o n e degree or a n o t h e r , all c o m p a r e East Asia with an " W e s t e r n " ideal type d r a w n largely from t h e h o u s e h o l d e c o n o m i c s of Gary B e c k e r ( 1 9 8 1 ) , rather than t h e increasingly rich l i t e r a t u r e o n t h e c h a n g i n g historical p a t t e r n s of family labor allocation in they l e n d to c o n t r a s t a E u r o p e which was - for b e l t e r or worse - relatively "liberal" t h e ways that it t h r u s t b o t h m e n a n d w o m e n i n t o t h e m a r k e t with a C h i n a a n d J a p a n that were so. But a closer e x a m i n a t i o n will s h o w t h a t this dichotomy does not hold well.

w o r k , family, d e v e l o p m e n t M e a n w h i l e , at s o m e social scientists m o r e i n t e r e s t e d in t h e role c o n t e m p o r a r y East Asian d e v e l o p m e n t have b e e n d r a w n cisely t o this historical l i t e r a t u r e o n early m o d e r n E u r o p e (which, for o u r p u r p o s e s , m i g h t b e t t e r b e t h o u g h t o f a s "late a n d see s t r o n g similarities b e t w e e n these two cases - albeit years W c a r e c o n f r o n t e d , t h e n , with b o t h m o d e l s o f e n d u r i n g difference a n d models of a n d / o r convergence. chapter questions arguments that o n stable cultural differe n c e s (or even to explain economic divergence on the o n e h a n d , a n d claims for e i t h e r l o n g - r u n c o n v e r g e n c e o r a c o m m o n set o f stages, o n t h e o t h e r . I n s t e a d i t e m p h a s i z e s t h e flexibility o f e c o n o m i c a l l y r e l e v a n t g e n d e r roles b o t h E u r o p e a n d East while also a r g u i n g that e c o n o m i c d e v e l o p m e n t is p a t h - d e p e n d e n t t h a t cultural differences as they exist at any o n e m o m e n t can have a lasting i m p a c t . Differences in g e n d e r n o r m s d u r i n g the seventeenth to twentieth centuries d i d m a t t e r , b u t n o t necessarily in t h e ways cited in t h e l i t e r a t u r e . Very crudely, I e m p h a s i z e t h r e e p a t t e r n s - o n e from E u r o p e , o n e from C h i n a , a n d o n e from J a p a n while a c k n o w l e d g i n g t h a t t h e of all t h r e e places is far m o r e a n d varied. ( O t h e r p a r t s of East Asia a r c o m i t t e d b o t h for brevity a n d b e c a u s e o f m y limited k n o w l e d g e . ) M y e m p h a s i s i n e a c h case will b e o n relatively a d v a n c e d " c o r e " r e g i o n s . T h e s e patterns are: 1

A W e s t e r n E u r o p e a n p a t t e r n in w h i c h t h e r e was little f e r e n c e i n t h e g e o g r a p h i c mobility o f m e n a n d w o m e n , a n d which t h e vast o f w o m e n w o r k e d , b o t h for t h e m a r k e t a n d i n p r o d u c t i o n for d o m e s t i c u s e , b u t which from t h e late eighteenth through the c e n t u r y ) families were e n c o u r a g e d to seek a s i t u a t i o n in w h i c h w o m e n ( a n d c h i l d r e n ) d i d n o t work for t h e market.

2

A C h i n e s e p a t t e r n in w h i c h it was c o n t i n u a l l y e x p e c t e d t h a t w o m e n would p r o d u c e t h e m a r k e t , as well as for d o m e s t i c u s e , a n d this was viewed as d e s i r a b l e as well as necessary. H o w e v e r , different types of labor were g e n d e r e d as (e.g. p l o u g h i n g ) o r female (e.g. rice t r a n s p l a n t i n g o r the extent to which househ o l d s c o n f o r m e d t o t h o s e p r e f e r e n c e s v a r i e d d r a m a t i c a l l y across t i m e , s p a c e , a n d class, a n d s o m e o f t h e p r e f e r e n c e s themselves varied across a n d space. M e a n w h i l e , t h e r e were also very significant differences t h e g e o g r a p h i c mobility o f m e n a n d w o m e n : differences w h i c h m a y b e e r o d i n g n o w , b u t h a v e p r o v e d q u i t e d u r a b l e a n d fairly c o n s i s t e n t across r e g i o n s . A J a p a n e s e p a t t e r n , in w h i c h t h e idea of w o m e n p r o d u c i n g only for d o m e s t i c c o n s u m p t i o n existed, b u t was far less influential t h a n in Europe t h e t w e n t i e t h c e n t u i y ) , while ideas a b o u t of

3

Kenneth Pomeranz m a r k e t - o r i e n t e d work t h o u g h t t o b e "womanly" a n d c o m p a t i b l e with n u r t u r i n g o n e ' s h u s b a n d a n d c h i l d r e n were often q u i t e i m p o r t a n t ; a n d in which g e o g r a p h i c mobility g e n e r a l l y m a t t e r e d far less t h a n China. All t h r e e of these cases, however, involved p a t t e r n s of d e v e l o p m e n t a n d change, rather than fixed notions relationship between domestic life a n d p r o d u c t i o n for t h e t h r e e have, at various junctures, facilitated capital a c c u m u l a t i o n by a p p r o p r i a t i n g a particularly large s h a r e o f t h e p r o d u c t p r o d u c e d b y w o m e n ; a n d all t h r e e h a v e , a t various both p r o m o t e d and interfered the of goods, services, a n d factors o f p r o d u c t i o n . B u t they have n o t d o n e s o i n t h e s a m e ways, a n d i m p o r t a n t differences r e m a i n . W h i l e J a p a n e s e a n d W e s t e r n European patterns have to a significant d e g r e e in t h e t w e n t i e t h significant differences r e m a i n , a n d C h i n e s e p a t t e r n s r e m a i n very different from e i t h e r o f t h e o t h e r s . Analogies b e t w e e n C h i n e s e p a t t e r n s and those in earlier periods of E u r o p e a n or Japanese development are sometimes illuminating, but m o r e by highlighting of those o t h e r pasts t h a n by a t e m p l a t e or m o d e l t h a t we can see C h i n a now moving through.

S o m e general background: regions and patterns of economic change c h a p t e r takes as its b a c k d r o p a revisionist a c c o u n t of t h e o r i g i n s of m o d e r n e c o n o m i c g r o w t h t h a t I d e v e l o p at l e n g t h in a r e c e n t b o o k : in many, b u t n o t ways, t h a t a c c o u n t dovetails with t h e a r g u m e n t p r e s e n t e d by Professor S u g i h a r a in C h a p t e r 3, in this v o l u m e . Like I a r g u e t h a t m u c h of East Asia c o n s i s t e d of a loosely linked set of heavily commercialized the most advanced core regions of which were q u i t e c o m p a r a b l e to t h e m o s t a d v a n c e d a r e a s in E u r o p e . I establish r o u g h c o m p a r a b i l i t y b e t w e e n these c o r e s as late as in life e x p e c t a n c y , levels o f t h e efficiency o f p r o d u c t a n d factor m a r k e t s , a n d the d e g r e e t o which m a r k e t d y n a m i c s s h a p e d t h e strategies o f h o u s e h o l d s . P e r h a p s m o s t surprisingly, 1 find that, d e s p i t e t h e i r dense populations, East Asian c o r e s were no worse off ecologically t h a n W e s t e r n E u r o p e a n o n e s i n t h e s i x t e e n t h t o e i g h t e e n t h c e n t u r i e s : i.e. b o t h e n d s o f Eurasia faced e n v i r o n m e n t a l c h a l l e n g e s to t h e i r ability to c o n t i n u e supp o r t i n g p o p u l a t i o n growth w i t h o u t a d e c l i n e in s t a n d a r d s of living, b u t t h e p r o b l e m s o f East Asian c o r e s were n o t necessarily m o r e i n t r a c t a b l e t h a n t h o s e faced by t h e i r E u r o p e a n c o u n t e r p a r t s at t h a t time. T h e E a s t - W e s t d i v e r g e n c e that followed, I w o u l d a r g u e , s t e m m e d largely from (a) a series of d i s c o n t i n u o u s t e c h n o l o g i c a l in N o r t h w e s t E u r o p e ( a b o u t w h i c h few w o u l d a r g u e ) a n d (b) a set of favorable r e s o u r c e

w o r k , family, d e v e l o p m e n t shocks t h a t allowed E u r o p e a n t e c h n o l o g y a n d i n v e s t m e n t t o in labor-saving, l a n d a n d e n e r g y - g o b b l i n g d i r e c t i o n s a t t h e very m o m e n t when the of r e s o u r c e p r e s s u r e s previously s h a r e d by all c o r e r e g i o n s w e r e f o r c i n g East Asian a l o n g ever m o r e resource-saving, l a b o r - a b s o r b i n g p a t h s . T h e s e w e r e p a t h s w h i c h E u r o p e too, had to travel, a n d w o u l d to follow w i t h o u t c o m b i n a t i o n o f d r a m a t i c shifts i n b o t h a n d accessible r e s o u r c e s . (It is w o r t h e m p h a s i z i n g , t h o u g h , as S u g i h a r a d o c s in his c h a p t e r , that E u r o p e h a d n o t yet g o n e n e a r l y as far in this d i r e c t i o n as s o m e parts of East t h u s t h e r e was a r a t h e r large d i f f e r e n c e relative factor e n d o w m e n t s b e t w e e n East a n d o n t h e eve o f i n d u s t r i a l i z a t i o n , w h i c h b e c a m e m u c h l a r g e r still as parts of E u r o p e a d o p t e d highly m e t h o d s o f p r o d u c t i o n b e f o r e t h e r e was m u c h m e c h a n i z a t i o n in East Asia. It o n l y in t h e t w e n t i e t h that the gap has closed to any significant d e g r e e ) . O n e o f t h e favorable r e s o u r c e s h o c k s t h a t allowed E u r o p e a n diverg e n c e involved t h e shift to fossil fuels (partly a p r o d u c t of f o r t u n a t e g e o g r a p h y ) , w h i c h greatly relieved p r e s s u r e o n ecologically crucial forest a c r e a g e a n d o n l i m b e r s u p p l i e s . A n o t h e r , w h i c h I discuss i n m o r e detail, c o n c e r n e d relations between core a n d peripheral regions t h e Atlantic world w h i c h differed in crucial ways from t h o s e cores and peripherics East Asia (e.g. b e t w e e n t h e Lower and i n t e r i o r r e g i o n s t h a t sold i t and P e c u l i a r global c o n j u n c t u r e s m a d e t h e A m e r i c a s a g r e a t e r s o u r c e of n e e d e d p r i m a p r o d u c t s t h a n any O l d W o r l d p e r i p h e r y : this allowed N o r t h w e s t e r n E u r o p e t o grow d r a m a t i cally in p o p u l a t i o n , specialize f u r t h e r in m a n u f a c t u r e s , a n d r e m o v e l a b o r from t h e l a n d , u s i n g i n c r e a s e d i m p o r t s r a t h e r t h a n m a x i m i z i n g yields. in East Asia, various h i n t e r l a n d s b o o m e d after 1750, b o t h population and t h e i r own h a n d i c r a f t m a n u f a c t u r i n g . T h i s r e d u c e d p r i m a r y p r o d ucts e x p o r t s t o c o r e r e g i o n s : t h e i r g r o w t h essentially s t o p p e d , while l a b o r a n d capital were r e d e p l o y e d o u t o f m a n u f a c t u r i n g t o m a n a g e l a n d a n d m o r e intensively. It t o o k fossil fuels, N e w W o r l d r e s o u r c e s a n d t h e N e w W o r l d a s a n o u t l e t for m i g r a n t s of whom then produced p r i m a r y p r o d u c t s for e x p o r t ) t o m o v e N o r t h w e s t E u r o p e o n t o a c o m pletely n e w d e v e l o p m e n t p a t h , a n d avert a n ecological d e sac like t h e Yangzi I recap argument here not b e c a u s e it i n f o r m s m a n y of t h e claims m a d e below, b u t b e c a u s e it s h a p e s t h e way in which t h e East Asian " r e g i o n " is t r e a t e d For t h e m o s t p a r t , this will n o t be an a r g u m e n t a b o u t e i t h e r East Asia or E u r o p e as a but about a of c o r e r e g i o n s in e a c h a r e a (above all t h e Yangzi Delta a n d E n g l a n d ) , which have e c o n o m i c a l l y i m p o r t a n t r e l a t i o n s with a shifting set of h i n t e r l a n d s ; l a r g e r r e g i o n s a r e t r e a t e d as artifacts, n o t facts, with a c o h e r e n c e comes and goes o v e r In fact, o n e a r g u m e n t t h a t will be stressed r e p e a t e d l y

Kenneth Pomeranz

below t h e f u r t h e r articulation of a g e n d e r division of both a n d J a p a n has b e e n a n to the further m e n t o f g r e a t e r regional across East or within t h e unified r e a l m o f C h i n a ; a t times d u r i n g t h e past 250 years, a f u r t h e r e l a b o r a t i o n of t h e g e n d e r division of l a b o r w i t h i n c e r t a i n C h i n e s e r e g i o n s has, in fact, b e e n c o n n e c t e d a t r e n d toward g r e a t e r regional e a r l i e r p a t t e r n s of interregional quite the E u r o p e a n / A t l a n t i c world. T h e r e extensive i n t e r - d e p e n d e n c e , a s m e a s u r e d by long-distance t r a d e in staples, actually d e v e l o p e d r a t h e r but once d i d , we n e v e r see any substantial reversion toward r e g i o n a l a u t a r c h y . ) B u t in spite of these limits on t h e usefulness of "East Asia" as a t e r m to denote a integrated t h e r e clearly was s o m e i m p o r t a n t e x c h a n g e - b o t h e c o n o m i c a n d cultural - a n d 1 do s e e s o m e s h a r e d characteristics w h i c h l o n g as we r e m e m b e r to c o m p a r e cores cores a n d p e r i p h e r i e s with p e r i p h e r i e s ) at least times give d e v e l o p m e n t a distinct cast. In e l a b o r a t i n g t h e s e p a t t e r n s , I s h a r e with t h e o t h e r a u t h o r s of v o l u m e a d e s i r e to avoid t r e a t i n g East Asia as a deviation from Western development, whether family g e n d e r roles, or a n y t h i n g it s e e m s m o r e useful to t h e r e g i o n as e m b o d y i n g a n o t h e r d e v e l o p m e n t p a t h that has also c r e a t e d significant successes, a n d w h i c h has e n o u g h similarities a n d with p e a n d e v e l o p m e n t t h a t e a c h can b e used t o i l l u m i n a t e t h e of t h e o t h e r within a m o r e g e n e r a l family of intensely c o m m e r c i a l i z e d economic

The literature Perhaps the most a c c o u n t o f h o w g e n d e r roles have s h a p e d Chinese economic development t h a t o f Philip H u a n g . C e n t r a l t o argument t h e n o t i o n that d u e t o "cultural c o n s t r a i n t s , " w o m e n were a l m o s t totally e x c l u d e d from l a b o r o u t s i d e t h e These constraints families t o treat labor the h o m e as costless, a n d since t h e w o m e n h a d to be fed anyway, it marie s e n s e to k e e p t h e m w o r k i n g within t h e h o m e as l o n g as t h a t l a b o r p r o d u c e d in p r o d u c t s to be sold or items for d o m e s t i c use could stitute for p u r c h a s e s ) , even if t h e wage rate p e r h o u r fell far below subsistence. T h u s , H u a n g a r g u e s , t h e e x p a n s i o n o f C h i n e s e p r o d u c t i o n and e x c h a n g e between a n d 1978 rested on a n o n - m a r k e t , dynamic. Such earnings helped the household m e e t m o r e or less fixed c o n s u m p t i o n n e e d s , b u t d i d n o t allow for d r a m a t i c t h r o u g h s : i n d e e d , t h e c o m b i n a t i o n of low profits a n d a near-zero implicit wage m a d e it pointless for family to invest in labor-saving m a c h i n e r y , k e p t p e o p l e l o c k e d in low-productivity tasks, a n d left b u t a small m a r k e t

W o m e n ' s work,

development

for o t h e r t h a n s u b s i s t e n c e T h u s , "this was t h e c o m m e r c i a l i z a tion of s m a l l - p e a s a n t p r o d u c t i o n a n d it was differe n t from W e s t e r n capitalism, i n which b o t h m a l e a n d l a b o r were sold o n t h e m a r k e t , a n d e m p l o y e r s relentlessly s o u g h t ways t o use l a b o r only to t h e e x t e n t that it p r o d u c e d a m a r g i n a l p r o d u c t g r e a t e r t h a n its m a r g i n a l cost. M o r e recently, J a c k has a n a r g u m e n t which a t f i r s t seems to resemble Huang's, since emphasizes the cheapness of h o m e b o u n d f e m a l e l a b o r (in case focusing on t e e n a g e r s ) as a d e t e r r e n t to m e c h a n i z a t i o n ; b u t it is in fact significantly different. G o l d s t o n e p o i n t s o u t that w h a t H u a n g calls involution was n o t a b s e n t from W e s t e r n E u r o p e a n development: indeed, the same pattern of increased mobilization of family l a b o r ( a n d r a p i d p o p u l a t i o n g r o w t h ) to m e e t a relatively fixed c o n s u m p t i o n t a r g e t a m i d s t falling p e r h o u r wages modern E u r o p e as He also d o u b t s t h a t t h e implicit wages for a d u l t C h i n e s e w o m e n ever actually fell b e l o w s u b s i s t e n c e , a n d g r a n t s that c u l t u r a l c o n straints o n mobility c o n s i d e r a b l y across and space in Chinese H e d o e s , however, a c c e p t claim t h a t t h e wage g a p b e t w e e n m e n a n d w o m e n i n C h i n a was large, because r e s p e c t a b l e w o m e n were n o t s u p p o s e d t o leave t h e t o work. H e t h e n posits t h a t this reserve of very low-cost weavers a n d s p i n n e r s was an i m p e d i m e n t to t h e d e v e l o p m e n t of factories C h i n a , since any mills that were built would have t o c o m p e t e with h o m e - b a s e d p r o d u c t i o n , while using m o r e e x p e n s i v e m a l e Hill Gates has m e a n w h i l e offered a different a c c o u n t of t h e i n t e r s e c t i o n o f g e n d e r roles a n d e c o n o m i c d e v e l o p m e n t C h i n a . Essentially, s h e a r g u e s t h a t t h e state m o d e of p r o d u c t i o n " which s u r p l u s was e x t r a c t e d o u t s i d e t h e m a r k e t by an o v e r w e e n i n g state forged an alliance with t h e h e a d s of p a t r i a r c h a l families. Social stability a n d loyalty t o t h e state were g a i n e d i n r e t u r n for c o n f i r m i n g t h e d o m i n a n c e o f t h e family h e a d , i n c l u d i n g his ability t o treat j u n i o r a n d f e m a l e m e m b e r s o f t h e family a s c o m m o d i t i e s : forcing t h e m t o p r o d u c e for t h e m a r k e t while w i t h h o l d i n g t h e fruits o f t h e i r l a b o r from t h e m , selling t h e m disguised fashion ( t h r o u g h b r i d e p r i c e ) or even selling t h e m o u t r i g h t . S i n c e t h e s e s a m e families were forced i n t o c o m m o d i t y by the heavy tax d e m a n d s of t h e t r i b u t a i y state, t h e result was a "petty capitalism" of Like H u a n g , t h e n , Gates a r g u e s t h a t a n i m p o r t a n t part of story i s that w o m e n ' s p r o d u c t s e n t e r e d t h e m a r k e t , b u t w o m e n d i d n o t sell t h e i r l a b o r p o w e r a c o m p e t i t i v e m a r k e t ; they w e r e always " o w n e d " by o n e or a n o t h e r w h i c h m e d i a t e d all their relations. However, while resulted i n t h e p r o d u c t i o n o f very c h e a p g o o d s a n d n o accumulation ( t h e benefits o f c h e a p l a b o r essentially b e i n g t u r n e d i n t o sidies for s u b s i s t e n c e of an ever-growing p o p u l a t i o n ) ,

G a l e s ' a r g u m e n t d o e s allow substantial a c c u m u l a t i o n by t h e families that their women. keeps this from capitalism r a t h e r t h a n petty a c c o r d i n g to Gates, a r e of t h e e n v i r o n m e n t b e y o n d t h e family: t h e insecurity o f p r o p e r t y a n d ability o f c o n t r a c t s o n c e o n e moves b e y o n d t h e kin n e t w o r k a n d c o n f r o n t s a state indifferent or even hostile to d e v e l o p m e n t . ) This is n o t t h e p l a c e to e n g a g e - i n an e x t e n d e d discussion of any of these views; I have written a b o u t a n d H u a n g ' s work p a r t i c u l a r has b e e n shown to rest on a n u m b e r of e m p i r i c a l a n d methodological But they d o form a n i m p o r t a n t b a c k d r o p for t h e r a t h e r different discussion of r e l a t e d issues t h a t follows. F o r c u r r e n t p u r poses, t h r e e p o i n t s will suffice. First, b o t h a n d Gates treat C h i n e s e g e n d e r n o r m s , family s t r u c t u r e , a n d t h e basic institutions o f t h e C h i n e s e political e c o n o m y as essentially static over a very l o n g p e r i o d of time the fourteenth until q u i t e for H u a n g , a n d from t h e twelfth c e n t u r y on for G a t e s ) ; yet all of these t h i n g s t u r n o u t to have b e e n q u i t e c h a n g e a b l e . Even w h o focuses m u c h m o r e precisely o n o n e p e r i o d a n d allows for m o r e variation i n g e n d e r n o r m s , s e e m s t o to underestimate e x t e n t , a n d n o t to lake full a c c o u n t of t h e flexibility of these n o r m s r e s p o n s e lo c h a n g i n g e c o n o m i c incentives in S e c o n d , b o t h H u a n g a n d Gales c o n t r a s t C h i n a , n o t the realities European development, but an ideal type of capitalist d e v e l o p m e n t , as if A d a m S m i t h h a d b e e n a c h r o n i c l e r of t h e actual institutions o f early m o d e r n E u r o p e . T h u s b o t h o f t h e m ( G o l d s t o n e largely avoids trap) treat any that family, or g e n d e r n o r m s interfered t h e abstract m a r k e t as signs that C h i n a for Gates, J a p a n , too) was on a definitively different p a t h from that which led to capitalism: they n e v e r ask w h e t h e r c o m p a r a b l e " i m p e r f e c t i o n s " existed in E u r o p e , a n d s o can n e i t h e r d e t e r m i n e which E a s t - W e s t differences were n o r which were i m p o r t a n t . T h i r d , H u a n g ' s a t t e m p t s t o m e a s u r e t h e earnings of women and c o m p a r e them e a r n i n g s from farming, o n which G o l d s t o n e also relies, t u r n o u t to be based on very d u b i o u s d a t a , a n d on a basic a r i t h m e t i c mistake misplaced decimal point). These result a m i s - s t a t e m e n t of e a r n i n g s from by over ten times, a n d of e a r n i n g s from textile p r o d u c t i o n overall of over 5 In fact, t u r n s o u t , that, at least t h e crucial e i g h t e e n t h a n d early n i n e t e e n t h cent h e e a r n i n g p o w e r of w o m e n C h i n a was m u c h closer to of their t h a n was t h e case E u r o p e , or p r o b a b l y T h a t the p r i c e at which families sold their cloth did n o t reflect an exceptionally low implicit wage m a k e s H u a n g ' s story, i n which t h e from u n d e r - c o m p e n s a t i n g female p r o d u c e r s a r e d i s p e r s e d a m o n g millions o f impoverished c o n s u m e r s i n t h e form very c h e a p cloth, u n t e n a b l e . O n t h e o t h e r hand, makes c o n j e c t u r e - t h a t t h e labor under-compensated women a c c u m u l a t i o n by t h e p r o d u c i n g

w o r k , family, d e v e l o p m e n t However, s h e no to measure the o r significance o f p a r t i c u l a r m e c h a n i s m of a c c u m u l a t i o n , to c o m p a r e it o t h e r s , or t h e e x p l o i t a t i o n of w o m e n in different i n s t i t u t i o n a l settings.

General attitudes In all these societies, o n e found cases in w h i c h powerless w o m e n were forced to work u n u s u a l l y h a r d for u n u s u a l l y r e t u r n ; in all t h r e e , o n e also f o u n d families t h a t c o u l d afford to do so a t t e m p t i n g to "invest" in their d a u g h t e r s by giving t h e m w o m a n l y skills. T h e r e was, however, a crucial diff e r e n c e . In C h i n a m a n y of these w o m a n l y skills were coincident h e s a m e skills t h a t m o v e d a rural family up t h e v a l u e - a d d e d l a d d e r toward k i n d s of p r o d u c t i o n (textile p r o d u c t i o n r a t h e r t h a n farming, a n d within textile work a h i e r a r c h y from c o t t o n p r o d u c t i o n to silk p r o d u c t i o n t o silk I n J a p a n a n d especially however, t h e skills knowledge m a d e a w o m a n suitable for u p w a r d mobility were m o r e likely to be p u r e l y d o m e s t i c orientation, rather than being skills that e n a b l e d e i t h e r h e r natal o r h e r marital family t o m o v e more lucrative k i n d s of activities. To t h a t e x t e n t , what separates o u r cases s e e m s less a m a t t e r of w o m e n ' s status o n e society b e i n g particularly oppressive of w o m e n , c r e a t i n g a pool of labor a n d m o r e o n e of g e n d e r roles: h o w varying ideas of w h a t sons of work h e l p e d o n e fulfil! t r u e w o m a n h o o d (or m a n h o o d ) s h a p e d a h o u s e h o l d ' s a d a p t a t i o n s t o t h e c h a n g i n g e c o n o m i c r e t u r n s o f various activities. Most of t h e t i m e , m o s t p e o p l e h a d to work, regardless of how was r e g a r d e d . It significant, however, that in W e s t e r n E u r o p e , m u c h m o r e t h a n e i t h e r C h i n a o r J a p a n , a b s t a i n i n g from m a r k e t - o r i e n t e d labor, a n d particularly h a v i n g t h e w o m e n o f t h e family d o so, has l o n g b e e n associated with h i g h e r social status. S u c h a t t i t u d e s w e r e , of c o u r s e , m o s t often put p r a c t i c e a m o n g t h e aristocracy, b u t they a p p e a r t o have also exercised c o n s i d e r a b l e sway a m o n g t h e early m o d e r n b o u r g e o i s i e a n d t o s o m e e x t e n t even a m o n g I n a later, " b o u r g e o i s , " era, w o u l d b e c o m e far m o r e sharply g e n d e r e d . T h e m a l e s o f t h e n e w elite w o u l d distinguish themselves f r o m t h e i r aristocratic p r e d e cessors (or a t least w h a t they i m a g i n e d t h e i r aristocratic p r e d e c e s s o r s t o have b e e n ) e m p h a s i z i n g t h e i r dedication to - an r e i n f o r c e d by t h e fact t h a t few e x c e p t t h e rich to have h a d either the inclination or m e a n s t o t u r n t h e i r businesses over t o t h e i r sons w h e n they grew - but paired this was an idea that " t r u e w o m a n h o o d " r e q u i r e d n o t w o r k i n g o u t s i d e t h e h o m e for pay. I n F r a n c e , for i n s t a n c e , i t a p p e a r s ( t h o u g h t h e e v i d e n c e is f r a g m e n t a r y ) t h a t middle-class m e n p r e f e r r e d taking two to h a v i n g t h e i r wives work, a n d fairly c l e a r t h a t families g e n e r a l l y f e r r e d h a v i n g c h i l d r e n work r a t h e r t h a n

By contrast, idleness never in China, even for the elite: as David notes, even the aristocratic dead were imagined as working the other And value applied to both males and females, at least from the Song on: even women whose families could easily afford to forego any income from them encouraged them to engage in productive, as as reproductive, labor. What made for womanly virtue was diligence and skill at of work weaving and and that work within the confines of the family but was a badge of honor, not dishonor, for a woman to contribute to the family income through such work, and was thought to rather than detract her ability to serve as a moral guide to her children. Thus, as shall sec later, Chinese families rising incomes not to withdraw their women from marketoriented labor (as occurred Europe), but instead to change the productive labor they engaged in. Japanese patterns seem to have fallen between European and Chinese ones, though closer lo the Chinese end. As puts "society scorned idleness in women of all ages, save perhaps the wives of nobles, feudal lords, and their top retainers", "the emergence of domesticity as a ideal can be traced to the turn of [twentieth] Four to five hundred years ago Jan Vries has argued forcefully for the origins in early modern Western Europe of what he calls (using a term coined for slightly different purposes by the "industrious a process in which, well before the mechanization of production, households in at least Northwestern Europe had begun to work more hours, and perhaps more importantly, to allocate more of their labor time to the production of goods for the market, while saving for that labor by purchasing more things that they used to produce for themselves. The industrious then, is both a process of increasing labor result of a changing set of preferences which favored various kinds of goods over leisure) and of specialization, with the expected gains from increased As I argued at length elsewhere, same process can be seen, beginning even a bit earlier, in the more economically advanced areas of both China and Japan - and with De Vries proposes his industrious revolution, among other things, to resolve a paradox. you measure the buying power of Europeans' per hour or per day wages in terms of their basic staple those wages fall dramatically between about 1430 and 1550, and do not return to 1350 levels until 1840 or Yet at least after about inventories taken at death show a steady rise in what people own - clothes, and pans, and what have you. These

w o r k , family, d e v e l o p m e n t two

could occur together

people spent m o r e and more

h o u r s p e r y e a r w o r k i n g for t h e m a r k e t ( t h e d e c l i n e o f one prime example), generating income

days b e i n g

for t h e s e t h i n g s a b o v e

a n d b e y o n d t h e l a r g e n u m b e r o f h o u r s they n e e d e d t o w o r k for subsisIn the process people

have decreased their leisure

they

certainly r e d u c e d t h e a m o u n t o f t i m e t h a t t h e y s p e n t m a k i n g t h i n g s for their own

households. T h e process

o n e of specialization,

in which

p e o p l e s t o p p e d , say, m a k i n g t h e i r o w n c a n d l e s , a n d p u t m o r e h o u r s weaving cloth for

with s o m e of the i n c o m e .

p r o c e s s has a logical c o n c l u s i o n of sorts families w h o even

contract out

much

(The

contemporary two-income

of their child-rearing a n d food

preparation.) T h u s the industrious revolution combines an increase a m o u n t of labor, in t h e orientation of labor toward the market,

the

specialization of labor. T h e s a m e t h i n g w a s h a p p e n i n g i n E a s t Asia ( a n d m a y b e e l s e w h e r e t o o ) . T h e rice-buying power of Chinese day about

w a g e s g e n e r a l l y fell f r o m

b u t n u t r i t i o n a l s t a n d a r d s d o n o t s e e m t o h a v e fallen; n o r

did they clearly

b e l o w t h o s e o f E u r o p e u n t i l well i n t o t h e n i n e t e e n t h

M e a n w h i l e t h e e a r n i n g s p e r d a y w o r k e d o f m u c h l a r g e r social groups, including both their and

peasants (whether

or owners) and

wives p r o b a b l y r o s e slightly b e t w e e n t h e m i d - M i n g a t least

t h e a d v a n c e d Yangzi Delta region; but because

ratio of ( l o w e r - e a r n i n g ) female to m a l e l a b o r days also rose, p e a s a n t families p r o b a b l y achieved increase in days

t h e i r i n c o m e gains at t h e cost of a

larger

T h e r e is also powerful e v i d e n c e of an increase

c o n s u m p t i o n of "non-essentials" even by peasants, especially between a b o u t 1500 a n d 1750. O n c e you look for t h e literary e v i d e n c e it ful, f r o m t r a v e l e r s '

plenti-

to elite complaints a b o u t p o p u l a r c o n s u m p -

t i o n , t o g a z e t t e e r lists o f p r o d u c t s a v a i l a b l e

rural m a r k e t s . In a r e c e n t

b o o k , I m a k e a n i n i t i a l e f f o r t t o q u a n t i f y t h i s , a n d f i n d t h a t f o r t e a , silk, s u g a r a n d c l o t h , C h i n e s e p e r c a p i t a c o n s u m p t i o n was a c t u a l l y s i g n i f i c a n t l y higher i n

1750 than

in E u r o p e

in

1800. T h e m o s t a d v a n c e d r e g i o n of

C h i n a , t h e Yangzi Delta, p r o b a b l y trailed s o m e w h a t b e h i n d English a n d p e r h a p s D u t c h c o n s u m p t i o n , b u t e x c e e d e d that o f t h e rest for c u r r e n t p u r p o s e s it off a s E u r o p e t h a n Yangzi,

Europe. But

less i m p o r t a n t w h e t h e r C h i n a was r e a l l y a s well to simply n o t e that rural families in the

and other

advanced

were buying

a g r e a t d e a l f r o m t h e m a r k e t , a n d p a y i n g for it by p r o v i d i n g i n c r e a s i n g amounts of goods to the market: the dynamic fits De revolution m u c h m o r e closely than

industrious

d o e s H u a n g ' s involution. T h e case

still s t r o n g e r f o r t h e m o r e d e v e l o p e d p a r t s o f J a p a n , w h i c h

may have

had the highest standards

o f living a n y w h e r e i n t h e s e v e n t e e n t h - a n d

eighteenth-century

In

general,

increased

of the

h o u s e h o l d i n c o r e r e g i o n s o f b o t h W e s t e r n E u r o p e a n d E a s t Asia was

t h e m toward u n u s u a l l y standards of for industrial societies. W h a t can w e say a b o u t t h e d e p l o y m e n t a n d t h e c o m p e n s a t i o n o f labor particular? Both in E u r o p e a n d Asia, s i x t e e n t h - to e i g h t e e n t h - c e n t u r y farm a n d m e n b o t h w o r k e d i n t h e fields, t h o u g h often n o t at t h e s a m e tasks. T h e p a t t e r n is k n o w n for early modern It also well established While w o m e n were generally t h a n m e n for w h e n t h e tasks w e r e t h e s a m e - t h e size of t h e wage g a p s e e m s to have n a r r o w e d d u r i n g t h e c o u r s e of t h e T o k u g a w a while, as shall see, was g r o w i n g sharply in E u r o p e . It is often t h o u g h t C h i n e s e w o m e n w e r e k e p t o u t of t h e fields by p o l l u t i o n taboos, b o u n d feet a n d / o r c o n c e r n s for t h e i r m o d e s t y ; is a great e x a g g e r a t i o n . T h o u g h C h i n e s e p h r a s e " m a n plows, w o m a n weaves e x t r e m e l y a n c i e n t , it with p h r a s e " h u s b a n d a n d wife work t o g e t h e r and there little e v i d e n c e to suggest t h a t it t h e actual division of l a b o r in any rural r e g i o n until r e c e n t times. I n d e e d , Li survey of g a z e t t e e r s a n d f a r m i n g h a n d b o o k s suggests t h a t a c c o u n t s o f rural d e s c r i b i n g m e n a n d w o m e n w o r k i n g a t t h e s a m e tasks d o n o t d i s a p p e a r until t h e n i n e t e e n t h c e n t u r y , a n d even t h e n only i n t h e s i l k - p r o d u c i n g r e g i o n s of t h e Lower T h i s position may be a extreme. A c c o u n t s stressing a fairly s h a r p sexual division of l a b o r were c o m m o n even before t h e n i n e t e e n t h c e n t u r y , a n d t h e p r e s e n c e of a few examples cites c o u l d s o m e t i m e s reflect t h e c o p y i n g of e a r l i e r textual m o d e l s r a t h e r t h a n lived e x p e r i e n c e . In t h e Yangzi Delta, does appear farming had become masculine by times, b u t w o m e n w e r e clearly involved in l a b o r (at least at p e a k seasons) m o s t of t h e rest of C h i n a t h r o u g h o u t t h e late i m p e r i a l period. W h e r e C h i n e s e g e n d e r n o r m s were far restrictive t h a n e i t h e r J a p a n e s e o r W e s t e r n E u r o p e a n n o r m s was the strong pressures on w o m e n to r e m a i n at h o m e . W o m e n e x c e p t for t h e s e n i o r g e n e r a t i o n were e x p e c t e d to r e m a i n u n d e r family supervision as m u c h as possible; even t h e brief stays e l s e w h e r e that were a necessary p a r t of relig i o u s p i l g r i m a g e were strongly d i s c o u r a g e d . C o n s e q u e n t l y , t h e r e c o u l d t h e way of a physical (i.e. a place w h e r e p e o p l e c o n g r e g a t e d to c o m p e t e for work) for t h e l a b o r of single females, as t h e r e was for males; this is p a r t of w h a t has led H u a n g , a m o n g o t h e r s , to a s s u m e t h a t families set t h e o p p o r t u n i t y cost of h a v i n g a w o m a n do an extra h o u r of either productive or reproductive labor the h o m e at t h e sort of service t h a t was an p a r t of work b o t h J a p a n e s e a n d English h o u s e h o l d s w h i c h G o l d s t o n e sees as p r e p a r i n g t h o s e societies for allowing t h e i r d a u g h t e r s to e n t e r factories

W o m e n ' s w o r k , family, d e v e l o p m e n t

once a p p e a r e d ) was absent A girl E n g l a n d or J a p a n w h o was s e n t to a m o r e p r o s p e r o u s h o u s e h o l d as a servant w o u l d r e t u r n afterwards, a n d was on a n o r m a l p a t h to a p r o p e r m a r r i a g e after that she was p r o b a b l y b o t h a c c u m u l a t i n g dowry a n d l e a r n i n g skills t h a t s h e c o u l d n o t l e a r n a t h o m e b u t w o u l d n e e d if s h e w e r e to s u c c e e d in m i g h t r a n g e from m o r e refined d e p o r t m e n t particularly i m p o r t a n t , s e e m s in t h e J a p a n e s e - to k i n d s of h o u s e h o l d p r o d u c t i o n that parents could not teach h e r b e c a u s e only households engaged t h e m (e.g. p r e serving fruits from an estate's By c o n t r a s t , a C h i n e s e family t h a t s e n t t e e n a g e d a u g h t e r to a n o t h e r h o u s e h o l d was r e l i n q u i s h i n g h e r a n d for all, a n d a b a n d o n i n g h o p e s of w h a t Wolf a n d H u a n g (1980) call a "major," or p r o p e r , m a r r i a g e for h e r . To invest a d a u g h t e r ' s future e a r n i n g power and marriage p r o s p e c t s , o n e k e p t h e r h o m e while s h e m a s t e r e d work. T h e t e r m "invest" h e r e not an a n a c h r o n i s t i c n o d to c o n t e m p o r a r y n o t i o n s o f " h u m a n capital" f o r m a t i o n : t h e s u m s r e q u i r e d t o o u t this c o u l d b e substantial. I n a d d i t i o n t o f e e d i n g t h e d a u g h t e r a n d p r o viding h e r dowry, it cost m o n e y for h e r to l e a r n t h e skills n e e d e d for a good marriage. A light, a n d was n e e d e d for m o r e d e m a n d i n g crafts; m o r e e x p e n s i v e k i n d s o f weaving r e q u i r e d rather e x p e n s i v e a n d p l e n t y of v a l u a b l e c o t t o n - or for better-off h o u s e h o l d s , even silk - w o u l d have to be p u r c h a s e d ( a n d m i g h t s o m e times be r u i n e d ) as s h e slowly l e a r n e d s p i n n i n g , weaving, or ( m o s t prestigious o f all) T h u s , t h o u g h t h e s i m p l e e q u a t i o n s that b o t h H u a n g a n d Gates d r a w different ways b e t w e e n limited physical mobility, e c o n o m i c exploitation, a n d barriers to d e v e l o p m e n t arc questionable, s t r o n g p r e f e r e n c e for k e e p i n g w o m e n within t h e c o m p o u n d may i n d e e d have h a d i m p o r t a n t i n f l u e n c e s o n C h i n e s e d e v e l o p m e n t . In h a n d i c r a f t s , t h e early m o d e r n p e r i o d shows r o u g h l y similar t r e n d s in E u r o p e a n d East Asia, t h o u g h t h e t r e n d s b e c o m e e v i d e n t e a r l i e r i n C h i n a a n d J a p a n . H a n d i c r a f t p r o d u c t i o n for h o m e use involved b o t h sexes 17t h e issue t h e division of in h a n d i c r a f t p r o d u c t i o n for t h e m a r k e t . H e r e , if we look b a c k far e n o u g h , wc find an alliance everywhere b e t w e e n political a u t h o r i t i e s a n d s o m e who attempted to make crafts t h e h e r e d i t a r y m o n o p o l y o f certain g r o u p s o f m a l e city-dwellers ( e x c e p t for t h e occasional widow); a n d everywhere, we find s o m e p e o p l e a t t e m p t i n g t o c i r c u m v e n t this m o n o p o l y b y m o b i l i z i n g c h e a p , a n d often female, rural l a b o r . In C h i n a , this latter project succ e e d e d q u i t e early. M i n g statutes set t h e c o m p e n s a t i o n for h e r e d i t a r y artisans at s u c h artificially low rates t h e s e w o r k e r s d e s e r t e d in droves, a n d t h e system was essentially a d e a d l e t t e r by t h e late p r o d u c t i o n of all b u t t h e fanciest a n d m o s t specialized crafts m o v e d to t h e c o u n t r y s i d e instead, w o m e n b e c o m i n g a l a r g e p a r t of t h e workforce, especially

But t h e i n c r e a s e d w o m e n in p r o d u c t i o n for t h e m a r k e t d i d n o t m e a n that m e n a b a n d o n e d f i e l d . N o t only did m e n h o l d o n t o m a n y o f t h e m o s t prestigious a n d r e m u n e r a t i v e k i n d s o f luxury p r o d u c t i o n ; areas s u c h as N o r t h C h i n a , w h e r e weaving was by far t h e best-paid o c c u p a t i o n available d u r i n g t h e l o n g a g r i c u l t u r a l slack season ( a n d p e r h a p s all year r o u n d ) , r u r a l m e n as as w o m e n continued to T h e only rural e c o n o m i c s p h e r e from w h i c h w o m e n s e e m to have b e e n was c o m m e r c i a l activity that involved extensive travel. A n d this the m a r k e t e c o n o m y seems t o h a v e b e e n s o m e t h i n g s o u g h t , f i n a n c e d , a n d m a n a g e d by rural families themselves ( r a t h e r t h a n , as parts of E u r o p e , by a system c o n t r o l l e d by Japan, urban and efforts to k e e p crafts in t h e h a n d s of privileged artisans collapsed a l o n g with t h e rest of t h e " m e d i e v a l " social s t r u c t u r e d u r i n g t h e wars o f t h e f i f t e e n t h century; b o t h m e n women in t h e c o u n t r y s i d e m o v e d i n t o all b u t a few crafts. W h i l e t h e T o k u g a w a tried - at least on p a p e r - to t h e c o u n t r y s i d e , these efforts were at best a t e m p o r a r y at least in t h e m o r e d e v e l o p e d parts of the A n d w h e r e craft p r o d u c t i o n settled i n t h e w o m e n w e r e almost always heavily involved. towns a n d cities, too, "it s e e m s likely that e c o n o m i c p a r t i c i p a t i o n i n m e r c h a n t a n d artisan h o u s e h o l d s was m o r e extensive t h a n scholars have previously S u m m i n g up patterns of for and England, Saito O s a m u a r g u e s t h e English p a t t e r n f e a t u r e d a s h a r p e r g e o g r a p h i c division of labor, a n d t h e J a p a n e s e a s h a r p e r g e n d e r division of While this c o n c l u s i o n differs from t h e East-West c o m p a r i s o n s that have b e e n e m p h a s i z e d h e r e , it n o t e w o r t h y t h a t t h e c o m p l e x division of l a b o r Saito describes certainly d i d n o t e x c l u d e w o m e n from p r o d u c t i o n for t h e m a r k e t , n o r m a r k e i t h e r f a r m i n g o r handicrafts (as b r o a d categories) a s exclusively m a l e o r female. I n s t e a d , m o r e specific p r o d u c t s a n d tasks w e r e g e n d e r e d , a n d - particularly since, given t h e limited interr e g i o n a l division of l a b o r a flourishing domestic economy, each area produced many products was a division of l a b o r in which b o t h m e n a n d w o m e n p a r t i c i p a t e d in a variety of a g r i c u l t u r a l a n d h a n d i c r a f t activities ( i n c l u d i n g s o m e very lucrative In Europe, m e r c h a n t s were q u i c k t o n o t e t h e p o t e n t i a l profits to be m a d e by t a p p i n g l a b o r supplies. However, a political system that e m p o w e r e d a n d (in s o m e cases) p r e v e n t e d rural families from m a k i n g t h e i r own decisions a b o u t l a b o r allocation m e a n t the of i n d u s t r y p r o c e e d e d m o r e slowly t h a n core regions of China Japan. U r b a n artisans were widely a g r e e d to have a legitimate right t h e m o n o p o l y lights associated with t h e i r this c o u l d be r e g u l a t e d , b u t n o t simply Enlightenment thinkers began lo question the

w o r k , family, d e v e l o p m e n t legitimacy of this sort of p r o p e r t y , n o t until after 1789 s o m e cases after) did codes t h e i r views. Partly b e c a u s e of Europ e a n g o v e r n m e n t s - w h i c h t e n d e d t o b e p r e o c c u p i e d with k e e p i n g o r d e r in - were well aware t h a t a n y r a p i d d i s s o l u t i o n of monopolies w o u l d lead t o massive u n r e s t , a n d f r e q u e n t l y e n f o r c e d b a n s o n rural d u c t i o n . In m u c h of G e r m a n y , t h e state t h o u g h n o t always successfully - to urban monopolies the and e i g h t e e n t h c e n t u r i e s , guilds r e m a i n e d able t o e x c l u d e rural c o m p e t i t i o n even as late as In spite of s u c h rural i n d u s t r y c o n t i n u e d to spread much of Western E u r o p e during early m o d e r n p e r i o d , a n d s o m e m a s t e r s t u r n e d from t o e x c l u d e r u r a l l a b o r e r s t o employing t h e m . N o n e t h e l e s s , millions of o t h e r country-dwellers w e r e still legally b l o c k e d from industrial activities by t h e p o w e r of u r b a n privileges. M e a n w h i l e , rural families t o p r o d u c e textiles for t h e m a r k e t m i g h t face b a r r i e r s from within t h e c o u n t r y s i d e , t o o . T h e D u k e s o f R u t l a n d , for i n s t a n c e , a p p a r e n t l y c o n c l u d e d (with s o m e j u s t i c e ) t h a t t h e s p r e a d of k n i t t i n g led to c o m p e t i t i o n for a g r i c u l t u r a l workers, h i g h e r b i r t h rates, a n d ultimately h i g h e r assessments o n t h e l a n d t o s u p p o r t t h e p o o r : a n d as of t h r e e - q u a r t e r s of t h e of and buyers of m o s t of its m a r k e t e d o u t p u t , they were able to p r e v e n t t h e develo p m e n t of s u c h evils. As late as 1809 ( a n d this in E n g l a n d , h e a r t l a n d of b o t h liberalism a n d E u r o p e a n l e x d l c s ) , Pitt d e s c r i b e d t h e i r policy "A n u m e r o u s a n d able-bodied peasantry h e r e supported, no a n d c a r e taken t h e r e shall b e n o n e . " N o t surprisingly, historians o f L e i c e s t e r s h i r e have f o u n d t h a t while textile d e v e l o p m e n t b o o m e d in t h e c o u n t y in g e n e r a l , it was often a b s e n t in villages t h a t were d o m i n a t e d by a single n o b l e family, a n d weak in a r e a s of c o n c e n t r a t e d In s o m e parts of G e r m a n y (especially o u t s i d e Prussia) guild restrictions effectively b a r r e d m a n y w o r k e r s (especially w o m e n ) from participating textile p r o d u c t i o n well i n t o t h e n i n e t e e n t h P e r h a p s m o s t striking - a n d contrary to the interp r e t a t i o n o f female l a b o r a n d C h i n e s e d e v e l o p m e n t - t h e e a r n i n g p o w e r o f W e s t e r n E u r o p e a n w o m e n a p p e a r s t o have trailed t h a t o f t h e i r m e n f o l k by m u c h m o r e t h a n was t h e case C h i n a , at least the eighteenth c e n t u i y . M o r e o v e r , t h a t g a p was g r o w i n g , as we shall s o o n see. By c o n t r a s t , t h e e a r n i n g s of a h y p o t h e t i c a l L o w e r Yangzi w o r k i n g 200 days a year w o u l d in fact e x c e e d t h o s e of a m a l e a g r i c u l t u r a l l a b o r e r , even if t h e s o m e h o w found twelve m o n t h s o f work p e r year a t u n u s u a l l y pay rales. ( T h e y l a g g e d b e h i n d t h e daily e a r n i n g s of h e r h u s b a n d if was a t e n a n t f a r m e r , as t e n a n t s n e t t e d m u c h m o r e p e r day t h a n p r o l e t a r i a n s w h i c h n o d o u b t m a t t e r e d t o p o w e r within t h e family, a m o n g o t h e r t h i n g s - b u t for p r e s e n t p u r p o s e s t h a t less crucial.) T h u s , t h e r e is no r e a s o n to think, a s H u a n g d o e s , t h a t C h i n e s e p e a s a n t families would always p r e f e r m a k i n g t h e i r wives c o n t i n u e t o p r o d u c e g o o d s for h o m e c o n s u m p t i o n t o

Pomeranz

purchasing goods a n d allowed t h e m t o d e v o t e of t h e i r l a b o r s t o specialized p r o d u c t i o n for t h e on the contrary, the p o t e n t i a l gains from d o i n g that would have b e e n (as see) as large as E u r o p e . M o r e o v e r , any claims that f e m a l e - m a d e p r o d u c t s w e r e delivered to t h e m a r k e t in this p e r i o d at a implicit wage by "self-exploiting" p e a s a n t families empirically u n t e n a b l e . If t h e w o m e n themselves were receiving a r e t u r n on t h e i r l a b o r b e c a u s e could n o t easily leave t h e i r it would a p p e a r that it was t h e m a l e s in t h e i r families ( a n d / o r a s e n i o r , m o r e - p o w e r f u l female) w h o w e r e p o c k e t i n g t h e difference, n o t t h e m e r c h a n t s w h o dealt their At least to this e x t e n t , n o t i o n of a petty capitalist C h i n e s e family e x p l o i t i n g its w o m e n f o l k has m o r e basis t h a n n o t i o n of a family w h o s e u n d e r p a i d female labor m e r e l y d e p r e s s e s prices for (We s h o u l d be careful, however, a b o u t a s s u m i n g that t h e crucial variable always g e n d e r r a t h e r t h a n g e n e r a t i o n : s e c M a n n , 1997, o n t h e p o w e r o f s e n i o r w o m e n over t h e e a r n i n g s o f b o t h son a n d daughter-in-law.) C h i n e s e farm families may i n d e e d have b e e n e x t r a c t i n g surplus value from t h e l a b o r of t h e i r w o m e n f o l k in particular; b u t claim r e q u i r e s e v i d e n c e d e s p i t e t h e i r relatively e q u a l e a r n i n g p o w e r (at least textile w o m e n c o n s u m e d m u c h less above t h e i r e n e r g y r e q u i r e m e n t s t h a n m e n ; a n d w h a t little e v i d e n c e we have mixed. At any rate, as will see t h e n e x t section, t h e e v i d e n c e for s h a r p differe n c e s in actually s t r o n g e r in e i g h t e e n t h - a n d Europe. Gates' t h a t C h i n e s e families have c o n t i n u a l l y their women m o r e t o t h e goals o f survival a n d a c c u m u l a t i o n by t h e family t h a n c o u l d families t h e m o r e individualistic West rests on evidence.

Two hundred to one hundred years ago It is in t h e c o r e of late e i g h t e e n t h - c e n t u r y W e s t e r n E u r o p e , n o t C h i n a , that we find t h e largest a n d fastest-growing wage g a p . In t h e w o m e n ' s wages in a g r i c u l t u r e were typically a b o u t half of t h o s e for which was p r o b a b l y a b o u t t h e s a m e as Yangzi Delta, b u t t h e g a p grew thereafter; so d i d a g a p in t h e a m o u n t of By t h e t u r n of t h e n i n e t e e n t h century, t h e differences were large i n d e e d . and work o n for i n s t a n c e , shows t h e of women to the household budgets of various s a m p l e s of workers b e t w e e n 1790 a n d 1865 varying from u n d e r 1 p e r c e n t (for h o u s e h o l d s h e a d e d by m i n e r s a n d by high-wage agricultural w o r k e r s in certain p e r i o d s ) to a of 24.3 p e r c e n t (for h o u s e h o l d s of factory w o r k e r s after t h e h i g h e s t figure is In m o s t cases even t h e c o n t r i b u t i o n of c h i l d r e n e x c e e d s t h a t of a d u l t w o m e n ( p r e s u m a b l y b e c a u s e m o r e t h a n o n e w o r k i n g child was often

w o r k , family, d e v e l o p m e n t of and children together reached p e r c e n t only for t h e p o o r e s t g r o u p s . Even t h e of t h e s e figures for w o m e n is well below t h e r a n g e s t h a t w o u l d b e p l a u s i b l e for J a p a n or the d e v e l o p e d parts o f C h i n a . U n f o r t u n a t e l y , w c d o n o t h a v e fully reliable f i g u r e s o n p e r day o r p e r h o u r e a r n i n g s ; b u t given w h a t w e k n o w o f much eighteenth- and n i n e t e e n t h - c e n t u r y w o m e n were involved in p r o d u c t i o n for t h e m a r k e t , figures like m u s t i n d i c a t e far l a r g e r wage differentials t h a n w h a t we see in e i t h e r C h i n a or J a p a n . we take just t h e p e r i o d i n E n g l a n d , for i n s t a n c e , t h e m u l t i p l e o f e a r n i n g s over for various o c c u p a t i o n a l g r o u p s varies f r o m 8 to 1 to 26 to n o b o d y has ever s u g g e s t e d a g a p i n h o u r s w o r k e d d u r i n g period that w o u l d b r i n g t h e p e r h o u r wage g a p d o w n to even 2 to T h e little bit of g e n d e r e d wage data we have t h a t s t a n d a r d i z e d by t u n c u n i t s c o n f i r m s this. I t a p p e a r s , t h e n , that C h i n e s e w o m e n , d e s p i t e b e i n g severely limited w h e r e they c o u l d work, w e r e closer to pay equity with t h e i r m e n f o l k titan w e r e t h e i r E u r o p e a n t h e s a m e t o have b e e n t r u e ( s o m e w h a t less surprisingly) for t h e i r J a p a n e s e p e e r s . It is h a r d e r to k n o w h o w to e s t i m a t e a n d assess g e n d e r e d differences in c o n s u m p t i o n . Rural C h i n e s e m e n d o s e e m t o have m o r e than women. m a n u a l s , for i n s t a n c e , suggest t h a t a d u l t females only half as m u c h as a d u l t m a l e s , a n d s u c h a difference in c o n s u m p t i o n levels is logically o r d e r to s q u a r e t h e figures for a d u l t m a l e c o n s u m p t i o n with t h e a v e r a g e figures for t h e p o p u l a t i o n as a whole we By c o n t r a s t , a d u l t w o m e n E n g l a n d a t e a b o u t 70 p e r c e n t as m a n y calories as t h e i r h u s b a n d s . a fair a m o u n t of difference may be d u e to differences energy labor-intensive a g r i c u l t u r e d e m a n d s a n a s t o n i s h i n g a m o u n t of (Certainly n o b o d y has s u g g e s t e d t h a t was a fat g r o u p o f m a l e p e a s a n t s . ) U n f o r t u n a t e l y , w e have n o g e n d e r e d estimates o f C h i n e s e families, w h e r e t h e energy demands of a n d f e m a l e w o r k w o u l d have b e e n m u c h m o r e e q u a l ; b u t t h e earliest s u c h figures h a v e f o u n d (from S h a n g h a i in t h e 1930s) yield a r a t i o b e t w e e n a d u l t m a l e a n d f e m a l e calorie i n t a k e (1.36:1) is a l m o s t precisely that f o u n d in m o s t d e v e l o p e d c o u n t r i e s A n d it is w o r t h n o t i n g that m a n y of t h e g o o d s which we k n o w English w o r k i n g class was c o n s u m i n g i n m u c h l a r g e r a m o u n t s d u r i n g t h e eighteenth particularly t o b a c c o a n d liquor, w h i c h a r c m o s t often as e v i d e n c e of i n c r e a s e d p u r c h a s i n g p o w e r - were c o n s u m e d by m a l e s ; t h e s a m e is t r u e of t h e forms of c o m m e r c i a l i z e d leisure ( b o x i n g , h o r s e - r a c i n g , etc.) t h a t r e a c h e d t h e p o p u l a r classes b e f o r e the mid-nineteenth centuiy. In both China and a p p e a r s that g o o d s which were less g e n d e r e d , or even toward w o m e n - m e d i cines, cosmetics, textiles, - m a d e up a s o m e w h a t l a r g e r s h a r e of

consumption. (They prominently elite c o m p l a i n t s a b o u t p o p u l a r c o n s u m p t i o n t h o u g h this m a y reflect a p a r t i c u l a r hostility to female a d o r n m e n t on t h e p a r t of Confucian moralists - a n d iists of specialized g o o d s available in local m a r k e t s . ) T h e s e f r a g m e n t s a r e n e a r e n o u g h t o m a k e a c o n f i d e n t c o m p a r i s o n o f how m a l e s a n d females s h a r e d t h e h o u s e h o l d b u d g e t in East Asia a n d in W e s t e r n E u r o p e , b u t they a t least t h e b u r d e n o f p r o o f o n a n y o n e w h o wishes t o a r g u e t h a t w o m e n in trial saw t h e relative equality of t h e i r c o n t r i b u t i o n s to t h e family pot t u r n i n t o a g r e a t e r d i s a d v a n t a g e what they d r e w from that p o t t h a n t h e i r E u r o p e a n sisters suffered. Rut just as i m p o r t a n t as t h e h u g e e a r n i n g differentials a n d H u m p h r i e s p o i n t lo a r c t h e i r a r g u m e n t s a b o u t what p e n e d over the n e x t several d e c a d e s . O v e r t h e c o u r s e of what we m i g h t the long nineteenth century (and the first o f t h e twentieth l a b o r force p a r t i c i p a t i o n rates o f b o t h w o m e n a n d t e n d e d to fall, e x c e p t d u r i n g a few p e r i o d s of e x c e p t i o n a l I n d e e d , t h e p h e n o m e n o n is sufficiently clear t h a t De marks a p e r i o d b e g i n n i n g a r o u n d 1800, a c c e l e r a t i n g after and continuing until r o u g h l y 19(50 as a distinct p h a s e of his i n d u s t r i o u s revolution, in which h o u s e h o l d s m o v e d a "labor-supplying" strategy to a "laborwithholding ( H e t h e n sees a n o t h e r p h a s e beginning t h e 1960s a n d c o n t i n u i n g t h r o u g h t h e p r e s e n t . ) H e sees this p e r i o d as o n e in which h o u s e h o l d s increasingly valued consumed g o o d s , b o t h p u r c h a s e d (e.g. h o m e furnishings) a n d self-produced (e.g. i n c r e a s e d h o u s e h o l d c l e a n l i n e s s ) , while less o f t h e i r p u r c h a s i n g p o w e r to individually c o n s u m e d g o o d s (e.g. meals away from h o m e , tobacco, Even m o r e i m p o r t a n t , Vries a r g u e s t h a t t h e l a b o r - w i t h h o l d i n g strategy was c o m p a t i b l e with i n c r e a s e d h u m a n capital a way that t h e i n d u s t r i o u s revolution was not. At least English literacy rates h a d s t a g n a t e d d u r i n g t h e later e i g h t e e n t h a n d early n i n e t e e n t h but i m p r o v e d dramatically from t h e m i d - n i n e t e e n t h c e n t u r y o n children w e n t to school: h e a l t h i m p r o v e d as fewer y o u n g p e o p l e w o r k e d l o n g h o u r s , f o o d was m o r e carefully p r e p a r e d , a n d h o m e s were k e p t c l e a n e r ; a n d so o n . De Vries e n d s s u m m a r y of p e r i o d with a s w e e p i n g t h o u g h (as h e a d m i t s ) speculative s t a t e m e n t : I n d e e d , I would go so far as to claim was m o r e t h r o u g h t h e h o u s e h o l d p r o d u c t i v e system t h a n t h e larger formal e c o n o m y that t h e major a c h i e v e m e n t s of industrial society - lower m o r b i d i t y a n d m o r tality, b e t t e r n u t r i t i o n a n d h i g h e r e d u c a t i o n a l levels, g r e a t e r d o m e s t i c c o m f o r t - were a c h i e v e d . N o n e o f t h e s e " g o o d s " c o u l d b e b o u g h t t h e shelf. 264)

w o r k , family, d e v e l o p m e n t Since no p h a s e is evident in J a p a n before t h e early t w e n t i e t h or C h i n a u n t i l very r e c e n t times (if at all), De f o r m u l a t i o n poses at least t h r e e c h a l l e n g e s for us. First, h o w to e x p l a i n striking d i v e r g e n c e ? S e c o n d , can wc d r a w a c o m p e l l i n g causal r e l a t i o n s h i p - in e i t h e r d i r e c t i o n b e t w e e n this divergence and the enormous Jiving s t a n d a r d s , and capital a c c u m u l a t i o n b e t w e e n East a n d West d u r i n g t h e n i n e t e e n t h a n d early twentieth c e n t u r i e s ? (It worth r e m e m b e r i n g h e r e that while stantial i n d u s t r i a l i z a t i o n b e g a n Japan t h e 1870s, a n d a few p a r t s of C h i n a after 1895, even i n J a p a n living s t a n d a r d s d i d n o t a p p r o a c h t h o s e o f W e s t e r n E u r o p e a n d N o r t h A m e r i c a u n t i l well after 1945.) T h i r d , has often b e e n n o t e d that early i n d u s t r i a l i z a t i o n J a p a n relied heavily on f e m a l e w o r k e r s w h o w e r e u n u s u a l l y poorly p a i d even by the s t a n d a r d s of the F o r i n s t a n c e , w o m e n in O s a k a textile mills in t h e early t w e n t i e t h c e n t u i y were m o r e p o o r l y than their counterparts in or even though living s t a n d a r d s J a p a n w e r e certainly higher than C h i n a o r India; a n d low-paid female workers have b e e n q u i t e i m p o r t a n t C h i n a ' s m o r e r e c e n t industrial b o o m , particularly most export-oriented C a n t h e s e p a t t e r n s - in contrast t o t h e p a t t e r n that b e c a m e increasingly p r o m i n e n t in early E u r o p e a n i n d u s t r i a l i z a t i o n - be s o m e h o w l i n k e d to a f u n d a m e n t a l d i f f e r e n c e in k i n s h i p a n d g e n d e r n o r m s ? Wc h a v e s e e n t h a t it is h a r d to credit notions that China or had work m o r e t h a n "individualistic" W e s t e r n E u r o p e did; but might n o n e t h e l e s s be t h e case that s u c h a p a t t e r n has b e e n p r o n o u n c e d and important t h e n i n e t e e n t h a n d t w e n t i e t h centuries?

Explaining labor withholding T h e r e is no single, straightforward, e x p l a n a t i o n for t h e d e c l i n e in t h e participation o f m a r r i e d w o m e n a n d c h i l d r e n i n English l a b o r force. De notes b o t h t h e first (fifteenth to especially eighte e n t h c e n t u i y ) a n d s e c o n d (late t w e n t i e t h c e n t u i y ) p e r i o d s i n which h o u s e h o l d s s u p p l i e d i n c r e a s e d a m o u n t s o f l a b o r t o t h e m a r k e t were periods of o r d e c l i n i n g real but we c a n n o t attribute the i n t e r v e n i n g l a b o r w i t h h o l d i n g p h a s e entirely to r i s i n g a d u l t m a l e wages, as he s e e m s to Temporally, the decline female l a b o r force participation starts t o o early, since real wages d i d n o t u n a m b i g u o u s l y t u r n u p w a r d s u n t i l t h e late t h e situation is c o m p l i c a t e d by t h e fact t h e s h a r e of family i n c o m e c o n t r i b u t e d by w o m e n b e h a v e d r o u g h l y parallel fashion a m o n g families of wage a n d wage agricultural workers, outworkers, a n d tradesmen. and Humphries note, unsurprisingly, w o m e n w e r e m o r e likely t o r e m a i n t h e paid l a b o r force w h e n t h e i r own wages w e r e h o l d i n g u p well, a n d m o r e likely t o

Kenneth when their wages rose a n d theirs did other words, s e e m s to be t r e n d s in t h e wage rather t h a n rising m a l e wages that t h e story. a few b u t i m p o r t a n t cases, t h e r e was a up demand certain kinds of w o m e n w o r k e r s at any p r i c e : t h e collapse of a n d t h e switch t o a g r i c u l t u r a l tools which r e q u i r e d g r e a t e r u p p e r b o d y s t r e n g t h , c o m e t o In light of this p a t t e r n , it is a b o u t h o w i m p o r t a n t it m a y have b e e n that this wage s e e m s to have a l r e a d y b e e n q u i t e large in c o m p a r a t i v e t e r m s before m e c h a n i z a t i o n . Certainly we n e e d to invoke s o m e t h i n g besides industrialization court to e x p l a i n l a b o r withh o l d i n g , a n d this u n u s u a l l y large " g e n d e r g a p " t h e elite cultural ideal of n o t w o r k i n g for pay s e e m t h e obvious c a n d i d a t e s . Given h o w thorthat ideal was o v e r t u r n e d in t h e case of males, c e n t u r y w o r k i n g h o u r s r e a c h i n g w h a t were p r o b a b l y all-time highs even a m o n g m e n w h o h a d significant a m o u n t s o f p r o p e r t y , 1 w o u l d b e i n c l i n e d to p l a c e g r e a t e r weight on t h e wage g a p t h a n e n d u r i n g cultural ideals in e x p l a i n i n g l a b o r withdrawal. T h i s , of c o u r s e , still leaves t h e of t h e wage g a p itself u n e x p l a i n e d ; a n d at least in chapter, will r e m a i n so.

East Asian

and differences

c o n t r a s t , we see no signs of i n c r e a s e d l a b o r withholding either China or J a p a n ; on the contrary, the labor-supplying p h a s e o f t h e i r i n d u s t r i o u s r e v o l u t i o n s s e e m s t o c o n t i n u e u n a b a t e d , a t least in s o m e r e g i o n s . I n d e e d , t h e m a r k e d e x p a n s i o n of silk p r o d u c t i o n m u c h o f Meiji J a p a n a n d i n t h e p o s t - T a i p m g Lower Yangzi a n d G u a n g d o n g (largely in r e s p o n s e to s o a r i n g E u r o - A m e r i c a n d e m a n d ) involved a substantial increase in female l a b o r for t h e m a r k e t both The total n u m b e r o f workdays p e r year i n J a p a n e s e a g r i c u l t u r e rose 3 0 p e r c e n t from 1020, t h e n u m b e r of days w o r k e d p e r year by t h e a v e r a g e w o r k e r in a g r i c u l t u r e by a b o u t No c o m p a r a b l e a r e available for C h i n a , b u t t h e t r e n d m o s t of t h e c o u n t r y a p p e a r s to have b e e n u p w a r d . Xu cites an early work year for w o m e n m a k i n g cloth of 305 days, which far e x c e e d s t h e 180-220 days that various s c h o l a r s have s u g g e s t e d for these women years T h u s , m e a s u r e d against E u r o p e a n may s e e m t h a t we have a non-story: little g r o w t h in m a l e real wages ( J a p a n ) or even a d e c l i n e ( m u c h , t h o u g h n o t all of C h i n a ) , t h e r e no c h a n g e away from a labor-supplying strategy. But a t t h e s a m e t i m e , t h e r e a r e c h a n g e s the allocation of female l a b o r between sectors that c o m m a n d o u r a t t e n t i o n . Before g o i n g any is i m p o r t a n t to look a m o r e closely at what was p r o b a b l y h a p p e n i n g to real i n c o m e s e i g h t e e n t h - to early C h i n a . T h e overall t r e n d i n p e r c a p i t a c o n s u m p t i o n o f

w o r k , family, d e v e l o p m e n t most goods other s e e m s t o have b e e n flat o r d e c l i n i n g . Grain c o n s u m p t i o n in a v e r a g e years s e e m s to h a v e h e l d disasb e c a m e m o r e f r e q u e n t a n d m o r e d e v a s t a t i n g a s t h e s l a t e b e c a m e less willing a n d a b l e to assist rural When take t h e a p p a r e n t d e c l i n e i n n o n - g r a i n c o n s u m p t i o n a p a r t regionally, f i n d s o m e t h i n g m o r e c o m p l e x t h a n any s i m p l e t e n d e n c y t o sink back to m e r e s u b s i s t e n c e . A v e r a g e levels of c o n s u m p t i o n the three richest C h i n e s e t h e L o w e r Yangzi, S o u t h e a s t Coast, a n d L i n g n a n a p p e a r to have h e l d up r a t h e r albeit significant W h a t is m o s t striking, t h o u g h , that t h e s e affluent r e g i o n s c a m e to include a m u c h smaller of p o p u l a t i o n . T h e Yangzi Delta a l o n e ( t h e c o r e of t h e Lower Yangzi r e g i o n ) fell from p e r h a p s 20 of population to barely 9 p e r c e n t 1850, a n d roughly 6 percent 1950. T h e relative d e c l i n e s in L i n g n a n a n d t h e S o u t h e a s t Coast w e r e n o t sharp, but the pattern the three regions together had perhaps 40 percent of C h i n a s 1750 a n d u n d e r 2 5 p e r c e n t i n 1930. within e a c h o f t h e s e m a c r o r e g i o n s , m o s t o f w h a t p o p u l a t i o n growth t h e r e was a p p e a r s t o have b e e n in the regional peripheries. Meanwhile, o f C h i n a s post-1750 p o p u l a t i o n growth o c c u r r e d i n regions which, in the eighteenth century, had been major exporters of p r i m a r y p r o d u c t s t o t h e Yangzi D e l t a i n r e t u r n for m a n u f a c t u r e d g o o d s (especially c l o t h ) ; N o r t h C h i n a (raw c o t t o n ) , t h e M i d d l e a n d U p p e r Yangzi a n d t i m b e r ) , M a n c h u r i a (soybeans a n d t i m b e r ) , a n d , t o a lesser e x t e n t , t h e N o r t h w e s t a n d S o u t h w e s t (mostly A s they f i l l e d up, of t h e s e r e g i o n s , e x c e p t for M a n c h u r i a , e x p o r t e d far less to C h i n a ' s c o r e r e g i o n s . T h i s partly reflected g e n u i n e ecological c o n s t r a i n t s , a s t h e i r own g r o w i n g p o p u l a t i o n s e l i m i n a t e d cut i n t o earlier rice s u r p l u s e s . In t h e M i d d l e a n d U p p e r Yangzi a n d N o r t h C h i n a , also reflected substantial g r o w t h of h a n d i c r a f t i n d u s t r y (mostly weaving); b o t h r e d u c e d t h e m a r k e t for cloth from o l d e r cores a n d m e a n t that additional f e m a l e ) l a b o r that m i g h t have b e e n u s e d t o f u r t h e r e x p a n d a g r i c u l t u r a l o u t p u t was toward h a n d i c r a f t s . I n N o r t h C h i n a , w o r s e n i n g s h o r t a g e s o f and w a t e r were s u c h t h a t t h e m a r g i n a l r e t u r n s to a d d i t i o n a l l a b o r in t u r e m u s t have fallen steeply, b u t this was m u c h less t r u e in t h e M i d d l e a n d U p p e r Yangzi. officials H u n a n , for i n s t a n c e , q u i t e struck by h o w few p e a s a n t families (even with substantial g o v e r n m e n t e n c o u r a g e m e n t ) c h o s e to d o u b l e - c r o p t h e i r g r a i n fields, often a t t r i b u t i n g it to "laziI n s t e a d it s e e m s likely t h a t as a v e r a g e farm s h r a n k in these a r e a s , while cloth p r o d u c t i o n s o a r e d , w h a t was h a p p e n i n g was a reo f f e m a l e ( a n d t o s o m e e x t e n t c h i l d ) labor: r a t h e r t h a n t h e i r s m a l l e r plots m o r e intensively by utilizing all the family l a b o r they h a d o n c e used o n l a r g e r plots, utilized l a b o r for

Kenneth Pomeranz Given that t h e of t r a d e were shifting against handicrafts d u r i n g p e r i o d ( t h e value in of a p i e c e of cloth may have fallen as m u c h as 50 p e r c e n t in where our data this m a y at first s e e m c u r i o u s , t h o u g h we m u s t that l a b o r used to p r o d u c e a s e c o n d (or t h i r d ) c r o p on a given p i e c e of l a n d g e n e r a l l y yields m u c h less p e r h o u r t h a n t h e l a b o r used t o p r o d u c e t h e first c r o p . is p r o b a b l y still m o r e t h o u g h , that, in C h i n a , p r o d u c i n g textiles at h o m e was t h e what Bray has called "womanly i.e. activities t h o u g h t to n u r t u r e f e m i n i n e virtue a n d to to t h e increasingly c e n t r a l f e m a l e r o l e of raising p r o p e r child r e n . I n d e e d , t h e s a m e state t h a t was h o p i n g t o more double-cropping in t h e Middle a n d U p p e r Yangzi also m a d e a systematic effort to s h o w people there how p l a n t c o t t o n , how t o a n d weave it, a n d t o p r o m o t e t h e n o r m a t i v e ideal o f t h e " m a n plows, w o m a n weaves" T h u s , an increasingly s h a r p g e n d e r division of l a b o r within these r e g i o n s can be seen as t h e i n c r e a s i n g c o n f o r m i t y of families to a long-established a n d heavily p r o m o t e d n o t i o n o f t h e p r o p e r family, b r o u g h t i n t o r e a c h for m o r e families b y t e c h n o l o g i c a l c h a n g e ( i n c r e a s e d k n o w l e d g e o f c o t t o n growing and use i n t h e M i d d l e a n d U p p e r Yangzi, a n d t h e s p r e a d o f s p i n n i n g cellars, which t r a p p e d e n o u g h h u m i d i t y t o allow c o t t o n - s p i n n i n g during the long season in t h e and the Middle and U p p e r Yangzi, t h o u g h n o t N o r t h C h i n a - by what were p r o b a b l y c o n t i n u e d , t h o u g h slight, increases p e r capita M e a n w h i l e , t h e d e c l i n i n g ability o f a d v a n c e d r e g i o n s t o e x p o r t c h e a p cloth a n d i m p o r t p r i m a r y p r o d u c t s was o n e i m p o r t a n t reason for t h e very limited p o p u l a t i o n g r o w t h in these r e g i o n s . (In t h e early t w e n t i e t h c e n t u r y , this c o n s t r a i n t was s o m e w h a t r e d u c e d by t h e rise in imports from S o u t h e a s t as C h i n e s e a n d I n d i a n l a b o r e r s bowls" the Mekong, and after i m p o r t s m o r e or less d r i e d up from 1937 to t h e late 1970s, u n d e r t h e i n f l u e n c e of foreign invasion, civil a n d t h e n cold war, they have n o w again b e c o m e i m p o r t a n t to these d y n a m i c regions.) A c o m b i n a t i o n of o u t - m i g r a t i o n a n d relatively efficient b i r t h c o n t r o l k e p t p o p u l a t i o n d o w n , a n d h e l p e d these a r e a s p r o t e c t t h e i r s t a n d a r d s of living," w h i c h w e r e still the highest China. A n o t h e r p a r t o f p r o t e c t i n g this s t a n d a r d o f living u n d e r w o r s e n i n g t r a d e c o n d i t i o n s (at least r e s p e c t to t h e rest of C h i n a ) was a m o v e up value-added l a d d e r in handicrafts: as h i n t e r l a n d r e g i o n s p r o d u c e d m o r e low a n d m e d i u m g r a d e cloth i n t h e late e i g h t e e n t h a n d early n i n e t e e n t h c e n t u i y , coastal r e g i o n s increasingly c o n c e n t r a t e d o n h i g h e r - e n d c o t t o n fabrics r e q u i r i n g m o r e a n d (especially after on silk. T h e s e m o r e e x p e n s i v e p r o d u c t s were sold t o a n even m o r e far-flung m a r k e t ( b u t with fewer p o t e n t i a l buyers each locale), including a

w o r k , family, d e v e l o p m e n t n u m b e r o f a r e a s b e y o n d C h i n a . W h i l e this m o v e u p t h e ladder small c o m p a r e d to t h e kinds of a d v a n c e s use as an i n d e x of d e v e l o p i n g c o u n t r i e s a r e really e n t e r i n g t h e r a n k s of the prosperous m o v i n g from textiles t o a u t o parts o r e l e c t r o n i c s ) , a n d t h u s easily o v e r l o o k e d , it is i m p o r t a n t to free ourselves from s u c h a n a c h r o n i s t i c biases: a n d o n c e we d o , this a p p e a r s as a perfectly n o r m a l a d j u s t m e n t of a s o p h i s t i c a t e d , t h o u g h n o n - m e c h a n i z e d , industrial r e g i o n r e s p o n d i n g to c h a n g e s in t h e l a r g e r East Asian of which was a In t e r m s of g e n d e r roles, s u c h a p a t t e r n of d e v e l o p m e n t h a d t h e effect o f m a k i n g t h e g e n d e r e d division o f l a b o r i n t h e m o s t a d v a n c e d coastal areas much sharper, as it was to be in t h e newly i n d u s t r i a l i z i n g M i d d l e a n d U p p e r Yangzi. As previously n o t e d , Li has a r g u e d t h a t i t in the century that to m e n a n d women working together in f i e l d s essentially d i s a p p e a r from t h e L o w e r Yangzi T h e s e p a r a t i o n b e c a m e particularly clear w h e r e silk p r o d u c t i o n c a m e t o d o m i n a t e , since silkworm raising, silk-reeling, a n d silk w e a v i n g all g e n e r a l l y t o o k p l a c e in s e p a r a t e b u i l d i n g s : in t h e case of b o t h r e e l i n g a n d weaving, often b u i l d i n g s were s o m e d i s t a n c e from t h e family's U n d e r t h e c i r c u m s t a n c e s , w o m e n c o u l d usually play little in a g r i c u l t u r e , a n d m e n little r o l e in s e r i c u l t u r e ; m o r e o v e r , as work b e c a m e m o r e m a d e m o r e s e n s e , from t h e perspective o f m a x i m i z i n g h o u s e h o l d i n c o m e , for b o t h m e n a n d w o m e n to specialize. It worth noting connection that North China w h e r e p e o p l e w e r e g e n e r a l l y less p r o s p e r o u s , t h e a g r i c u l t u r a l season was s h o r t e r , a n d t h e cloth p e o p l e p r o d u c e d g e n e r a l l y c o a r s e r - b o t h m e n a n d w o m e n c o n t i n u e d t o weave d u r i n g t h e T h u s w o m e n did n o t leave t h e p a i d l a b o r force in late e i g h t e e n t h - to early East as they did Europe - quite c o n t r a r y - b u t they did some exceptions as t h e tea c o u n t r y , w h e r e t h e r e s e e m s to have been n o cloth p r o d u c t i o n , a n d m e n a n d w o m e n w o r k e d side b y side i n t h e t o leave a g r i c u l t u r e a n d m o r e on "womanly work." T h u s , w h e n c o m p a r e d t o E u r o p e a n p a t t e r n s o f p r o t o - a n d early i n d u s trialization, t h e C h i n e s e p a t t e r n m o v e d very d e c i d e d l y the direction e m p h a s i z e d by Saito for T o k u g a w a J a p a n . T h e r e was less g e o g r a p h i c sion of l a b o r - t h o u g h I would e m p h a s i z e that was d e c l i n e from a h i g h base as C h i n e s e h i n t e r l a n d s Japanese outer the textile a n d o t h e r i n d u s t r i e s t h a t h a d f i r s t t a k e n r o o t advanced regions; m e a n w h i l e t h e r e was a d e e p e n i n g a n d s p r e a d across space of t h e division of l a b o r within t h e family, as families in m o r e a r e a s c o u l d afford to d i r e c t t h e i r wives a n d d a u g h t e r s i n t o w o m a n l y work, while i m p r o v e d farmers relative lo s p i n n e r s a n d weavers ( a n d in rising skill r e q u i r e m e n t s ) k e p t m e n o u t o f s u c h work. I n J a p a n , r a p i d

Kenneth P o m e r a n z industrialization, u r b a n i z a t i o n , a n d changes transportation b r o k e these p a t t e r n s t w e n t i e t h c e n t u r y , so t h a t t h e new division of l o o k e d increasingly "Western." In C h i n a , however, where industry grew m u c h m o r e the pattern b e c a m e steadily m o r e e n t r e n c h e d , a n d was widely a s s u m e d t o b e by w h e r e it was actually fairly n e w ) ; this w o u l d have i m p o r t a n t c o n s e q u e n c e s for policy People's Republic.

Migration m o v i n g to t h e post-1949 p e r i o d , worth considering o n e o t h e r way which g e n d e r a n d k i n s h i p n o r m s may have h a d a n i m p o r t a n t effect o n e c o n o m i c d y n a m i c s : n a m e l y , t h r o u g h effects o n p a t t e r n s of m i g r a t i o n . Very crudely, p o o r p e o p l e in a c r o w d e d r e g i o n have two basic m i g r a t i o n p a t h s o p e n to t h e m . T h e y can e i t h e r m o v e to w h e r e l a n d / l a b o r ratios a r c m o r e favorable to t h e m (e.g. a frontier) or to s o m e place w h e r e c a p i t a l / l a b o r ratios a r e m o r e favorable ( a n d w h e r e t h e r e a r e likely to industrial or service j o b s , for which t h e s u p p l y of land n o t c r u c i a l ) . In s o m e cases, p o t e n t i a l m i g r a n t s m a y find a tion w h e r e b o t h l a n d a n d capital a r e m o r e plentiful relative t o l a b o r t h a n back h o m e : for i n s t a n c e , post-1865 N o r t h A m e r i c a a n d Australia (for m o s t a n d p e r h a p s t h e s o u t h e r n c o n e of Latin America (for, say, Italian, t h o u g h n o t G e r m a n e m i g r a n t s ) , o r c o n t e m p o r a r y W e s t e r n E u r o p e (for S o u t h a n d S o u t h e a s t Asians). But for m o s t p u r p o s e s , particularly b e f o r e t h e s u r g e i n capital-intensive i n d u s t r y a n d f a r m i n g that m a d e t h e sparsely p o p u l a t e d exceptionally o n e can treat t h e s e pulls as distinct. F r o m t h e s i x t e e n t h t o t h e e i g h t e e n t h c e n t u r y , C h i n e s e institutions h a d been remarkably at e n c o u r a g i n g p e o p l e lo m o v e toward available l a n d , often o v e r very l o n g distances: see j u s t h o w w h e n we c o n s i d e r that C h i n e s e m i g r a t i o n t o S i c h u a n a l o n e the eighteenth c e n t u r y far e x c e e d e d all E u r o p e a n m i g r a t i o n to t h e New W o r l d in t h e t h r e e c e n t u r i e s from 1500 to 1800. T h i s was d u e to t h e a b s e n c e of various artificial b a r r i e r s i m p o r t a n t in t h e West (e.g. o n e c o u l d m o v e to t h e C h i n e s e f r o n t i e r while r e m a i n i n g free, while a p o o r W e s t e r n E u r o p e a n s e e k i n g t h e relatively u n d e r - p o p u l a t e d land o f t h e U k r a i n e o r H u n g a r y would h a v e h a d to b e c o m e free, a n d two-thirds of whites s e e k i n g t h e free lands of N o r t h A m e r i c a h a d to i n d e n t u r e to t h e prese n c e of a n d o t h e r institutions t h a t transmitted i n f o r m a t i o n a b o u t m i g r a t i o n o p p o r t u n i t i e s , a n d to a state that often p r o vided s e e d m o n e y , loans, a n d e i t h e r de or tax holidays for people reclaiming new But o n c e e m p t y a n d fertile to move to h a d b e c o m e scarce the nineteenth century in Manchuria, Mongolia a n d overseas), striking to n o t i c e relatively few m i g r a n t s from

development poor toward t h e populated but average i n c o m e r e g i o n s a l o n g t h e East a n d S o u t h C h i n a coasts. T h e p h e n o m e n o n o f C h i n a ' s richest r e g i o n s receiving few m i g r a n t s a n d still s e n d i n g m a n y r e q u i r e s s o m e e x p l a n a t i o n , since t h e r e were n o t t h e sorts i n t e r n a l passports o r o t h e r legal that barred these flows in T o k u g a w a J a p a n a n d Maoist C h i n a . After despite n i n e t e e n t h - c e n t u r y t r o u b l e s , t h e Lower Yangzi still h a d a m u c h h i g h e r p e r capita i n c o m e t h a n t h e M i d d l e Yangzi o r N o r t h C h i n a , a n d a s m o r e a n d more people those regions found h a r d t o get access t o e n o u g h l a n d , o n e c o u l d i m a g i n e t h e m m i g r a t i n g toward t h e h a n d i c r a f t a n d service j o b s of t h e Yangzi Delta; r e s t a r t i n g its p o p u l a t i o n g r o w t h , l o w e r i n g its wages, i m p r o v i n g t h e c o m p e t i t i v e n e s s of its c l o t h , a n d m o v i n g living s t a n d a r d s in different parts o f t h e c o u n t r y closer t o t h e r o u g h equality t h a t a n abstract m o d e l w o u l d p r e d i c t for a society which p e o p l e , m o n e y , a n d g o o d s c o u l d m o v e fairly a n d i n f o r m a t i o n a b o u t o p p o r t u n i t i e s elsewhere s e e m s to have b e e n widely available. T h a t is, o n e c o u l d i m a g i n e if single women had been able to migrate alone jobs) w i t h o u t stigma, h a d w e a v i n g n o t b e e n seen as ideally d o n e by w o m e n a h o u s e h o l d in w h i c h t h e h u s b a n d h a d l a n d to farm (as a t e n a n t or owneroccupier) a n d so on. But

fact m i g r a t i o n by u n a c c o m p a n i e d w o m e n was e x t r e m e l y rare in China: p a r t for that r e a s o n , C h i n e s e cities fin s h a r p c o n t r a s t t o m o s t early m o d e r n E u r o p e a n o n e s ) w e r e almost always heavily A n d if female p o t e n t i a l weavers were only s u p p o s e d to m i g r a t e as p a r t of h o u s e h o l d s a male head access to land, no s u c h reverse m i g r a t i o n b a c k to t h e c o a s t was likely to o c c u r , even o n c e i n t e r i o r a r e a s h a d b e c o m e p r e t t y full. Even t e n a n t s in t h e Yangzi Delta generally e a r n e d m o r e than owner-operators b u t t h e initial rent deposits that landlords required would have been a obstacle for p o o r f a r m e r s c o m i n g from i n l a n d r e g i o n s . It took t h e rise of urban factory-based i n d u s t r y ( s o m e of which c a m e d o r m i t o r i e s for single women a t t a c h e d ) a n d a p r o l e t a r i a t in t h e E u r o p e a n sense the t w e n t i e t h c e n t u i y to c r e a t e a significant flow of migrants toward r i c h e r coastal r e g i o n s . process was t h e n h a l t e d a g a i n , as wc shall by t h e b a n on m i g r a t i o n to t h e cities from r o u g h l y 19(50 to t h e 1980s.) T h e restrictions on t h e g e o g r a p h i c mobility of C h i n e s e w o m e n the o n e area which they d o s e e m t o have b e e n m u c h m o r e than either J a p a n e s e or Western European women may then h a v e p l a c e d i m p o r t a n t limits on t h e ability of families to d e p l o y labor m a x i m u m income before i m p o r t a n t c o n s e q u e n c e s for g e o g r a p h y o f p r o t o - i n d u s t r y , poverty, a n d d e v e l o p m e n t modern China. It w o r t h n o t i n g h e r e , h o w e v e r , t h a t even this story is p e r h a p s n o t b e s t told as o n e p o w e r e d by a specific c u l t u r a l restriction on w o m e n , p a r t i c u larly insofar as t h e c o u n t e r - f a c t u a l we a r e i m a g i n i n g is w o m e n m o v i n g

Kenneth P o m e r a n z from

to to take up exactly t h e s a m e work as T h e p o i n t s e e m s to be at as m u c h a family division of l a b o r was n o r m a t i v e for m e n as as w o m e n striking if weaving did pay b e t t e r t h a n farm work in t h e e i g h t e e n t h c e n t u i y ) a n d which w e n t a l o n g with s t r o n g p r e f e r e n c e s ( b o t h o n t h e p a r t o f t h e state a n d a m o n g individuals) for at least s o m e to t h e land. As C h a r l e s Tilly a n d o t h e r s have n o t e d , t h e rural i n d u s t i y E u r o p e saw t h e growth of a rural p r o l e t a r i a t of two textile or a textile worker and a and, s o m e places, villages full of s u c h c o u p l e s . T h e s e rural p r o l e t a r i a n s often r e p r o d u c e d themselves for several g e n e r a t i o n s , b u t were t h e n relatively easily m o v e d to t h e cities w h e n e n t r e p r e n e u r s f o u n d c o n c e n t r a t e d factories p r e f e r a b l e t o dispersed p u t t i n g By c o n t r a s t , t h e of C h i n e s e p r o t o - i n d u s t r y was o u t in families in which o n e m e m b e r still h a d s t r o n g to t h e l a n d , a n d w h i c h often s u p p l i e d t h e i r own raw m a t e r i a l s ( r a r e r E u r o p e , a n d virtually n o n e x i s t e n t after t h e switch to c o t t o n for fiber a n d coal for fuel). S u c h families were slower to m o v e to cities even o n c e u r b a n factories existed: in p a r t n o d o u b t b e c a u s e they m o r e s e c u r e a n d closer t o t h e family ideal t h a n even a w e a l t h i e r family of two wage e a r n e r s w o u l d b e . O r , to p u t t h e matter t e r m s closer to those c h o s e n by S u g i h a r a , a h o u s e h o l d e c o n o m i c strategy based o n p a r t i c i p a t i n g m a n y kinds o f p r o d u c t i o n , o n b e i n g a b l e t o e x t e n d t h e l a b o r year t o m a x i m i z e i n c o m e , a n d o n t h e role o f t h e h o u s e h o l d h e a d as a l l o c a t o r of l a b o r across these varied tasks may have m a d e risking p r o l e t a r i a n i z a t i o n s e e m particularly u n a t t r a c t i v e , even if this risk w e n t a l o n g with m o v i n g to an a r e a with h i g h e r average i n c o m e s . Again, t h e n , a strongly d e f i n e d g e n d e r division of l a b o r s e e m s to have b e e n a partial alternative to a s h a r p e n i n g of t h e g e o g r a p h i c division of

The past fifty years The

West

and

F o r E u r o p e a n d N o r t h A m e r i c a , t h e m o s t striking d e v e l o p m e n t i n t h e g e n d e r division of l a b o r since 1945 w h a t De calls a new i n d u s t r i o u s or p h a s e . After a h u g e s u r g e in h o u r s w o r k e d by m a r r i e d w o m e n d u r i n g W o r l d W a r II, t h e late a n d 1950s saw a p r o n o u n c e d r e t u r n to l a b o r - w i t h h o l d i n g strategics, which were s o o n taken to be n o r m a l even for m a n y working-class families. But since t h e r e has b e e n a new a n d p r o l o n g e d rise h o u r s w o r k e d by m a r r i e d w o m e n a n d , to a lesser by t e e n a g e r s , only a slight d e c l i n e hours married men. Fourteen percent of married US women were in the l a b o r force 1940; 60 p e r c e n t w e r e in 1990. L a b o r force p a r t i c i p a t i o n by 1 6 - 1 9 year olds rose m o r e modestly, from 45 p e r c e n t 1 9 6 0 / 6 5 to 55

work, in 1 9 8 0 / 8 0 , b u t even this era in

school

development

small increase

European

males have

m o r e than

U S A , a n d h o u r s f o r w o m e n a n d t e e n a g e r s h a v e r i s e n less direction of c h a n g e is similar. T h e s a m e and

cultural

decline

value a d d e d in are

true

of the

frozen foods, organized There

also

striking in an

was also r i s i n g

terns are not quite so stark - h o u r s

broad

149

the

but the general

r e g a r d to t h e social

industrious

household:

the

t h e h o m e a n d t h e i n c r e a s e d u s e o f fast a n d c a r e , professional t u t o r i n g services, a n d so o n .

similarities

across

Europe

North

America

( t h o u g h with s o m e i m p o r t a n t differences, too) in t h e differing types of m e n a n d w o m e n get: the g r e a t e r ( t h o u g h o f late

declining)

l i k e l i h o o d t h a t m e n will h a v e l o n g - t e r m j o b s e c u r i t y , s u b s t a n t i a l b e n e f i t s , a n d s o o n . ( O f c o u r s e m a n y b e n e f i t s a r e m u c h less t i e d t o j o b s i n E u r o p e o r e v e n C a n a d a t h a n i n t h e USA.) J a p a n e s e m a r r i e d w o m e n a r e still s l i g h t l y less likely t o w o r k o u t s i d e t h e h o m e t h a n wives i n m o s t o f E u r o p e o r N o r t h A m e r i c a , t h o u g h t h e way i n which data arc categorized makes direct comparisons m o r e striking contrast, however,

in

T h e far

types of work. M a r r i e d J a p a n e s e

w o m e n a r c far less likely t h a n t h e i r W e s t e r n c o u n t e r p a r t s t o b e f o u n d well-paid o r m a n a g e r i a l

a n d trail m u c h f u r t h e r , b e h i n d t h e i r m a l e

compatriots in the d e g r e e to which they enjoy security a n d surprisingly

large

percentage of married w o m e n

A

do

labor

within their h o m e s , which is quite rare in o t h e r advanced industrial societies. J a p a n e s e society also e m p h a s i z e s a f e m a l e role as to the h u m a n capital of others, but without the strong dice one

c o m b i n i n g this with s o m e found

the

West

from

roughly

of i n c o m e - p r o d u c i n g work that the Victorian

era

through

T h e r e s u l t i s t h a t t h e fairly h i g h r a t e o f p a r t i c i p a t i o n

the

the paid

l a b o r force for J a p a n e s e w o m e n i s n o t m a t c h e d b y e i t h e r a n e m p h a s i s o n i n c o m e - e a r n i n g a s a n activity f o r w o m e n t h a t i s a s i m p o r t a n t a s d o m e s t i c responsibilities or a sense that it

i m p o r t a n t that w o m e n h a v e relatively

access to the market. To put

a n d m o r e secure parts of the in other terms, the

lowed early

p h a s e t h a t fol-

in t h e West was n e v e r as m a r k e d in J a p a n ,

despite a parallel growth rably s t r o n g p r e f e r e n c e

the

earnings

and a compa-

a g e n d e r e d division of l a b o r ( t h o u g h n o t q u i t e

the same o n e as in the West). C e r t a i n l y J a p a n e s e h o u s e h o l d s t o d a y , like t h e i r a

phase

e x c e p t d u r i n g t h e p e r i o d w h e n t h e family

y o u n g children. A n d , if anything, t h e recent stagnation of wages in s e e m s likely t o k e e p m a n y w o m e n i n t h e longer. T h e

labor force s o m e w h a t

difference i s t h a t J a p a n e s e w o m e n s e e m significantly m o r e

excluded from the better-paid a n d m o r e secure parts of the labor force than their N o r t h Atlantic counterparts, a n d the c u r r e n t

of

Pomeranz

wages may well m a l e resistance to c h a n g i n g that. On t h e o t h e r h a n d , t h e unusually d e p e n d e n c y ratios Japan (due to e x c e p t i o n a l longevity) s e e m likely to c o n t i n u e to a n d since s e e m s far less inclined t h a n c i t h e r t h e U n i t e d States or m o s t of W e s t e r n E u r o p e to allow i m m i g r a t i o n substantial e n o u g h lo c o u n t e r - a c t this t r e n d , t h e r e may b e s o m e e r o s i o n o f t h e b a r r i e r s k e e p i n g w o m e n o u t the m o r e skilled a n d p e r m a n e n t p a r t s o f t h e U n d e r the circumstances it s e e m s possible to look m o r e like t h e N o r t h Atlantic m a n y of respects - a n d and A m e r i c a will c o n t i n u e to m o v e away from t h e n i n e t e e n t h - c e n t u r y g e n d e r ideas t h a t c a u s e d t h e m m o r e tentatively, J a p a n ) t o deviate from " i n d u s t r i o u s " p a t t e r n s . Since t h e ideal of t h e wife w h o did n o t work for pay c a m e r a t h e r late t o J a p a n i n t h e f i r s t p l a c e , a n d has l o n g been h o n o r e d t h e b r e a c h even by m a n y families, it s e e m s d e s t i n e d to m a r k a r a t h e r brief p e r i o d the histoiy.

China: the collective era T h e C h i n e s e situation from 1 9 4 9 - 7 8 very different from e i t h e r J a p a n or C h i n a , a n d different again from d e v e l o p m e n t s since 1978. 1 b e g i n a brief analysis of t h e Maoist p e r i o d , b u t focus on t h e r e f o r m era. O n t h e o n e h a n d , m o s t o f t h e l e a d e r s h i p o f t h e P e o p l e s R e p u b l i c was q u i t e d e t e r m i n e d to have all adults t h e l a b o r force, a n d was generally able t o m a k e this a Thus huge numbers women entered the l a b o r force t h e full-time paid-labor force) w h o were n o t t h e r e before, b o t h in cities a n d t h e c o u n t r y s i d e . T h i s c h a n g e was particularly p r o n o u n c e d i n certain p o o r areas t h a t h a d h a d few c o m m e r c i a l h a n d i crafts a n d w h e r e w o m e n were often c i t h e r n o t n e e d e d the fields or were n o t t h o u g h t t o b e l o n g t h e r e . O n t h e o t h e r h a n d , t h e new r e g i m e c a m e over t h e of the to t h i n k of what was essentially a m o d e l of t h e agriand mechanized h a d fateful c o n s e q u e n c e s for g e n d e r relations in t h e we b e g i n with t h e m , a n d t h e n turn to the urban and sectors. Rural handicrafts, like o t h e r "sidelines," were increasingly s q u e e z e d o u t of In t h e m a n y parts of t h e c o u n t r y in which w o m e n h a d become over p r e v i o u s centuries, h u g e n u m b e r s o f rural w o m e n f o u n d themselves a n d c o n s i g n e d to a c r o w d e d agricultural s e c t o r w h e r e they often faced b o t h serious disadvantages tasks r e q u i r i n g u p p e r body s t r e n g t h ) a n d s e r i o u s d i s c r i m i n a t i o n , i n c l u d i n g various taboos. While a t t e m p t s were m a d e to train s o m e w o m e n in t h e use of n e w agricultural e q u i p m e n t t h e favored areas w h e r e such e q u i p m e n t was

development do n o t to have b e e n successful. In p a r t , this was b e c a u s e o f l o n g - s t a n d i n g t a b o o s against w o m e n b e i n g away from h o m e , especially o v e r n i g h t , since t r a c t o r stations w e r e few a n d h a d to W h i l e w o m e n - especially o l d e r w o m e n c o n t r o l of such sidelines a s v e g e t a b l e g a r d e n i n g a n d poultryraising, w h i c h , d u r i n g m o r e liberal p e r i o d s , c o u l d yield a large s h a r e of a s u c h w o r k was n o t always possible, a n d was rarely highly v a l u e d by t h e official c u l t u r e . Meanwhile, the system s e e m s to h a v e p l a c e d b o t h a floor and a o n rural e a r n i n g s , s o t h a t they g e n e r a l l y e a r n e d percent often p r o b a b l y closer t o 6 0 p e r c e n t ) o f w h a t m a l e s d o i n g c o m p a r a b l e w o r k e a r n e d . Since m o s t i n c o m e was a p p a r e n t l y to t h e h o u s e h o l d ( r e p r e s e n t e d by its h e a d ) as a u n i t , r a t h e r t h a n to individuals, it n o t c l e a r h o w relative wages t r a n s l a t e d i n t o individual access g o o d s ; b u t for families in w h i c h relative i n f l u e n c e , respect, or c o m f o r t were at least r o u g h l y related to t h e visible financial c o n t r i b u t i o n s of e a c h m e m b e r , work-points w o u l d p r o b a b l y have b e e n t h e m o s t relevant measure. T h u s , Maoism c h a n g e d t h e e c o n o m i c significance o f g e n d e r i n b o t h city a n d c o u n t r y s i d e , b u t in different ways. U r b a n w o m e n s e e m to have m o v e d m u c h closer t o e c o n o m i c equality with m e n . Birth rates, t h e h a z a r d s of p r e g n a n c y , a n d t h e i n c i d e n c e of poverty so severe it forced n e g l e c t with t h e result family m e m b e r s girls) all d e c r e a s e d s h a r p l y in t h e cities; e d u c a t i o n a l c o n v e r g e d at least t h r o u g h wages w e r e p a i d t o individuals; a n d i n m a n y ( t h o u g h certainly n o t o c c u p a t i o n s , at least pay rates for t h e s a m e work W h i l e t h e post-1978 era has s e e n d i s p r o p o r t i o n a t e j o b losses among and some attempts to p r o m o t e a "return to the househ o l d " for w o m e n as a positive t h e b u l k of t h e s e e m likely to be r e t a i n e d , a n d t h e o n e child policy (which has b e e n far m o r e successful t h e cities t h a n t h e has encoura g e d families to invest as m u c h in t h e f u t u r e of t h e i r d a u g h t e r s as they would in t h e i r sons. By c o n t r a s t , t h o u g h r u r a l w o m e n also m a d e gains (especially in m a n y aspects o f t h e r e - g e n d e r i n g o f w o r k affected t h e m The p a t h for r u r a l w o m e n s e e m s t o have b e e n from a world of very different kinds of l a b o r force p a r t i c i p a t i o n , with f e m a l e work usually b u t n o t always less well c o m p e n s a t e d , a n d b a c k e d by an i d e o l o g y of c o m p l e m e n t a r i t y , to a m o r e u n i f o r m world of work, w o m e n m o r e p o o r l y paid for d o i n g t h e s a m e kinds o f work a s m e n ( a n d b e a r i n g m o s t o f t h e responsibility for d o m e s t i c work, t o o ) . C o u p l e d with u n p r e c e d e n t e d p o p u l a t i o n g r o w t h , a n e a r - b a n on m i g r a t i o n after a n d (at least m u c h of t h e formal d i s c o u r a g e m e n t of traditional sidelines, p r o b a b l y m a d e t h e 1950s to 1970s t h e p e r i o d of

Kenneth Pomeranz C h i n e s e histoiy which t h e m o d e l of t h e e c o n o m y was closest to a c c u r a t e : however, t h e u n i t that disposed of " s u r p l u s " l a b o r was no l o n g e r t h e family b u t work t e a m or A n d in a situation in which n o b o d y ( e x c e p t a few c a d r e s ) traveled m u c h , p r e j u d i c e s against u n a c c o m p a n i e d w o m e n traveling w e r e n o t likely t o b e c h a l l e n g e d . T h u s , while we s h o u l d n o t forget all t h e positive which t h e early P R C laid a basis for t h e g r o w t h o c c u r r e d since 1978 - p r o v i d i n g unprecedented of p u b l i c literacy, political and water c o n t r o l , for i n s t a n c e it also did freeze ( o r e v e n c r e a t e ) both geographic and gender patterns in the that have m u c h t o d o with t h e e x t r e m e l y u n e q u a l e x p e r i e n c e o f t h e boom.

Gender and development in post-Mao China For p u r p o s e s of this c h a p t e r , t h r e e features of C h i n a ' s post1978 d e v e l o p m e n t a r c particularly n o t e w o r t h y : (1) t h e p r o m i n e n c e of w o m e n (mostly y o u n g w o m e n ) i n assembly-line (2) t h e feminization of a g r i c u l t u r e m a n y of t h e m o r e d y n a m i c parts of rural China, as m e n move better-paid industrial a n d service ( t h o u g h i n s o m e o f t h e best-off a r e a s , b o t h m e n a n d w o m e n n o w disdain field work, which is d o n e e i t h e r by t h e elderly or by "guest w o r k e r s " from the Chinese a n d (3) the ways which m a n y t o w n s h i p a n d village e n t e r p r i s e s w h i c h b o t h n e e d to m a k e profits a n d to please local c a d r e s , have s i m u l t a n e o u s l y utilized limits on female mobility to i n c r e a s e t h e i r rates o f while assigning m o r e d e s i r a b l e in ways t h a t t e n d to r e i n f o r c e m a l e l e a d e r s h i p in t h e h o u s e h o l d . T h e first of t h e s e p a t t e r n s is f o u n d a r o u n d t h e world, especially in e x p o r t - p r o c e s s i n g z o n e s ; it t h u s r e q u i r e s no special terms of East Asian or C h i n e s e characteristics. W h a t m a y be s o m e w h a t u n u s u a l t h e e x t e n t l o which w o m e n g o t o these w i t h o u t b r e a k i n g with t h e i r families, c o n t i n u e t o s e n d m o n e y h o m e , a n d s o h e l p stabilize t h e c o u n t i y M e a n w h i l e , t h a t these w o m e n c a n w o r k away from h o m e a n d t h e n to t h e i r villages as r e s p e c t a b l e adults s e p a r a t e s t h e m from t h e ively i m m o b i l e w o m e n o f t h e a n d also from t h e r u r a l - b o r n w o m e n workers R e p u b l i c a n cities, w h o rarely r e t u r n e d to t h e i r natal p l a c e s (unless they b r o k e t h e i r c o n t r a c t s , in which they p r o b a b l y did n o t return h o m e to great respect). may reflect c h a n g i n g g e n d e r norms, though also t r u e m a n y factories today, like t h e i r Republican p r e d e c e s s o r s , h o u s e t h e i r female w o r k e r s i n d o r m i t o r i e s a n d supervise t h e m closely. M e a n w h i l e , an i m p o r t a n t q u e s t i o n for t h e f u t u r e whether these j o b s , like e m p l o y m e n t o p p o r t u n i t i e s for y o u n g w o m e n i n m a n y o t h e r times a n d places, will e r o d e t h e c o n t r o l o f s e n i o r s juniors and males o v e r females in rural C h i n e s e families. T h e s e c o n d feature, t h o u g h i t shows again t h e r e m a r k a b l e flexibility o f

w o r k , family, d e v e l o p m e n t 153 gender u n d e r changed socio-economic circumstances ( a n d t h u s casts still f u r t h e r d o u b t o n any n o t i o n t h a t they on e c o n o m i c actors i n past, does not seem surprising. T h o s e w h o a r e m o r e socially a n d culturally e m p o w e r e d of course likely to m o v e first i n t o b e t t e r - p a y i n g jobs; a n d f a r m i n g is g e n e r a l l y m o r e compatible child c a r e a n d h o u s e w o r k t h a n m a n y o f t h e better-paying (which often involve substantial c o m m u t e s , even a m i g r a t o r y existe n c e ) . A m o r e c o m p l e x issue, t h o u g h , whether women experience feminization of a g r i c u l t u r e as g h e t t o i z a t i o n , a n d w h e t h e r they implicitly c o m p a r e this new of l a b o r to a g e n d e r - n e u t r a l o n e , or to o n e a d i f f e r e n t g e n d e r division of l a b o r (such as t h a t of T h e r e i s e v i d e n c e t h a t s o m e m a r r i e d w o m e n , even i f they a r e b e i n g left further b e h i n d by their menfolk terms of both income a n d connections t o t h e w i d e r w o r l d , may e x p e r i e n c e t h e c o m b i n a t i o n o f i n c r e a s e d e a r n i n g s in a b s o l u t e t e r m s (especially in p e n - u r b a n areas) a n d relative f r e e d o m from supervision as a development. provides the following s u m m a r y of a t t i t u d e s in a m a r k e t - g a r d e n i n g village n e a r w h i c h t h e m e n have largely m o v e d o u t o f a g r i c u l t u r e : " A l t h o u g h [ m a r r i e d w o m e n ' s ] e c o n o m i c o p p o r t u n i t i e s r e m a i n e d limited t o family h o r t i c u l t u r e , they loved t h e o p e n of the fields,, and cherished the o p p o r t u n i t y t o m a k e i m p o r t a n t c o n t r i b u t i o n s t o t h e family d e s c r i b i n g a S h a n d o n g village w h e r e r e f o r m has h a d less i m p a c t t h a n m o s t , b u t w h e r e m a n y m e n a r e n o n e t h e l e s s n o w i n industry o r working n o t e s t h a t it n o w c o m m o n for w o m e n to retire from a g r i c u l t u r a l l a b o r w h e n t h e i r sons m a n y , while t h e lakes t h e i r p l a c e t h e fields; later they p r o v i d e m u c h of t h e child care, so t h e daughter-in-law can c o n t i n u e t o e a r n According to t h e mothers-in-law g e n e r a l l y w e l c o m e a r r a n g e m e n t while the "the period between a marriage and the birth o f h e r f i r s t child may b e o n e o f periods of her If this w e r e a c o m m o n situation, w o u l d r e p r e s e n t a r e m a r k a b l e contrast to t h e p i c t u r e p r o v i d e d in classic e t h n o g r a p h i e s of rural C h i n a , in w h i c h t h e s e were g e n e r a l l y p r e s u m e d to be t h e m o s t m i s e r a b l e years of a life h a d t h e suicide r a t e s t o p r o v e On the other hand, t h e w o m e n q u o t e d above m a y b e p u t t i n g t h e b e s t possible face o n t h e i r situation for benefit o f t h e i r foreign i n t e r l o c u t o r s ; m o s t w o m e n a r e p r e aware o f t h e a d v a n t a g e s o f employment, and many of t h e m m u s t find exclusion from s u c h work d i s t u r b i n g , even if they also a g r e e t h a t t h e i r lot within a g r i c u l t u r e improved. only a n e c d o t a l e v i d e n c e , I see no way to tell h o w c o m m o n any given r e a c t i o n Little o f this n e e d s t o b e e x p l a i n e d t e r m s o f particularly C h i n e s e o r East Asian p a t t e r n s ; b u t t h e feminization of f a r m i n g , particularly insofar as some women do find acceptable, may provide an interesting perspective on Chinese g e n d e r A s S u s a n M a n n has recently when

Kenneth Pomeranz asked l o t h i n k a b o u t C h i n e s e g e n d e r roles, m o s t o f u s i m m e d i a t e l y t h i n k a b o u t m a l e - f e m a l e i n t e r a c t i o n s in t h e family. Vet millions of C h i n e s e have always passed m u c h of t h e i r time in u n i s e x e n v i r o n m e n t s , i n c l u d i n g work e n v i r o n m e n t s : t h e " i n n e r q u a r t e r s " of well-off h o u s e h o l d s , t h e a n d o t h e r social clubs o f o v e r w h e l m i n g l y m a l e cities, a n d m a n y o f t h e work t e a m s of t h e collective e r a w e r e essentially u n i s e x . A n d while some work environments are i n t e g r a t e d today, t h e agricultural e x a m p l e above suggests n e w u n i s e x w o r k p l a c e s a r e also a p p e a r i n g . W i t h b o t h s h o r t - a n d l o n g - t e r m travel still m u c h e a s i e r for m e n , a state t h a t still e n f o r c e s links to t h e l a n d for millions of families, a n d a l o n g - s t a n d i n g p r a c t i c e of h i g h l a b o r force p a r t i c i p a t i o n rates for women, s e e m s likely t h a t e c o n o m i c c h a n g e for w o m e n will primarily involve c h a n g i n g definitions o f w h a t work b e l o n g s within s p h e r e , " a n d t h e c o n d i t i o n s a n d c o m p e n s a t i o n for work," r a t h e r t h a n a b r e a k d o w n of t h e s e p a r a t i o n of s p h e r e s . A n d while t h e two s p h e r e s a r e clearly u n e q u a l , s o m e w o m e n m a y w e l c o m e t h e a u t o n o m y that division m a k e s possible, especially since t h e g e n e r a t i o n a l i n e q u a l ities t h a t o n c e m a d e m a n y h o m o s o c i a l hierarchical h a v e c o n s i d e r a b l y since 1949. But places m o r e industrialized t h a n t h e villages by J u d d and t h e life-cycle a n d p a t t e r n s o f rural C h i n e s e w o m e n ' s w o r k have dramatically; a n d they may n o w r e s e m b l e either Europe J a p a n i n t h e p r o to-industrial a n d early industrial p e r i o d s m o r e t h a n they d o e a r l i e r C h i n e s e p a t t e r n s . U n m a r r i e d w o m e n relatively d e v e l o p e d villages, as we see, often do work o u t s i d e t h e h o m e , usually in j o b s in local factories, j u s t as u n m a r r i e d y o u n g rural w o m e n i n J a p a n a n d W e s t e r n E u r o p e often d i d e i t h e r h a n d i c r a f t work o r service. Many m a r r i e d rural w o m e n work for t h e m a r k e t , b u t they a r e mostly still p a r t of h o u s e h o l d e n t e r p r i s e s r a t h e r t h a n e a r n i n g wages: G u a n g d o n g s a m p l e s , 54.6 p e r c e n t o f single w o m e n w o r k e d for wages, b u t only 1.3 p e r c e n t of m a r r i e d ( T h e r e is also s o m e resemblance here to a c c o u n t o f w o r k i n g wives i n J a p a n , cited above.) M o r e o v e r , i n b o t h t h e e a r l y - m o d e r n cases e l s e w h e r e a n d t h e rural C h i n e s e case today, m a r r i e d w o m e n young children arc apparently m o r e likely to in work for t h e m a r k e t t h a n w o m e n with o l d e r c h i l d r e n . T h e r e a s o n s , t o b e s u r e , differ sharply. I n early m o d e r n a n d early E u r o p e t h e w o m a n with a y o u n g child was likely to have m o r e t h a n o n e y o u n g child, s o t h a t h e r c o n s u m p t i o n n e e d s were at t h e i r life-cycle p e a k : she stayed in t h e l a b o r force (often while c o n t i n u i n g t o b e t h e p r i n c i p a l child-care p r o v i d e r ) t o e a r n necessary m o n e y until a t least o n e child c o u l d r e p l a c e T h e rural C h i n e s e w o m a n today is likely to have two c h i l d r e n at m o s t a n d a mother-in-law w h o is still relatively y o u n g a n d vigorous; h e r l a b o r force p a r t i c i p a t i o n is

w o r k , family, d e v e l o p m e n t thus a different p h e n o m e n o n . I n s o m e cases, these w o m e n t h e p a i d l a b o r force w h e n a d a u g h t e r e n t e r s it, b u t is at least as likely that s h e will wait until s h e has a to do so. The daughter, particularly p o o r a r e a s , likely to at least begin middle school; but she also likely to have s o m e w h e n s h e has s t o p p e d g o i n g t o s c h o o l b u t has n o t A large percentage of t h e s e y o u n g w o m e n w o r k o u t s i d e t h e h o m e ( a n d often the village), a s w e have s e e n . M a n y though, take over domestic a n d a g r i c u l t u r a l c h o r e s for t h e i r families w h e n they leave s c h o o l . Moreover, t h e r e is a g r o w i n g q u e s t i o n a b o u t a of t h e s e w o m e n w h o a r e leaving s c h o o l early. W h i l e o l d e r w o m e n w h o a r e t a k i n g o n h o u s e w o r k t o allow t h e i r daughters-in-law t o e a r n m o n e y m a y n o t m i n d this (as J u d d suggests), teenage w h o a r e b e i n g r e l e g a t e d to a d o m e s t i c r o l e (as o p p o s e d t o c i t h e r s c h o o l o r paid work) a r c p r o b a b l y l o s i n g o u t q u i t e Estimates of t h e n u m b e r of school-age c h i l d r e n n o t in s c h o o l vary widely from study to study, b u t in every s a m p l e , t h e l a r g e majority of those not s c h o o l a r e girls; in o n e school-age girls n o t in s c h o o l o u t n u m b e r e d boys by t h r e e to o n e . Girls also far o u t n u m b e r boys a m o n g child l a b o r e r s , b o t h within family and in It u n c l e a r h o w w i d e s p r e a d t h e p h e n o m e n o n of girls o u t of s c h o o l to work for family e n t e r p r i s e s or do d o m e s t i c l a b o r is. In a survey of r e a s o n s for n o t a t t e n d i n g school i n 1990, m o s t o f t h e difference b e t w e e n rural boys a n d girls was a c c o u n t e d for by t h e answers "financial," " n o t allowed to," a n d "too m u c h h o u s e w o r k . " H a r e also cites e v i d e n c e w h i c h suggests t h a t significantly m o r e girls t h a n boys a r e w i t h d r a w n from s c h o o l to m e e t family l a b o r a n d t h a t this is particularly c o m m o n in families t h a t have a relatively large a m o u n t of l a n d thus farm tasks) p e r Y o u n g m e n a r c m u c h less likely t o forgo finishing s c h o o l , in spite of t h e g e n e r a l l y h i g h e r wages available to them and the of correlation between education and earning power in most of rural M o r e o v e r , a p p r o x i m a t e l y 1 0 p e r c e n t o f rural females a g e d 1 8 - 1 9 w e r e r e p o r t e d in a 1993 survey to have n e v e r a t t e n d e d s c h o o l : a lower figure t h a n for o l d e r c o h o r t s , b u t still These y o u n g w o m e n - even m o r e t h a n t h o s e w h o d o t h e less d e s i r a b l e a b o u t w h o m m o r e in t h e n e x t section to be b e i n g sacrificed for t h e g o o d o f o t h e r s . T h e y a r e b e i n g d e p r i v e d o f t h e o p p o r t u n i t y t o a c c u m u l a t e h u m a n capital i n narrowly e c o n o m i c t e r m s , a n d o f cultural resources, to aid t h e a c c u m u l a t i o n of a u n i t they will n o t p a r t of. There no obvious for such a p h e n o m e n o n the experience of earlier since t h e f i r s t l a b o r - s u p p l y i n g p h a s e Japan and W e s t e r n E u r o p e p r e c e d e d universal m i d d l e s c h o o l a t t e n d a n c e , a n d t h e c u r r e n t o n e has n o t i n t e r f e r e d with it. resemblance to e a r l i e r f e m a l e life cycle p a t t e r n s e l s e w h e r e suggestive, a n d provides a

Kenneth P o m e r a n z i n w h i c h t o c o n s i d e r o u r last t o p i c : t h e between women and which have b e e n t h e p r i m e m o t o r s of rural C h i n e s e d e v e l o p m e n t o v e r t h e p a s t two and employ the largest n u m b e r s of the rural y o u n g w o m e n w h o work outside the fields and courtyard.

TVEs, gender norms and accumulation

of

TVEs are a t l e a s t i n t h e o r y - e n t e r p r i s e s t h a t a r e officially o w n e d b y village o r t o w n s h i p g o v e r n m e n t a n d leased t o p r i v a t e e n t r e p r e n e u r s , r a t h e r than purely private businesses; a n d contrary to what often a p p e a r s n a l i s t i c a c c o u n t s , t h e y h a v e t h u s far b e e n m u c h m o r e i m p o r t a n t a s s o u r c e s of output, e m p l o y m e n t , revenue, a n d capital a c c u m u l a t i o n than private enterprises most of Suite firms generally pay better t h a n T V E s a n d p r o v i d e v a r i o u s o t h e r b e n e f i t s t o t h e i n d i v i d u a l s w h o w o r k for them, but a r c few a n d f a r b e t w e e n o u t s i d e l a r g e c i t i e s , a n d d e c l i n i n g in n u m b e r s everywhere. T h o u g h t h e e n t r e p r e n e u r s r u n n i n g T V E s m a y wish t o m a x i m i z e t h e institutional r o l e o f t h e local g o v e r n m e n t t h a t o w n s t h e firm allows t h e m to i m p o s e a n u m b e r of restrictions which m e e t t h e political goals of local a n d to s o m e e x t e n t reflect t h e n o r m s of their constituents: p r e f e r e n t i a l h i r i n g for local r e s i d e n t s , g u a r a n t e e s of local r e i n v e s t m e n t , d o n a t i o n s f o r s o c i a l s e r v i c e s a n d local i n f r a s t r u c t u r e , a n d ( p e r h a p s m o s t i n t e r e s t i n g for o u r p u r p o s e s ) l i m i t s o n i n c o m e i n e q u a l i t y a m o n g S o m e of them are even compelled to from families t h a t have no m e m b e r s employment so long as such people are Such a policy s p r e a d s better-paid non-farm relatively e v e n l y a m o n g h o u s e h o l d s , b u t t h a t i s n o t all. a r e a s w h e r e little t r u l y p r i v a t e e n t e r p r i s e exists, a l s o h a s t h e e f f e c t o f i n s u r i n g t h a t t h e r e will b e o n e p e r s o n in e a c h h o u s e h o l d (usually a m a l e ) with h i g h e r i n c o m e t h a n rest of the thus p r o p p i n g up a principal breadwinner role in circumstances in which firms seeking the cheapest possible labor (often f e m a l e ) m i g h t o t h e r w i s e t e n d t o u n d e r m i n e it. W h e t h e r consciously or not, such policies c o n t i n u e an i m p o r t a n t that runs t h r o u g h most of the histoiy of the People's Republic, in spite of n u m e r o u s policy switches: t h e t e n d e n c y to c o u p l e certain kinds of e c o n o m i c radicalism with g e n d e r a p p e a l i n g especially to rural males by offering t h e m an e n v i r o n m e n t which sharp contrast to the situation p e a s a n t m a l e c o u l d realistically aspire to be h e a d of a " n o r m a l " (This guarantee however, likely t o b e c o m e i n c r e a s i n g l y e m p t y f o r p o o r e r m e n a s b i r t h c o n t r o l p o l icies, c u l t u r a l p r e f e r e n c e s , d i f f e r e n c e s e a r n i n g p o w e r a n d t h e availability o f a m n i o c e n t e s i s c o m b i n e t o p r o d u c e a s u r p l u s o f children over

w o r k , family, d e v e l o p m e n t females. T h e l o n g - t e r m c o n s e q u e n c e s o f t r e n d for t h e status o f w o m e n , t h e p r o b l e m s o f p o o r m e n , a n d t h e legitimacy o f t h e state a r c still far from clear.) W h e n this is in a still l o n g e r historical again see a p a t t e r n in w h i c h limits on g e o g r a p h i c a l division of l a b o r often d e p e n d o n local g o v e r n m e n t various sorts t o avoid b e i n g u n d e r s o l d by " i m p o r t s " from o t h e r of C h i n a , as well as lo s e c u r e reinvestment profits) go a l o n g t h e e l a b o r a t i o n of a g e n d e r division o f l a b o r t h a t sustains a n i n c o m p l e t e l y rural While the a n n o u n c e d goal o f h a v i n g p e o p l e "leave t h e l a n d b u t n o t t h e has certainly n o t b e e n c o m pletely a c h i e v e d - as witness t h e h u g e "floating p o p u l a t i o n , " at least s o m e of w h i c h n o w s e e m s to be p e r m a n e n t l y - it has t e n d e d to have a n u m b e r o f effects, w h i c h i n s o m e ways c o n t i n u e t r e n d s o f m i d d l e a n d late political e c o n o m y in a world w h o s e t e c h n o l o g i e s a r e often t h o u g h t t o link d e v e l o p m e n t i n e x o r a b l y t o b o t h p r o l e t a r i a n i z a t i o n a n d u r b a n i z a O n c e a g a i n , a n impressive s h a r e o f industrial p r o d u c t i o n r e m a i n s the a n d m a n y h o u s e h o l d s t h a t p a r t i c i p a t e in also o n e foot in a g r i c u l t u r e ( a n d e v e n s u b s i s t e n c e a g r i c u l t u r e ) , with g u a r a n teed access to l a n d . I n d e e d , t h e r e a r e often on families to c o n t i n u e t o d o s o m e f a r m i n g even w h e r e t h e r e a r c e n o u g h non-farm j o b s t h a t everybody c o u l d h a v e a n d b o t h state policy a n d t h e policies o f that b y local n o r m s t e n d t o m e n i n j o b s that a r e b e t t e r p a i d , involve m o r e travel a n d / o r c o n t a c t and thus t e n d t o b u t t r e s s t h e i r p o s i t i o n s a s h e a d s o f t h e h o u s e h o l d s . (This i n c l u d e s , ironically, a of a g r i c u l t u r e as "inside work," w h e n for g e n e r a t i o n s it was s e e n as m a l e a n d " o u t s i d e " c o m p a r e d to h o m e - b a s e d textile p r o d u c t i o n . ) I n g e o g r a p h i c t e r m s , e c o n o m i c policy r e m a i n s p o i s e d b e t w e e n a n idea o f e c o n o m i c g r o w t h p r e m i s e d o n t h e d e v e l o p m e n t o f a n a t i o n a l m a r k e t a n d division o f l a b o r a n d a n o t h e r w h i c h envisions t h e r e p l i c a t i o n of a series of largely cells. D e s p i t e a c o m m i t m e n t to g r o w t h , t h e state still t r e a t s r u r a l to u r b a n m i g r a t i o n as an u n f o r t u n a t e necessity, a n d t h e m i g r a n t s t h e m s e l v e s a r e subject to various official unofficial

mobility, and accumulation revisited I f t h e g e n d e r division o f l a b o r again has w o m e n p r o d u c i n g for t h e m a r k e t while l i m i t i n g t h e physical sites a n d types of w o r k they can do - p r e v e n t i n g t h e w o m e n themselves from b e i n g fully t h e m a r k e t it m a k e s s e n s e to c o n s i d e r a c o n t e m p o r a r y version of a h y p o t h e s i s we for t h e Q i n g : t h a t C h i n e s e d e v e l o p m e n t has b e e n f u n d a m e n t a l l y d r i v e n b y t h e c o m m e r cial e x p l o i t a t i o n of w o m e n w o r k i n g for artificially low r e t u r n s ( a n d w o r k i n g m o r e h o u r s t h a n they w o u l d be h i r e d for in a profit-seeking firm

Kenneth Pomeranz that h a d to pay c o m p e t i t i v e wages to potentially workers). however, s u c h c e n t e r primarily o n t h e village, n o t t h e Family, a n d see t h e process l e a d i n g , n o t to involution at a s u b s i s t e n c e b u t to substantial capital a c c u m u l a t i o n . In p a r t , because of this diff e r e n c e , such a r g u m e n t s s e e m to to invite a m o r e useful set of c o m p a r isons b e t w e e n C h i n a a n d E u r o p e t h a n d o t h e a r g u m e n t s discussed our e a r l i e r l i t e r a t u r e review: o n e which f i i j d s similarities a n d differences ( a n d so invites s o m e r e - t h i n k i n g of stories), r a t h e r t h a n stressing alone a way that d i v e r g e n t "Eastern" a n d "Western" p a t h s . N o t all at TVEs a r e equally a n d t h e r e is a s t r o n g t e n d ency for males t o get t h e b e t t e r o n e s . W o m e n a r c , for i n s t a n c e , a l m o s t c o m p l e t e l y e x c l u d e d from m a n a g e m e n t of TVEs, a n d especially from sales a n d p r o c u r e m e n t - a m o n g t h e best paid work, a n d work t h a t m o s t likely to foster t h e c o n n e c t i o n s n e e d e d f u r t h e r a n y private business initiatives - b e c a u s e of t h e n e e d for u n a c c o m p a n i e d social c o n t a c t with u n r e lated m e n , a n d d r i n k i n g t h a t a r e P r o d u c t i o n work involving high-tech skills is also d i s p r o p o r t i o n a t e l y given to m e n , t h o u g h with s o m e significant T h e r e is a s t r o n g t e n d e n c y for y o u n g w o m e n in p a r t i c u l a r (who a r e t h e majority of w o m e n e m p l o y e d TVEs) to be given t h e least r e m u n e r a t i v e work, a n d t h e o n e s which they the fewest skills, even w h e n t h e i r e d u c a t i o n a l a n d o t h e r qualifications r e s e m b l e t h o s e of m a l e s ; n o n e t h e l e s s , they a r c g e n e r a l l y r e g a r d e d as better workers than young unmarried w o m e n a r e often excluded which o f c o u r s e also reinforces t h e t e n d e n c y n o t t o y o u n g e r w o m e n work in which they will a c q u i r e valuable skills: b e t t e r to reserve t h o s e for m a l e s w h o c o n t i n u e to be p a r t of b o t h t h e e n t e r prise a n d t h e village for m a n y years to c o m e . In light of t h e s e t e n d e n c i e s , | u d d concludes for t h e firms which a r c t h e p r i n c i p a l m o t o r o f rural Chinese T h i s a c c u m u l a t i o n s h o u l d b e s e e n a s substantially c o n s i s t i n g o f t h e o f t h e p r o d u c t o f w o m e n s labor, a n d especially y o u n g labor. Similar a p p r o p r i a t i o n o f y o u n g w o m e n ' s l a b o r has been reported n e a r b y Taiwan ( D i a m o n d and H o n g Kong (Salaff At a slightly g r e a t e r r e m o v e of a n d s p a c e , it is also similar to processes for E u r o p e , which changes capitalist m o d e r n i z a t i o n were facilitated t h r o u g h a r e l i a n c e on y o u n g l a b o r . T h e i r relative enabled their labor to fuel capitalist e c o n o m i c growth a n d to r e c o n c i l e it to a d o m e s t i c e c o n o m y . T h e e n c a p s u l a t i o n o f d o m e s t i c e c o n o m y within capitalist e c o n o m y stabilized t h e latter. (1994: 105)

W o m e n ' s w o r k , family, d e v e l o p m e n t The

a r c provocative, analysis o f t h e state o t h e r things, m a k e s t h e rather than the the crucial u n i t for so e c o n o m i c a n d social p u r p o s e s ) has situation t h a n simply "failing" to d i s l o d g e an domestically a n c h o r e d p a t r i a r c h y ) is q u i t e helpful. B u t p o i n t suggests s o m e further b o t h f r o m o t h e r East Asian cases a n d from early m o d e r n E u r o p e (and First of all, it n o t e w o r t h y that d e s p i t e t h e pervasiveness of various o f sexism, wage g a p s b e t w e e n m e n a n d w o m e n d o i n g t h e s a m e work do n o t a p p e a r large: in a study of TVEs in t h r e e relatively perous townships one G u a n g d o n g , and one in g e n d e r m a d e a 1 4 p e r c e n t difference i n pay o n c e o t h e r variables were controlled Hare 2) cites two s t u d i e s w h i c h f o u n d a 20 percent difference b e t w e e n m e n a n d w o m e n ( w i t h o u t c o n t r o l l i n g for o t h e r factors) a n d o n e study t h a t f o u n d a 4 0 p e r c e n t g a p . t h e 4 0 p e r c e n t g a p s e e m s relatively small c o m p a r e d many other societies, i n c l u d i n g t h e early m o d e r n E u r o p e a n case w e l o o k e d a t earlier: certainly t h e 2 0 p e r c e n t g a p ( a n d t h e 1 4 p e r c e n t g a p after c o n t r o l l i n g for o t h e r variables) a r c historically fairly small. Rural C h i n a may i n d e e d be building capital stock at t h e e x p e n s e of y o u n g b u t if so it s e e m s likely t h a t t h e allegedly less a n d " t r a d i t i o n a l " E u r o p e a n s did so even m o r e . S e c o n d , t h e r e a r e again q u e s t i o n s a b o u t w h o i s d o i n g t h e a c c u m u l a t i n g at e x p e n s e , a n d how. Saiaffs (1995) a n d D i a m o n d ' s (1979) analyses c o n c e r n w o m e n w o r k i n g for profit-maximizing firms in H o n g K o n g a n d T a i w a n a n d t u r n i n g o v e r a t least s o m e o f t h e i r pay t o parents, even if they do n o t live with t h e m ; they thus raise t h e s a m e q u e s t i o n as b e f o r e a b o u t w h e t h e r t h e s u r p l u s g e n e r a t e d b y t h e s e w o m e n ' s labors are going to the firm or to the women's B o t h a u t h o r s a r g u e that the firms receive t h e l i o n ' s s h a r e , but that t h e p e c u n i a r y benefit to these w o m e n ' s families still significant. It n o t significant because these h o u s e h o l d s a r c d o i n g any substantial a c c u m u l a t i n g o f t h e i r own, b u t b e c a u s e t h e little do receive is e n o u g h to align t h e i r interests with t h o s e of t h e i r e m p l o y e r s - b o t h b e n e f i t from l a b o r discipline a n d w o r k e r frugality - a n d so to a d d t h e pull of family affections to t h e o t h e r p r e s s u r e s l e a d i n g these w o m e n to a c q u i e s c e t h e i r exploitation. m a k e s a r o u g h l y similar a r g u m e n t for early J a p a n e s e factory It is, p h r a s e , o n e way w h i c h " t h e encapsulation of a d o m e s t i c e c o n o m y within a capitalist e c o n o m y stabilized t h e latter." c o n s i d e r s similar issues in a c o m p a r a t i v e study of w o m e n in S h e n z h e n a n d H o n g K o n g factories - b u t with a difference t h a t i m p o r t a n t for us. In H o n g K o n g , s h e suggests, g e n d e r ideology a n d a r e very p a r t s of l a b o r discipline: b u t in S h e n z h e n they a r e m u c h less so, with m o r e d i r e c t c o e r c i o n , b a c k e d by t h e playing a

Kenneth Pomeranz m o r e significant It of c o u r s e , possible that t h e y o u n g w o m e n of S h e n z h e n , w h o a r e often q u i t e away from t h e i r p a r e n t s , fee! t h e t u g of f i l i a h t y less t h a n m o s t w o m e n . N o n e t h e l e s s , L e e s e m p h a s i s o n c o e r c i o n t h e S h e n z h e n case t h e possibility that the ideological weight of t h e family in l a b o r discipline may also have b e e n o v e r e s t i m a t e d . It also worth n o t i n g t h a t t h e locus of a c c u m u l a t i o n in t h e case of TVEs s o m e w h a t different t h a n t h e factories (or p u t t i n g - o u t m e r c h a n t s ) e m p l o y i n g u n d e r p a i d w o m e n i n o u r o t h e r cases. W h i l e t h e e n t r e p r e n e u r s in TVEs clearly b e n e f i t from t h e s u r p l u s y o u n g w o m e n workers g e n e r a t e , m u c h of t h e profit from TVEs a c c r u e s to t h e village as a collecI n d e e d , b e c a u s e o f t h e p e c u l i a r tax s t r u c t u r e o f rural C h i n a , profits a n d c o n t r i b u t i o n s from TVEs a r e by far t h e m o s t i m p o r t a n t way of f u n d i n g local services. As a result, Bird a n d f o u n d that while a t o w n s h i p with m a n y h a d an a v e r a g e p e r capita i n c o m e seven times that of o n e few TVEs b o t h were a r e a s of fairly d e v e l o p e d a g r i c u l t u r e ) , t h e p u b l i c s p e n d i n g p e r capita o f t h e m o r e i n d u s trialized t o w n s h i p was 140 times t h a t of t h e m o r e a g r a r i a n M o r e recently, West a n d W o n g f o u n d t h a t p e r capita r e v e n u e s varied a m o n g townships one county S h a n d o n g ) from a low of 23 a high of 294 (a ratio of while t h e variation a m o n g c o u n t i e s within t h e p r o v i n c e was over While these differences a r e less e x t r e m e t h a n those by Bird a n d G e l b ( a n d variations in e x p e n d i t u r e s a r e n a r r o w e r still, t h a n k s to subsidies from h i g h e r levels of governthey a r e still q u i t e substantial. T o t h e e x t e n t that village e x o g a m y still p r a c t i c e d , t h e males m a r r i e d w o m e n of a village ( a l o n g its officials) have an interest favoring this k i n d of social a c c u m u l a t i o n over t h e p a y m e n t of h i g h e r wages to t h e i r s o o n - t o - b e - d e p a r t e d T h u s , i n d e e d , capital being accumulated at the expense of young w o m e n i n p a r t i c u l a r , a n d t h e social restrictions that m a k e i t h a r d for t h e m lo leave t h e village before m a r r y i n g also to k e e p cheap labor pool available. Yet b e c a u s e t h e village a c c u m u l a t e s m u c h of t h e situation d o e s s e e m different from o u r o t h e r cases. First of all, w o m e n will m a n y t h e village, t o o , a n d they a n d t h e i r c h i l d r e n benefit from schools, sewers, a n d so on built t h e profits from t h e i r sisters-in-law. A n d to t h e e x t e n t t h a t these profits do fund essential p u b l i c services t h a t w o u l d otherwise n o t be we can see t h e artificially low wages p a i d w o m e n as a forced diversion of private (female) i n c o m e to i n v e s t m e n t in h u m a n capital. T h e beneficiaries a r e t h e n e p h e w s a n d nieces r a t h e r t h a n t h e i r own c h i l d r e n , b u t n o n e t h e l e s s significant t h a t t h e i n c r e a s e d mobilization o f w o m e n for c o m m o d i t y p r o d u c t i o n i s h e r e b e i n g m a d e to t h e p r o d u c t i o n of h u m a n capital - while, at De a c c o u n t , it was t h e partial withdrawal of w o m e n from s u c h w o r k that allowed s u c h i m p r o v e m e n t s the a n d early t w e n t i e t h c e n t u i y ,

w o r k , family, after

s t a g n a t i o n in t h e

e i g h t e e n t h a n d early n i n e -

S o m e final thoughts: gendered development and human capital T V E profits, which heavily o n c h e a p f e m a l e labor, a r e i n d e e d crucial for f u n d i n g rural ( a n d u r b a n ) services, particularly e d u c a t i o n a n d public d o e s n o t , o f c o u r s e , justify m a k i n g y o u n g w o m e n b e a r m o s t of t h e costs of this forced in t h e n e x t g e n e r a t i o n . It d o c s , h o w e v e r , suggest s o m e i m p o r t a n t ways i n which C h i n a s a c c u m u l a t i o n i s n o t simply Western o r even Taiwan a n d H o n g K o n g at an e a r l i e r d a t e . First, may well be restrictions on physical mobility (which a r c at this p o i n t , still b o t h c u s t o m a r y a n d legal) t h a t a r c c e n t r a l h e r e , n o t p o w e r o r s e n t i m e n t within t h e family itself. Second t h e political c o n t r o l over profits - a n d t h e fact t h a t they a r c crucial to h u m a n capital f o r m a t i o n in rural ( W h e t h e r these profits h e e n o u g h t o s u p p o r t t h e badly n e e d e d i m p r o v e m e n t s i n r u r a l e d u c a tion a n d is a n o t h e r issue; so is t h e m a t t e r of w h a t t h e i n c r e a s i n g privatization of f o r m e r TVEs will entail.) T h i r d , t h e especially s t r o n g link b e t w e e n T V E profits particular and services is in large p a r t an artifact of a p a r t i c u l a r tax c o d e , which can rather t h a n l o o t e d in a d e e p e r level of s t r u c t u r e . W e r e t h a t system to c h a n g e , so w o u l d t h e c o n n e c t i o n b e t w e e n social a c c u m u l a t i o n a n d e m p l o y m e n t policies w h i c h d i s a d v a n t a g e w o m e n (in ways a n d for reasons different from those m i g h t e x p e c t in p u r e l y p r o f i t - m a k i n g firms). Finally, suggests t h a t t h e e m e r g e n c e of a " d o m e s t i c p r i z i n g f e m a l e l a b o r - w i t h h o l d i n g w h i c h h a s , a m o n g o t h e r things, been t o u t e d periodically by s o m e C h i n e s e officials as a way to c o m b a t undere m p l o y m e n t - w o u l d be unlikely to play t h e socially stabilizing role that it played in certain p e r i o d s of E u r o p e a n , A m e r i c a n , Japanese a n d o t h e r histories. It has relatively historical since female virtue n e v e r m e a n t a b s t a i n i n g from paid work, a n d it is no l o n g e r associated a p r e s t i g i o u s foreign way of life (as it was w h e n moved in that direction a century ago). On the women's employment is widely associated with highly d e s i r e d goal of " m o d e r n i t y , " a n d t h e W o m e n ' s F e d e r a t i o n provides an base for opposition to a t t e m p t s t o have w o m e n " r e t u r n t o t h e phenomena no close parallels i n t h e N o r t h Atlantic c o u n t r i e s o r a t the o n s e t of t h e i r l a b o r - w i t h h o l d i n g p h a s e s . M o r e o v e r , to t h e e x t e n t T V E profits t h e p r i m e source of local e d u c a t i o n a l funds, a d o m e s t i c might r a t h e r than e n c o u r age t h e of a l a b o r force suited for m o v i n g up t h e valuea d d e d l a d d e r . (By t h e t i m e state b u d g e t s b e c a m e a crucial p a r t of h u m a n

Kenneth Pomeranz f o r m a t i o n i n m o s t o f t h e West, had long since supplanted p u t t i n g o u t h o u s e h o l d s a s crucial o f work a n d a c c u m u l a t i o n . ) I f t h e o f t h e i n d u s t r i o u s r e v o l u t i o n a n d t h e c u r r e n t p e r m e a t i o n o f families by individualism t h e West r e m i n d s of verdict o n t h e b o u r g e o i s family - " t h e capitalist o r d e r rests o n props m a d e of m a t e r i a l ( a n d ) derives its from extracapitalist p a t t e r n s o f b e h a v i o r the same tunc b o u n d to t h e n a partially, b u t partially, parallel o f claims m i g h t be m a d e about China. d e v e l o p m e n t m a y n o t b e fully capitalist, but has b e e n as m a r k e t - d r i v e n as - for m u c h of o u r p e r i o d , p r o b a b l y m o r e so. It has own set of " e x t e r n a l p r o p s , " which s h o u l d be s e e n as s u c h , r a t h e r t h a n as b a r r i e r s t h a t k e p t capitalism "petty." S o m e of t h e s e p r o p s have g e n d e r e d its d e v e l o p m e n t by, for i n s t a n c e , s h a p i n g m i g r a t i o n p a t t e r n s a n d c h o i c e s a m o n g d i f f e r e n t kinds o f work (at least a m o n g t h o s e w h o c o u l d afford s o m e c h o i c e s ) . T h i s d o e s n o t make Chinese development more gendered than in which w o m e n w e r e , a t s o m e t i m e s , m o r e likely t o b e o u t s i d e t h e m a r k e t e c o n o m y a l t o g e t h e r t h a n t h e y ever w e r e in C h i n a ; makes differently g e n d e r e d , in shifting ways t h a t in t u r n s h a p e d specific, n o n - r e c u r r i n g , junctures.

Notes See 2 For e x a m p l e , Tilly a n d Scott (1978. 3 4 On this point, also Hamashita 5 For a prior of this of 6 Huang 7 This part of

Gates and

of

(1995).

c o m p a r i s o n , a n d an account see

110). argument

resembles that m

of

8 H u a n g (1990: 9 1 , 112). 9 Goldstone and el 10 In a follow-up discussion communication 5 / 9 / 0 1 ) has rightly p o i n t e d o u t that, costs of capital in early mills a c c o u n t e d for a m u c h smaller of total p r o d u c t i o n costs labor did, small differences in price of labor could m a k e a difference to the of r e t u r n on the This access to labor at rates close to those e a r n e d by women working at h o m e i m p o r t a n t differences in o u t p u t p e r worker h o m e a n d factory were percent example), that may have the weaving. It was not, however, the for s p i n n i n g , w h e r e the gains in from even early mechanization s m u l e ) were roughly 25-fold, a of m o r e than 300-fold by 1825 17). case, it would very large wage make factoiy T h u s any a r g u m e n t that not able to have

w o r k , family, d e v e l o p m e n t working from hindered the ning would have on oilier these workers, as supposed me likely to have crucial t h a n t h e a b s e n c e of fuel, traction, a n d n e a r of water power in t h e densely a n d nearly Yangzi Delta. 12 See

14

2000, 2002, 2003). Wong 1992,

Myers (1991);

of spinof less

(2002,

(2000: A p p e n d i x E ) ; P o m e r a n z (2002). (1989). See e.g. 629. on a place where t h e geoisie often t h o u g h t to drawn to a " n o b l e " lifestyle then E n g l a n d or H o l l a n d . See also (1989: 9 2 ) , w h o points out that for F r e n c h before t h e retiring was as taking t h e lo art like a - an ideal that its appeal for bourgeois in t h e n i n e t e e n t h century. Tilly a n d See 132, on how this m a d e working-class inherently "deficient" as w o m e n . But note 7 2 - 3 ) how a partial e x c e p t i o n for seamstresses working at h o m e , so l o n g as T h e principal difference t h e Chinese formulation is that US case, work clone home viewed as an acceptable with e c o n o m i c realities, while C h i n a it was viewed as g o o d in itself, regardless of e c o n o m i c

(1993: 46; 37, 4 5 ) . 20 M a n n (1992, (1997). 21 See (1991: 28, 1 8 - 1 9 ) : see Walthall 22 Vries 249-70). 23 (2000: C h a p t e r 2 ) . 24 134-5); Abel (1980: 136, 161, Clark 25 (1983: 5 4 - 7 ) . This conclusion supported efforts to actual and evidence c o n c e r n i n g life a n d d e a t h rates. For a s u m m a r y , see P o m e r a n z (2000: C h a p t e r 27 Li (1998: 1 3 3 - 5 5 ) ; 28 1997). 29 For many s t a n d a r d texts that take this for g r a n t e d , 30 31 32 33 34

Akira Walthall (1991: 5 7 ) . Li 102-6). Walthall For T o k u g a w a J a p a n ,

e.g.

For E u r o p e , see e.g.

35 Bray (1997: 203). 36 K e e p i n g a d a u g h t e r at h o m e could, of c o u r s e , have the o p p o s i t e is, b e i n g a way for h e r natal family to exploit h e r e a r n i n g power at e x p e n s e . This would be m o r e likely, t h o u g h , m p o o r e r families - w h o sell t h e into c o n c u b i n a g e r a t h e r than a r r a n g e a p r o p e r such families a p o r t i o n of t h e retained

Kenneth Pomeranz

37 38 39

40 42

43 14

45 47 48 49

52 53 54 55 50 57

59 61 02 03 64 05 00

07 08

a n d h e r actual physical p r o d u c t s were likely to go h e r dowry. Mann citations in Z h a n g G a n g a n d Grove (1975). (1959); Smith (1977); and (1977) with t h e latter suggesting town m o n o p o l i e s have b e e n much more enforced in peripheral domains. (1991; 25). worth n o t i n g between this and e m p h a s i s on an Asian labor force people to moving among a of tasks - a n d r e m a i n e d so as produced more and for t h e market. (1980: on France; (1971), on G e r m a n y . makes this p o i n t very forcefully, a n d explores implications for the kinds of e c o n o m i c dislocations E u r o p e a n states would would not r e s p o n d differed from those in China. (1974: 5 9 ) ; Walker 8 8 - 1 0 7 ) ; Ogilvie (1977: 19-20). (1990b: Gales 9 4 - 1 0 2 , 112, 280). 155-8); Allen (1992: a n d H u m p h r i e s (1995: 1 0 2 - 3 ) . a n d H u m p h r i e s (1995: 102-3). See discussion in (2000: See the discussion in P o m e r a n z (2000: 39 47). Pan f o r t h c o m i n g . Shanghai Clark (1995: 220 25). Horrell a n d 98-100); also a n d Williamson 19). (1994: 2 0 2 - 4 ) . (1973: See e.g.

379, 381). (1994: 2(34-5).

Sec, e.g. (1988: especially 9 0 - 1 ) . Horrell a n d H u m p h r i e s (1995: H u a n g (1990: 121-2, So (1986: S 8 - 9 ) ; Bell (1999: (1986: on p. n o t i n g the increase in p r o d u c t i o n after

(1973:24). For s o m e estimates t h e work year for h o m e textile p r o d u c ers in see Li 152-3), P o m e r a n z (2000: 101). 09 (1909) was t h e though m u c h evidence. Fang Xing makes a g o o d case for slight i m p r o v e m e n t s diet in the Lower Yangzi and L e e and Wang 30-4) scattered evidence stability or slight improvethe of various C h i n e s e t h e n i n e t e e n t h a n d early centuries; a n d most surveys of C h i n e s e diet suggest average food availability, t h o u g h with large a n d often devastating Most of work can tell us little about t h e distribution

family, d e v e l o p m e n t

70 71 72 73 74 75

77

79 80 81 82 83

84 85 86

87 88 89

of food supplies, Fang's work is on reconstructions of the of See, e.g. Will a n d W o n g (1001), P o m e r a n z (1993). Perdue 131-5). See P o m e r a n z (2000: A p p e n d i x E). Bray 47). Mann 1997: On s p i n n i n g see 217). For further analysis of regional i n c o m e t r e n d s , see P o m e r a n z and P o m e r a n z (2000: 243-5). T h e p o p u l a t i o n of a n d of Lower Yangzi in g e n e r a l , 1953 roughly t h e s a m e as that on t h e eve of t h e despite t h e growth S h a n g h a i . Sec (1959: 2 4 0 - 6 ) , S k i n n e r (1987) which gests slightly lower figures, but still figures which would p r o d u c e zero p o p u l a t i o n growth for t h e region as a whole over period. T h e nineteenth p o p u l a t i o n figures for a r e particularly but figure m o r e reliable, a n d t h e 1953 figure only 9.4 above level (see Ho 1959: 54, 287). A m o n g t h e relatively rich provinces of S o u t h e r n a n d Eastern C h i n a , only G u a n g d o n g grew during t h e century after 1S50 (a hit over 50 p e r c e n t - see Marks 1997: 280), a n d even that was probably mostly in interior regions. All of these provinces were major sources of e m i g r a n t s , b o t h lo t h e rest of C h i n a a n d overseas: see and Wang for a On C h i n e s e a n d birth control generally see L e e a n d Wang 105-13); t h e Lower Yangzi in particular see Li B o z h o u g (1994: 3 7 - 5 6 ) . For s o m e r o u g h but revealing n u m b e r s on t h e c h a n g i n g s h a r e of various provinces in i h e overall popusee Z h a o a n d Xie 472-3, Li (1998: Li Li See Z h a n g G a n g (1985:

142-3, 1 5 0 - 3 , 158-9). Grove (1975).

T h e reasons for this divergence a r e far t o o c o m p l e x to discuss h e r e . 1 sketch a few of t h e m that a r e particularly relevant to c o n c e r n s of this Pomeranz (2000: 2 8 5 - 9 7 ) . but say tittle about s o m e o t h e r s that a r e state policy, in science a n d technology, a n d so o n . For latter, 1 have found Morris-Suzuki particularly 5(3-64). T h e most c o m p l e t e a c c o u n t of t h e which t h e Q i n g e n c o u r a g e d tion J. Lee, f o r t h c o m i n g . also Sun We know little flows of funds in C h i n a a n d t h e r e do not seem to have b e e n very efficient For tating b u t t h e r e were barriers it e i t h e r . At any rale, labor should narrow inequalities even flows of capital. S k i n n e r (1977) on De Vries (1984: 178, 186) on early m o d e r n E u r o p e a n ones. Tilly 23-6, For m o r e on t h e c o m p a r i s o n of C h i n e s e a n d E u r o p e a n ( t h o u g h with a different emphasis) a n d proletarianization, see W o n g

90 See. e.g. 2 5 - 6 ) . M o r e recent of does separate married a n d u n m a r r i e d p e o p l e is n o n e t h e l e s s interesting:

t h e labor rate for over 20 has from 85 p e r c e n t in to 70 1985 b o t h to college a t t e n d a n c e a n d to t h e fact that t h e r e no age limit on these data, a n d post-retirement a r e increasing), t h e n u m b e r s for w o m e n have risen from 37 p e r c e n t to p e r c e n t over the same p e r i o d . See 91

up, for instance, managerial workers"

92 Sec, for

p e r c e n t of p e r c e n t in 2 7 - 3 8 ) ; Brinton

and US in 1984. See 14, 4 1 ,

93 Brinton 6, 10, 232-3). 94 Sec Brinton (1993: citing figures giving the m e a n female wage as 34 p e r c e n t of mean wage. At hat time, industrial labor force was almost 53 percent female 1987: 13). It t h e m a l e / f e m a l e wage g a p s e e m s lo have such a large scale what in t h e process of than in E n g l a n d : in when (which had an even m o r e heavily female labor force in J a p a n t h a n West) were still t h e d o m i n a n t industrial sector the m e a n female was 59 percent of t h e m e a n mate wage. 95 Brinton e.g. Ho (1995: 3 7 8 - 9 ) . 97 See for instance, F r i e d m a n et al. 127-9, 229). 98 99 e x a m p l e , F r i e d m a n et al. 168). M. Wolf 101 See, for instance, Z h e n g (2000: T a n a n d P e n g (2000: 157). Z h e n g (2000: 104 C h e n g Selden 105 For a general discussion of work team a n d brigade as "public Mao C h i n a , See e.g. Chan et al. See e.g. H u n g cited in a n d W a n g Z h e n g (2000: 79), a n d compare Tilly and Scott (1978: 108 23). 110

191, 190. e.g. M. 32-41) a n d M. Wolf Mann ( f o r t h c o m i n g ) . Hare e.g. Tilly a n d Scott (2000: C h a p t e r 3). Hare

118 Survey See e.g.

on suicide.

in T a n a n d P e n g (2000: a n d Lin (1990: West a n d W o n g 81); Ho Brown (1998: 2 4 - 3 0 ) . In t h e term s o m e t i m e s loosely applied, including o w n e d by a township or village a n d private investors, a n d even s o m e firms a r e really privately owned. This makes precise quantitative about this sector r a t h e r hut so long as t h e bulk of TVEs a r c township or village I think t h e claims that can stand.

family, d e v e l o p m e n t 120 Bvrd a n d

esp. p. 362);

140, 142); Ho (1995:

121 Ruf 122

125

133 134

137 138 139 140

142). (1983: 108-94); F r i e d m a n ct (1991: xiii. in Ho 360). For a argument, Wong Jacka (1997: 134). 166-7. On the awkward status of migrants see Judd 89). Judd 160. Jacka Gelb (1990: 292). (1990: 77, Lee 383-9). Judd 246). Bvrd Gelb 368). W o n g (1995: 79). 80. J u d d (1994: 246). Vries 217, 2 4 1 - 6 , 259, 2 6 2 - 3 ) ; West a n d W o n g Ruf (1998: Wang Z h e n g (2000: 6 6 - 7 2 ) ; 41-9, 71-5). (1942: q u o t e d in De Vries 265).

77,

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in Society

Chapter 5

The importance of commerce the organization of imperial economy Gary G. Hamilton and

Chang

Asian b u s i n e s s n e t w o r k s have b e e n m u c h t h e news. F o r t h e d e c a d e or so, many observers of rise prominence about the o f these n e t w o r k s t o Asian e c o n o m i c success. T h e J a p a n e s e t h e K o r e a n chaebol, a n d t h e familyo w n e d c o n g l o m e r a t e — these b u s i n e s s g r o u p s , m a n y writers believe, lie at the core of capitalist t r a n s f o r m a t i o n . T o e x p l a i n these g r o u p s , t h e s a m e writers t o u t e d t h e significance o f t h e g o v e r n m e n t i n c r e a t i n g a n d m a k i n g t h e m flourish. In t h e Asian business crisis pf reportage a b o u t these n e t w o r k s a b r u p t l y switched from praise d a m n a t i o n . All types o f Asian b u s i n e s s g r o u p s a n d t h e g o v e r n m e n t / b u s i n e s s relationships s u p p o r t i n g t h e m s u d d e n l y b e c a m e e x a m p l e s o f cronyism a n d c r o n y capitalism a n d w e r e s e e n t o b e t h e h a r b i n g e r s o f unanticipated economic In m o s t of t h e s e writings, regardless of t h e i r t o n e , t h e r e a b e t w e e n a c c o u n t i n g for t h e o r i g i n s o f these business g r o u p s , o n the o n e h a n d , a n d e x p l a i n i n g h o w these g r o u p s e c o n o m y and w h a t effects, on t h e o t h e r Many analysts s e e m to t h i n k that by e x p l a i n i n g why g r o u p s f o r m , they have also e x p l a i n e d h o w g r o u p s o p e r a t e e c o n o m i c a l l y . T h e n u r t u r i n g o f t h e s e g r o u p s ostensibly e x p l a i n s their n a t u r e . F o r i n s t a n c e , a significant n u m b e r of writers e x p l a i n t h e p r e s e n t c o n f i g u r a t i o n s of business g r o u p s in t e r m s of p r o x i m a t e causes - a governm e n t policy, an alliance b a s e d on old s c h o o l t h e lack of a d e q u a t e capital m a r k e t s - all h a p p e n s t a n c e or historical p r e c o n d i t i o n s for t h e i r e m e r g e n c e . A n o t h e r set of analysts m a k e s b u s i n e s s n e t w o r k s arise from a timeless c u l t u r e . a r e t h e e m b o d i m e n t s , respectively, o f J a p a n e s e o r K o r e a n or C h i n e s e ways of life, in w h i c h t h e past is r e f u r b i s h e d for use in t h e p r e s e n t . E i t h e r way, these analysts imply t h a t t h e social o r o r i g i n s o f s u c h g r o u p s s i m u l t a n e o u s l y s u m m a r i z e s t h e i r e c o n o m i c roles a n d e c o n o m i c c o n s e q u e n c e s . For e x a m p l e , g r o u p s once and continui n g political ties a r e j u d g e d as e x a m p l e s of political i n t e r v e n t i o n i n t o t h e m a r k e t p l a c e a n d , i n t h e e x t r e m e , cronyism. G r o u p s f o u n d e d o n social connections owners, or may be seen as

G. Hamilton and

Chang

of em a w h e r e s h a r e d values (rust a m o n g p a r t i c i p a n t s a n d r e d u c e t h e cost o f d o i n g T h e reason i t s e e m s s o n a t u r a l t o conflate t h e o r i g i n s a n d o p e r a tions of e c o n o m i c a l l y active g r o u p s is typically d u e to t h e of an underlying theory of e c o n o m i e s that would to explain the connection b e t w e e n t h e two. F o r i n s t a n c e , w h e n analysts d e m o n s t r a t e t h e political origins of g r o u p s , they, or explicitly, c o n t r a s t this observation an t h e o r y of capitalist m a r k e t s , and thus reach the conclusion that the organization of the economy these societies d o e s n o t reflect m a r k e t forces hence market m u s t be politically i n f l u e n c e d , if n o t m a n d a t e d . T h i s o n g o i n g c o m p a r i s o n b e t w e e n t h e origins o f g r o u p s a n d a n lying t h e o r y of e c o n o m i e s p r o d u c e s a c u r i o u s o u t c o m e w h e n c o m e s to d o i n g a historical analysis o f T h e organization of e c o n o m i c groups becomes coterminous t h e types a n d d u r a t i o n o f e c o n o m i e s which they a r e active. I n t h e case o f m o d e r n Asian business g r o u p s , m o s t writers m a k e t h e m historical o u t c o m e s , b u t n o actual histories o f t h e i r origins o r f u n c t i o n i n g b e f o r e t h e capitalist e r a b e g a n . I n m o s t a c c o u n t s , business g r o u p s , e x c e p t for t h o s e i n J a p a n , started after W o r l d W a r II. Occasionally a writer p u s h t h e t i m e l i n e f u r t h e r back, as far back as t h e late n i n e t e e n t h c e n t u r y , b u t at this p o i n t t h e writer is really e x a m i n i n g t h e s o u r c e , t h e h e a d w a t e r s o f t h e capitalist river that has forth t h e late twentieth c e n t u r y . By logic, capitalism in Asia, i n c l u d i n g capitalist e c o n o m i c o r g a n i z a t i o n , c o u l d have n o possible history a p a r t from t h e of W e s t e r n capitalism. With a lineal c o n c e p t i o n of h o w c o u l d it be otherwise? T h e s a m e logic e x t e n d s l o t h e p e r i o d b e f o r e capitalism s p r e a d to Asia. T h e of pre-capitalist e c o n o m i c o r g a n i z a t i o n s typically e n d s with t h e c o m i n g of capitalism, in w h a t e v e r guise it a p p e a r s : colonialism, i m p e r i a l i s m , d e p e n d e n t d e v e l o p m e n t , o r c o m m e r c i a l capitalism. F o r i m p e r i a l C h i n a , s o m e c r u d e versions o f thesis a r c f o u n d i n M a r x i a n t h e o r i e s o f pre-capitalist e c o n o m i e s . T h e d e s p o t i c slate d o m i n a t e d t h e weak e c o n o m y , m a k i n g m e r c h a n t s a n a p p e n d a g e o f t h e state a n d subject t o t h e arbitrary p o w e r o f C h i n a ' s p a t r i m o n i a l b u r e a u c r a c y . T h e o r g a n ization a n d o p e r a t i o n o f t h e e c o n o m y a r e s u b s u m e d within a n d u n d e r s t o o d to be a p a r t of C h i n a ' s pre-capitalist classifications: "Asiatic m o d e of d e s p o t i s m , " a n d " h y d r a u l i c societies." T h i s c h a r a c terization i m m e d i a t e l y stops w h e n W e s t e r n capitalism e n t e r s t h e s c e n e a t which time economic organization s h a p e d by t h e global e c o n o m y a n d b e c o m e s classified as semi-colonial a n d is subject lo t h e w i t h e r i n g effects of W e s t e r n i m p e r i a l i s m . A l t h o u g h n o t s o blatant, q u i t e sophisticated i n t e r p r e t a t i o n s o f C h i n a ' s economy make the same from origins t o o r g a n i z a t i o n via a t h e o r y of As we o u t l i n e below, m o s t

China's late imperial e c o n o m y of e c o n o m y b e f o r e t h e capitalist era a r c based o n a c o m p a r i s o n b e t w e e n ideal-typical m o d e l s m a r k e t s derived from t h e analysis o f E u r o p e a n a b s t r a c t e d forms o c c u r r i n g cally C h i n a . Several writers 1985; W o n g 1997) have a r g u e d t h a t this a p p r o a c h a t t e m p t i n g to u n d e r s t a n d C h i n a ' s late i m p e r i a l e c o n o m y t h r o u g h a p p l y i n g t h e o r i e s o f capitalist origins derived from t h e Western experience m e t h o d o l o g i c a l t e r m s , q u e s t i o n a b l e a n d often p r o d u c e s p e r n i c i o u s results, b u t n o o n e has m a d e t h e p o i n t e a r l i e r o r m o r e clearly t h a n Perry A n d e r s o n : Asian d e v e l o p m e n t c a n n o t in any way be r e d u c e d to a u n i f o r m residual category, over after t h e c a n o n s of E u r o p e a n r e v o l u t i o n have b e e n established. Any serious t h e o r e t i c a l e x p l o r a t i o n of historical field outside E u r o p e will have t o s u p e r s e d e t r a d i t i o n a l a n d g e n e r i c c o n t r a s t s with a n d p r o c e e d to a c o n c r e t e a n d a c c u r a t e typology of social f o r m a t i o n s a n d slate systems in t h e i r own right, which respects their g r e a t differences of s t r u c t u r e a n d It merely in n i g h t o f o u r i g n o r a n c e t h a t all alien s h a p e s take o n t h e s a m e hue. 549) A s A n d e r s o n ' s " p r o c e d u r a l lesson" i m p l i e s , t h e m e t h o d o l o g i c a l p r o b l e m s arise w h e n t h e economy becomes a case, a case s t e r e o t y p e d negatively against t h e positive c o m p o n e n t s of theories t h e rise o f W e s t e r n capitalism ( H a m i l t o n 1985). ing to a p p r o a c h , t h e C h i n e s e e c o n o m y is n o t t r e a t e d as an i n d e p e n d e n t case t h a t has a n o r g a n i z a t i o n a l logic g r o u n d e d i n t h e subjective u n d e r s t a n d i n g o f t h e p a r t i c i p a n t s . T h e schemes g e n e r a t e d b y W e s t e r n capitalism bestow t h e n a t u r e , o r g a n i z a t i o n , a n d econ o m i c effects o n w h a t e v e r o r g a n i z e d forms m i g h t a p p e a r within t h e economy. In o p p o s i t i o n to this type of historical i n t e r p r e t a t i o n , r e c e n t work in e c o n o m i c sociology d e m o n s t r a t e s that t h e way e c o n o m i e s a r e o r g a n i z e d a n d o p e r a t e on a day-to-day basis directly reflects t h e way societies t h e m selves a r e o r g a n i z e d . T o d a y ' s capitalist a r e q u i t e different from o n e a n o t h e r . For i n s t a n c e , t h e o r g a n i z a t i o n a l f o u n d a t i o n s o f capitalism i n G e r m a n y differ from t h a t F r a n c e , a n d c o n s e q u e n c e s of t h o s e differe n c e s a r e substantial and 1997). Even t h e o r g a n izational differences in two p a r t s of t h e s a m e n a t i o n a l e c o n o m y , say, b e t w e e n Silicon Valley a n d East Coast t e c h n o l o g y firms t h e 1980s 1994), c a n also lead to sizeable differences in e c o n o m i c outc o m e s . In o r d e r to e x p l a i n t h e s e differences, it is n o t to a r g u e F r a n c e is m o r e or capitalistic t h a n G e r m a n y or t h a t West Coast firms a r e m o r e o r less m a r k e t - o r i e n t e d t h a n East Coast f i r m s . Instead, o n e

Hamilton and

Chang

should t h a t capitalism has n e i t h e r a n i n h e r e n t n a t u r e n o r essential features a n d these e x a m p l e s i n d i c a t e substantively versions of how industrial e c o n o m i e s in m o d e r n world can be effectively This

perspective has i m p l i c a t i o n s for t h e historical analysis of as T h e divide b e t w e e n capitalist a n d pre-capitalist may b e m o r e t h e o r e t i c a l t h a n e m p i r i c a l a n d m o r e c o n c e p t u a l t h a n real. H o w e c o n o m i e s a r e a n d o p e r a t e a r e institutionally r o o t e d i n o n g o i n g societies. Societies d o n o t s t o p s u d d e n l y a n d start again when s o m e innovations, however m o m e n t o u s , appear. Instead people i n t e g r a t e t h o s e new ways of d o i n g things fully p a c k e d , o n g o i n g , jectively u n d e r s t o o d p a t t e r n s of existence. W i t h o u t a from t h e sixteenth the economies of Western Europe, e x p a n d i n g b e y o n d t h e b o r d e r s of E u r o p e , s p e a r h e a d e d a still-continuing transf o r m a t i o n o f e c o n o m i e s r o u n d t h e world. B u t t h e capitalist t r a n s f o r m a t i o n , giving i t c o n c e p t u a l e x a c t i t u d e b e y o n d time a n d p l a c e , masks t h e in t h e social o r g a n i z a t i o n of e c o n o m i c activity, even E u r o p e . In fact, is o n e of t h o s e p a r a d o x e s of histoiy t h a t the ities society - t h o s e t h a t wc hold d e a r or c a n n o t c h a n g e or do n o t even r e c o g n i z e b e c a u s e they a r c so m u c h a p a r t of o u r e x i s t e n c e - these t h i n g s d i r e c t i o n to c h a n g e s . L o n g - t e r m t r a n s f o r m a t i o n may have s u b t l e b e g i n n i n g s , for it is often t h e o r g a n ization o f o n g o i n g activity a n d n o t t h e s u b t l e b e g i n n i n g s t h a t leads society a l o n g o n e trajectory o r a n o t h e r a n d that n u r t u r e s a n d accelerates t h e change. W h a t a r e s o m e o f these c o n t i n u i t i e s the Chinese economy? We argue that t h e r e a r c significant parallels b e t w e e n t h e o r g a n i z a t i o n o f t h e late i m p e r i a l e c o n o m y a n d t h e o r g a n i z a t i o n o f t h e m o d e r n capitalist e c o n o m i e s in Taiwan a n d M a i n l a n d C h i n a (cf. a n d Selden This parallel c a n n o t be e x p l a i n e d as a function of s o m e l i n e a r s e q u e n c e of events - of o n e t h i n g c o m i n g after a n o t h e r . In fact, parallels t h a t we describe are disconnected a n d , to s o m e e x t e n t , even in space. We think of these parallels instead as h a v i n g e m e r g e d from similar b y n o m e a n s identical) s h a r e d u n d e r s t a n d i n g s o f social o r g a n i z a t i o n a n d from similar ( b u t b y m e a n s identical) s t r u c t u r a l c o n d i t i o n s c o n fronted by e c o n o m i c a l l y active p a r t i c i p a n t s , such as relations of p o w e r a n d authority. F r a m e d in m a n n e r , we believe that a c o m p a r i s o n b e t w e e n modern and b e t w e e n capitalism a n d non-capitalist e c o n o m i e s , can h e l p solve s o m e p e r s i s t e n t p r o b l e m s i n t h e u n d e r s t a n d i n g of b o t h m o d e r n a n d p r e - m o d e r n e c o n o m i c s . In particular, we s h o w t h a t an analysis of t h e o r g a n i z a t i o n a l p a t t e r n s in t h e late imperial C h i n e s e e c o n o m y h e l p s to clarify s o m e key t h e o r e t i c a l issues in t h e analysis of global capitalism today. Unsurprisingly, reverse is also The of theoretical to explain todays economic

China's

imperial

is in some of most significant characteristics of Chinas own extraordinary imperial economy, many organizational patterns of which continue to shape economic development today. Let us begin with a summary of our thesis: In late imperial and early modern China, commercial that is the organization of keting products, shaped the patterns of commodity production, our case the production of cotton textiles. Gary commodity chain approach and 1994), argue that the production and distribution networks represented by cotton textiles approximate that of a chain" and that the production end of this chain can be accurately as a "flexible production system." Substantiating this claim for historical China forces us to reassess those "up-to-the-minute" factors that most theorists as the essential causative elements global economy, namely information and work process systems, high technology, and global merchandising. Such factors may not prove to as decisive as they are touted lo be after all, but merely to the economic patterns we observe today. Our conclusions points to an explanation, line with the approach for which and others argued: Recurring patterns of social organization shape the ways people come together to engage in economic activities, and, our we show that these patterns of "doing things together" (Becker 1986) shape both modern and Chinese economics.

One of the most persistent and complex debates the Chinese economy imperial times whether it exhibited capitalistic characteristics. There two important versions of debate. One version tures scholars from the People's Republic of who argue whether China harbored nascent capitalist tendencies. This is known as the "sprouts of capitalism" debate, but the second version as well be called that too, because the basic issues arc very similar. The second version rages primarily among Western scholars (Elvin 1973; Huang 1991; Myers 1991; 1992; Wong 1992, 1997; Brook and Blue 1999; Pomeranz 2000). Wanting to put some distance between selves and the Marxist slant taken by the first group, the second set of scholars address a version of the question, by asking whether or not the commercial expansion of the Chinese imperial economy constitutes "genuine" economic As academic disagreements go, both versions of the debate arc quite The debate hinges on a paradox. On the one hand, by any measure, the late imperial Chinese economy was an extraordinarily economy.

Gary G. Hamilton and

Chang

R e m e m b e r that, based o n the M o n e t a r y F u n d ranks t h e m a i n l a n d C h i n e s e e c o n o m y in t h e late as the largest G D P in t h e world. By c o m p a r i s o n , t h e imperial e c o n o m y t h r o u g h m u c h o f M i n g a n d Q i n g times was u n d o u b t e d l y t h e largest d o m e s t i c e c o n o m y in t h e well i n t o t h e n i n e t e e n t h c e n t u i y . Absolute size of this e c o n o m y however, so indicative of d e v e l o p m e n t if t h e e c o n o m y was based primarily on h o u s e h o l d a n d village selfsufficiency. d i s p u t a n t s in t h e d e b a t e s , however, t h a t this was n o t t h e case, t h o u g h differ on t h e levels of c o m m e r c i a l i z a t i o n a n d modification a n d on w h e t h e r these levels differ from t h o s e in W e s t e r n E u r o p e in t h e s a m e (e.g., W o n g 1997; P o m e r a n z 2 0 0 0 ) . As t h e starting p o i n t i n the d e b a t e , they r e c o g n i z e that t h e economy t a m e d e x c e e d i n g l y sophisticated a n d organizationally c o m p l e x e c o n o m i c r e g i o n s . In tins r e g a r d , nearly everyone a c k n o w l e d g e s S k i n n e r ' s 1977, 1985) research in d e f i n i n g t h e major r e g i o n s in t h e late imperial e c o n o m y . T h e s e r e g i o n s consisted o f densely i n t e g r a t e d m a r k e t i n g structures that c o n n e c t e d all parts of t h e region to a h i e r a r c h y of u r b a n m a r k e t ing At t h e i m p e r i a l level, all t h e r e g i o n s were i n t e g r a t e d by m e a n s of a vibrant inter-regional t r a d e in b o t h goods m a n y basic c o m m o d i t i e s , s u c h as salt, tea, sugar, a n d t h e i n p u t s to m a k e c l o t h i n g ( i n c l u d i n g the raw c o t t o n a n d silk, dyed a n d yarn, a n d bolt c l o t h ) 1984: As (1998: 5 1 - 9 ) stresses, w e s h o u l d n o t overstate t h e a m o u n t o f C h i n a ' s i n t e r n a l t r a d e . A l t h o u g h "the d o m e s t i c m a r k e t for all c o m m o d i t i e s r e m a i n e d restricted" a n d a l t h o u g h the average p e a s a n t family c o n s u m e d few t r a d e d c o m m o d i t i e s , the a b s o l u t e level of t r a d e was n o n e t h e l e s s very Wu (1985) gives o n e of t h e best-informed, t h o u g h still r o u g h , estimates of t h e scale of t r a d e , as s h o w n Table From T a b l e 5 . 1 , it is difficult to i n t e r p r e t t h e level of c o n s u m p t i o n t h a t i n t e r n a l t r a d e r e p r e s e n t s . W u gives a n a d d e d i n d i c a t i o n t h a t a b o u t 14.3 p e r c e n t o f t h e total o u t p u t o f c o t t o n cloth was internally t r a d e d i n t h e c e n t u i y (cited by M a z u m d a r 1998: 5 7 ) . M a z u m d a r 57) n o t e s t h a t Wu s calculations u n d e r s t a t e t h e level of d o m e s t i c t r a d e b e c a u s e they e x c l u d e c o m m o d i t i e s for lax p a y m e n t s . M o r e o v e r , if wc a d d t r a d e i n c o t t o n a n d c o t t o n y a r n , which m o s t p e a s a n t families h a d t o purchase the marketplace o r d e r t o weave t h e i r own cloth a n d m a k e t h e i r own c l o t h e s , t h e n of t r a d e is substantial. If we add to these figures t h e e x t r a o r d i n a r y m a r i t i m e t r a d e which C h i n e s e m e r c h a n t s e n g a g e d a n d for which p e a s a n t p r o d u c e d g o o d s (see H a m a s h i t a , C h a p t e r 1, in this v o l u m e ) , t h e n we m u s t c o n c l u d e t h a t t h e d o m e s t i c t r a d e was a large a n d very significant c o m p o n e n t of late imperial e c o n o m y . In fact, P o m e r a n z (2000: a r g u e s that C h i n a ' s i n t e r n a l t r a d e rivaled, a n d p e r h a p s even e x c e e d e d E u r o p e ' s t r a d e a s a s t h e late e i g h t e e n t h c e n t u i y .

C h i n a ' s late imperial e c o n o m y

Table

Estimates of the important commodities

China's

trade Percent of total

Grain Cotton Cotton fabric Silk fabric Tea Salt

billion 2,555,000

(DAN) bolts (PI) piculs (DAN) 49,000 (DAN) 2,605,000 piculs (DAN) billion catties

9,455.3

3.30 24.39 3.75 8.22

5.852.9

Note a

During the late Imperial period, China's weights and measures w e r e not standardized, but rather varied widely throughout C h i n a . See. for Abstract and Morse can obtain the roughest Idea of the amounts represented by Table with the figures provided by Mazumdar (1998: A catty about a equals catty or pounds. A equaled approximately one avoirdupois of silver. At the time, taels equaled US $4.00.

Despite such a huge of internal trade in basic commodities, the late imperial economy showed, on the other hand, very few signs of advanced production techniques for any including the production of cotton cloth. In fact, outside of the imperial workshops, where fine porcelains and silks were manufactured, the levels of technological sophistication in many areas of production did not approach levels one finds in Europe and Japan during the same period, a point made by a number of (Elvin 1973; Jones 1981, 1988; Huang 1985, 1990; Goldstone Their general argument that cheap peasant labor, supplied by rapidly expanding population, drove out the possibility of technical advances, and thus removed the possibility of an independent origin to industrial capitalism. As Mark Elvin put it, being the largest economy in its day, the Chinese economy was unable to get out of its population-induced "high-level equilibrium a Maithusian condition that resulted growth and qualitative standstill." This debate and, in particular, the concept of "high-level equilibrium trap" epitomize the use of Western models of capitalism to characterize China's late imperial economy. The participants in the debate argue about the causes of perceived lack of economic development contrast to a catalog of factors causing in This contrast makes China into a negative case, where the focus of explanation is the absence of something, in this instance, the absence of increasing levels of centralized, factory-based production. The absence in China of what was present in eighteenth-century Europe is then explained by evoking the opposite of what was present in the positive case. The "high-level equilibrium trap" an unexamined assertion for China of a supposed opposite truth Europe, namely that the aggregate effects of

Gary G. Hamilton and W e i - A n Chang density d i m i n i s h wages a n d r e d u c e d e m a n d t o t h e p o i n t t h a t t h e r e is no i n c e n t i v e to c e n t r a l i z e p r o d u c t i o n , as o c c u r r e d Europe. T h e r e f o r e , t h e v e r d i c t o n C h i n a ' s late i m p e r i a l e c o n o m y i s r e n d e r e d growth a n d qualitative standstill." C o t t o n textiles, by far t h e largest h a n d i c r a f t in late i m p e r i a l C h i n a , form t h e m o s t significant p o i n t o f i n this According to Philip H u a n g : C o t t o n lies at t h e h e a r t of t h e story of c o m m e r c i a l i z a t i o n in t h e Yangzi d e l t a . In 1350, no o n e in C h i n a w o r e c o t t o n cloth; by 1850, a l m o s t p e a s a n t did. T h e d r a m a t i c s p r e a d o f c o t t o n , replacing h e m p , affected h o u s e h o l d a n d p o w e r e d a h o s t of r e l a t e d c h a n g e s . Its story dwarfs t h o s e of other crops and i m p o r t a n c e for this (1990: 44) T h o s e w h o a r g u e for e c o n o m i c d y n a m i s m suggest t h a t c o t t o n p r o d u c t i o n illustrates t h e roots, if n o t t h e actual s p r o u t s of capitalism. In t h e c o u r s e of the and Qing c o t t o n textile p r o d u c t i o n e x p a n d e d t r e m e n dously a n d b e c a m e increasingly rationalized, with substantial differentiation t h e c h a i n of p r o d u c t i o n 1972). G r o w i n g , s p i n n i n g , weaving, d y e i n g a n d c a l e n d e r i n g , wholesaling, a n d retailing all b e c a m e s e p a r a t e steps in t h e m a n u f a c t u r e a n d d i s t r i b u t i o n of c o t t o n textiles. Diff e r e n t p e o p l e p r e d o m i n a t e d a t different stages i n t h e p r o d u c t i o n process, a process c h a r a c t e r i z e d by a s o p h i s t i c a t e d division of l a b o r required c o n s i d e r a b l e skills in s o m e stages of p r o d u c t i o n a n d relatively s i m p l e skills i n o t h e r stages. W h o l e r e g i o n s b e c a m e k n o w n their cotton production a n d e n t i r e villages for t h e i r specialization o n e o r a n o t h e r o f t h e stages. As t h e p r o d u c t i o n of cloth b e c a m e r a t i o n a l i z e d , t h e system of d i s t r i b u t i o n w i d e n e d , so that an i n t e g r a t e d , highly c o m p e t i t i v e m a r k e t in c o t t o n textiles existed t h r o u g h o u t t h e e m p i r e 1991: This cotton trade extended Asia, a n d s o m e C h i n e s e - m a n u f a c t u r e d c o t t o n cloth, called N a n k e e n , even m a d e i t t o E u r o p e a n d t h e A m e r i c a s i n t h e e i g h t e e n t h a n d early n i n e t e e n t h c e n t u r i e s a s o n e o f t h e e x p o r t items i n the China T h e p r e s e n c e of a v i b r a n t textile i n d u s t i y in late i m p e r i a l C h i n a is i n d i s p u t a b l e . On the other o f t h e d e b a t e , however, a r e s o m e o t h e r equally indisputable D e s p i t e c o n s i d e r a b l e sophistication in t h e m a r k e t i n g of c o t t o n textiles, at t h e p r o d u c t i o n e n d of t h e process, especially g r o w i n g , s p i n n i n g , a n d weaving, t h e r e a well-documented devolution production 1972) a n d an " i n v o l u t i o n " economic d e v e l o p m e n t ( H u a n g 1990). T h e critics s h o w that, a s c o m m e r c i a l i z a t i o n increased a n d distribution widened, the of production did not a d v a n c e a n d , in fact, even simplified. F o r these writers, t h e S o n g dynasty is

imperial e c o n o m y t h e high-water m a r k o f economy, a point in when C h i n a s t e c h n o l o g y was a d v a n c e d t h a t of c o n Europe 1973; J o n e s 1988). Despite t e c h n o l o g i c a l s o p h i s t i c a t i o n , C h i n a ' s e c o n o m y did n o t take off; e c o n o m i c d e v e l o p m e n t d i d n o t o c c u r . Mark Elvin (1972, 1973) a r g u e s , for e x a m p l e , t h a t C h i n a , as late as t h e f o u r t e e n t h c e n t u r y , possessed water- o r a n i m a l - p o w e r e d s p i n n i n g m a c h i n e s t h a t were i n w i d e use a n d technologically m o r e a d v a n c e d t h a n a n y t h i n g i n E u r o p e before the eighteenth Vet, by t h e of t h e s e v e n t e e n t h c e n t u r y , t h e s e m a c h i n e s h a d d i s a p p e a r e d i n C h i n a . R e p l a c i n g these m o r e complex machines were simpler, m o r e devices suita b l e for use by w o m e n a n d c h i l d r e n i n s i d e t h e h o u s e h o l d . As a of this d e v o l u t i o n , f u r t h e r a r g u e s , C h i n a m o v e d in o p p o s i t e direction, away from a l a r g e , i n t e g r a t e d factory system, as o c c u r r e d in E u r o p e a n d t h e U n i t e d States, a n d the "high-level e q u i l i b r i u m trap." To t h e s e critics, a g r o w i n g s o p h i s t i c a t i o n of p r o d u c t i o n (i.e. w h e r e e x p a n d s faster t h a n l a b o r i n p u t , " H u a n g 1990: is the essence o f capitalist d e v e l o p m e n t . W i t h o u t s u c h s o p h i s t i c a t i o n , they a r g u e , n o industrial r e v o l u t i o n , n o g e n u i n e s p r o u t s o f capitalism, o c c u r r e d i n C h i n a . I n s t e a d , with c o m m e r c e "as a substitute for m a n a g e m e n t " (Elvin 1973), C h i n a s u p p o s e d l y e x p e r i e n c e d o n l y a l o n g steady d e v o l u t i o n i n t o i n c r e a s i n g poverty a n d A l t h o u g h this d e b a t e i s c o n s i d e r a b l y m o r e varied a n d t h e a r g u m e n t a tion m o r e c o m p l e x t h a n have p o r t r a y e d h e r e , it is n o n e t h e l e s s obvious t h a t s o m e o f t h e aspects o f t h e d e b a t e s e e m very similar t o s o m e o f t h e issues c o n f r o n t i n g observers of m o d e r n global capitalism. Is t h e only type of i n d u s t r i a l i z a t i o n o n e t h a t i n d i c a t e d by t h e p r e s e n c e of large factories? T o this q u e s t i o n , today w o u l d quickly a n d r e s o u n d i n g l y a n s w e r no. forms o f i n d u s t r i a l i z a t i o n ( d e f i n e d h e r e a s t h e of industry, n a m e l y t h e d e v e l o p m e n t a n d system of an area of p r o d u c t i o n ) o c c u r o u t s i d e of technologically s o p h i s t i c a t e d factories, as many studies in c o n t e m p o r a i y E u r o p e a n d t h e U n i t e d States clearly reveal. T h e catchall label such i n t e g r a t e d systems of p r o d u c t i o n is "flexible p r o d u c t i o n " or "flexible

II Given t h e fact of flexible p r o d u c t i o n systems m o d e r n capitalism, can we a r g u e t h a t late i m p e r i a l C h i n a is an e x a m p l e of industrialization in t h e a b s e n c e of factories, an e x a m p l e of flexible specialization on a m a m m o t h scale? T h e first r e a c t i o n to s u c h a s u g g e s t i o n t h a t t h e idea absurd. N e i t h e r t h e l i t e r a t u r e o n flexible p r o d u c t i o n systems i n t h e c o n t e m p o r a i y times n o r t h e l i t e r a t u r e o n late i m p e r i a l C h i n a would s u p p o r t s u c h a n

and

Wei-An

Chang

In t h e i r s e m i n a l b o o k , The Divide, Piore a n d (1984) d o c o n n e c t craft t r a d i t i o n s t o t h e o f flexible specialization. But t h e i r a r g u m e n t is t h a t F o r d i s m , t h e form of large-scale vertically i n t e g r a t e d d r o v e o u t craft i n d u s t r i e s most societies e x c e p t peripheral industries where the markets were "too n a r r o w a n d f l u c t u a t i n g to r e p a y t h e specialized use of r e s o u r c e s of mass production" In a few places, h o w e v e r , s u c h as northern Italy, a craft tradition persisted, wake of a crisis in production, craft t r a d i t i o n revitalized a n d was so t r a n s f o r m e d it b e c a m e t h e l e a d i n g e d g e of a totally n e w form of capitalist p r o d u c t i o n . W h a t m a d e flexible specialization new a n d different from b o t h Fordist production and the craft tradition was t h e ability to use t h e most advanced technology, to create complex subcontracting arrangements to match product and product demand, and to d e v e l o p new p r o d u c t s u s i n g t h e flexible p r o d u c t i o n t e c h n i q u e s 2 1 5 ) . As a c o n s e q u e n c e of t h e s e i n n o v a t i o n s , m o d e r n small firm networks shifted "toward g r e a t e r flexibility [ i n ] p r o v o k i n g t e c h n o l o g i c a l sophistication r a t h e r t h a n regression to s i m p l e t e c h n i q u e s " 207). Although there a substantial l i t e r a t u r e criticizing various aspects of and Sabel's c o n c e p t i o n of flexible critics do n o t a r g u e that this shift from a craft tradition lo t h e small firm networks in t h e world e c o n o m y today was a n y t h i n g o t h e r t h a n a n e c o n o m i c transformation. From l i t e r a t u r e , t h e r e f o r e , it s e e m s difficult to a r g u e t h a t textile industry in late i m p e r i a l C h i n a is an i n s t a n c e of flexible p r o d u c tion, b e c a u s e is a c l e a r e x a m p l e of a regression toward s i m p l e r The o n c o t t o n p r o d u c t i o n i n i m p e r i a l C h i n a offers n o h e l p rebutting c o n c l u s i o n . T h e d e s c r i p t i o n s of textile in t h e M i n g a n d Q i n g p e r i o d s s h o w t h a t t h e initial steps i n p r o d u c t i o n , n a m e l y s p i n n i n g a n d weaving, were n o t c o n c e n t r a t e d i n but rather in c o u n t r y s i d e (Xu 1981, 1988, 1992). M o r e o v e r , d e s p i t e s o m e e x a m p l e s to t h e c o n t r a r y , these d e s c r i p t i o n s also m a k e clear t h e s e initial steps, i n c l u d i n g g r o w i n g c o t t o n , were largely subsidiary a g r i c u l t u r a l industries, which s u p p l i e d a d d i t i o n a l to peasant households. Women and c h i l d r e n w h o d i d m o s t o f t h e s p i n n i n g a n d weaving within t h e h o u s e h o l d s were themselves s c a t t e r e d t h r o u g h o u t cotton-growing regions and beyond. What l i t e r a t u r e shows is t h e initial steps in p r o d u c t i o n w e r e so d e c e n t r a l i z e d a n d , seemingly, so that difficult even to s p e a k of a "system" of textile p r o d u c t i o n . H e n c e , t h e o n l y c o n c l u sion s e e m s possible is t h a t is n o t only n o t an e x a m p l e of flexible p r o d u c t i o n , b u t also n o t even a g o o d e x a m p l e of a "craft" industiy, if by t h a t t e r m wc m e a n , following P i o r e a n d Sabel (1984), a sophisticated artisan-based h a n d i c r a f t t r a d i t i o n t h a t draws o n c o o p e r a t i v e c o m m u n i t y traditions.

China's

economy

T h i s is analysts e n d t h e discussion: imperial p r o d u c t i o n simply as "traditional," a n d d e s p i t e a few insignificant c o n t i n u i t i e s , m o d e r n p r o d u c t i o n is entirely different in spirit, all regards. O u r examination of imperial however, raises s o m e p r o b l e m s with t h e o l d f o r m u l a that radically severs t h e past from t h e p r e s e n t . T h e first thing we notice t h a t t h e r e a r e t o o m a n y similarities b e t w e e n t h e o r g a n i z a t i o n of e c o n o m i c activity late i m p e r i a l C h i n a a n d t h e postWorld War industrialization p r o c e s s in b o t h Taiwan a n d n o w t h e P R C lo simply b r u s h aside. O u t s i d e t h e s t a t e - c o n t r o l l e d sectors both e c o n o m i e s , the industrialization p r o c e s s has b e e n c o n c e n t r a t e d the c o u n t r y s i d e in small a n d m e d i u m - s i t e d firms, a n d , in t h e initial p h a s e s at least, draws on subsidiary h o u s e h o l d l a b o r . In T a i w a n , t h e h o u s e h o l d , t h e form of family firms, was a n d r e m a i n s , t h e basic u n i t of p r o d u c t i o n , and the technology of matches the resources of the producers, a n d h e n c e is different, if n o t s i m p l e r , t h a n w o u l d have b e e n in large factories ( H a m i l t o n a n d 1988; H a m i l t o n a n d Kao 1990; e\ 1 9 9 7 ) . Even T a i w a n , in s o m e areas of p r o d u c t i o n , particularly i n t e r m e d i a t e g o o d s , s u c h as and where t h e f i r m s h a v e g r o w n very large a n d have b e c o m e diversified business g r o u p s , t h e businesses r e m a i n f u n d a m e n t a l l y family o w n e d a n d controlled. In t h e PRC, on p r i v a t e o w n e r s h i p still favor s o m e form of collective o w n e r s h i p , b u t even in context, township enterprises c o n t a i n s o m e of t h e d y n a m i c s of family-controlled especially r e g a r d t o p e r s o n a l i z e d a n d c e n t r a l i z e d d e c i s i o n - m a k i n g a n d t h e necessity to cultivate i n t e r - p e r s o n a l (Ein 1995; W a n k 1999). T h e s e a n d o t h e r similarities w o u l d be superficial o n e s w e r e it n o t for a m o r e f u n d a m e n t a l parallel m o d e r n and Chinese t h a t m a k e s t h e e c o n o m i c s i n t h e two different p e r i o d s o r g a n izationally very similar. E x a m i n i n g h o w t h e e c o n o m i e s both periods actually o p e r a t e i n b o t h e c o n o m i c a n d o r g a n i z a t i o n a l t e r m s reveals t h e d i s t r i b u t i o n sectors o f t h e e c o n o m i e s the entire structures. T h e s e e c o n o m i e s a r c o r g a n i z e d " b a c k w a r d s " from d i s t r i b u t i o n r a t h e r "forward" from p r o d u c t i o n . O u r u n d e r s t a n d i n g o f t h e significant effects o f c o m m e r c e o n c o m m o d p r o d u c t i o n builds on a w i d e s p r e a d a g r e e m e n t a m o n g t h e d i s p u t a n t s in the "greater" d e b a t e that, from a t least t h e m i d d l e M i n g i n t o t h e t w e n t i e t h c e n t u r y , t h e c o m m e r c i a l sectors o f t h e i m p e r i a l C h i n e s e e c o n o m y steadily d e v e l o p e d a n d r e a c h e d c o n s i d e r a b l e levels o f o r g a n i z a t i o n a l c o m p l e x i t y , so c o m p l e x fact that s o m e analysts simply write t h e w h o l e c o m m e r c i a l system off as b e i n g confusing, particularistic, and detrimental to economic T h e s a m e writers ( H u a n g 1990;

Hamilton and W e i - A n C h a n g however, a c k n o w l e d g e that t h e c o m m e r c i a l i z a t i o n i m p e r i a l e c o n o m y resulted efficient m a r k e t s in t h o s e basic that were widely A c u r i o u s a s p e c t of this l i t e r a t u r e is, however, that n o n e d i s p u t a n t s causally c o n n e c t s what h a p p e n s a t the production end w h a t h a p p e n s al t h e d i s t r i b u t i o n e n d . It as if t h e two e n d s o f t h e p r o d u c t i o n c h a i n b e a r n o causal r e l a t i o n s h i p t o o n e o m i s s i o n is less m o s t r e c e n t a n d richly d e t a i l e d discussions of c o m m o d i t y p r o d u c t i o n t h a t builds on a d i a l o g u e with t h e literature on Europe (Wong Mazumdar 1998; Bray 1999; P o m e r a n z 2 0 0 0 ) . T h e s e scholars c o n s i d e r a t l e n g t h t h e c o n d i t i o n s of p r o d u c e r s of sugar, c o t t o n , a n d silk w h o incorporated systems, a n d r e c o g n i z e that "small p e a s a n t p r o d u c e r s were n o t a b l e t o set prices any m o r e t h a n they were a b l e to c h o o s e which m a r k e t to sell ( M a z u m d a r 1998: 3 2 9 ) . Even so, t h e m o s t r e c e n t work still d o e s n o t c o n n e c t t h e effects o f r e g i o n a l m e r c h a n t g r o u p s , w h o s e e c o n o m i c p o w e r also c o n t r o l t h e n a t i o n a l distribution o f these c o m m o d i t i e s , back o n t h e of For e x a m p l e , in e x t e n d e d analysis (2000) a b o u t why t h e e c o n o m i e s o f late i m p e r i a l C h i n a a n d early m o d e r n E u r o p e from e a c h o t h e r t h e late e i g h t e e n t h a n d early n i n e t e e n t h c e n t u r i e s , h e barely t o u c h e s o n or merchant organization. Concerning primarily t h e factors, instead draws a l i n e a r a n d r e l a t i o n s h i p b e t w e e n p r o d u c t i o n a n d d i s t r i b u t i o n , thus conc l u d i n g that p r o d u c t i o n o f g o o d s a m o u n t e d t o n o t h i n g m o r e t h a n a sac, w h i c h even with steadily i n c r e a s i n g labor inputs, the spread best k n o w n p r o d u c t i o n practices, a n d a g r o w i n g c o m m e r c i a l i z a t i o n m a k i n g possible a n e v e r - m o r e efficient division of labor, p r o d u c t i o n was barely staying a h e a d of p o p u lation g r o w t h . (2000: 207) At t h e theoretical level, omission can be e x p l a i n e d in large p a r t because t h e l i t e r a t u r e o n e c o n o m i c theory a n d e c o n o m i c histoiy, o n which d r a w heavily, exhibits t h e s a m e r e l u c t a n c e to c o n n e c t distribution a n d manufacture. From Marx and t o Coase a n d N o r t h , e c o n o m i c t h e o r i s t s have b e e n p r e d o m i n a n t l y theorists o f p r o d u c t i o n . Distribution, marketing, a n d c o n s u m p t i o n a r e relegated to a s e c o n d a r y Only t h e m o s t r e c e n t e c o n o m i c t h e o r i z i n g d o e s t h e distribution e n d o f t h e process start to have a backward effect on t h e p r o d u c t i o n e n d . O n e of t h e clearest c h a r a c t e r i z a t i o n s of t h e s e linkages found f o r m u l a t i o n of global c o m m o d i t y c h a i n s a n d b; also and Hamilton argues that production should not

late

economy

in t h e a b s e n c e of k n o w l e d g e a b o u t t h e e n t i r e c h a i n - from basic i n p u t s to c o n s u m p t i o n of a p r o d u c t . U s i n g a wealth of empirical data, shows t h e o r g a n i z a t i o n of p r o d u c t i o n is very different if it is "driven" from t h e d i s t r i b u t i o n r a t h e r t h a n from t h e f a c t u r i n g e n d s of t h e c h a i n . By "driven," m e a n s that, some but certainly n o t all cases of c o m m o d i t y p r o d u c t i o n , a firm or a set of firms able to c o o r d i n a t e t h e m o s t significant steps t h e p r o d u c t i o n of p r o d u c t , directly t h r o u g h o w n e r s h i p o r indirectly t h r o u g h economic power in controlling some aspect of production or distribution. T h e crucial d e t e r m i n a n t s in w h e t h e r firms a r e a b l e to c o n t r o l m u l t i p l e steps in c o m m o d i t y c h a i n s a r c t h e b a r r i e r s t o e n t r y a t any p o i n t i n t h e p r o d u c t i o n a n d d i s t r i b u t i o n process. F o r s o m e p r o d u c t s t h a t are very difficult to p r o d u c e b e c a u s e , for i n s t a n c e , o f t h e level o f t e c h n o l o g y o r r e q u i r e d capital, t h e f i r m t h a t controls t h e p r o d u c t i o n is often a b l e to c o o r d i n a t e m o s t steps the chain. C o m m e r c i a l aircraft m a n u f a c t u r e r s , s u c h a s B o e i n g , a n d a u t o m o b i l e ufacturers, such as Toyota a n d General Motors, are examples of what calls c o m m o d i t y c h a i n s . " S o m e firms vertically i n t e g r a t e t h e e n t i r e p r o d u c t i o n s e q u e n c e inside t h e f i r m , t h e r e b y o w n i n g a n d authoritatively c o n t r o l l i n g t h e significant steps in a c o m m o d i t y c h a i n . O t h e r l a r g e r p r o d u c e r s , s u c h a s t h e T o y o t a g r o u p , form very large works o f i n d e p e n d e n t f i r m s , s o m e o f which t h e g r o u p partially o w n s a n d s o m e o f which they d o n o t . T h o s e f i r m s that t h e g r o u p d o e s n o t own, h o w e v e r , a r e still e a g e r t o p r o d u c e u n d e r T o y o t a ' s d i r e c t g u i d a n c e simply b e c a u s e o f g r e a t e c o n o m i c power. T h e organizing o f l a r g e vertically i n t e g r a t e d f i r m s a n d firm n e t w o r k s easy e n o u g h to Alfred C h a n d l e r (1977, 1990), for o n e , has d e s c r i b e d t h e very g r e a t i n f l u e n c e of large firms to i n t e g r a t e t h e chain c o n t r o l d i s t r i b u t i o n or backward t h e chain to control production, and so doing to reshape the organization of entire It t h e a b s e n c e of s u c h firms a n d of t h e t e n d e n c y to d e v e l o p s u c h firms that p r o m p t s m a n y analysts of late i m p e r i a l C h i n a to reject any claims of a n a s c e n t form of capitalism in late i m p e r i a l r e s e a r c h , however, shows t h e equally i m p o r t a n t , b u t very difeffects of m e r c h a n d i s i n g on p r o d u c t i o n . U s i n g m a n y e x a m p l e s of c o n s u m e r n o n - d u r a b l e s , s u c h a s footwear a n d g a r m e n t s , Gcreffi shows t h a t i n t h e p a s t several d e c a d e s large-scale retailers a n d b r a n d n a m e m e r c h a n d i s e r s , w h i c h he collectively calls "big-buyers," have b e g u n to n a t e t h e i r respective Toys Us, H o m e D e p o t , Office Max, Costco, S a m ' s C l u b a r e all e x a m p l e s o f d i s c o u n t retailers t h a t d o n o t own or directly c o n t r o l t h e firms supply their g o o d s , b u t that have such large-scale p u r c h a s i n g p o w e r a n d t h e ability t o buyer preferences as t o b e a b l e t o e x e r t t r e m e n d o u s i n f l u e n c e o v e r quality a n d p r i c i n g o f t h e g o o d s they buy. Nike, R e e b o k , T h e G a p , Liz C l a i b o r n e , T h e Limited,

Hamilton and W e i - A n Chang Gateway a n d Dell C o m p u t e r s a r e of brand name retailers that d o n o t own o r directly c o n t r o l t h e factories that m a k e t h e g o o d s they sell. T h e b r a n d n a m e m e r c h a n d i s e r s a r e technically not b e c a u s e they have n o factories. R a t h e r , these c o m p a n i e s a r e design a n d / o r but do not make, the banded products sell. T h e s e f i r m s rely on c o m p l e x tiered of overseas p r o d u c t i o n c o n t r a c t o r s t h a t p e r f o r m a l m o s t all t h e i r specialized tasks. B r a n d e d m e r c h a n d i s e r s may farm or all of t h e i r activities - p r o d u c t d e v e l o p m e n t , m a n u f a c t u r i n g , p a c k a g i n g , s h i p p i n g , a n d even a c c o u n t s receivable t o different a g e n t s a r o u n d t h e world. 1994b: 221) As m a k e s clear, b o t h sets of c o m p a n i e s do n o t m a k e t h e i r profits from "scale, v o l u m e , a n d technological a d v a n c e s " b u t r a t h e r from " u n i q u e c o m b i n a t i o n s o f high-value r e s e a r c h , design, sales, m a r k e t i n g , a n d f i n a n c i a l services t h a t allow t h e buyers a n d b r a n d e d m e r c h a n d i s e r s l o act as strategic b r o k e r s linking overseas factories a n d t r a d e r s evolving product niches their main consumer Product is the key strategy of m e r c h a n d i s i n g , a strategy a i m e d at c r e a t i n g n i c h e m a r k e t s for specialized p r o d u c t s in which t h e m e r c h a n d i s e r s can r e d u c e competition and approach monopolistic control. T h e economic power of mass a n d b r a n d n a m e m e r c h a n d i s e r s is achieved by c r e a t i n g such barriers t o e n t r y a t t h e m a r k e t i n g e n d c o m m o d i t y chain that t h e actual p r o d u c e r s of g o o d s have no c h o i c e b u t to in line with the d e m a n d s o f these f i r m s . T h e backward o r g a n i z a t i o n o f p r o d u c t i o n t h e n , a s s u m i n g e q u a l quality, goes to t h e least cost providers of t h e p r o d u c t . If t h e r e a r e m u l t i p l e p r o v i d e r s of a p r o d u c t , t h e n t h e buyers drive t h e p r o d u c t i o n cost d o w n by playing o n e p r o d u c e r off against t h e o t h e r s . T h e backward p o w e r o f c o m m e r c i a l o r g a n i z a t i o n o n p r o d u c e r s c o m p e t i n g i n t h e s a m e m a r k e t s forces these p r o d u c e r s t o c r e a t e ever c h e a p e r a n d t h e r e fore s i m p l e r forms of p r o d u c t i o n , given a c c e p t a b l e levels of quality. Not location equally suited for this low-cost p r o d u c t i o n . It is, t h e r e f o r e , no that buyers have h a d a clear p r e f e r e n c e for s u b c o n t r a c t i n g in e c o n o m i e s d o m i n a t e d by small a n d m e d i u m - s i z e d i n d e p e n d e n t firms, o u t s i d e t h e P R C a r e typically Research m a k e s t h a t t h e industrialization of m o d e r n T a i w a n , H o n g K o n g , a n d t h e PRC (after 1978) has r e s u l t e d mightily from e x p o r t production of batch-manufactured products purchased F r o m bicycles, a n d g a r m e n t s t o c o m p o n e n t s for and televisions, n e t w o r k s of small a n d m e d i u m - s i z e d C h i n e s e firms have led t h e i r respective t h e p r o d u c t i o n o f items sold a r o u n d t h e world u n d e r t h e b r a n d n a m e s o f o n e k i n d o f m e r c h a n d i s i n g f i r m o r

late imperial e c o n o m y a n o t h e r ( C h e n 1994; H a m i l t o n 1 9 9 7 ) . It is c l e a r that this form of p r o d u c t i o n has b e c o m e increasingly r a t i o n a l i z e d so t h a t these small-firm economies get b e t t e r at b e i n g flexible (Gcreffi 1994b; C h e n 1998; and Hamilton forthcoming). Indeed, m o d e r n C h i n e s e e c o n o m i c s a r e a m o n g t h e best e x a m p l e s o f f l e x i b l e p r o d u c t i o n systems t h e world today.

IV W h a t d o s u c h buyer-driven c h a i n s have t o d o with i m p e r i a l China? t h e a n s w e r is, we believe, a b o u t t h e s a m e as it is for t h e late t w e n t i e t h The late i m p e r i a l C h i n a was n o t only larger than cither medieval E u r o p e or Japan, but was also o r g a n i z e d differently a l o n g t h r e e i m p o r t a n t d i m e n s i o n s : (1) t h e social s t r u c t u r a l c o n d i t i o n s o f c o n s u m p t i o n ; (2) t h e affinity b e t w e e n these c o n d i t i o n s a n d the of a system of mass m e r c h a n d i s i n g ; a n d (3) t h e o r g a n ization o f t h e d i s t r i b u t i o n e n d o f t h e c o m m o d i t y p r o d u c t i o n . Before t h e century in both E u r o p e and J a p a n , the buying power of a relatively small, d i s p r o p o r t i o n a t e l y wealthy aristocracy d i r e c t e d t h e efforts of t h e best c r a f t s m e n . In J a p a n , t h e s a m u r a i class, c o n s t i t u t i n g a b o u t 10 p e r c e n t o f t h e total p o p u l a t i o n , was u r b a n based a n d set t h e standa r d s for c o n s u m p t i o n until they b e c a m e increasingly i m p o v e r i s h e d in t h e late e i g h t e e n t h a n d n i n e t e e n t h c e n t u r i e s 1997). I n E u r o p e , again before the eighteenth aristocratic w h i c h were b e c o m i n g increasingly from t h e s i x t e e n t h o n , also established t h e fashions t h e day, a n d h a d t h e p o w e r t o m o s t o t h e r classes from t h e i r style of life et 1982; C a m p b e l l 1987). T h e h e r e d i t a r y u p p e r strata i n b o t h l o c a t i o n s also directly o r indirectly cont r o l l e d t h e e c o n o m i c decisions o f m a n y h a n d i c r a f t a n d a g r i c u l t u r a l d u c e r s , a s well a s r e s i d e n t m e r c h a n t g r o u p s ( H a n l e y a n d 1977; P r a t t 1999). H e r e d i t a r y elites a n d t h e i r a g e n t s vied o v e r a n d c o n t r o l l e d m u c h o f t h e l a n d a n d m o s t e c o n o m i c a l l y active towns a n d t r a d i n g r o u t e s . In both Japan and Europe, urban-based merchants and some i n d e p e n d e n c e , primarily by organizing in trade and handicraft associations ( S h e l d o n P r a t t 1999), s o m u c h s o that W e b e r r e f e r r e d to E u r o p e a n cities as b e i n g illegitimate enclaves in t h e midst of t h e of t h e M i d d l e Ages ( W e b e r 1978: Free p e a s a n t s in W e s t e r n E u r o p e d i d not e m e r g e u n t i l t h e o f g r e a t m o n a r c h i e s after t h e d e v a s t a t i n g T h i r t y Years War, a n d d i d n o t at in C e n t r a l a n d E a s t e r n E u r o p e until nearly t h e t w e n t i e t h I n J a p a n , until t h e p e a s a n t s w e r e tied to t h e a n d largely cut from participation regional and national After a largely rural elite e m e r g e d t h a t b e g a n t o link r u r a l a r e a s t o n a t i o n a l m a r k e t s , b u t

Hamilton and W e i - A n Chang

this

controlled peasant participation activities 1959; P r a t t 1 9 9 9 ) . indirectly t h r o u g h t h e i r b u y i n g p o w e r a n d d e m a n d s for c o n s p i c u o u s c o n s u m p t i o n , a n d s o m e t i m e s t h r o u g h i n c o r p o r a t i n g artisans i n t h e i r p a t r i m o n i a l h o u s e h o l d s , u p p e r strata i n E u r o p e a n d J a p a n s h a p e d t h e efforts o f h a n d i c r a f t p r o ducers, pulling toward a system of p r o d u c t i o n based on c r e a t i n g finely one-of-a-kind p r o d u c t s . T h i s is a h a n d i c r a f t t r a d i t i o n of ively few buyers, restricted products. By contrast, s t a r t i n g as early as t h e Chinese a n d artisans p r o d u c e d for i m p e r s o n a l mass m a r k e t s for which they m a d e t h e u l t i m a t e decisions a b o u t w h a t they p r o d u c e d a n d h o w they p r o d u c e d it. T h e m a j o r c o n s u m e r s for agricultural a n d h a n d i c r a f t p r o d u c t s i n c l u d e d a wide r a n g e of p e o p l e from n o n h e r e d i t a r y l a n d o w n i n g a n d a d m i n i s t r a t i v e elites t o even r a t h e r p o o r The however, were clearly t h e principal c o n s u m e r s . However, elite status was n o t h e r e d i t a r y , a n d b e c a u s e of p a r t i b l e inherit a n c e , t h e l a n d o w n i n g wealth was constantly b e i n g reshuffled. T e n u r e a s an i m p e r i a l a d m i n i s t r a t o r was short-lived, was based on m e r i t the exami n a t i o n system, a n d c o u l d n o t b e d i r e c d y passed o n t o heirs. U n l i k e t h e J a p a n e s e a n d E u r o p e a n c o u n t e r p a r t s , t h e c o n s u m i n g elites China were located u r b a n a r e a s a n d small centers scattered t h r o u g h o u t imperial China a n d not concentrated disproportionately h u g e p r i m a r y cities, s u c h a s Paris, L o n d o n , o r T o k y o . C o n t e n d i n g for p o w e r a n d privilege, C h i n e s e elites n e e d e d t o c o n s u m e c o n s p i c u o u s l y i n relation to p e e r s t h e i r locale, b u t n o t so s u m p t u o u s l y as lo s e p a r a t e themselves in status from o t h e r s in local society with w h o m they m a i n tained W e have simplified t h e differences b e t w e e n C h i n a , o n t h e o n e h a n d , a n d J a p a n a n d E u r o p e , o n t h e o t h e r h a n d , i n o r d e r t o suggest that t h e social s t r u c t u r e in late i m p e r i a l C h i n a c r e a t e d an an o p e n i n g if you will, for a p r e - m o d e r n e q u i v a l e n t of mass m e r c h a n d i s e r s . In o r d e r to illustrate affinity, wc w a n t to Alexis de comparative m o d e l to e x p l a i n t h e differences in m a n u f a c t u r i n g he between aristocratic E u r o p e a n d d e m o c r a t i c U n i t e d Stales (which n o t c o n t a i n e d , as d i d late i m p e r i a l C h i n a , a significant l a n d o w n i n g elite in t h e midst of a fluid class Craftsmen in aristocratic societies work for a strictly limited n u m b e r of c u s t o m e r s w h o a r e h a r d to please. Perfect w o r k m a n s h i p gives the best h o p e of T h e situation is different w h e n privileges have b e e n a b o l i s h e d a n d classes i n t e r m i n g l e d a n d w h e n m e n a r e c o n t i n u a l l y rising a n d falling t h e social scale [The in family f o r t u n e s creates] a crowd of citizens whose desires o u t r u n t h e i r m e a n s a n d w h o will gladly a g r e e t o p u t u p with a n i m p e r f e c t

imperial e c o n o m y r a t h e r t h a n d o w i t h o u t t h e object o f t h e i r d e s i r e The craftsman easily u n d e r s t a n d s this feeling, for he s h a r e s it. In aristocracies charged h i g h prices to a few. He sees that he can n o w get rich q u i c k e r by selling c h e a p l y to all. Now, t h e r e a r e two ways of m a k i n g a p r o d u c t c h e a p e r . T h i s first is to find b e t t e r , more skillful ways of m a k i n g The second to m a k e a g r e a t n u m b e r of objects w h i c h a r c m o r e o r less t h e s a m e b u t n o t s o g o o d . I n a d e m o cracy w o r k m a n applies wits t o b o t h t h e s e p o i n t s Craftsmen d e m o c r a t i c ages d o n o t s e e k only t o b r i n g t h e useful things they m a k e within t h e r e a c h of every citizen, b u t also to give e a c h object a l o o k of brilliance u n c o n n e c t e d with true worth.

experiment useful h e r e in u n d e r s t a n d i n g t h e c o m p l e x social s t r u c t u r a l differences b e t w e e n t h e imperial Chinese economy and other w h i c h it usually c o m pared. sees t h e b a c k w a r d linkages b e t w e e n t h e c o n sumption and production of goods, a n d recognizes that the consumption of g o o d s directly s h a p e d by t h e a w a r e n e s s of c o n s u m e r s w h o s e situational logic reflects t h e i r p o s i t i o n i n g t h e social o r d e r . K n o w i n g E u r o p e of his day he saw t h a t craft p r o d u c t i o n t h e U n i t e d States a p p e a r e d to have a very different o r i e n t a t i o n relation to t h e c o n s u m e r . would e x t e n d this m o d e l o n e s t e p f u r t h e r b y s u g g e s t i n g that t h e of merc h a n t s (literally " m e r c h a n d i s i n g " ) b u i l t o n a n d a c c e n t u a t e d t h e s a m e structurally i n d u c e d situational logic. T o c q u e v i l l c ' s p o r t r a i t of t h e U n i t e d has a n u m b e r of features in common late i m p e r i a l C h i n a , a l t h o u g h they a r c obviously very differe n t societies. First, b o t h imperial China and A m e r i c a were societies a m b i g u o u s class s t r u c t u r e , few legal or formal b a r r i e r s to class mobility. Both societies h a d c o n s i d e r a b l e interg e n e r a t i o n a l mobility, as is well illustrated by l a n d divisions China a n d in b o t h l o c a t i o n s were powerful socially e m b e d d e d logics t h a t p r e v e n t e d freezing class b o u n d a r i e s . S e c o n d , b o t h societies were s t r o n g l y d e c e n t r a l i z e d with vibrant r e g i o n s a n d with elites i n t e g r a t e d i n t o t h e status s t r u c t u r e at local a n d r e g i o n a l levels, m o r e so than at t h e n a t i o n a l levels. T h i r d , b o t h societies h a d vast d o m e s t i c e c o n o m i c s , a n d moreover, outside of the American South, the orientation of both e c o n o m i e s was toward and not exports u n l i k e Britain a n d to a lesser d e g r e e F r a n c e . T h e s e c o n d i t i o n s set t h e stage for t h e develo p m e n t of an economic o r i e n t e d t o p r o d u c i n g differentiated p r o d for mass m a r k e t s . In late i m p e r i a l C h i n a , these affinities e n c o u r a g e d a h a n d i c r a f t t r a d i t i o n t o p r o d u c e for i m p e r s o n a l mass m a r k e t s . I n t h e U n i t e d States, these s a m e affinities p r o v i d e d t h e e n t r e p r e n e u r i a l confor c r e a t i n g , after t h e Civil War, large vertically i n t e g r a t e d firms -

Gary G. Hamilton and W e i - A n C h a n g driven

commodity chains -

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products

mass

T h e similarities C h i n a a n d t h e U n i t e d Slates a r e b r o a d structural o n e s , which h e l p s specify s o m e of t h e distinctive features of C h i n a . O n e o f t h e key o f difference b e t w e e n t h e e c o n o m i c o r g a n i z a t i o n C h i n a a n d t h e U S c o n c e r n s t h e ability t o c r e a t e a n d m a i n t a i n large businesses the sphere. Large t h e USA e m e r g e d only t h e post-Civil W a r p e r i o d , w h e n s h a r e h o l d i n g comp a n i e s as a legal " p e r s o n , " which limited t h e liability of owners to assets of the company. This c h a n g e c o i n c i d e d with t h e o r g a n i z a t i o n a l revolution t h a t t r a n s f o r m e d every s p h e r e o f A m e r i c a n society. A d m i n i s t e r e d large g r o u p s b o t h p u b l i c a n d private s p h e r e s b e c a m e the order day. in late i m p e r i a l C h i n a , only t h e state a n d political c o n t e n d e r s the rebels) c o u l d o r g a n i z e large c e n trally c o n t r o l l e d O u t s i d e of t h e political s p h e r e , t h e family was t h e p r i m a r y m e d i u m for s e t t i n g g r o u p s b o u n d a r i e s In late i m p e r ial C h i n a , a n d to a l a r g e e x t e n t m o d e r n C h i n a as well, t h e o f p a r t i b l e i n h e r i t a n c e s h a p i n g p r o p e r t y o w n i n g a n d p r o p e r t y "rights" (which u n d e r m i n e d t h e f o r m a t i o n o f large g r o u p s o u t s i d e o f t h o s e c r e a t e d by t h e state) a n d t h e aggressiveness a n d success of non-family b a s e d e c o n o m i c o r g a n i z a t i o n s , s u c h a s m e r c h a n t associations, limited t h e size o f businesses a n d p u s h e d t h e s e businesses toward c o m m o d i t y p r o d u c tion based o n m e r c h a n d i s i n g , that on equivalents o f commodity chains. T h e ever-present tendency to segment p r o p e r l y h o l d i n g s across g e n e r a t i o n s a n d t h e p r e s e n c e o f effective longt e r m networks c o n t r o l l i n g t r a d e m e a n t t h a t t h e crucial " b a r r i e r entry" in p r o d u c i n g c o m m o d i t i e s for vast d o m e s t i c e c o n o m y was t h e dist r i b u t i o n of t h o s e c o m m o d i t i e s to mass m a r k e t s , instead of t h e i r actual To better u n d e r s t a n d how such barriers entry operated the C h i n e s e e c o n o m y , o n e n e e d s t o e x a m i n e b o t h t h e p r o d u c t s b e i n g sold a n d t h e o r g a n i z a t i o n of b u y i n g a n d selling, or w h a t t e r m e d in C h i n e s e , t h e o r g a n i z a t i o n o f manual. T h e p r o d u c t s themselves w e r e g e n u i n e c o m modities in the m o d e r n sense of that term. from t h e midM i n g o n , m o s t widely t r a d e d c o m m o d i t i e s were differentiated p r o d u c t s , i n t h e s e n s e t h a t they were d i s t i n g u i s h e d from products through brand n a m e s a n d o t h e r differentiating m a r k e r s . T h e use o f b r a n d n a m e s has b e e n verified for a r a n g e of p r o d u c t s , i n c l u d i n g c o t t o n cloth, m e n t s , p o r c e l a i n , boots, tea, w i n e , m e d i c i n e a n d h e r b s , scissors, n e e d l e s , c o p p e r locks, c o p p e r m i r r o r s , gold a n d silver b u l l i o n , h a i r o r n a m e n t s , jewelry, items, b r u s h e s , writing p a p e r , ink sticks, ink s t o n e s , b o o k s , a n d b a n k drafts. available t h r o u g h o u t t h e e m p i r e , m a n y o f these b r a n d e d p r o d u c t s were associated with t h e i r regional origins, i n c l u d i n g , for

C h i n a ' s late

economy

tea,

piece goods, (Guangdong (Suzhou (Sichuan ink stones and brushes, Fuzhou S u z h o u New Year p r i n t s , teapots and cups, and porcelains 1982). S u c h r e g i o n a l d i s t i n c t i o n s a r e n o t s i m p l e a r e a d e s i g n a t i o n s . T h e s e p r o d u c t s w e r e widely available most large urban centers, a n d the richer regions China, many c o u l d be f o u n d even small m a r k e t s . (Hamilton and 1989: 258) (Hunan (Sichuan embroidery),

T h i s k i n d of p r o d u c t differentiation was m i n u t e l y d e v e l o p e d for c o t t o n textiles as for o t h e r g o o d s . T h e c o t t o n fabric p r o d u c t i o n was mostly c e n t e r e d in p r e f e c t u r e , which located in t h e Yangzi River d e l t a . A c c o r d i n g to (1981: a native s c h o l a r of S o n g j i a n g living in t h e s e v e n t e e n t h S o n g j i a n g cloth was classified i n t o t h r e e c a t e g o r i e s by width. T h e widest cut of c l o t h , called was shipped to a n d t h e capital, Beijing. T h e m i d d l e c a t e g o r y of c l o t h , labeled was m a d e for m a r k e t s Hunan, Guangdong, T h e n a r r o w e s t cut, m e a s u r i n g a b o u t o n e foot was called and was m a r k e t e d Raozhou and other districts J i a n g x i . Besides b e i n g classified by w i d t h , S o n g j i a n g cloth was also d i f f e r e n t i a t e d by v a r i o u s types of woven p a t t e r n s a n d by m e r c h a n t seals. Even in r e m o t e a r e a s , s u c h as some i n c l u d e d advertisements "A fine p r o d u c t c i r c u l a t e d in Beijing") woven directly t h e fabric itself a n d H a m i l t o n 1986). A c c o r d i n g to t h e 1512 e d i t i o n of the g a z e t t e e r , "As for c o t t o n cloth every ( m a n u f a c t u r i n g ) village a n d m a r k e t town has its own varieties a n d n a m e s ; list inexhaustible" by Nishijima T h e e d i t i o n goes on to list, in a special s e c t i o n on fifteen types. Within t h e distinctions m a d e by p r o d u c i n g r e g i o n s , t h e r e was also an a d d i t i o n a l variation b a s e d u p o n t h e quality o f t h e weave. T h e m o s t e x p e n s i v e c o t t o n weave was k n o w n as " t h r e e s h u t t l e cloth." O n e b o l t of c o u l d be e x c h a n g e d for o n e bolt of b o t h of w h i c h for a b o u t two taels p e r bolt. O r d i n a r y c o t t o n sold from 0.3 to 0.4 per 1976; Nishijima, 1 9 8 4 ) . I n a d d i t i o n t o t h e s e distinctions m a d e b y p r o d u c i n g c o m m u n i t i e s , t h e r e w e r e also those m a d e by Cloth usually b u y i n g from p r o d u c e r s in local m a r k e t towns, were k n o w n by t h e quality of cloth they To certify t h e cloth they w o u l d sell, in t u r n , to distance merchants, m a d e a m a r k , k n o w n as a ( l o o m - h e a d ) , at t h e e n d o f e a c h bolt o f cloth t h e y c o l l e c t e d for resale. T h e i m p o r t a n c e of these b r a n d n a m e s , a n d how they worked, can be g l e a n e d from a late Q i n g novel, (1827). In the story,

Gary G. Hamilton and W e i - A n Chang was o n e of largest merchants (i.e., m e r c h a n t s from A n h u i Province). On his fimvs signboard, he used his given n a m e , and paid (families involved in textile p r o d u c t i o n ) to place at the e n d of each Using method, Wang developed a national m a r k e t for his p r o d u c t a n d sold o n e million bolts annually. A l t h o u g h fictitious, t h e e x a m p l e up by s t o n e inscriptions that for t h e imperial period, long-distance cloth m a d e their decisions a b o u t which to buy based on m e r c h a n t marks; firms having a r e p u t a t i o n for a n d quality would have their m a r k accepted above those of u n c e r t a i n reputation (Shanghai 1980; 8 4 - 8 ) . U n d o u b t e d l y , because cloth m a r k e d with certain m e r c h a n t c h o p s would b r i n g h i g h e r prices, the stone also r e c o r d c o m p l a i n t s that s o m e m e r c h a n t s using f r a u d u l e n t marks would to sell inferior cloth 202-3). this sort of b r a n d n a m e proliferation, it not that, a c c o r d i n g to o n e s o u r c e for late M i n g (cited by Fu 1957: 15-16; Li 1983: 199), t h e r e were forty-two different kinds of c o t t o n cloth available the m a r k e t a small town A contrast E u r o p e a c c e n t u a t e s t h e e x t r a o r d i n a r y c h a r a c t e r of b r a n d n a m e s in C h i n a . few s t u d e n t s of industrializing E u r o p e mention the presence of commodities brand names. What research has b e e n d o n e is primarily in m a r k e t i n g a n d advertising r e s e a r c h (e.g., B o r d e n 1947; Coles 1949; Davis 1967) a n d in historical s t u d i e s of patents and laws (e.g., 1984). M o r e recently, however, a few h i s t o r i a n s a n d social scientists have started l o o k i n g m o r e closely at p a t t e r n s of c o n s u m p t i o n in W e s t e r n societies Jones Ewen 1976; al. 1982; Fox a n d 1983; T h e u n i f o r m c o n c l u s i o n of t h e s e s t u d i e s is t h a t analysts r e g a r d t h e origin a n d w i d e s p r e a d use o f b r a n d n a m e s a s b e i n g a n a s p e c t of capitalist d e v e l o p m e n t . T w o types of s t u d i e s a r e i m p o r t a n t in r e g a r d . First, several scholars m e n t i o n t h e a b s e n c e of b r a n d n a m e s medieval E u r o p e . T h e m o s t cited study that by e x p l a i n s in his histoiy o n t r a d e m a r k laws t h a t m e r c h a n t a n d artisan m a r k s w e r e n o t brand names the m o d e r n sense t e r m . Instead: characteristics of t h e typical m a r k of t h e M i d d l e Ages were: (1) it was c o m p u l s o r y , n o t o p t i o n a l ; (2) p u r p o s e was the preservation of standards of production and the enforcement o f gild o r o t h e r local m o n o p o l i e s r a t h e r t h a n t h e i m p r e s s i n g o n t h e of the purchaser the excellence of the product question and t h e r e b y t h e c r e a t i o n of a psychological n e e d for t h a t p r o d u c t ; (3) c o n s e q u e n t l y , while t h e m o d e r n t r a d e m a r k is distinctly an asset lo o w n e r , t h e medieval m a r k was essentially a liability.

China's

imperial e c o n o m y

e x p l a i n s t h a t t h e difference b e t w e e n m o d e r n a n d medieval c o m m o d i t y m a r k s results from differences i n p r o d u c t i o n a n d distribution b e t w e e n t h e two eras, particularly in t h e relations b e t w e e n p r o d u c e r s a n d c o n s u m e r s . For t h e majority o f p e o p l e society, "wants w e r e c o m p a r a t i v e l y few a n d People "were s u p p l i e d b y n e i g h b o r i n g c r a f t s m e n ; c o n s u m e r a n d p r o d u c e r s t o o d in d i r e c t r e l a t i o n with o n e a n o t h e r . " E a c h town of any had its own m e r c h a n t s a n d artisans, w h o turn guilds t h r o u g h which they s o u g h t t o m o n o p o l i z e p r o d u c t i o n a n d t r a d e . T h e guilds "strove by every m e a n s at t h e i r disposal to p r e v e n t as t h e m e r c h a n t s c o m i n g from a town five miles away m i g h t be d e s c r i b e d - from c o m p e t i n g with t h e i r gild" 41-2). and artisan m a r k s w e r e t h e devices by w h i c h guilds s o u g h t to e x c l u d e a n d t o c o n t r o l t h e e c o n o m i c activities o f insiders. A l t h o u g h S c h e c h t e r ' s thesis is d a t e d a n d r a t h e r historians of m a r k e t i n g a n d advertising (e.g. B o r d e n 1947; Coles 1949; Davis 1967), based on refere n c e s t o S c h e c h t e r ' s study, a r g u e t h a t b r a n d n a m e s start only the m o d e r n era. T h i s thesis largely c o i n c i d e s with r e c e n t s c h o l a r s h i p o n p a t t e r n s o f cons u m p t i o n in m o d e r n society. A g r o w i n g n u m b e r of s t u d i e s discuss t h e appearance, in the eighteenth o f differentiated c o n s u m e r p r o d ucts a n d t h e i m p o r t a n c e o f t h e s e p r o d u c t s for t h e success o f W e s t e r n capitalism. (1973), et al. (1982) a n d Brewer a n d P o r t e r (1993) a r g u e t h a t t h e English economy became r e s p o n s e t o c h a n g i n g p a t t e r n s o f cons u m p t i o n . A n e x p a n d i n g m i d d l e class, a c c o r d i n g t o t h e i r analyses, began t o r e q u i r e affordable items o f fashion a n d c o m f o r t i n o r d e r t o e m u l a t e t h e of t h e elite. in M c K e n d n c k et al. (1982: 13) t h a t this shift in d e m a n d is of s u c h i m p o r t a n c e as to p r o c l a i m a "consumer revolution" eighteenth-century England. b e h a v i o r was s o r a m p a n t a n d t h e a c c e p t a n c e o f c o m m e r c i a l attitudes s o pervasive t h a t n o o n e s h o u l d d o u b t t h a t t h e f i r s t o f t h e w o r l d ' s cons u m e r societies h a d u n m i s t a k a b l y e m e r g e d b y 1800" This d e m a n d for f a s h i o n a b l e p r o d u c t s c r e a t e d an o p p o r t u n i t y for m a n u f a c t u r e r s e x p l o r e ways t o s t r e a m l i n e t h e i r p r o d u c t i o n a n d t o m a r k e t t h e i r p r o d u c t s . Accordingly, s u c h individuals J o s i a h W e d g w o o d , t h e mass p r o d u c e r o f English p o r c e l a i n s , b e g a n t o c r e a t e a n d t o advertise b r a n d n a m e p r o d u c t s d e s i g n e d to distinguish t h e i r wares from similar lines p r o d u c e d by competitors 1973; M c K e n d r i c k et al. 1982; B r e w e r a n d P o r t e r 1993; a n d Leopold 1993). R e s e a r c h on later p e r i o d s of W e s t e r n capitalism 1976; Fox and 1983; uniformly emphasizes the interrelations o f mass c o n s u m e r s m a r k e t s , t h e g r o w t h o f l a r g e and advertising a n d m a r k e t i n g b a s e d u p o n p r o d u c t s h a v i n g b r a n d n a m e s .

Hamilton and W e i - A n C h a n g

brand names, so the goes, w e n t h a n d i n h a n d t o p r o d u c e capitalist p r o d u c t i o n as we k n o w it today. Even t h o u g h t h e i r significance c a n certainly b e that brand n a m e s a r e a n i m p o r t a n t feature o f m o d e r n W e s t e r n capitalism can hardly be d i s p u t e d . certain, E n g l a n d was n o t t h e world's first c o n s u m e r society a n d t h a t c o n s u m e r i s m d o e s n o t o c c u r only u n d e r c o n d i t i o n s of capitalism.

V Widespread distribution of c o m m o d i u e s i n late i m p e r i a l C h i n a implies vast m e r c h a n d i s i n g networks. As d e s c r i b e d e l s e w h e r e ( H a m i l t o n 1985), t h e s e m e r c h a n d i s i n g networks certainly existed. Morethey e m e r g e d w i t h o u t t h e institutional s u p p o r t o f t h e late i m p e r i a l state. T h e M i n g a n d Q i n g state did n o t s t a n d a r d i z e and measures, support a fixed currency, create commercial codes, or guarantee contracts of which f o r m e d t h e b e d r o c k of W e s t e r n T h i s a b s e n c e of s t a t e - s u p p o r t e d e c o n o m i c institutions h e l p s t o e x p l a i n why t h e r e were s u c h f o r m i d a b l e b a r r i e r s to at t h e d i s t r i b u t i o n e n d of c o m m o d i t y c h a i n s . W h a t t h e state d i d n o t p r o v i d e , t h e m e r c h a n t a n d artisan g r o u p s d i d , a n d in so d o i n g they restricted access to p r o d u c t s . It was only t h r o u g h t h e s e m e r c h a n t g r o u p s C h i n a ' s vast d o m e s t i c e c o n o m y actually w o r k e d . But, m o r e t h a n that, t h e c o n t r o l over c o m m e r c e lished b y m e r c h a n t s a n d artisan g r o u p s n o t only s h a p e d t r a d e , b u t m o v e d backwards to s t r u c t u r e c o m m o d i t y p r o d u c t i o n as well. H o w w e r e these m e r c h a n t s g r o u p s o r g a n i z e d s o t h a t they c r e a t e d these backward effects on p r o d u c t i o n ? A c o n t r a s t E u r o p e a n d J a p a n is again revealing. M e r c h a n t associations E u r o p e a n d J a p a n were divided between r e s i d e n t guilds a n d n o n - r e s i d e n t T h e guild s t r u c t u r e i n m o s t u r b a n areas allowed r e s i d e n t m e r c h a n t s exclusively t o c o n t r o l t h e commerce locale. N o n - r e s i d e n t m e r c h a n t s were, e s s e n c e , wholesalers b u t n o t retailers. T h e ability o f guilds t o restrict c o m m e r c i a l c o m p e t i t i o n m e a n t t h a t such guilds c o u l d limit t h e w i d e s p r e a d distribution of c o m m o n p r o d u c t s a n d c o u l d force c o n s u m e r s to buy w h a t was locally p r o d u c e d o r d i s t r i b u t e d . T h i s situation prevailed until t h e guild s t r u c t u r e b r o k e u p i n t h e s e v e n t e e n t h a n d e i g h t e e n t h c e n t u r i e s . T h e division between local a n d non-local m e r c h a n t s even to day, t h e form distinction b e t w e e n wholesale a n d retail. I n C h i n a , however, t h e r e s i d e n t / n o n - r e s i d e n t categorization did n o t as foundation m e r c h a n t a n d artisan Regardless of t h e i r l e n g t h of r e s i d e n c e a locale, w h e n m e r c h a n t s a n d artisans d e f i n e d themselves collectively, they did so t e r m s of s o m e c o m b i n a t i o n o f o c c u p a t i o n a l specialization a n d loosely linked to a l i n e a g e h o m e l a n d s o m e w h e r e o u t s i d e of business,

late imperial e c o n o m y was very flexibly a n d c o u l d be e x p a n d e d or c o n t r a c t e d based on the situational needs of the g r o u p (Hamilton 1985). T h e s e e c o n o m i c g r o u p i n g s p r o v i d e d t h e institutional u n d e r p i n n i n g o f Chinese commerce. These were or w h i c h were places, m u c h like c l u b h o u s e s , set aside for a n y o n e w h o c a m e f r o m a d e f i n e d r e g i o n i n C h i n a t o m e e t a n d t o d o business. Every a n d gongsuo h a d its own rules, rules t h a t a p p l i e d to or to p e o p l e in that line of business. T h e s e were rules personal c o n d u c t , as well as rules for t h e businesses in w h i c h t h e fellow These specified s u c h a s t h e weights a n d m e a s u r e s for t h e line o f business, t h e type o f c u r r e n c y a c c e p t e d , t h e quality a n d p r i c e o f t h e p r o d u c t s o r services t h a t they sold. T h o s e w h o did n o t a b i d e by t h e rules, t h e l e a d e r s would s a n c t i o n , s o m e t i m e s by fines, b u t they c o u l d go so far as to drive violators i n t o b a n k r u p t c y a n d o u t of By serving all these functions, g r o u p s c r e a t e d t h e institutional e n v i r o n m e n t in w h i c h t r a d e flourished. F r o m t h e p o i n t of of individuals, t h e s e m e r c h a n t associations a s t r u c t u r e of r e s t r a i n t a n d c o e r c i o n to w h i c h individuals h a d to c o n f o r m in o r d e r to realize t h e i r nomic From p o i n t of view of as a w h o l e , t h e s e g r o u p s c r e a t e d a n i n s t i t u t i o n a l e n v i r o n m e n t i n which b u y i n g a n d selling was m a d e i n t o p r e d i c t a b l e a n d r o u t i n e activities (Hamilton n o r m a l i t y a n d predictability were socially m a n u f a c t u r e d t h r o u g h the operation of trading networks. To an extent not appreciated b y m o s t scholars C h i n e s e m e r c h a n t s a n d artisan networks prom o t e d c o m p e t i t i o n within a n d a m o n g n e t w o r k s . T h e s e n e t w o r k s form t h e interpersonal o f m e r c h a n t s a n d artisan Economically, however, they c r e a t e d an e q u i v a l e n t of a c o m m o d i t y m a r k e t in which buyers a n d sellers m e t r e p e a t e d l y , m a d e deals, a n d set prices consciously a n d i n t h e c o m p a n y o f o t h e r buyers a n d sellers o f t h e s a m e o r similar p r o d u c t s . I n this c o n t e x t , t r a n s a c t o r s tried t o m a k e t h e best l o n g - t e r m deals for themselves. S h o r t - t e r m which fellow and their regular c o n s u m e r s would short-change each o t h e r , w o u l d n o t serve as as l o n g - t e r m deals t h a t would i n s u r e longevity for all t r a n s a c t i n g In his a c c o u n t of t h e activities of Chinese traders in Indonesia, describes the m a n n e r which Chinese merchants C h i n a also T h e m e r c h a n t , h e said,

to s p r e a d (himself) o v e r a very wide r a n g e of deals r a t h e r t h a n to plunge deeply any o n e . P u t t i n g all eggs a single is not favored m o d e of p r o c e d u r e As large, or even m o d e r ately large, single deals with only two p e o p l e involved a r e very r a r e ,

G. Hamilton and W e i - A n Chang cases w h e r e t h e t r a d e r s a r c l a r g e e n o u g h to h a n d l e s u c h deals B o t h large a n d small t r a n s a c t i o n s usually involve a multiplicity p e o p l e , e a c h m a k i n g a small c o n t r i b u t i o n a n d e a c h out a small r e t u r n . A t r a d e r c o n t r a c t i n g even a fairly petty a g r e e m e n t will look for o t h e r s to go h i m ; a n d , in fact, t h e r e felt n o r m a t i v e obligation o n t h e part o f t r a d e r s t o allow o t h e r p e o p l e t o cut a good thing T h e individual t r a d e r , unless he small indeed, t h e c e n t e r of a scries f o r m i n g a n d dissolving o n e deal, o r g a n i z e d t r a d i n g coalitions. 40) As describes, e a c h i n v e s t m e n t split i n t o m a n y parts a n d distribu t e d to o t h e r s in t h e n e t w o r k . M e r c h a n t s a n d artisans f o r m e d similarly o r g a n i z e d g r o u p s a t e a c h s t e p t h e final p r o d u c t i o n a n d d i s t r i b u t i o n of a p r o d u c t . S u c h g r o u p s c r e a t e d m i n i - c l e a r i n g h o u s e s for g o o d s a n d services, w h i c h assured in t h e g r o u p that n o o n e p e r s o n c o u l d d o m i n a t e t h e g r o u p a n d that t h e g e n e r a l rules o f t r a d e w o u l d b e m u t u a l l y a g r e e d u p o n , a n d collecT h e g r o u p s , in effect, c r e a t e d price-efficient m a r k e t s in g o o d s a n d services at e a c h s t e p in a c o m m o d i t y c h a i n , effectively s e g m e n t i n g e a c h c h a i n a n d e n c o u r a g i n g different g r o u p s o f p e o p l e t o h a n d l e e a c h step. T h e s e g m e n t a t i o n m a x i m i z e d leverage a t t h e m e r c h a n d i s i n g end of the chain.

VI can set these o r g a n i z e d e c o n o m i c activities m o t i o n by s h o w i n g h o w t h e textile t r a d e w o r k e d . T h e i m p o r t a n t p o i n t t o e m p h a s i z e h e r e is t h a t o r g a n i z a t i o n of t h e late i m p e r i a l e c o n o m y not a static system, b u t r a t h e r an evolving o n e . We will divide o u r discussion of late i m p e r i a l c o m m e r c i a l o r g a n i z a t i o n b e t w e e n t h e p e r i o d b e f o r e a n d after Before 1850, C h i n a was a n e t e x p o r t e r of c o m m o d i t i e s (e.g. teas a n d silks) a n d a n i m p o r t e r o f bullion. A l t h o u g h b o t h t h e exports and imports had important on C h i n a s economy, the i n t e r n a l o r g a n i z a t i o n of t r a d e was largely i n s u l a t e d from t h e diffusion of W e s t e r n g o o d s . After with defeat t h e O p i u m Wars, W e s t e r n p r o d u c t s , t e c h n o l o g i e s , a n d o r g a n i z a t i o n a l forms introduced C h i n a , w h e r e they b e g a n t o r e s h a p e t h e o r g a n i z a t i o n o f t h e Chinese economy. L o n g b e f o r e 1850, C h i n e s e m e r c h a n t s h a d g a i n e d of both the collection of textiles from p r o d u c i n g a r e a s a n d t h e i r final d i s p e r s i o n to local sellers t h r o u g h o u t t h e area of d i s t r i b u t i o n . T h e s a m e t r u e for o t h e r p r o d u c t s as well. W h i l e it t h e case the c e n t u i y , long-distance t r a d e was t h e h a n d s of different sets of m e r c h a n t s in different places, all t h e m e r c h a n t g r o u p s s e e m e d to work in

China 5

imperial

much (Rowc Hamilton T h e g r o u p s specializing in textiles, for i n s t a n c e , would a t t e m p t to m a k e c o n n e c t i o n s in p a r t i c u l a r p r o d u c i n g r e g i o n s a n d would c o n c e n t r a t e t h e i r d i s t r i b u t i o n other a r e a s . M e r c h a n t s typically w e n t t o r e g i o n a l m a r k e t s i n t h e p r o d u c i n g a r e a s a n d b o u g h t cloth from o r petty m e r c h a n t s w h o h a d collected the in s m a l l e r m a r k e t s from p r o d u c i n g h o u s e h o l d s the region. t h e n d e l i v e r e d t h e cloth to g r o u p s specializing in fini s h i n g t h e cloth t h o u g h a n d c a l e n d e r i n g . A c c o r d i n g t o C r a i g Dietrich (1972: 130), t h e m e r c h a n t s w o u l d give t h e t o g e t h e r with " c a l e n d e r i n g c o n t r a c t s , " to a set of p e o p l e called or bosses. T h e s e bosses, i n t u r n , w o u l d h i r e i n d e p e n d e n t artisans, w h o r e n t e d t h e i r e q u i p m e n t from t h e bosses a n d w o r k e d u n d e r t h e i r supervision: T h e m e r c h a n t s e x e r c i s e d c o n s i d e r a b l e c o n t r o l over t h e c a l e n d e r i n g w i t h o u t a s s u m i n g any d i r e c t m a n a g e r i a l responsibility The w h o l e o r g a n i z a t i o n r e s e m b l e d a m o d i f i e d p u t t i n g - o u t system, w h e r e i n m e r c h a n t s e n t r u s t e d raw m a t e r i a l (cloth) t o l a b o r e r s t h r o u g h t h e i n t e r m e d i a r y of bosses. After p r o c e s s i n g , t h e l a b o r e r s r e t u r n e d it, through the same intermediary, to the merchants. T h e of was n o t c o n f i n e d l o t h e Since t h e activities o f t h e i n n u m e r a b l e s p i n n e r s a n d weavers w e r e n o t integrated o n e a n o t h e r in any o r g a n i z a t i o n a l s t r u c t u r e , was t h e merc h a n t s , b o t h local a n d r e g i o n a l , w h o h e l d t h e i n d u s t i y t o g e t h e r a n d allowed to function as a system. 131) As nearly as wc c a n tell, o v e r t h e c o u r s e from m i d - M i n g to t h e late Q i n g (1500 to 1850), r e g i o n a l m e r c h a n t n e t w o r k s a progressively s t r o n g e r h o l d of C h i n a ' s e c o n o m y , a n d t h e n after 1850 these networks s p r e a d t o S o u t h e a s t Asia w h e r e they also d o m i n a t e d t h e d o m e s t i c e c o n o m i c s i n t h e r e g i o n . T h e d a t a a r c n o t sufficient t o say w h e t h e r these early c h a n g e s i n n e t w o r k s o c c u r r e d gradually o r w h e t h e r they o c c u r r e d i n s p u r t s . But it clear t h a t t h e o r g a n i z a t i o n of c o m m e r c e c h a n g e d d u r i n g t h e 350-year p e r i o d . A t t h e start o f t h e e r a , a n d p e r h a p s for t h e d u r a t i o n of t h e M i n g p e r i o d , local m a r k e t s w e r e c o n t r o l l e d by local b r o k e r s w h o h a d licenses from t h e g o v e r n m e n t to a c t as i n t e r m e d i a r i e s b e t w e e n p e a s a n t s selling g o o d s official m a r k e t s a n d long-distance m e r chants who would bring g o o d s t o sell a n d w h o w o u l d local p r o d u c t s to sell e l s e w h e r e 1987). In l a r g e cities, b r o k e r s set up b r a n c h e s (called in t h e c o u n t r y s i d e to deal with p e a s a n t p r o d u c e r s m o r e directly, b u t s u c h b r a n c h e s c o u l d only sell to licensed b r o k e r s . Even d u r i n g t h e M i n g p e r i o d , however, n o n - l o c a l r e g i o n a l m e r c h a n t n e t w o r k s had the resources and the connections to final markets and therefore probably had the u p p e r in dealing market brokers. A Ming

G.

and

Chang

dynasty

says as m u c h : treat o u t s i d e like kings, oppose them means By t h e start of t h e Q i n g dynasty in t h e the b a l a n c e o f p o w e r h a d s w u n g decisively toward long-distance t r a d i n g networks (Xu 1992). In early Q i n g , p e a s a n t s c o u l d directly to d i s t a n c e m e r c h a n t s w i t h o u t g o i n g t h r o u g h m a r k e t b r o k e r s . As a c o n s e q u e n c e , l o n g - d i s t a n c e m e r c h a n t s b e g a n t o p a t r o n i z e buyers the countryside who g o o d s directly from p e a s a n t p r o d u c e r s . S u c h collection strategies p u t r e g i o n a l m e r c h a n t s directly i n t o c o m p e t i t i o n with m a r k e t - b a s e d b r o k e r s . By e c o n o m i c p o w e r of non-local m e r c h a n t s h a d overw h e l m e d locally based m e r c h a n t s (Xu 1992). T h e b r o k e r a g e system, which was relatively powerful in t h e M i n g , h a d lost significance a n d h a d b e e n largely r e p l a c e d by non-local m e r c h a n t s , t h e m o s t successful of w h o m b e g a n t o establish b r a n d n a m e stores At the same time, specialization t h e textile t r a d e o c c u r r e d so t h a t steps in t h e p r o d u c t i o n of c o t t o n cloth were n o w systematically f a r m e d o u t to different g r o u p s . Local t r a d e r s o r local o f r e g i o n a l networks w o u l d collect raw c l o t h t h a t h a d b e e n woven b y p e a s a n t h o u s e h o l d s a n d w o u l d sell to b r a n d n a m e stores. Very similar to O E M (original e q u i p m e n t m a n u f a c t u r i n g ) p r o d u c t i o n today, w h e r e b r a n d e d p r o d u c t s (e.g., N i k e , Dell) i n d i c a t e t h e m e r c h a n d i s e r a n d n o t t h e m a k e r o f p r o d u c t s , t h e m e r c h a n t o w n e r s o f these s t o r e s would farm o u t t h e cloth t o d y e i n g mills. T h e mills w o u l d r e t u r n t h e d y e d cloth t o t h e b r a n d n a m e stores the brand n a m e dyed e a c h bolt of c l o t h . A typical b r a n d n a m e w o u l d r e a d " M a n u f a c t u r e d by t h e Lin Family." At this p o i n t , t h e m e r c h a n d i s e r h a d b e c o m e by far t h e m o s t powerful link in t h e c h a i n , powerful e n o u g h to s h a p e all t h e b a c k w a r d links. By late Q i n g , t h e r e g i o n a l m e r c h a n t n e t w o r k s c o n t r o l l e d all t h e links in t h e c o t t o n textile c o m m o d i t y c h a i n ( H a m i l t o n 1977a; X u 1992). T h e b r o k e r system d e c l i n e d o v e r t h e t e r m a n d eventually d i s a p p e a r e d . T h e local m e r c h a n t s w h o h a d previously b e e n b r o k e r s gradually b e c a m e long-distance t r a d e r s themselves. Capitalizing o n t h e i r local c o n n e c t i o n s , they e x t e n d e d t h e i r t r a d i n g n e t w o r k s t o o t h e r l o c a t i o n s . B y late Q i n g , t h e g r e a t b u l k of C h i n a ' s c o m m e r c e was h a n d l e d by r e g i o n a l i z e d t r a d i n g networks, which in any o n e u r b a n s e t t i n g m i g h t have sufficient density to be r e p r e s e n t e d b y m e r c h a n t associations t h a t h a d b e e n established b y local m e r c h a n t s from this or t h a t r e g i o n . By late Q i n g , t h e invidious distinction b e t w e e n local a n d non-local m e r c h a n t a n d artisan g r o u p s h a d all b u t d i s a p p e a r e d , w h e n virtually groups became e n m e s h e d in o n e or a n o t h e r form o f non-local g r o u p i n g ( H a m i l t o n 1985). M o r e o v e r , b y t h e late n i n e t e e n t h c e n t u r y , as Mark Elvin (1973) a n d Ho (1966) show, t h e s e r e g i o n a l m e r c h a n t s h a d greatly e x p a n d e d ; regionally o r g a n i z e d m i g r a n t s h a d g a i n e d c o n t r o l n o t only o f c o m m e r c e b u t also o f m o s t

late imperial e c o n o m y

beggars

in C h i n a s Beijing

everything from sailors to even t h e h a d a regionally based o r g a n i z a t i o n .

V! In t h e 1840s, losing t h e first r o u n d of s k i r m i s h e s with W e s t e r n states, C h i n a was forced t o o p e n its b o r d e r s t o W e s t e r n t r a d e r s a n d W e s t e r n c o m m o d i t i e s . By 1850, British c o t t o n textiles b e g a n to flood C h i n e s e m a r k e t s . Eyeing C h i n a ' s millions, t h e British h a d e x p e c t e d C h i n e s e c o n s u m e r s t o buy g r e a t q u a n t i t i e s o f British-made c o t t o n g o o d s , a s h a d s o other c o n s u m e r s i n o t h e r parts o f t h e world. I n fact, Sir the British r e p r e s e n t a t i v e a t t h e s i g n i n g o f t h e T r e a t y o f N a n k i n g 1842, h a d forecast t h a t "even t h e total o u t p u t o f L a n c a s h i r e w o u l d n o t b e sufficient to satisfy c o n s u m p t i o n in a single p r o v i n c e in C h i n a " ( C h a o p r e d i c t i o n m a t c h e d t h e belief i n E u r o p e , e c h o e d b y M a r x that, " C h e a p c o m m o d i t y prices a r e t h e heavy with w h i c h ( t h e b o u r g e o i s i e ) b a t t e r s d o w n all C h i n e s e walls a n d forces t h e intensely o b s t i n a t e h a t r e d o f f o r e i g n e r s l o c a p i t u l a t e . " T h i s p e r c e p t i o n t h e i n t e r p r e t a t i o n o f t h e W e s t e r n i m p a c t o n C h i n a for years, a s m a n y analysts (e.g., Isaacs reported that Western imports had destroyed h a n d i c r a f t i n d u s t r i e s . T h a t view, h o w e v e r , has n o w b e e n t h o r o u g h l y revised 1970; C h a o 1977; H a m i l t o n 1 9 7 7 ) . B u t w h a t is less u n d e r s t o o d is t h e role played by m e r c h a n t s in c r e a t i n g a n e w system of h a n d i c r a f t c o t t o n textile p r o d u c t i o n t h a t c o m p e t e d successfully with W e s t e r n c o t t o n textile i m p o r t s . T h e n e w system, based o n t h e i m p o r t a t i o n of foreign yarn, u n a m b i g u o u s l y shows a c o n t i n u a t i o n of t h e b a c k w a r d linkages o f m e r c h a n d i s i n g o n c o t t o n textile p r o d u c t i o n . F r o m 1850 t o t h e 1930s, w h e n t h e G r e a t D e p r e s s i o n a n d t h e J a p a n e s e invasion irrevocably d i s r u p t e d daily life China, Chinese handicraft c o t t o n textile p r o d u c t i o n n o t survived t h e o n s l a u g h t o f W e s t e r n a n d J a p a n e s e i m p o r t e d textiles, b u t also thrived as well. in fact, was t h e heyday o f C h i n a ' s h a n d i c r a f t p r o d u c t i o n . C h i n e s e h a n d - m a d e textiles n o t only s u p p l i e d m o s t of t h e d o m e s t i c m a r k e t cloth, but became a f l o u r i s h i n g e x p o r t c o m m o d i t y . A s T a b l e 5.2 shows, t h e e x p o r t o f C h i n e s e native c l o t h g r e w a b o u t eighty-fold b e t w e e n 1870 a n d a n d millions of h o u s e h o l d s were e n g a g e d in m a k i n g cloth from y a r n , a n d , in a d d i t i o n , t h o u s a n d s o f small factories e m e r g e d t o weave, dye, a n d f i n i s h t h e cloth (Chao Xu T h e i m p e t u s for this r e m a r k a b l e growth i n C h i n a ' s c o t t o n h a n d i c r a f t i n d u s t i y was t h e ready availability of large supplies of c o t t o n yarn i m p o r t e d largely from I n d i a a n d b e t w e e n 1860 a n d 1920, a n d s u b s e q u e n t l y p r o v i d e d by mills in C h i n a as well. C h i n a s cotton handicraft prod u c t i o n h a d b e e n c o n c e n t r a t e d in t h e c o t t o n - g r o w i n g r e g i o n s in t h e lower r e a c h e s of t h e Yangtze River. T h e d e m a n d for c o t t o n textiles was in p a r t

200 Gary G. Hamilton and W e i - A n C h a n g Table 5.2 Exports of Chinese

cloth, Quantity (piculs)

(5-year Value

taels)

3,903 9,328 28,086 88,528

487 526 1,037 3,289 5,855 8,548

258,596 201,486 Note a

5.2 is reproduced from C h a o (1977: 83). F o r approximate conversions of Table 5.1.

T h e data Table 5.2 are found Y e n (1963: and taels to W e s t e r n measures, see note to

by t h e supply of c o t t o n a n d , m o r e by t h e of m e r c h a n t networks whose e c o n o m i c p o w e r s t r u c t u r e d t h e w h o l e system o f A l t h o u g h c o m p e t i t i v e within networks, a few regional m e r c h a n t networks h a d access to raw c o t t o n , these, turn, had control over the national distribution o f c o t t o n cloth. W h e n C h i n e s e m a r k e t s were o p e n e d to foreign t r a d e , different sets of all across C h i n a c o u l d s u d d e n l y p u r c h a s e c o t t o n yarn c h e a p l y a n d c o u l d p r o m o t e a n d m a n a g e own p r o d u c t i o n networks. D e m a n d for b o o m e d . After 1850, province China began to p r o d u c e cottons (Chao 1977), a n d c o t t o n - g r o w i n g areas b e g a n to p r o d u c e m o r e c o t t o n as well. In an effort lo explain t h e r e c e p t i o n of British c o t t o n cloth in C h i n a (Britain d i d n o t sell yarn overseas, only c l o t h ) , from Lancashire r e p o r t e d that even t h e p e r i p h e r a l provinces of Y u n n a n a n d yarn i m p o r t e d from I n d i a h a d c r e a t e d thriving handicraft i n d u s tries w h e r e n o n e h a d existed W o m e n even a t t e n d e d classes t o learn h o w to weave (Neville a n d Bell 1898: 2 6 1 - 6 ) . W h a t r e m a i n e d crucial for t h e e x p a n s i o n of p r o d u c t i o n was t h e ability of m e r c h a n t s successfully to m e r c h a n d i s e a n d sell h a n d - m a d e cloth competition Western and Japanese imported H e r e , too, t h e W e s t e r n o p e n i n g o f C h i n a , which i n t r o d u c e d n e w a n d c h e a p e r m e a n s o f t r a n s p o r t i n g g o o d s (e.g., railways a n d s t e a m s h i p s ) greatly e n h a n c e d t h e ability o f C h i n e s e m e r c h a n t s t o d i s t r i b u t e t h e i r g o o d s a n d h e n c e t o c o m p e t e with W e s t e r n e r s . But was o r g a n i z a t i o n of c o m m e r c e t h a t c r e a t e d t h e p o t e n t i a l a n d led t h e system o f h a n d i c r a f t p r o d u c t i o n t o new levels.

late imperial e c o n o m y In post-1850 o p p o r t u n i t i e s to p a r t i c i p a t e in t h e c o t t o n t r a d e led C h i n e s e to r a t i o n a l i z e t h e system of production and b u t n o t t o t r a n s f o r m it. T h e n u m b e r a n d of p u t t i n g - o u t systems of p r o d u c t i o n greatly i n c r e a s e d , as did t h e efforts to m e r c h a n d i s e finished c l o t h , b u t e a c h s t e p the chain of production r e m a i n e d s e g m e n t e d , as it h a d b e f o r e Chao gives several e x a m p l e s t h a t causes o n e to realize t h a t h a n d i c r a f t p r o d u c t i o n was n o t a t h r o w b a c k to a traditional system, r a t h e r was a c o m p e t i t i v e a l t e r n a t i v e to a factory-based system. O n e e x a m p l e he gives of t h e e m e r g e n c e of a n e w h a n d i c r a f t i n d u s t i y in Wei district in S h a n d o n g p r o v i n c e . In t h e early years of t h e t w e n t i e t h Wei district was l i n k e d to a new treaty p o r t in 1899, by a built Taking advantage of this n e w o p p o r t u n i t y , a n u m b e r of m e r c h a n t firms o r g a n i z e d a o u t system based o n p r o v i d i n g c r e d i t t o h o u s e h o l d s t o buy s i m p l e h a n d l o o m s a n d c o t t o n yarn a n d r e t u r n c o t t o n c l o t h . I n ten years, they h a d o r g a n i z e d over l o o m s p r o d u c i n g c o t t o n cloth: D u r i n g t h e p e a k years a b o u t 150,000 p e r s o n s were involved i n p r o d u c t i o n of native c l o t h , with a m a x i m u m a n n u a l o u t p u t of ten million bolts A l t h o u g h gray g o o d s a n d cloth r e m a i n e d a s the p r o m i n e n t products throughout, the quantities of colored and p a t t e r n e d cloth w e r e sufficiently large to justify t h e e s t a b l i s h m e n t of factories specializing various finishing processes. A c c o r d i n g to a survey m a d e in t h e early 1930s, t h e r e were 30 d y e i n g factories, 7 cale n d e r i n g factories, a n d 3 p a c k i n g c o m p a n i e s . T h e p r o d u c t s o f enjoyed a nationwide market.

As

the case with m o s t C h a o describes t h e system of p r o d u c t i o n g r e a t e r detail t h a n t h e system of m e r c h a n d i s i n g a n d d i s t r i b u t i o n , b u t does recognize the importance of the m e r c h a n t end of the endeavor 2 0 6 - 1 7 ) . A r g u i n g that m e r c h a n t s decisively affected t h e and of centers of handicraft production, cites s o m e e x a m p l e s o f m e r c h a n t o r g a n i z a t i o n . For i n s t a n c e , a study of c o t t o n handicrafts in province 1934 s h o w e d that "a total of 25.7 million bolls of native cloth were p r o d u c e d in 89 xian (districts) the province, w h i c h 89 p e r c e n t were sold t o o t h e r places t h r o u g h cloth T h e s e cloth m e r c h a n t s were n o t c o n s o l i d a t e d i n t o h u g e f i r m s , b u t w e r e r a t h e r divided i n t o m a n y small e a c h h a n d l i n g , calculates C h a o 204), about o n e h u n d r e d weaving h o u s e h o l d s . T h e largest f i r m s h e c a m e across m a n a g e d 4,000 looms. These firms o r g a n i z e d p r o d u c t i o n in t h e following ways: (1) b u y i n g factoiy yarn in l a r g e q u a n t i t i e s from big cities, (2) distrib u t i n g t h e yarn to i n d i v i d u a l h a n d weavers setting

202 Gary G.

and

Chang

for t h e p r o d u c t s , (3) c o l l e c t i n g cloth from weavers a n d p e r f o r m i n g finishing works if necessary, a n d (4) t r a n s p o r t i n g t h e g o o d s to o t h e r cities for sale. 204) A r e c e n t b o o k by Xu (1092: 3(55-8) s u b s t a n t i a t e s that t h e s a m e patt e r n s t h a t were observed i n t h e Q i n g continued in the

VII The of h a n d i c r a f t i n d u s t r y travels t h e s a m e p a t h a s t h e g r e a t e r " s p r o u t s o f capitalism d e b a t e . " H i s t o r i a n s have n o t viewed handicraft in t h e M i n g , Q i n g , a n d R e p u b l i c a n e r a s right up to t h e J a p a n e s e invasion as an e x a m p l e of capitalism, of industrialization, or even of m o d e r n i z a t i o n . Most analysis s e e it as evide n c e o f c o n t i n u i n g traditionalism a n d o f s p r e a d i n g without genuine development. As such, most conclude that handicraft t r a d i t i o n at last c a m e to an e n d with caused by W o r l d W a r II a n d t h e post-war e c o n o m i c r e o r g a n i z a t i o n t h a t o c c u r r e d as a cons e q u e n c e o f t h e C o m m u n i s t Revolution o n t h e M a i n l a n d . T h e thesis this c h a p t e r different. By o v e r e m p h a s i z i n g t h e capitalism, d e v e l o p m e n t / n o d e v e l o p m e n t d e b a t e , analysts i g n o r e t h e o r g a n i z a t i o n a l features, a n d particularly t h e s t r e n g t h a n d d y n a m i s m , of t h e C h i n e s e e c o n o m y as as t h e evolution of t h e system over t h e past 500 years. we p u s h o u r analysis back to an even e a r l i e r p e r i o d , to t h e e c o n o m i c a l l y s o p h i s t i c a t e d , b u t rigidly stratified S o n g dynasties ( N o r t h e r n a n d S o u t h e r n S o n g Dynasties), w e that the economic o r g a n i z a t i o n of t h e S o n g differed greatly from w h a t e m e r g e d in t h e M i n g a n d Q i n g p e r i o d s . S o n g c o m m e r c e was u r b a n - b a s e d relatively little p e n e t r a t i o n o f t h e rural a r e a s 1970). M e r c h a n t s w e r e r o o t e d t o u r b a n locales. T h e y w e r e u r b a n r e s i d e n t m e r c h a n t s a n d n o t non-local regional a n d c o m m o d i t y p r o d u c t i o n was equally u r b a n a n d n o t r u r a l . T h e e c o n o m i c o r g a n i z a t i o n o f S o n g C h i n a was m o r e similar t o t h a t i n late medieval E u r o p e a n d T o k u g a w a J a p a n t h a n l o w h a t e m e r g e d in M i n g a n d Q i n g C h i n a , large p a r t b e c a u s e social o r g a n i z a t i o n of society p r o m o t e d t h a t form o f e c o n o m y . T h e c o m m e r c i a l t r a n s f o r m a t i o n o f late i m p e r i a l C h i n a grew o u t o f t h e i n t e n s e r e o r i e n t a t i o n o f C h i n e s e society t h a t o c c u r r e d a t t h e e n d o f t h e Yuan a n d b e g i n n i n g of t h e M i n g dynasties. In t h e Ming, a relatively d e c e n tralized, rural-based society e m e r g e d . Elites were c e n t e r e d a n d mainly circulated local society, g r o u n d e d t h e r e , in part, by t h e growth of powerful, local l i n e a g e g r o u p s . C e n t e r e d o n t h e mobility o f h o u s e h o l d s , t h e class s t r u c t u r e b e c a m e "fluid," as Ho (1964) p u t it. T h e

late imperial e c o n o m y 203 system t h a t d e v e l o p e d m i d - M i n g reflected t h e features of t h a t society. A l t h o u g h t h e society certainly c h a n g e d d u r i n g t h e 500 years, from t h e s i x t e e n t h c e n t u r y t o t h e early t w e n t i e t h the c h a n g e s w e r e largely m a t t e r s o f d e g r e e r a t h e r t h a n o f kind, a n d consisted o f systematizing t h e p a t t e r n s t h a t w e r e a l r e a d y and important. By Qing, the system of C h i n a was t h e tail that wagged t h e entire structure of China's economy outside of the sector, a n d m u c h of p e r i o d , t h e state s e c t o r was c o n c e r n e d with taxation a n d t h e o f g r a i n t h r o u g h t h e g r a n a r y system t h a t t h e Q i n g state developed a n d W o n g 1 9 9 1 ) . A l t h o u g h t h e state s e c t o r collapsed the final decades of the nineteenth century, the economic organization of t h e private was n o t t r a n s f o r m e d i n t o s o m e o t h e r e c o n o m i c stage o r system w h e n W e s t e r n a n d J a p a n e s e powers forcibly o p e n e d but r a t h e r grew a l o n g a trajectory e s t a b l i s h e d i n t h e period. T h e o p e n i n g of C h i n a s m a r k e t s t o W e s t e r n t r a d e r s m e r e l y q u i c k e n e d this e a r l i e r process of change by expanding the of economic opportunities that Chinese p e o p l e could grasp, a conclusion e c h o e d by S h e r m a n Cochran (1980, 2000) a s well. T h i s o u t c o m e o c c u r r e d d e s p i t e t h e c h a n g e s w r o u g h t by Western J a p a n e s e imperialism (Brandt 1989). T h e a d v a n c e s i n this c o m m e r c i a l system d u r i n g t h e imperial period directly c o n t r i b u t e d t o t h e simplification o f when contrasted with p r o d u c t i o n o f t h e s a m e e l s e w h e r e a r o u n d t h e world, particularly E u r o p e a n d t h e U n i t e d States. T h e r e no culprit in process, n o d i r e c t o r i n d i r e c t a g e n c y t h a t blocks e c o n o m i c d e v e l o p m e n t in C h i n a , no e q u i l i b r i u m t r a p t h a t Mark Elvin (1973) n o e c o n o m i c i n v o l u t i o n t h a t H u a n g ( 1 9 8 5 , 1990) talks a b o u t , a n d n o peasant-induced barrier to development that (1998) e n d s u p with. T h e m e r c h a n d i s i n g p o w e r a t t h e c o m m e r c i a l e n d s o f C h i n a ' s economy pushed the deployment of simple technology at the production end of the and as production became centered in the househ o l d , t h e n g e n d e r a n d k i n s h i p d y n a m i c s c o n t r o l l e d t h e l a b o r force. Often c o n f i n e d t o h o u s e h o l d s , w o m e n a n d y o u n g girls b e c a m e producers o f m a n y h a n d i c r a f t But p o p u l a t i o n p r e s s u r e a n d c h e a p l a b o r a r e n o t t h e r e a s o n s for these d e v e l o p m e n t s . W h a t h a p p e n e d t h e large p i c t u r e also h a p p e n e d in t h e small. "A p u z z l i n g t h a t C h a o (1977: n o t e d is that in t h e early p a r t of t h e twentieth c e n t u r y w h e n b o t h foreign y a r n a n d a r a n g e of a l t e r n a t i v e l o o m s w e r e readily available, t h e first o n e s to d i s a p p e a r w e r e t h e "native s p i n n i n g wheels with 3 or 4 spinT h e m o s t c o m m o n l o o m in use was also t h e m o s t primitive o n e , a "single s p i n d l e wheel so s i m p l e t h a t a of seven or e i g h t w o u l d learn to o p e r a t e it." As we a r g u e h e r e , C h i n a ' s system of p r o d u c t i o n a n d d i s t r i b u t i o n was an a l t e r n a t i v e to systems of p r o d u c t i o n t h a t e m e r g e d in t h e n i n e t e e n t h a n d early t w e n t i e t h c e n t u r i e s , systems

Hamilton and W e i - A n Chang

chains. But the of these types of chains docs not mean e c o n o m y was a n t a g o n i s t i c t o ism. Q u i t e c o n t r a r y , C h i n a e m b r a c e d t h e new e c o n o m i c o r d e r . C h i n a ' s e c o n o m y was extensively a n d intensively o r g a n i z e d a n d was r o o t e d in C h i n e s e social institutions. T h e features of t h e e c o n o m y gave t h e e c o n o m y m o m e n t u m a n d d i r e c t i o n , a n d a s e c o n o m i c ally active C h i n e s e t o o k of new o p p o r t u n i t i e s i n t r o d u c e d by t h e o p e n i n g of C h i n a to t h e o u t s i d e a n d as they i n c o r p o r a t e d W e s t e r n forms (e.g., limited liability c o m p a n i e s ) a n d material technologies, they simply r e i n v e n t e d t h e i r t r a d i t i o n s . A large p a r t of t h e C h i n e s e e c o n o m y , especially t h e coastal areas, b e c a m e integrated i n t o global capitalism, a n d i n d e e d b e c a m e a competitive form of capitalist p r o d u c t i o n . T h i s is simply to say t h a t the C h i n e s e ways of d o i n g business were sophisticated, were lo profit, a n d could c o m p e t e successfully a l m o s t any m a r k e t . Even in t h e late n i n e t e e n t h a n d early twentieth c e n t u r i e s , i n t h e struggle for e c o n o m i c success, C h i n e s e m e r c h a n t s a n d industrialists usually c a m e o u t o n t o p and 1987; H a m i l t o n 1996; C o c h r a n 2 0 0 0 ) . If o n e were to e x a m i n e o r g a n i z a t i o n of t h e textile industry in Taiwan a n d C h i n a i n t h e past d e c a d e o r t h e footwear i n d u s t i y o r t h e g a r m e n t i n d u s t i y o r t h e bicycle i n d u s t i y o r even t h e h i g h t e c h n o l o g y i n d u s t r i e s , as wc have d o n e e l s e w h e r e 1997; Kao a n d H a m i l t o n f o r t h c o m i n g ) , i t w o u l d b e a p p a r e n t that t h e e c o n o m i c organization all of these sectors s h a r e o r g a n i z a t i o n a l features of systems of p r o d u c t i o n existed a c e n t u i y earlier. observation d o e s n o t imply t h e r e is a lineal c h a i n of events t h a t connects t h e two eras. At p a r t i c u l a r historical m o m e n t , t h e buyers pulling greater Chinese economies arc the same buyers that n o w s h a p e t h e global e c o n o m y , a n d these a r e n o t p r e d o m i n a n t l y o w n e d f i r m s . I n s t e a d , t h e globally o r i e n t e d d i s c o u n t h o u s e s a n d b r a n d n a m e m e r c h a n d i s e r s (e.g., H o m e D e p o r t , t h e G a p , Nike, even a n d Gateway) a r e largely, b u t n o t exclusively W e s t e r n o w n e d . Like a c e n t u i y a g o , t h e p r o d u c t i o n n e t w o r k s s h a p e d by these buyers e m p h a s i z e piecework b a t c h - p r o d u c t i o n system) a n d flexible work r o u t i n e s . T h e s e factors give a d v a n t a g e s to factories with o v e r h e a d (such as small a n d m e d i u m - s i z e d family-owned firms) a n d to flexibility i n o r g a n i z i n g p r o d u c t i o n n e t w o r k s t h a t can e x p a n d o r c o n t r a c t with c h a n g i n g d e m a n d 1992; C h e n 1995). T h e used i n such factories must necessarily m a t c h t h e m a n u f a c t u r i n g being d o n e a n d t h e r e s o u r c e s available t o t h o s e r u n n i n g the businesses. Inevitably, t h e used such circumstances s i m p l e r a n d less than that d e p l o y e d i n l a r g e vertically i n t e g r a t e d l a c t o n e s . T o b e s u r e , s o m e differe n c e s c u r r e n t l y exist b e t w e e n t h e o r g a n i z a t i o n o f T a i w a n ' s a n d t h e land's economies, but t h e vibrant e x p o r t s e c t o r o f t h e

C h i n a ' s late imperial e c o n o m y 205 systems P R C firms, often resulting Hong

Kong

or

Taiwan.

H o n g Kong, and

even greater Indeed,

the

of H o n g Kong, Taiwan, and

t h a n is f o u n d solely in boundary

lines

between

the

t h e P R C have virtually disap-

p e a r e d , c r e a t i n g w h a t B a r r y N a u g h t o n ( 1 9 9 7 ) calls " t h e C h i n a c i r c l e . " T h e point is that the technology in

t h e way t h e e c o n o m y i s

socially o r g a n i z e d , a s well a s t h e p r o d u c t b e i n g m a d e . m a d e cloth on often m e n too)

y o u n g girls

looms a century ago or that the women (and h o u s e h o l d s g a t h e r a r o u n d the d i n i n g table to assemble

c o m p u t e r parts today d o e s n o t indicate e c o n o m i c involution o r capitalistic i n e p t i t u d e of any kind. But it d o e s indicate that we c a n n o t u n d e r s t a n d how economies work unless we u n d e r s t a n d how they are organized in s o m e h o l i s t i c way.

Acknowledgment T h i s c h a p t e r was w r i t t e n w i t h t h e a s s i s t a n c e o f L a i of History, University of Q u e e n s l a n d ,

Department

Australia.

Notes For a developed of of the p e r t i n e n t literature, sec H a m i l t o n et al. and a n d Hamilton (forthcoming). 2 a n u m b e r of scholars have m a d e similar including Brook a n d Blue and (2000). M u c h the s a m e can for many i n t e r p r e t a t i o n s of t h e of in oilier Asm, Southeast especially the literature, however, t h e r e also an on part scholars origins of J a p a n e s e capitalism in e n t s lo i h e prerequisites capitalism, as for instance did a n u m b e r of a g o a n d as Collins did very 4 There of course, limits to this of c o m p a r i s o n . European a r e m o r e o r i e n t e d to most African nations are. But t h e point is many e c o n o m i c differences result from differences in how is and in a particular e n v i r o n m e n t , a n d not w h e t h e r configuration or less T h e latter makes capitalism into an ideal c o n d i t i o n , t h e difference from which can he precisely. -5 For reviews of literature, (1991), (1992), a n d Brook (5 In discussion of C h i n a ' s Bin W o n g (1997) uses to describe t h e m a r k e t of an agricultural e c o n o m y . He o p p o s e s Our of c o n f o r m s to more orthodox of S m i t h ' s work to m e a n market dynamics, w h e t h e r capitalist or not We a r g u e in this c h a p t e r that distinction between Smithian and commerce not particularly meaningful when a p p l i e d t o n i n e t e e n t h - a n d twentieth-century C h i n a .

206 Gary G. Hamilton and

Chang

7 For c o m p a r i s o n of t h e levels of Western E u r o p e in t h e n i n e t e e n t h a n d

China and sec P o m e r a n z

Also see m o r e recent estimates (2000: 1 3 8 - 4 1 ; which a p p e a r e d after this c h a p t e r was in a finished version. 9 Literati p a r a p h e r n a l i a a r c e x c e p t i o n s , h u t even these were often m o d e s t in contrast to t h e a n d a c c o u t r e m e n t s of Western a n d elites. 10 T h e most a n d t h o r o u g h participant in is P o m e r a n z whose b o o k is an e x t e n d e d Great Divergence" China a n d Western E u r o p e . Wu 200-2) has shown thai in t h e M i n g Dynasty, cotton prod u c t i o n was centralized in Province. "The main types of cloth prod u c e d fin was called and (later called shi 150 to 200 million bolts of this cloth were s h i p p e d a n d throughout a wide region of C h i n a c o n n e c t e d by m e a n s of long-distance trade. In t h e Q i n g Dynasty, t h e areas of cotton p r o d u c t i o n e x p a n d e d , to i n c l u d e cloth from of which was collectively called t h e production area. Apart from these, t h e r e were also s o m e smaller centralized p r o d u c t i o n regions in n o r t h a n d central C h i n a . T h e long-distance s h i p p i n g a n d m a r k e t i n g of this cloth increased over that which o c c u r r e d t h e Ming For similar description, see Nishijima 520). 12 For s o m e of t h e m o r e recent c o n t r i b u t i o n s to t h e assessment of this literature, see and (1999), a n d Salais and 13 T h e i n t e r p r e t a t i o n of this disputed. T h e Marxian advocates s p r o u t s of capitalism view commercialization as evide n c e of t h e of feudalism, a necessary step for t h e eventual revolution. T h e critics of i n t e r p r e t a t i o n a r g u e that, despite commercialization, n o i n d e p e n d e n t m e r c h a n t class developed, a n d h e n c e n o capitalism. T h e advocates of a sustained e c o n o m i c d e v e l o p m e n t in late imperial China see commercialization as evidence for t h e creation of price-setting markets allowed industrious peasants gradually to raise their s t a n d a r d of living t h r o u g h participation in t h e market. T h e critics of t h e Smithian interpretation a r g u e that no i m p r o v e m e n t t h e s t a n d a r d of living resulted from this commercialization, but instead a n d peasant

15

10

17

18

In opposition to evidence given by Rawski a n d Brandt Wong (1997: questions how efficient markets really were, b u t without giving any evidence to his c o n t e n t i o n . S o m e might be inclined to think of A d a m Smith as t h e who connected both e n d s of t h e c o m m o d i t y chain t o g e t h e r his c o n c e p t of supply a n d d e m a n d . A l t h o u g h h e theorized d e m a n d , work transformed t h i n k i n g p r o d u c t i o n . To s o m e extent neo-classical e c o n o m i c s , as a p r o d u c t i o n - l e d of markets, has followed this lead ever since. T h e c o n c e p t of global c o m m o d i t y chains was suggested by T e r e n c e Hopkins and Wallerstein (1980), but and 1994) is most responsible for its recent r e - e m e r g e n c e a n d i m p o r t a n c e . It is worth n o t i n g t h e Western bias t h i n k i n g of many analysts of the imperial C h i n e s e e c o n o m y , w h o assume vertical integration, w h e t h e r backward or forward, naturally occurs in t h e process of industrialization, when in fact many writers, i n c l u d i n g C h a n d l e r , show different o u t c o m e s o c c u r r e d in different locations. It is worth n o t i n g that significant portions of t h e PRC's e x p o r t e c o n o m y a r c organized t h r o u g h t h e direct investments a n d involvement of e n t r e p r e n e u r s

late imperial e c o n o m y 207 from H o n g K o n g a n d who have moved firms or of their firms to t h e Mainland a n d w h o portions of their p r o d u c tion to local 19 This section draws heavily on t h e a r g u m e n t s m a d e in H a m i l t o n a n d 20 For m o r e detail on these of see H a m i l t o n (1977a). 21 Recent on medieval m a r k e t s 1980: Hilton 1985; Biddick 1985) show g r e a t e r market p e n e t r a t i o n into t h e believed, hut they do not alter S c h e c h t e r ' s characterization. 22 T h e e c o n o m i c literature on b r a n d n a m e s largely confined lo m a r k e t i n g research (e.g., T h e r e a r e , however, relevant e c o n o m i c studies a b o u t p r o d u c t differentiation. Economists 1950) have investigated theoretically t h e c o n d i t i o n s p r o d u c i n g p r o d u c t differentiation. A c c o r d i n g Scherer 324), b r a n d differentiation occurs w h e n p r o d u c i n g linns "strive to their g o o d s a n d services from rival offerings." Given firms rationally plan to c r e a t e p r o d u c t s that c o n s u m e r will buy. 23 It is significant to that and all but d i s a p p e a r e d d u r i n g t h e Mao era t h e PRC. After the e c o n o m i c reforms in t h e late 1970s, they have started to r e a p p e a r . 24 We a r e by t h e t e n d e n c y to i n t e r p r e t C h i n e s e m e r c h a n t associations as e x a m p l e s of collusion, m o n o p o l y , cronyism, cartels without really examining how these o p e r a t e d economically. T h i s cent of t h e 1879 civil by Western m e r c h a n t s Swatow O p i u m Guild which t h e Westerners b r o u g h t c h a r g e s of unfair t r a d e , collusion, a n d conspiracy against C h i n e s e T h e Chinese merchants defended themselves successfully by showing that Westerners h a d i m p o s e d their own c o n c e p t i o n s of guilds o n t o C h i n e s e behavior. Not only was t h e r e no collusion, t h e r e was also no guild, merely a place w h e r e meet lo discuss business a n d enjoy each o t h e r ' s c o m p a n i o n s h i p ( H a m i l t o n also see Hamilton 25 It s h o u l d e m p h a s i z e d that m e r c h a n t g r o u p s in late imperial China, t h e huiguan, were unlike Western guilds in which a person e i t h e r or not. are places a n d n o t organizations. As places, they fostered economically active networks that rested on social relationships. T h e c o m m o n a l i t y allowed t h e network to be socially b i n d i n g , because normative rules existed on how o n e s h o u l d treat o t h e r s b o u n d by a tie. of formed reasons, as when critical mass of fellow regional was sufficient to s u p p o r t building a meeting w h e n t h e c o m p e t i t i o n a m o n g networks was great e n o u g h to g r e a t e r c o o r d i n a t i o n , or when local opposition to merchants a c o m m o n front. But m e r c h a n t networks, resting on b o t h econ o m i c o p p o r t u n i t y a n d s o m e social basis for moral, not physical, coercion o p e r a t e d w h e t h e r a physically located huiguan existed or not. The similarity trading a c o m m o d i t y market trading in a situation w h e r e e n g a g e in long-term repetitive trading striking. For a detailed of c o m m o d i t y , b o n d , a n d equity markets are very similar to t h e a c c o u n t of C h i n e s e traders given by Clifford see 27 Xu (1992) c o n c l u d e s that b r a n d n a m e p r o d u c t s were lo how the cloth market functions. Much of t h e cloth business revolved a r o u n d obtain credit, a n d t h e b e t t e r known t h e b r a n d , easier it was obtain t h e credit essential for creating a putting-out system a n d t h e easier lo sell t h e

208 Gary G. Hamilton and W e i - A n Chang cloth to w h o would cloth o t h e r places. Cloth merc h a n t s would g r a d e their cloth a n d give b r a n d n a m e to each g r a d e . T h e m e r c h a n t s would, turn, register their b r a n d n a m e s t h e cloth merc h a n t s ' trade associations, which would protect n a m e s a n d take such actions as were necessary to punish violators. reports that t h e n , as now. b r a n d n a m e piracy was a 28 It worth noting that t h e large s p i n n i n g factories that e m e r g e d in Shanghai 1020s a n d yarn, On* spread handcraft

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Japan, technology and A s i a n regionalism in c o m p a r a t i v e perspective Peter J.

the middle of the nineteenth century on questions of technology Japan a n d Asia have b e e n in a s u b o r d i n a t e position in t h e i n t e r n a t i o n a l system. This c h a p t e r a r g u e s that d u r i n g t h e s e c o n d half o f t h e twentieth t e c h n o l o g y o r d e r has also b e e n d e f i n e d by a relatively hierarchical r e g i o n a l division o f l a b o r even t h o u g h f i r s t J a p a n a n d o t h e r Asian stales later have i m p r o v e d rapidly t h e i r t e c h n o l o g i c a l profiles. F o c u s i n g on Japanese technological challenge, c h a p t e r shows how governm e n t s a n d c o r p o r a t i o n s seek t o r e s p o n d t o a n d t h e effects o f i n t e r n a t i o n a l technological d e v e l o p m e n t s t h r o u g h distinctive institutions, and they a t t e m p t to t h e i r p r e f e r e n c e s , in t h e form of n a t i o n a l policies a n d c o r p o r a t e strategies, t h e r e g i o n of which they a r c a p a r t . Although the leads a n d lags that s e p a r a t e d J a p a n from t h e USA a n d o t h e r Asian political have c h a n g e d over time, t h e u n d e r l y i n g o r d e r has not. As different p r o d u c e r s in J a p a n a n d Asia m a s t e r e d t h e l e a d i n g t e c h n o l o g i e s of industrial sectors, Asia's technological o r d e r has r e m a i n e d defined b y search for e n h a n c e d n a t i o n a l a u t o n o m y a n d c o r p o r a t e profitability. Even in r e a l m s w h e r e they led t h e field i n t e r n a t i o n a l l y Japanese p r o ducers did not dictate Networks o r g a n i z e d a r o u n d overseas Chinese a n d t e c h n o l o g i c a l elites o p e r a t i n g Southeast a n d in Silicon Valley have at times linked up with US p r o d u c e r s t h u s offering plausible alternatives for Asian p r o d u c e r s s e e k i n g to r e d u c e t h e i r technological d e p e n d e n c e on process o f regional h i e r a r c h i e s thus relatively fluid a n d offers c h a n c e s for a b s o l u t e a n d a d v a n c e m e n t lo weak states a n d c o r p o r a t i o n s in p e r i p h e r a l e c o n o m i e s which a r e clever t o exploit t h e c o m p e t i t i o n b e t w e e n l a r g e r states a n d c o r e e c o n o m i e s . Yet this has d o n e little lo c h a n g e t h e h i e r a r c h i c a l , n a t i o n a l and market-oriented character of technology order. T h e c o n t r a s t with and the European technology o r d e r is instructive. In E u r o p e t e c h n o l o g y only o n e a m o n g m a n y sectors in which t h e p r o c e s s of plays itself o u t . N a t i o n a l a r e partially p o o l i n g state sovereignties a n d c o r p o r a t i o n s seek to

Japan, t e c h n o l o g y and Asian regionalism 215 r e s o u r c e s from that p r o c e s s to i m p r o v e t h e i r c o m p e t i t i v e n e s s in world Regions b o t h g e o g r a p h i c a l l y given politically m a d e . G e o g r a p h i c p r o x i m i t y m a t t e r s for a b r o a d r a n g e of e c o n o m i c , social a n d cultural i n t e r a c t i o n s . S o d o e s politics w h i c h c a n r e d r a w m a p s b y s h a p i n g collective i d e n t i t i e s . Karl ( 1 9 8 1 ; 54) defines r e g i o n s succinctly as a g r o u p of c o u n t r i e s i n t e r d e p e n d e n t o v e r a wide r a n g e of differe n t issues w h e n c o m p a r e d t o o t h e r g r o u p s . R e g i o n s a r e b y both e c o n o m i c a n d social p r o c e s s e s of a n d by s t r u c t u r e s of regionalism and Haggard and a n d H o u t 1999). the geographic manifestations of global processes. R e g i o n a l i s m c h a r a c t e r i z e s formal or informal political s t r u c t u r e s t h a t s h a p e t h e strategies of actors. Asia marked p r i m a r i l y by regionalization processes, a relative weakness in formal polits t r u c t u r e s , a n d t h e e x i s t e n c e of a variety of i n f o r m a l n e t w o r k structures. I n E u r o p e , o n t h e o t h e r r e g i o n a l s t r u c t u r e s t e n d t o b e formal r a t h e r t h a n informal while r e g i o n a l i z a t i o n p r o c e s s e s have g r o w n less s h a r p l y t h a n in Asia in t h e 1980s. At t h e b e g i n n i n g of t h e c e n t u r y t h e situation in e x t r e m e l y fluid. Japan in t h e p r o c e s s of c o n s o l i d a t i n g a n e w t e c h n o l o g y p a r a d i g m u n i q u e l y well suited t o its c h a n g i n g O r has r e a c h e d t h e political a n d e c o n o m i c limits o f i n s t i t u t i o n s n o l o n g e r a d e q u a t e for t h e i n f o r m a t i o n t e c h n o l o g i e s t h a t p r o m i s e b o t h l a r g e e c o n o m i c r e t u r n s a n d i m p o r t a n t social c h a n g e i n t h e c o m i n g d e c a d e s ? N o b o d y knows for s u r e t h e answers t o t h e s e q u e s t i o n s . J u s t a s t h e o p t i m i s m a b o u t p r o w e s s was overblown a d e c a d e a g o , so is pessimism. T e c h n o l o g i c a l o r d e r s e n d u r e t h a n m o m e n t s o f excessive o p t i m i s m or pessimism. T h e y e x p r e s s evolving political s o l u t i o n s that resolve u n a v o i d a b l e t e n s i o n s b e t w e e n ideological visions a n d institutional practices.

Technology in historical perspective Technology i m p o r t a n t for the rise a n d d e c l i n e of n a t i o n s . Since t h e b e g i n n i n g o f t h e n i n e t e e n t h c e n t u r y f i r s t Britain a n d t h e n t h e U n i t e d States have p a r l a y e d t h e i r t e c h n o l o g i c a l prowess positions of world power. And through technological imitation and innovation J a p a n and G e r m a n y , a m o n g o t h e r s , have a l various limes s o u g h t t o c o n s o l i d a t e t h e i r l e a d i n g p o s i t i o n s in E u r o p e a n d t h e global system. B e c a u s e of us d i r e c t r e l e v a n c e t o b o t h military s t r e n g t h a n d e c o n o m i c c o m p e t i t i v e n e s s , t e c h n o l o g y m a t t e r s politically t o b o t h l e a d e r s a n d followers. National often closely linked to t h e i r r e g i o n a l a n d global environments, arc central c r e a t i n g t e c h n o l o g i c a l c h a n g e . Britain was t h e d o m i n a n t t e c h n o l o g i c a l p o w e r d u r i n g t h e f i r s t half o f t h e n i n e t e e n t h

Peter j . In

the second

Germany, the USA quickly

c a m e to c o m p e t e successfully with Britain especially in

new fields of

chemistry a n d electrical e n g i n e e r i n g (Nelson

In the d e c a d e s

leading up to World W a r I G e r m a n y m o v e d

a position of scientific

leadership. But in established

a

industries US corporations eventually

position

(Chandler

of leadership

over

both

B y t h e t u r n of"

f i s h e d itself a s t h e w o r l d ' s

and

though

chemical process

and

probably lagged behind G e r m a n y

of case studies of technology transfers

1985). For a

Jeremy

and

C h a n g e s in t e c h n o l o g i c a l p o w e r w e r e also e v i d e n t Meiji r e s t o r a t i o n

Germany

States h a d

technological power even

some fields (organic chemical electronics)

Britain

the

Asia. A f t e r t h e

m o d e r n i z a t i o n was d r i v e n b y t h e n e e d t o q u i c k l y

c r e a t e a n i n d e p e n d e n t a r m y a n d navy

1 9 9 4 : 3(5). G o v e r n m e n t a n d

c o r p o r a t i o n s p a i d h e a v i l y f o r f o r e i g n t e c h n i c a l e x p e r t i s e a s "Meiji J a p a n imitated,

borrowed

from,

(Nafziger 1995: 45).

and

Between

modified 1868 a n d

techniques 1892

from

the

West"

the central government

s p e n t 1.9 p e r c e n t o f its t o t a l b u d g e t o n h i r i n g t h o u s a n d s o f f o r e i g n e r s a n d sending thousands of 37-8). made

s t u d e n t s a n d g o v e r n m e n t officials a b r o a d

p o s i t i o n of b a c k w a r d n e s s has, for m o r e t h a n a c e n t u r y ,

the Japanese

not

waver

from

its

commitment

e n h a n c e the country's technological a u t o n o m y , even t h o u g h , decades, markets. need

has b e c o m e a technological leader And

has

to

generated

widespread

to

recent

many international

societal

consensus

on

the

t h e country's e c o n o m i c security M a n y o t h e r A s i a n s t a t e s i n c l u d i n g K o r e a a n d C h i n a , h a v e fol-

lowed in

footsteps.

Technological a u t o n o m y is central to J a p a n ' s

strategy

a n d its s e n s e o f m o v i n g u p i n t h e i n t e r n a t i o n a l d i v i s i o n o f l a b o r . t e c h n o l o g y a n d security ideology," R i c h a r d S a m u e l s writes, "has evolved to serve the n a t i o n across a diverse set of structural c o n d i t i o n s "

42).

Directly a n d indirectly t h r o u g h o u t t h e twentieth c e n t u r y military considerations ranked

in

t e c h n o l o g y policies. In t h e

observers d u b b e d this a p p r o a c h , modified only marginally in r e c e n t ive t h u s u n d e r l i n e s

1980s s o m e

It is a c o n s t a n t in J a p a n ' s A

perspect-

c h a p t e r ' s f o c u s o n t h e last h a l f - c e n t u r y .

I n Prussia a n d G e r m a n y t e c h n o l o g i c a l b a c k w a r d n e s s was n o t o v e r c o m e by the d e t e r m i n e d m o d e r n i z a t i o n p u s h of the state. Instead what p r o v e d t o b e d e c i s i v e was t h e g r a d u a l e m e r g e n c e o f t h e t e c h n i c a l i n s t i t u t e s a s sites o f a p p l i e d a n d practical l e a r n i n g . A g a i n s t t h e o p p o s i t i o n o f t h e "German Mandarins"

( R i n g e r 1969)

technical universities used

ensconced

the universities, the

t h e technological advances of the 1860s to

improve their academic standing and

additional resources. Within a

few d e c a d e s t h e y h a d b e c o m e t h e b a c k b o n e o f G e r m a n y ' s t e c h n o l o g i c a l

Japan,

and Asian regionalism

to l e a d e r s h i p in new i n d u s t r i e s s u c h as c h e m i c a l s a n d electrical e n g i n e e r i n g . C r e a t i n g t h e c o n d i t i o n s for military s t r e n g t h a n d e c o n o m i c c o m p e t i tiveness t h r o u g h t e c h n o l o g y was o n e t h i n g , h a v i n g t h e political capacities to p o w e r p r u d e n t l y was q u i t e a n o t h e r . B o t h G e r m a n y a n d J a p a n m o v e d quickly t o close t h e g a p t h a t h a d d e f i n e d their status as industrial l a t e c o m e r s the c e n t u r y . But t h e i r systems g o v e r n m e n t p r o v e d woefully i n a d e q u a t e t o fashion c o h e r e n t a n d feasible strategies serving t h e i r newly-found military s t r e n g t h a n d e c o n o m i c petitiveness. T h e t e c h n o l o g i c a l d y n a m i s m o f these two e c o n o m i c s a n d societies b e c a m e t h e vehicle for an aggressive n a t i o n a l i s m military e x p a n s i o n t h a t by 1945 h a d p r o v e d to be disastrous for t h e m , and E u r o p e . T h e result was total military d e f e a t a n d u n c o n d i t i o n a l s u r r e n d e r 1945. scientific a n d prowess was s a p p e d n o t only by t h e loss of two w o r l d wars b u t also by t h e self-inflicted w o u n d s of antiSemitism that m u r d e r e d or sent exile a large n u m b e r o f t h e scientific a n d t e c h n o l o g i c a l elite. v a u n t e d strategy o f diffusing widely a n d quickly t e c h n o l o g i e s d e v e l o p e d e l s e w h e r e r a t h e r than b e c o m i n g an i n n o v a t o r itself in i n d u s t r i e s s u c h as e l e c t r o n i c s is partly a c o n s e q u e n c e of own policy. So the quick U n i t e d States to a position of scientific a n d t e c h n o l o g i c a l p r e - e m i n e n c e after 1945. I n s h a r p c o n t r a s t t o G e r m a n y , J a p a n ' s military d e f e a t did n o t d e c i m a t e scientific a n d t e c h n o l o g i c a l elite. It d i d , however, e l i m i n a t e traces of a political r o l e for t h e and, u n d e r the defense umbrella provided by t h e U n i t e d freed t h e talents for a d y n a m i c c o m m e r c i a l expansion world markets. Johnson has s h o w n how t h e formidable organizational of economic bureaucracy, w i t h o u t t h e c o n s t r a i n t s i m p o s e d by t h e c a m e after 1945 to directly a n d o n e c o n o m i c objectives. I n c o o p e r a t i o n busit h e g o v e r n m e n t s e c o n o m i c strategy s o o n yielded results. C o m p l e t i n g its p r o c e s s of r a p i d c a t c h - u p i n d u s t r i a l i z a t i o n , in t h e early J a p a n e s e p r o d u c e r s b e g a n t o c h a l l e n g e t h e position United States in l e a d i n g a r e a s of s u c h as c o m p u t e r s , e l e c t r o n i c c h i p s , r o b o t i c s a n d n e w m a t e r i a l s . I n t h e mid-1980s J a p a n e s e p r o d u c t i o n m o v e d off-shore with a m a z i n g s p e e d , s p r e a d i n g in a carefully c o n t r o l l e d m a n n e r t o o t h e r Asian By the J a p a n e s e firms had a world leader in important technologies and had succeeded in m a k i n g d e e p i n r o a d s i n t o a r e a s which US firms held positions only two or t h r e e d e c a d e s e a r l i e r (Yakushiji 1986; Taylor a n d 1990; H a t c h a n d 97-8).

P e t e r J.

and Asia - Germany in Europe and Europe's r e g i o n a l o r d e r s differ (Katzenstein a n d 1997a; Katzenstein 1 9 9 7 b ) . E u r o p e a n regionalism formal. It reflected in collective political institutions o p e r a t i n g at t h e r e g i o n a l level, i n c l u d i n g a c o m m o n c o u r t , a C o m m i s s i o n issuing t h o u s a n d s of b i n d i n g regulations a a Parliament, a c o m m o n central bank and currency, and, soon, limited collective for p e a c e - k e e p i n g a n d p e a c e - e n f o r c e m e n t o p e r a t i o n s . Asian regionalism is informal. Despite s u c h as ASEAN a n d Asian D e v e l o p m e n t B a n k (ADB) it o p e r a t e s p r e d o m i n a n t l y t h r o u g h m a r k e t i n s t i t u t i o n s . Specific t o Asian m a r k e t s a r e networks t h a t a r e partly c o m p e t i n g a n d partly c o m p l e m e n t ary, as, for e x a m p l e , a n d Korean corporate networks a n d C h i n e s e family, a n d e t h n i c networks. W h i l e multilateralism is at b e s t i n c i p i e n t , especially since t h e 1970s, informal n e t w o r k s have c o n t r i b u t e d to c r e a t i n g new r e g i o n a l links a n d a l t e r i n g t h e p a t t e r n of Asian trade. On questions of and r e g i o n a l o r d e r s differ. T h e m a i n e x p l a n a t i o n lies i n a n d G e r m a n y ' s different d o m e s t i c s t r u c t u r e s t h a t link t h e actors stale a n d society. B o t h G e r m a n y and a r e c h a r a c t e r i z e d b y active a n d policies t h a t seek l o e n h a n c e international competitiveness. But the o f policy differs for w h a t Kozo as system of political institutions a n d G e r m a n y ' s polity policy networks a r e g e a r e d lo a free e x c h a n g e of information a m o n g c o m p e t i n g centers of power, t o institutionalized b a r g a i n i n g a r r a n g e m e n t s . Differences in d o m e s t i c s t r u c t u r e a n d in r e g i o n a l settings c r e a t e differe n t political capacities for c h a n g e . At t h e level of industrial s e c t o r or for specific t e c h n o l o g i e s , J a p a n e s e capacities a r e l a r g e r t h a n G e r m a n o n e s . This illustrated by t h e fact J a p a n ' s p r o d u c t i o n profile has c h a n g e d a n u m b e r of t h e past half c e n t u r y , while G e r m a n y ' s has r e m a i n e d largely u n c h a n g e d . I n J a p a n , l e a d i n g industrial sectors have f r e q u e n t l y c h a n g e d d u r i n g t h e last half-century, from textiles to steel a n d s h i p b u i l d i n g , t o a u t o m o b i l e s a n d c o n s u m e r e l e c t r o n i c s , t o c o m p u t e r s a n d s e m i - c o n d u c t o r s . I n G e r m a n y m a c h i n e r y a n d m a c h i n e tools, electrical e q u i p m e n t , c h e m i c a l s , a n d a u t o m o b i l e s h a v e r e m a i n e d t h e l e a d i n g sectors t h r o u g h o u t t h e s e c o n d half o f t h e t w e n t i e t h c e n t u r y . C o r p o r a t e linkages i n J a p a n a r e primarily r a t h e r t h a n industrybased as G e r m a n y . A n d g r o u p - b a s e d linkages, write P e t e r Hall a n d David p r o v i d e g r e a t e r capacities for diffusing n e w t e c h n o l o g y across sectors boundaries J a p a n e s e f i r m s have b e e n b e t t e r t h a n t h e i r G e r m a n

Japan,

and Asian regionalism

a t e n t e r i n g new i n d u s t r i e s , s u c h a s s e m i c o n d u c t o r s , a n d at incorporating the developed in o n e industiy into the products of others. 28) At t h e i n t e r n a t i o n a l level t h e situation is reverse. H e r e G e r m a n capacities o n e s as is illustrated by active p a r t i c i p a t i o n in a n u m b e r of European and international has different political s a l i e n c e i n J a p a n a n d G e r m a n y . I n Japan is a m a t t e r of n a t i o n a l security cultivated assiduously. is viewed as an i n s t r u m e n t for l o w e r i n g t h e c o u n t r y ' s tial vulnerability to i n t e r n a t i o n a l d i s r u p t i o n s in s u p p l i e s t h a t J a p a n has little capacity to i n f l u e n c e . In so d o i n g it e n h a n c e s n a t i o n a l a u t o n o m y . H e n c e t h e J a p a n e s e g o v e r n m e n t has b e e n consistent supporting core technologies, collecting information on the technological advances of foreign c o m p e t i t o r s , a n d s e e k i n g to a d v a n c e its political t h r o u g h n u m e r o u s l o n g - t e r m p r o g r a m s . J a p a n sees itself as a t e c h n o logical s u p e r p o w e r t h a t defines t h e p a r a m e t e r s of social c h a n g e for others. In G e r m a n y is a tool for m a i n t a i n i n g competitiveness in world m a r k e t s r a t h e r t h a n a way of p r o t e c t i n g n a t i o n a l security. B e c a u s e it is viewed to be less c e n t r a l to survival, has become o n e i n s t r u m e n t a m o n g m a n y t h r o u g h which G e r m a n y seeks t o a d v a n c e its goal of a partial p o o l i n g of n a t i o n a l sovereignty in an e m e r g i n g E u r o p e a n polity, as in a n u m b e r of high-profile E u r o p e a n - c e n t e r e d projects. A t t h e n a t i o n a l level, o n t h e o t h e r h a n d , G e r m a n policy-makers a n d c o r p o r a t e l e a d e r s see G e r m a n y typically as a " g o o d s e c o n d " w h o e q u i p p e d to technologies often d o c s n o t k n o w h o w to gene r a t e by W h a t f r o m t h e v a n t a g e p o i n t of i n n o v a t i o n looks like a conservative bias, is in fact in t e r m s of a p p l i c a t i o n ( R o o b e e k

1990:

212, 218, 2 2 0 ) .

In t h e a r e a of i n f o r m a t i o n t e c h n o l o g y policies, for e x a m p l e , these differe n c e s b e t w e e n J a p a n a n d G e r m a n y a r c readily a p p a r e n t for E c o n o m i c C o - o p e r a t i o n a n d D e v e l o p m e n t 1991: 8 , 92, The "Advanced I n f o r m a t i o n Society" that provides t h e o r g a n i z i n g c o n c e p t for J a p a n e s e policy is an a m b i g u o u s term which c a n be to motivate a wide variety o f e c o n o m i c a n d social p r o g r a m s p r o m o t i n g development and a p p l i c a t i o n of i n f o r m a t i o n t e c h n o l o g i e s e c o n o m y a n d society. Specifically t h e J a p a n e s e g o v e r n m e n t has a i m e d a t s u p p o r t i n g t e c h n o l o g i c a l p r o g r e s s o f specific i n d u s t i y s e g m e n t s i n t h e h o p e o f e n h a n c i n g t h e international c o m p e t i t i v e n e s s of t h e e n t i r e In G e r m a n y policy i n f o r m e d by p r i n c i p l e s that a r e m o r e c o n c r e t e a n d seek a rapid a n d efficient i n t e g r a t i o n o f technologies into the process i n b o t h t h e m a n u f a c t u r i n g a n d service sectors o f t h e e c o n o m y .

220 Peter J. Katzenstein Japan a n d t h u s relate to t h e flow of technology. J a p a n e s e institutions a r c especially a t t u n e d t o t e c h n o l o g i c a l d e v e l o p m e n t s which they follow closely, i m p o r t freely, i m p r o v e greatly, a n d seek to reint r o d u c e into u n d e r carefully m o n i t o r e d c o n d i t i o n s . C o n t e m p o r a i y G e r m a n y , by c o n t r a s t , lacks t h e d o m e s t i c institutions to c r e a t e t h e tions with which it s h a p e r e g i o n a l t e c h n o l o g i c a l d e v e l o p m e n t s on its own It t h u s c h o o s e s lo in b r o a d e r r e g i o n a l institutions to achieve b r o a d e r political There also e c o n o m i c r e a s o n s for t h e reactions of Europ e a n a n d Asian lo the of Germany and Japan. T h e d e g r e e of i m b a l a n c e in t h e two r e g i o n s differs greatly. M e a s u r e d at c u r r e n t e x c h a n g e rates, t h e s p r e a d i n t h e p e r c a p i t a / G D P ratio i n postCold W a r a l m o s t four times larger t h a n Europe ratio 1:28 in E u r o p e c o m p a r e d to in Asia; 1997: summary). W a g e differentials a r c m u c h larger in Asia t h a n E u r o p e . T h e least d e v e l o p e d states in E a s t e r n E u r o p e thus a r e in a b e t t e r starting position t h a n a r c t h e least d e v e l o p e d Asian O t h e r statistical i n d i c a t o r s also illustrate t h e c o n t r a s t E u r o p e a n h o m o g e n e i t y a n d Asian h e t e r o g e n e i t y a n d t h e m o r e a d v a n t a g e o u s position t h a t creates policies o f technological c a t c h - u p E u r o p e (Katzenstein 1997a: 23; Katzenstein a n d It is n o t only t h e smaller difference i m b a l a n c e s but also t h e historical e x p e r i e n c e of o t h e r states in d e a l i n g Germany n u m e r o u s multilateral E u r o p e a n institutions that creates an i m p o r t a n t difference between Europe and Diffusing t h e fear of t h e of or regional h e g e m o n y a n d the m e m o r y or prospect of bilateral d e p e n d e n c e a r c i m p o r t a n t political facts in b o t h and Europe. t o J a p a n ' s r e t i c e n c e t o a c k n o w l e d g e , a p o l o g i z e for, a n d c o m p e n s a t e victims of t h e atrocities it c o m m i t t e d in t h e 1930s a n d 1940s, G e r m a n public d i s c o u r s e a n d state policy have b e e n m o r e f o r t h c o m i n g i n t h e past t h r e e d e c a d e s , t h u s alleviating E u r o p e a n anxieties a b o u t a r e s u r g e n t G e r m a n y . T h e institutionalization of various a n d t r a n s n a t i o n a l r e l a t i o n s l i n k i n g G e r m a n y i n multilateral p e a n a r r a n g e m e n t s to t h e s m a l l e r states has politically n e u t r a l i z e d t h e fear o f e c o n o m i c d e p e n d e n c e . Institutionalization has fostered instead t h e g r a d u a l e m e r g e n c e of a collective E u r o p e a n identity that G e r m a n y has a n d consistently Multilateral arc E u r o p e the p r o p e r a r e n a within which bilateral r e l a t i o n s s h o u l d b e conducted. h e l p s t h e s m a l l e r E u r o p e a n states t o c o m p e n s a t e for existing e c o n o m i c a n d political between large a n d small states. S o d o the domestic t h a t h e l p t h e losing sectors o f society c o p i n g with t h e c h a n g e i m p o s e d by economic d e p e n d e n c e (Katzenstein 1985). B o t h i n t e r n a t i o n a l a n d d o m e s t i c political institutions have t h u s c o u n t e r a c t e d e c o n o m i c a n d political d e p e n d e n c e

t e c h n o l o g y and Asian regionalism and thus n e u t r a l i z e t h e fear o f G e r m a n did not matter. T h e differences b e t w e e n Asian a n d E u r o p e a n regionalism t h u s a r c would be a m i s t a k e to o v e r l o o k a very i m p o r t a n t simiBesides t h e i r r e g i o n a l p l a c e m e n t , b o t h and J a p a n arc e m b e d d e d also global relations t h a t closely align the United States. T h e y important nodes of a international economy a n d capillaries an increasingly m u l t i c u l t u r a l world ( L a k e 1992). E s c h e w i n g a u t a r c h y a n d isolation, b o t h G e r m a n y a n d J a p a n a n d E u r o p e a n a n d Asian r e g i o n a l i s m a r e o p e n to flow wealth a n d p o w e r that links b o t h r e g i o n s to a w o r l d political e c o n o m y in which t h e U n i t e d States c o n t i n u e s to play a c e n t r a l role.

and technology Since 1945 of has inexorable. " W h a t o n c e was p u r c h a s e d , " R i c h a r d S a m u e l s "soon was licensed for What had been t h e n was B u d g e t s a n d politics willing, w h a t is n o w c o d e v e l o p e d will be (1994: 187). n a t i o n a l goal is to t r a n s f o r m itself i n t o a w h i c h has b e e n t r a n s l a t e d as b o t h a t e c h n o l o g y - b a s e d or a country 4 8 ) . Since 1945 t h e n u m b e r o f t c c h n o agreements signed f o r e i g n firms has n u m b e r e d t h e lens of t h o u s a n d s . I n 1990 a l o n e t h e g o v e r n m e n t a p p r o v e d firms h a v e licensed for t e n s of billions of dollars foreign d e v e l o p e d at a cost of h u n d r e d s of billions a rapidly s u c c e e d i n g effort t o a c h i e v e a u t o n o m y t h r o u g h d e p e n d e n c e " In many programmatic trade a n d policy s t a t e m e n t s have a c c o m p a n i e d r e c o n s t r u c t i o n after 1945 a n d that n o w c h a r t i n g its p a t h next centuiy. the has articulated goal o f g r e a t e r t e c h n o l o g i c a l a u t o n o m y . I n s o d o i n g , t h e g o v e r n m e n t e x t e n d s a t r a d i t i o n d a t i n g b a c k to t h e Meiji r e s t o r a t i o n . A c h i e v i n g a p o s i t i o n as a p r e - e m i n e n t p o w e r was as pressi n g a J a p a n e s e political at t h e b e g i n n i n g of twentieth as it is at t h e b e g i n n i n g of t h e twenty-first. In this view J a p a n d o c s n o t s e e k t o i m p o s e h e a v y - h a n d e d l y a military o r political o r d e r o n o t h e r states. I t offers i n s t e a d a a n d social m o d e l for o t h e r to Post-war J a p a n e x t r i c a t e d itself from a position of t e c h n o l o g i c a l backw a r d n e s s by i n s t i t u t i n g a strict g o v e r n m e n t - g u i d e d s c r e e n i n g system for i m p o r t i n g foreign t e c h n o l o g y , especially from t h e U n i t e d States a n d Western E u r o p e a n d G o t o 1993, 1996). T h i s system crucial for t h e d e v e l o p m e n t strategy in still dynamically g r o w i n g , i n d u s t r i e s . J a p a n e s e p r o d u c e r s c o m p e t e d successfully i n world

222 P e t e r J. by improving incrementally both products and production processes and 20, 35; 1995: 5 0 ) . O v e r t h e s p a n of t h e last five d e c a d e s J a p a n has built up competitive a d v a n t a g e in t h e m a j o r sectors of t h e Industrial Revolution. T h e dizzying p r o g r e s s a n d t e c h n o l o g i c a l a d v a n c e led from textiles to s h i p b u i l d i n g , to steel, to to c o n s u m e r e l e c t r o n i c s , to s e m i - c o n d u c tors a n d c o m p u t e r s . C o m p e t i t i v e was based o n f i e r c e f i g h t s for m a r k e t s h a r e at h o m e , scale a n d l e a r n i n g effects p r o d u c t i o n , wello r c h e s t r a t e d e x p o r t offensives to establish J a p a n e s e p r o d u c e r s firmly in world m a r k e t s , a n d t h e m o v e t o t h e n e x t higher-valued a d d e d s e c t o r o r sector segment. q u i c k a s c e n d a n c e i n major, industrial s e c t o r s was typically based on t h e l i c e n s i n g of i m p o r t a n t foreign t e c h n o l o g i e s , t h e i r i m p r o v e m e n t a n d a d a p t a t i o n t o f i t specific J a p a n e s e n e e d s , a n d s e q u e n t p r o d u c t i o n for d o m e s t i c c o n s u m p t i o n a n d e x p o r t m a r k e t s a t high levels of efficiency 1978: 1). Until t h e mid-1970s m u c h o f e x p e n d i t u r e s was s p e n t o n d i g e s t i n g i m p o r t e d t e c h n o l o g y n e e d e d t o m a k e , for e x a m p l e , nylon, transistors a n d televisions. However, b e t w e e n 1975 a n d Japanese producers focused on d e v e l o p i n g t e c h n o l o g i e s s u c h as i n t e g r a t e d circuits, liquid crystal display a n d c a r b o n fiber which s p u r r e d capital i n v e s t m e n t s that fueled g r o w t h . S c i e n c e a n d T e c h n o l o g y A g e n c y t h u s has viewed t e c h n o l o g i c a l p r o g r e s s a s increasingly d e t e r m i n i n g e c o n o m i c g r o w t h d u r i n g t h e post-war t e c h n o l o g i c a l p r o g r e s s a c c o u n t e d for only 20 p e r c e n t of growth c o m p a r e d to 65 p e r c e n t 1). C o m p a r e d t o o t h e r industrial a n d states quest for t e c h n o l o g i c a l a u t o n o m y relies on a b r o a d array of distinctive policies. Like t h e U n i t e d Slates, Britain a n d F r a n c e whose policies a r e a i m e d a t a c c o m p l i s h i n g specific missions, J a p a n has d e p l o y e d a series of g o v e r n ment-coordinated to a d v a n c e its t e c h n o l o g i c a l a u t o n o m y . But in sharp contrast these t h r e e c o u n t r i e s , since 1945 J a p a n stayed clear o f relying o n military p r o g r a m s t o e n h a n c e its t e c h n o l o g i c a l a u t o n o m y (Katzenstein 1996). F u r t h e r m o r e , like G e r m a n y , and Sweden, J a p a n e m p h a s i z e s t h e d e v e l o p m e n t of a capacity to diffuse technologies throughout economy and economic bureaucracy d e e p l y involved in t h e f o r m u l a t i o n of policy h e l p e d by close relations b e t w e e n business a n d g o v e r n m e n t . I n t h e i m p l e m e n t a t i o n of policy d e c e n t r a l i z a t i o n is t h e rule. Specifically, since early 1970s J a p a n e s e policy has focused on t h r e e aspects: providing a work a n d p r o m o t i n g r e s e a r c h a n d e c o n o m i c activities w h i c h a r e a t t h e l e a d i n g e d g e c o m p a r e d t o t h e t e c h n o l o g i c a l capabilities o f t h e c o r e o f an industry; (2) investing in t h e t r a i n i n g of e n g i n e e r s a n d g e n e r a l r a t h e r t h a n industry-specific e d u c a t i o n ; a n d (3) a c c e l e r a t i n g t e c h n o l o g i c a l transfer t h r o u g h o u t t h e e c o n o m y with t h e aid o f a b o u t 200 r e g i o n a l

Japan, t e c h n o l o g y and Asian regionalism 223 that assist small a n d firms 198(5; 3 8 - 4 3 ; Honda is c o m p a t i b l e t h e fact that n a t i o n a l e c o n o m i c g r o w t h is i n f l u e n c e d m o r e by t h e s p e e d of i m i t a t i o n t h a n t h e d i s p l a c e m e n t of t h e global i n n o v a t i o n f r o n t i e r 478; 1994). G l e n n (1998) careful e m p i r i c a l work high-profile, large-scale national research and programs c o m p u t e r s a n d semic o n d u c t o r s illustrates h o w J a p a n quickly b e c a m e a "follower at t h e frontier." W h i l e U S c o m p a n i e s a n e n o r m o u s lead o v e r t h e i r J a p a n e s e competitors t h e late 1950s, by t h e mid-1980s t h a t lead h a d virtually vani s h e d . After t h e U S s e m i - c o n d u c t o r h a d staged a g r e a t back, b y t h e mid-1990s t h e J a p a n e s e 4 0 p e r c e n t s h a r e o f t h e global s e m i - c o n d u c t o r m a r k e t was r o u g h l y e q u a l l o t h a t o f t h e U n i t e d States 1995: 9 ) . T h e e l i m i n a t i o n g a p has m a d e t h e task o f t h e g o v e r n m e n t infinitely m o r e difficult. R a t h e r t h a n i m i t a t i n g technologies, has to m a k e c h o i c e s very u n c e r t a i n pay-offs. Yet t h e g o v e r n m e n t c o n t i n u e s t o c o m m i t significant f i n a n c i a l r e s o u r c e s to T h e latest Real W o r l d C o m p u t i n g Project ( 1 9 9 2 - 2 0 0 1 ) , for example, p r o j e c t e d to cost 70 billion ( F o n g 1998: 3 4 6 ) . (For a c o n v e n i e n t set of cross-national d a t a by s e c t o r a n d 86-145.) But as has m o v e d t o t h e t e c h n o l o g i c a l frontier, t h e r e have b e e n n o t i c e a b l e c h a n g e s i n policy. I n t h e a r e a s o f c o m p u t e r s a n d c o n d u c t o r s , for e x a m p l e , t h e s o u r c e o f g o v e r n m e n t initiatives has shifted (from h i g h e r to lower levels); its industrial t a r g e t has m o v e d (from specific e n g i n e e r i n g d e v e l o p m e n t s to basic a n d a p p l i e d r e s e a r c h ) ; a n d its s c o p e has b e e n a l t e r e d (from a to a n u m b e r of c o m p e t i n g t e c h n o l o g i c a l a p p r o a c h e s ) . T h e n u m b e r o f c o r p o r a t e p a r t i c i p a n t s has i n c r e a s e d greatly. Top-heavy g o v e r n m e n t i n t e r v e n t i o n has replaced by t h e n e t w o r k i n g of i n t e r l a c i n g t e c h n i c a l a n d i n d u s t r i a l circles. Yet d e s p i t e c o n s i d e r a b l e i n t e r n a t i o n a l diffusion o f s o m e aspects o f system, r e m a i n s a pro-active a n d involved a c t o r the d e v e l o p of t e c h n o l o g i c a l base though Japanese firms arc now operating at technological T h e barriers to diffusion c r e a t e d by tacit k n o w l e d g e a n d t h e l e a d - t i m e that policy can c r e a t e for n a t i o n a l p r o d u c e r s even w h e n k n o w l e d g e is diffused have given MITI s t r o n g incentives to c o n t i n u e in its t r a d i t i o n a l q u e s t of s t r e n g t h e n ing national producers in c h a n g i n g 1995, 1999). J a p a n ' s policy f o r m u l a t e d a n d i m p l e m e n t e d in a c o o p e r a t i v e of consultation in which the g o v e r n m e n t ' s power to direct corporate b e h a v i o r t h r o u g h legal or financial i n s t r u m e n t s is less i m p o r t a n t t h a n t h e s h a r i n g o f i n f o r m a t i o n ( F r a n s m a n 1995, 1999; J a p a n ' s institutional g o v e r n a n c e a n d t e c h n o l o g i c a l d e v e l o p m e n t m e s h . T h e g o v e r n m e n t views t h e e c o n o m y as a p o r t f o l i o of i n d u s t i y sectors a n d s e g m e n t s . It analyzes these a c c o r d i n g to specific e c o n o m i c criteria, i n c l u d i n g growth

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value a d d e d , a n d i n t e r n a t i o n a l c o m p e t i t i o n . Governm e n t policy at t h e t e c h n o l o g i c a l position leading sectors a n d s e g m e n t s so as to overall position. Distinctive also t h e institutionalization of Government officials a n d t o p m a n a g e m e n t have a b r o a d vision of w h e r e J a p a n fits t h e global system, e n g a g e in a systematic s c a n n i n g of t h e relevant e n v i r o n m e n t , p r e p a r e quantitative a n d qualitative a n d draw o u t t h e implications for c o r p o r a t e , industry, policies (McMillan 199(3: T h e s e institutional practices r e d u c e t r a n s a c t i o n and facilitate l o n g - t e r m r e l a t i o n s business a n d politics. T h e m a c h i n e r y of g o v e r n a n c e rests on five c o m p o n e n t s , all of which entail a significant s h a r i n g of i n f o r m a t i o n : (1) relational c o n t r a c t i n g ; (2) m a n a g e m e n t transfers a n d lifetime e m p l o y m e n t for e m p l o y e e s ; (3) an extensive s h a r i n g of i n f o r m a t i o n within business g r o u p s ; (4) cross-over o w n e r s h i p of shares; a n d (5) selective i n t e r v e n t i o n by m a j o r s h a r e h o l d e r s to force a d j u s t m e n t s in business 1992: 8 7 ) . Industrial visions a n d collective practices do n o t c o n s t i t u t e a p l a n . T h e y a r c a political p r o c e s s which collective l e a r n i n g t h r o u g h p u b l i c dialogue o c c u r s primarily a m y r i a d of institutionalized c o m m i t t e e s of c o n sultation a n d advice 1955b: 9 ) . sharing at the core of how t h e J a p a n e s e polity to a n d affects global t e c h n o l o g i c a l c h a n g e . S o m e b r a n c h e s of t h e civil service s p e n d as m u c h as half their in a variety of advisory c o u n c i l s that a r c mostly m a k i n g substantive r e c o m m e n d a t i o n s which t h e b u r e a u c r a c y a n d political parties subseq u e n t l y ratify 16). Taylor a n d (1990: 36) t h u s c o n c l u d e that t h e m o s t i m p o r t a n t c o n t r i b u t i o n policy can m a k e is to c o n fostering t h e n a t i o n a l c o n s e n s u s c o n c e r n i n g the n e e d t o m o v e toward t h e i n f o r m a t i o n age." Despite c h a n g e s i n t e c h n o l o g y a n d policy, J a p a n e s e business has r e m a i n e d r e m a r k a b l y resistant t o i n t e r n a t i o n a l For example, less t h a n one-fifth scientific a n d technical j o u r n a l s a r e c o v e r e d by English-language i n d e x i n g a n d a b s t r a c t i n g s o u r c e s (US C o n g r e s s not lo that s o m e c h a n g e s have Where Japanese technology lagging a n d w h e n , for w h a t e v e r r e a s o n , it suits t h e J a p a n e s e b u r e a u c r a c y , s o m e foreign f i r m s a r e occasionally a c c e p t e d i n g o v e r n m e n t sponsored research consortia. For example, in the World C o m p u t i n g P r o g r a m e i g h t of t h e sixty-four r e s e a r c h c o n t r a c t o r s a n d associated institutions a r e 1998: 3 6 0 ) . In link-ups with foreign f i r m s a n d universities also q u i t e i m p o r t a n t and 4 , 3 2 ) . B u t these a r e isolated instances do n o t c h a n g e t h e overall p i c t u r e . A 1991 study N a t i o n a l Institute of S c i e n c e a n d T e c h n o l o g y Policy, for e x a m p l e , found t h a t off-shore J a p a n e s e m a n u f a c t u r i n g p r o d u c ers primarily buy locally from o t h e r J a p a n e s e firms. "Parts p r o c u r e m e n t

Japan, t e c h n o l o g y and Asian regionalism 225 are formed Japanese a n d t h e r e is a wall t h a t p r e from b e i n g t r a n s f e r r e d network" (quoted firms arc r e l u c t a n t l o transfer t h a t has n o t yet b e e n fully e x p l o i t e d t h r o u g h c o m m e r c i a l applications. I n t h e Korean semi-conductor were d e p e n d e n t o n J a p a n e s e f i r m s for a b o u t of their production equipment. f i r m s , K o r e a n p r o d u c e r s c o m p l a i n , transfer only t e c h n o l o g y t h a t is e s t a b l i s h e d or they transfer partial a n d B o n u s 1996: 9 3 ) . T h e J a p a n e s e g o v e r n m e n t p r o h i b i t e d , until 1995, transfer of two h u n d r e d t e c h n o l o g i e s to S o u t h Korea; only less a d v a n c e d can b e t r a n s f e r r e d freely a n d Van 1995: 2 9 7 ) . picture is similar i n t h e r e l a t i o n s b e t w e e n J a p a n e s e a n d E u r o p e a n c o r p o r a t i o n s . Even t h o u g h they lead corporations m o s t a r e a s of h i g h - t e c h n o l o g y , t h e i r strategic alliances European p r o d u c e r s J a p a n e s e f i r m s h a v e r e l i e d o n t h e i r t r a d i t i o n a l strategy o f t r a d i n g E u r o p e a n m a r k e t e n t r a n c e t o J a p a n against transfer from E u r o p e . J a p a n e s e f i r m s use t h e i r E u r o p e a n p a r t n e r s largely a s screwdriver " I n t e r n a t i o n a l c o o p e r a t i o n in s u c h cases," write R o b Van and "does not increase the technological capacities of receiving firm a n d t h e l o n g e r term may even 245). O t h e r evidence points in the same direction. corporations retain control f o r e i g n affiliates a t l o p level o f m a n agement J a p a n r e m a i n s a n e t i m p o r t e r o f tech n o In 1991 it billion for p a t e n t s , l i c e n s e s , know-how a n d o t h e r t r a n s f e r s , mostly t o A m e r i c a n a n d E u r o p e a n f i r m s ; i t e x p o r t e d less than billion of its own m u c h of lo Asia 1993: 3 5 2 ; H a t c h 159, 3 5 6 ) . and 3-4) report that e x p o r t s e x c e e d e d i m p o r t s for t h e f i r s t t i m e i n and that the export h a s s i n c e w i d e n e d . I n 1991 e x p o r t / i m p o r t ratio t r a d e was 0 . 4 1 , c o m p a r e d to 0.28 a d e c a d e e a r l i e r ( F r a n s m a n 1995: 102). F u r t h e r m o r e , b e t w e e n t h e m i d 1970s a n d m i d - 1 9 8 0 s t h e f o r e i g n s h a r e national patent applications increased all i n d u s t r i a l e c o n o m i c s e x c e p t i n J a p a n w h e r e i t d e c l i n e d by 50 p e r c e n t . T h a t s h a r e to e i g h t t i m e s l a r g e r in t h e USA a n d Europe than J a p a n . In the first half of 1990s p r o p o r t i o n of Japanese e x p o r t s g o i n g t o unaffiliated f i r m s d e c l i n e d ( H a t c h 2000: 3 5 6 ) . W h i l e J a p a n h a s m o v e d r a p i d l y t o t h e t e c h n o l o g i c a l f r o n t i e r , it t h u s r e m a i n s r e m a r k a b l y i n s u l a r a n d resists t h e global pull t h a t s t r o n g l y affecting virtually o t h e r i n d u s t r i a l states ( V e r n o n a n d 1 9 9 1 : 12). A m o n g all o f t h e i n d u s t r i a l stales, J a p a n r a n k s first having of of its r e s e a r c h - i n t e n s i v e l a r g e firms issued a t h o m e and 1996: 6 5 ) . high degree of

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insulation have a liability as J a p a n ' s overall e c o n o m i c position has d e t e r i o r a t e d s h a r p l y illustrated by d e c l i n i n g total factor l a g g i n g sales g r o w t h key i n d u s t r i e s , g r o w i n g u n e m p l o y m e n t a n d a rising deficit in i n t e l l e c t u a l p r o p e r t y royalty paym e n t s ( H a t c h 1 9 9 9 ) . T e c h n o l o g i c a l a u t o n o m y a s a f o u n d a t i o n for r e g i o n a l s t r e n g t h looks significantly less s e c u r e n o w t h a n did a d e c a d e or two e a r l i e r .

Asian networks M a i n t a i n i n g c o n t r o l over t e c h n o l o g y a key aspect of t h e process by which J a p a n a n d o t h e r states in seek to foster d e v e l o p m e n t of their national economies. Host countries welcome the economic growth a n d i m p r o v e d e x p o r t p e r f o r m a n c e t h a t foreign can b r i n g , particularly w h e n a c c o m p a n i e d by Rut they also r e m a i n a m b i v a l e n t b e c a u s e t h e new e c o n o m i c linkages t e n d lo be traa n d thus a r e n o t c o n d u c i v e to t e c h n o l o g i c a l l e a r n i n g a n d t h e growth o f a u t o n o m o u s s u p p l i e r networks, S e e k i n g t o e s c a p e excessive d e p e n dence on J a p a n , the smaller Economies thus a r e s e e k i n g t o e x p l o i t t h e leverage t h a t i n t e r n a t i o n a l c o m p e t i t i o n b e t w e e n J a p a n e s e , USA a n d E u r o p e a n p r o d u c e r s may offer ( E r n s t a n d O ' C o n n o r 1989: 79; H a t c h 2000: 3 5 5 - 6 ) . n e i g h b o r s seek to e n h a n c e t h e i r m a r g i n of c h o i c e by m a n e u v e r i n g i n a n d o u t o f different p r o d u c t i o n n e t w o r k s ( B o n u s 1997: 154-6; et al 1995: 1 9 - 2 7 ) . J a p a n e s e networks t e n d to be closed a n d a r e given t o c a u t i o u s a n d i n c r e m e n t a l decision. building regional p r o d u c t i o n n e t w o r k s , J a p a n e s e c o r p o r a t i o n s a r e typically r e l u c t a n t t o s h a r e t e c h n o l o g i e s e i t h e r with o t h e r c o u n t r i e s o r o t h e r c o r p o r a t i o n s . T h e " c o m m o n w e a l t h " of overseas C h i n e s e offers an alternative, e t h n i c capitalism t h r o u g h which p r o d u c t i o n networks s p r e a d Asia. T h e s e C h i n e s e n e t w o r k s t e n d t o b e c o m m e r c i a l r a t h e r t h a n t e c h n o l o g i c a l . Since t h e mid1980s, s o m e C h i n e s e networks have o p e n e d t o i n c o r p o r a t e U S m a n u f a c t u r e r s . T h e s e n e t w o r k s t e n d t o b e o p e n , fast a n d flexible. T h e y a r e less protective o f p r o p r i e t a r y t e c h n o l o g i e s a n d m o r e o p e n t o t e c h n o logy transfer to local e n t e r p r i s e s . A m e r i c a n a n d E u r o p e a n m u l t i n a t i o n a l c o r p o r a t i o n s constitute still a t h i r d n e t w o r k , less d e e p t h a n t h e C h i n e s e o n e b u t p e r h a p s b e t t e r suited t o facilitate t h e flow o f t e c h n o l o g y ( B o n u s et al 2000b: 1 4 - 3 1 ; L i n d e n 2000: 2 2 1 ) . By m a n e u v e r i n g in a n d o u t of diff e r e n t p r o d u c t i o n networks, n e i g h b o r s seek t o e n h a n c e t h e i r m a r g i n of c h o i c e a n d to increase t h e i r t e c h n o l o g i c a l capacities a n d econ o m i c growth p o t e n t i a l ( B o n u s 1997: 1 5 4 - 6 . D o h e r t y et ai 1995: 12-14, et al 2 0 0 0 a ) . T e c h n o l o g y t h u s transferred t h r o u g h a variety of Asian networks n o t all of which a r e c o n t r o l l e d by J a p a n e s e corporations.

t e c h n o l o g y and Asian regionalism 227 networks Since t h e Meiji r e s t o r a t i o n has d e v e l o p e d a "full-set industrial struct u r e " which b l e n d s basic, i n t e r m e d i a t e a n d h i g h industries 1994: 2 9 ) . Japan u n i q u e l y a m o n g t h e late in m o v i n g lo t h e t e c h n o l o g i c a l frontier, t r a d i t i o n a l s h o p f l o o r orie n t a t i o n was still reflected in a i n t e g r a t i o n b e t w e e n R&D a n d s h o p f l o o r activities et al 1 9 8 9 ) . T h i s was in p a r t i c u l a r for i m p o r t s . In t h e case of operations "know-how" of i m p o r t e d must transformed into the of a t e c h n o l o g i c a l process 1987). In m a s t e r i n g transition from knowh o w t o know-why s h o p f l o o r b e c o m e s t h e strategic b a t t l e g r o u n d " o f and 1990: 7), Often reverse e n g i n e e r i n g is insufficient to u n l o c k d e e p e r aspects of a For m a n y aspects o f t e c h n o l o g y a r c implicit a n d rather t h a n fully specified a n d c o m p l e t e l y u n d e r s t o o d (Nelson 1987). T h e shopfloor becomes the battleground where borrowed i s cust o m i z e d t o f i t c o n d i t i o n s specific t o p a r t i c u l a r p r o d u c t i o n processes a n d t a r g e t e d m a r k e t s . B y m o s t q u a n t i t a t i v e a n d qualitative m e a s u r e s governm e n t policies a n d s h o p f l o o r practices s u c c e e d e d propelling Japan to t h e t e c h n o l o g i c a l frontier in a m a t t e r of a few d e c a d e s 1991: T a b l e 2, 470; T a b l e B, 65: 1986; T a y l o r a n d Yamam u r a 1990: 2 8 ) . B u t in t h e last two d e c a d e s in Asia inexo r a b l y i n t o a n e w historical e r a ( E r n s t 2 0 0 0 a ) . F o r a variety of reasons, including l a b o r costs a n d e n v i r o n m e n t a l c o n s t r a i n t s Japan, domestic of small a n d m e d i u m - s i z e firms a r e e r o d i n g J a p a n . F o r e i g n s u p p l i e r s a r e b e c o m i n g m o r e i m p o r t a n t . A r g u i n g t h e case for i n c r e a s i n g r e g i o n a l and growing d e p e n d e n c e Seki writes that: full-set industrial s t r u c t u r e , w h i c h e n s u r e s t h a t industrial a n d t e c h n o l o g i c a l f u n c t i o n s a r e available under and the faced with t h e n e e d to form close r e l a t i o n s h i p s with East Asia, especially C h i n a , for t h e survival of t h e f u n d a m e n t a l i n d u s trial t e c h n o l o g i e s that drive its h i g h - t e c h sectors. We a r c e n t e r i n g t h e a g e of an Asian n e t w o r k in

In this new era t h e provision of basic t e c h n o l o g i e s for J a p a n e s e corp o r a t i o n s is increasingly o c c u r r i n g within "an Asian-network p a t t e r n of development" 3 ) . J a p a n ' s o p e n i n g t o t h e world goes b e y o n d t h e kind of a n d i n v e s t m e n t liberalization t h a t has b e e n t h e focus o f U S political p r e s s u r e s . O p e n i n g refers to a g r o w i n g r e l i a n c e on t h e basic

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of Asian tied Japanese increasingly tight chains. US e l e c t r o n i c firms s h a p e d their into networks involving c o n t r a c t u a l relations, i n c l u d i n g with i m p o r t a n t J a p a n ese firms. J a p a n e s e p r o d u c e r s have r e s p o n d e d vigorously to local governincentives p r o g r a m s , a n d , contrast U S f i r m s , rely m u c h m o r e heavily on local a n d regional for p r o c u r e m e n t a n d sales n a t i o n 1999: 5 ) . T h u s , while t h e of J a p a n e s e firms tend to Asian regionalism, firms t e n d to m a k e Asian regionalism m o r e o p e n 1997a: 17; D o b s o n 243-5; 1997: 2000a; B o n u s 2 0 0 0 ) . t e c h n o l o g y transfer takes on a variety of hybrid forms in f e r e n t foreign locales. In t h e i r detailed e m p i r i c a l studies, Itagaki (1997: and c o l l a b o r a t o r s have d e m o n s t r a t e d t h a t t h e institutional b a r r i e r s to t e c h n o l o g y a r e lower in East than S o u t h e a s t Asia, a n d a r e lowest in t h e U n i t e d States. F u r t h e r m o r e , evidence that J a p a n e s e p r o d u c t i o n networks a r e b e c o m ing m o r e i n t e r n a t i o n a l a s they gain m o r e e x p e r i e n c e a n d m a t u r e ( D o h e r t y 1995; Ernst 2 0 0 0 a ) . shift r e q u i r e s a f u n d a m e n t a l r e t h i n k i n g away from J a p a n as a self-reliant n a t i o n a l e c o n o m y that seeks to d e f e n d a u t o n o m y in a hostile world to J a p a n as d e e p l y e m b e d d e d in a system of industrial p r o d u c t i o n systems t h a t tie intimately to Asian n e i g h b o r s . A s t r u c t u r e in is now r e o r g a n i z i n g t h e links b e t w e e n t h e T o k y o metropolitan area, periphery, and rapidly industrializing e c o n o m i e s of East a n d S o u t h e a s t Asia (Seki 1994: The of J a p a n e s e p r o d u c t i o n networks has h e l p e d b r i n g i n g substantial c h a n g e t o T h r o u g h o u t t h e postwar p e r i o d , a n d p a r t i c u l a r after t h e oil national security was p r e m i s e d on t h e security a n d stability of S o u t h e a s t then source J a p a n e s e i m p o r t s o f p e t r o l e u m , r u b b e r , tin, a n d o t h e r critical n a t u r a l resources" (Hatch and 1996: see also for low-cost l a b o r a n d c h e a p raw materials t h e 1960s a n d 1970s, Japanese firms were m u c h m o r e willing to form j o i n t v e n t u r e s a n d to invest o t h e r forms o f c o o p e r a t i o n t h a n were their Western c o u n t e r In seeking to penetrate protected domestic markets J a p a n e s e subsidiaries b u i l t u p s t r o n g linkages; local c o n t e n t of J a p a n ese affiliates was relatively h i g h a n d s u p p o r t e d s o m e d o m e s t i c s u p p l i e r s even at t h e e x p e n s e of p r o d u c t quality a n d cost efficiency ( E r n s t 213). In initial p h a s e J a p a n e s e p r o d u c e r s w e r e a p p a r e n t l y a t times willing to diffuse i n t e r m e d i a t e t e c h n o l o g i e s t h a t w e r e essential to t h e success of foreign assembly o p e r a t i o n s (Seki 1994: 9 9 ) . Asian thus received s o m e J a p a n e s e t e c h n o l o g y . By 40 p e r c e n t of O E C D from t h e NIEs in p r o d u c t c a t e g o r i e s significant scale and extensive p r o d u c t differentiation rather than

t e c h n o l o g y and Asian regionalism 229 or p r o d u c t s (Ernst a n d O ' C o n n o r 30). is not to argue that J a p a n e s e firms shared their technologies freely 1999; Sedgwick 1999; T a c h i k i 1 9 9 9 ) . analyzing foreign i n v e s t m e n t in Asia to t h e mid-1970s, (1978: 6) sees overseas i n v e s t m e n t as "an e x t e n s i o n of r e g i o n a l factory diversification J a p a n . " His d e t a i l e d analysis u n d e r l i n e s , a m o n g o t h e r s , t h e close c o n n e c t i o n s b e t w e e n p a r e n t f i r m s a n d f o r e i g n affiliates a n d t h e i m p o r t a n c e o f political factors a n d t h e policies o f t h e Japanese government 46) i n h e l p i n g s h a p e t h e p a t t e r n foreign i n v e s t m e n t . t h e wake sharp appreciation of t h e Yen after 1985 an e s c a l a t i o n in d o m e s t i c costs p r o m p t e d Japanese to move important segments of their manufacturing base off-shore. a c c e l e r a t e d a d e facto r e g i o n a l i n t e g r a t i o n o f s o m e parts Asian J a p a n e s e c o r p o r a t e s t r u c t u r e s . B y 1992 m o r e t h a n 9,000 J a p a n e s e affiliates o p e r a t e d overseas, m a n y o f in (Chen and a n d Yuc "An division of l a b o r s e e m s to t a k i n g s h a p e in w h i c h different c o u n t r i e s b e c o m e p r o d u c t i o n bases different c o m p o n e n t s a n d / o r final products and t r a d e takes place a m o n g c o u n t r i e s t h e r e g i o n " ( E r n s t a n d O ' C o n n o r 1989: 4 2 ) . I n this n e w system ese p r o d u c e r s a c h i e v e e c o n o m i c s o f scale a n d profitability t h r o u g h specialization. B e t w e e n 1983 a n d Japanese i n Asia w e r e t h r e e t i m e s h i g h e r t h a n in t h e U n i t e d States a n d twice as h i g h as in E u r o p e . d i f f e r e n c e w i d e n e d f u r t h e r in early 1990s. In 1993 Asian profits ran at 4 p e r c e n t c o m p a r e d to no g a i n s U n i t e d States a n d losses e q u i v a l e n t to 1 p e r c e n t E u r o p e (The 1995: 2 1 - 2 ) . Profits a r c d e f i n e d as r e c u r r i n g profit to sales ratios for subsidiaries of Japanese manufactures. A further of J a p a n e s e p r o d u c t i o n n e t w o r k s w o u l d r e q u i r e d c o r p o r a t e a n d p u b l i c policies increasingly facilitating t e c h n o l o g y transfers. T h e d y n a m i c t e c h n i c a l efficiency t h a t J a p a n e s e c o r p o r a t i o n s h a d a c h i e v e d t h r o u g h o r g a n i z i n g s u p p l i e r n e t w o r k s inside J a p a n h a d t o transferred to producers operating abroad, including to China, an essential p r o v i d e r o f basic t e c h n o l o g i e s o t h e r e c o n o m i e s a r e less well e q u i p p e d to p r o v i d e (Seki 1994: 3, 3 0 - 1 , 99, 128, 154-6; M u r a k a m i 1 9 9 6 ) . But J a p a n e s e p r o d u c t i o n system faces s h a r p limitations in t h e a m o u n t of transfer that actually can g e n e r a t e . on s o m e occasions, transfer t o foreign p r o d u c e r s has o c c u r r e d , g e n e r a l l y s p e a k i n g since t h e mid-1980s large J a p a n e s e c o r p o r a tions have reluctant to share their advanced technologies 17, 2 3 , 27; s e e also D o b s o n 1997b: 246; Yuc a n d D o b s o n 1997: 258; Ernst 2000a: 8 6 - 9 3 ; E r n s t a n d Raven hill 2000: 2 2 9 - 3 4 ) . Typically, b o t h g o v e r n m e n t a n d c o r p o r a t i o n s m a k e special efforts t o c o u n t e r a c t adverse

230

j. Katzenstein

in n o t only positions of t e c h n o l o g i c a l strength p r o d u c e r s u n d e r s t a n d a b l y wish t o e x p l o i t t o maximum It is d o n e also from p o s i t i o n s of a n t i c i p a t e d t e c h n o logical weakness. In t h e early 1990s, for e x a m p l e , s e e k i n g to p r o t e c t "technological n a t i o n a l a n n o u n c e d a p l a n a i m e d at s t r e n g t h e n i n g t h e position of d o m e s t i c s u p p l i e r s t h e crisis-ridden casting a n d forging industries. T h e was a c l e a r illustration of t h e sense o f u r g e n c y the h e m o r r h a g i n g of nation's fundamental technologies" 1994: C o n c e r n e d with t h e s t r e n g t h o f J a p a n ' s t e c h n o l o g i c a l base, mission has b e c o m e i n e x o r a b l y r e g i o n a l i z e d ( H a t c h 2000: Its 1987 New AID p l a n was an a m b i t i o u s s c h e m e that a i m e d at c o o r d i n a t i n g t r a d e a n d i n v e s t m e n t policies Asia. W h i l e the plan was shelved d u e t o b o t h d o m e s t i c a n d i n t e r n a t i o n a l criticisms, MITI has n o t a b a n d o n e d t h e vision t h a t i n f o r m e d t h e plan. it w a n t e d to s u p p o r t t h e of business a b r o a d , M I T I h a d in fact little c h o i c e b u t to s u p p o r t industrial n e t w o r k s in Asia. In t h e mid-1990s developed a new p l a n to assist t h e industrialization drive of transition e c o n o m i e s in C a m bodia, Laos, a n d that s o o n c a m e to i n c l u d e all of S o u t h e a s t With a h e a d q u a r t e r B a n g k o k a n d financed a n d exclusively by MITI this initiative s u p p o r t s s t r o n g e r industrial linkages a n d liberal investm e n t policies in Asia 2 3 9 ) . M o r e generally, MITI has h a d "to i n c l u d e in its the a n d e x p a n s i o n of t h e Asian r e g i o n a l e c o n o m y as a w h o l e , " for e x a m p l e , by p r o m o t i n g an i n c r e a s e in i m p o r t s from t h e region 1999: 3 ) . A n d it is s e e k i n g to facilitate tie-ups between small a n d m e d i u m - s i z e d f i r m s a n d ASEAN c o r p o r a t i o n s . Specifically, MITI is p l a n n i n g to c r e a t e a d a t a b a s e on i m p o r t a n t gies o w n e d by local firms S o u t h e a s t Asia which will d i s t r i b u t e to J a p a n e s e f i r m s , especially smaller o n e s , p l a n n i n g t o invest i n t h e r e g i o n 7 ) . S e n s i n g a crisis J a p a n rapidly losing c o n t r o l over f u n d a m e n t a l t e c h n o l o g i e s in t h e small a n d m e d i u m - s i z e firm sector, large corp o r a t i o n s a r e increasingly s e e k i n g to d e v e l o p basic t e c h n o l o g i e s with t h e a t t e n d a n t of sacrificing increases efficiency a n d flexibility that derive from d e n s e a n d multi-tiered networks (Seki 1994: T h e p r o t e c t i o n of t e c h n o l o g y by J a p a n e s e c o r p o r a t i o n s is e v i d e n t in t h e i r foreign o p e r a t i o n s . t h e mid-1990s only o n e of t h e forty-six projects corporations funded supporting a generic substantial p o t e n t i a l for productivity of t h e host c o u n t r y . I n m o s t instances foreign f i r m s i n t e n t o n s e t t i n g u p o p e r a t i o n s in East or S o u t h e a s t must support support such as software e n g i n e e r i n g a n d circuit design before they c a n actually e n t e r Asia's g r o w i n g d o m e s t i c m a r k e t s (Ernst 233). T h e language of t h e c r e a t i o n of " i n t e r d e p e n d e n c e " t h u s liberal.

t e c h n o l o g y and Asian regionalism Institutional a n d business reinforce e a c h other i m p e d i n g r a t h e r t h a n a c c e l e r a t i n g t e c h n o l o g y transfer t o foreign producers. H e n c e asymmetric d e p e n d e n c e , not symmetric interdepend e n c e , results f r o m t h e n e w production networks that e m e r g i n g in Asia. T h e rapidity o f J a p a n ' s r e o r i e n t a t i o n after 1985 a n d t h e n e e d for controlling cost a n d quality h e l p e x p l a i n why after 1985 J a p a n e s e corp o r a t i o n s c o n t i n u e d to a d h e r e to a c e n t r a l i z e d of tightly c o n t r o l l e d local subsidiaries a n d , at best, r e l u c t a n t t e c h n o l o g y transfer (Ernst 1997: H a t c h 2000: T h e J a p a n e s e tightly c o n t r o l l e d t h e i r Asian affiliates, leaving t h e m s c o p e for a u t o n o m o u s decisions; t h e transfer of capabilities r e m a i n e d limited a n d h a r d l y w e n t b e y o n d t r a i n i n g a n d basic m a n u f a c t u r i n g s u p p o r t As long as the focus was o n e x p o r t platform p r o d u c t i o n , t h e r e f o r e , J a p a n e s e elect r o n i c s firms tried to m i n i m i z e t h e transfer of in t h e value c h a i n to East (Ernst

218)

T h i s is t h e c e n t r a l p o i n t of w h a t a n d B o n u s call a J a p a n d o m i n a t e d m a r k e t h i e r a r c h y i n which Asian s u p p l i e r s a r e s u b o r d i n a t e t o J a p a n e s e f i r m s a s f i n a l p r o d u c t a s s e m b l e r s for e x p o r t s w h o m u s t on h i g h v a l u e - a d d e d J a p a n e s e c o m p o n e n t s a n d e q u i p m e n t s (1996: 8 2 - 3 ) . I n e l e c t r o n i c s a n d a u t o s in p a r t i c u l a r , Asia b e c o m i n g an i n t e g r a t e d p r o d u c t i o n n e t w o r k for firms from w h i c h can p u r s u e global c o r p o r a t e strategies. J a p a n s strategy, Zysman a n d B o n u s a r g u e , has two components. O n e is to s p r e a d subsystem assembly t h r o u g h o u t Asia, while p e r s u a d ing e a c h g o v e r n m e n t t o t r e a t subsystems o r i g i n a t i n g i n o t h e r Asian c o u n t r i e s as b e i n g of " d o m e s t i c origin." T h e s e c o n d to keep control over the underlying c o m p o n e n t , and m a t e r i a l s t e c h n o l o g i e s by r e g u l a t i n g availability to i n d e p e n d e n t Asian p r o d u c e r s a n d k e e p a d v a n c e d p r o d u c t i o n a t h o m e . (Zysman a n d 84) This n o t to d e n y individual Asian p r o d u c e r s do substantially from e n t e r i n g i n t o tie-ups J a p a n e s e firms them cally heavily d e p e n d e n t . For they access to a n e t w o r k t h a t p r o m i s e s m a r k e t s a n d profits i f n o t a u t o n o m y . Restrictive strings can also b e c o m e s u p p o r t i v e ties ( H a t c h 2 0 0 0 : 3 5 6 ) . Unfavorably restrictive cond i t i o n s a b o u t t h e use of t e c h n o l o g y a r e b a l a n c e d by favorable access c u s t o m e r s , s u p p l i e r s , d i s t r i b u t o r s a n d political allies o f t h e J a p a n e s e

232 P e t e r J. Katzenstein is p a r t of a p a c k a g e of relationships a n d loses m u c h of its severed from o t h e r e l e m e n t s of network. T h e a d v a n t a g e was e v i d e n t in t h e of Asian financial crisis. D e n n i s shows that J a p a n e s e c o m p a n i e s used lower l a b o r costs to partially h i g h e r material i n p u t t h u s delaying layoffs a n d c r e a t i n g g o o d will a m o n g a m o r e loyal workforce. I n d e e d , rationalization o v e r h e a d costs has e n c o u r a g e d e m p l o y m e n t increases in a n u m b e r i n d u s t r i e s . Yet, on b a l a n c e , rationalization savings have b e e n insufficient to o u t w e i g h costs associated the of p l a n t capacities a n d the strains on cash In t h e i n t e r e s t o f k e e p i n g themselves afloat, f i r m s a p p e a r t o have c a n n i b a l i z e d t h e i r Asian p r o d u c t i o n n e t w o r k s , m o v i n g t h e g e n e r a l d i r e c t i o n of creating m o r e o p e n n e s s , flexibility a n d d e c e n t r a l i z a t i o n these While t h e role of of c o n t r o l has b e c o m e m o r e important r e c e n t years, t h e system has d e e p e r historical roots. In his analysis of J a p a n e s e foreign i n v e s t m e n t t h e 1960s a n d 1970s, Ozawa (1979: 2 5 - 3 0 , 82) n o t e d t h e distinctive " i m m a t u r i t y " o f J a p a n e s e foreign i n v e s t m e n t , as m e a s u r e d t e r m s of firm and technological s o p h i s t i c a t i o n ; small firms in traditional i n d u s t r i e s s u c h as textiles leading expansion F o r e i g n i n v e s t m e n t b e c a m e a way by which r u l i n g political coalition e x t e n d e d t h e basic institutional arrangements of Japanese model. In the p r e f e r e n t i a l tariff p r o g r a m for m a n u f a c t u r e d from d e v e l o p i n g c o u n t r i e s serves as an integral p a r t of J a p a n ' s design to assist h e r light m a n u f a c t u r i n g i n d u s t r i e s t o m i g r a t e t o n e i g h b o r i n g Yet t h e fledgling m a n u f a c t u r i n g i n d u s t r i e s i n these c o u n tries arc s o l o c k e d i n t o i m p o r t d e p e n d e n c e o n industrial materials from t h a t they c a n n o t easily e x t r i c a t e themselves. (Ozawa 1979: 76, In t h e of W a l t e r H a t c h a n d Yamamura (1996), not role of h e l p i n g neighbors to embark on a path of a u t o n o m o u s d e v e l o p m e n t . I n s t e a d h e l p s r e i n f o r c e a system of d o m i n a t i o n as is d e v e l o p i n g embrace. is at t h e center of p r o c e s s . T e c h n o l o g i c a l disparity h e l p s buttress e c o n o m i c a n d political in Since t h e mid-1980s J a p a n has built a region-wide p r o d u c t i o n s t r u c t u r e that is e x t e n d i n g Japanese-style internationally. Hatch and Yamamura 9 7 - 1 1 1 ; H a t c h 2000: 135-44) p r o v i d e a wealth of evidence supporting their that J a p a n e s e firms are building regional production networks that control transfer closely. I n d e e d t h e available e v i d e n c e suggests that J a p a n is t h e p r o c e s s of i n c r e a s i n g t e c h n o l o g i c a l lead in (Hatch and Yamamura Statistical

and Asian regionalism 233 and e v i d e n c e illustrates t h a t J a p a n i s very e a g e r t o a c q u i r e t e c h n o l o g y a n d very r e l u c t a n t t o p a r t with it. J a p a n e s e b u s i n e s s m e n c o n c e d e t h a t t h e i r tight-fisted a p p r o a c h risks political c o n t r o v e r s i e s in the long-term. In s h o r t - t e r m they fear l o s i n g c o n t r o l o f a c c u m u l a t e d know-how. Typically, t h a t know-how is e n c a s e d i n s t i t u t i o n a l c o n t e x t s a n d practices t h a t m a k e it difficult to transfer t e c h n o l o g y easily even w h e n h o s t g o v e r n m e n t s insist. L a b o r p r a c t i c e s w h i c h d i s c o u r a g e e m p l o y e e turnover, that place a large n u m b e r of J a p a n e s e nationals in top managem e n t positions, a n d that emphasize non-transferable training, militate against t e c h n o l o g y transfer. H e n c e Asian p r o d u c e r s live in t h e e m b r a c e o f J a p a n e s e p r o d u c e r s w h i c h b r i n g s with dynamic though d e p e n d e n t growth. J a p a n e s e producers m a k e sure that the most importa n t , high-value-added parts o f p r o d u c t i o n u n d e r the control of J a p a n e s e - o w n e d e n t e r p r i s e s . S e e k i n g l o b l u n t p r o t e c t i o n i s t forces the US Congress, Japanese corporations p u t t i n g t h e i r n e w Asian p r o d u c tion alliances in t h e service of a global strategy. Japanese government has s u p p o r t e d t h e r e g i o n a l i z a t i o n of p r o d u c t i o n networks a host of trade, i n v e s t m e n t a n d c u l t u r a l policies ( H a t c h a n d 1996: Hatch Through J a p a n has f o u n d a way of e x t e n d i n g its increasingly t r a d e r e l a t i o n s with all of its major trading partners on sides o f t h e Pacific. regional production networks do n o t o n state-to-state diplom a c y o r treaties. T h e y a r e r a t h e r a r e g i o n a l e x t e n s i o n o f b o t h t h e s t r e n g t h a n d t h e weakness o f domestic structures. T h e sharp appreciation o f t h e Yen i n t h e mid-1980s reflected t h e i n h e r e n t industrial a n d t e c h n o s t r e n g t h o f J a p a n e s e p r o d u c e r s . A n d i t greatly a c c e l e r a t e d t h e i r m o v e off-shore, a m o n g o t h e r s l o n e i g h b o r i n g c o u n t r i e s i n Asia. Walter H a t c h (2000) sees the of domestic arrangement and Asian r e g i o n a l i s m a defensive m o v e by capitalism, an e x t e n s i o n in t h e life cycle of political a r r a n g e m e n t s t h a t otherwise m i g h t a l r e a d y h a v e collapsed u n d e r t h e weight o f t h e i r n u m e r o u s i n t e r n a l contradictions. "A business, labor, a n d g o v e r n m e n t elites may temporarily shore up domestic a n d i d e o l o g i e s u n d e r stress b y ( H a t c h 1999: 2 ) F o r b e t t e r a n d for w o r s e , J a p a n e s e f i r m s a r e r e p l i c a t i n g t h e i r d o m e s t i c s t r u c t u r e s in Asia a n d t h u s a r e e n h a n c i n g t h e i r r e g i o n a l a n d global c o m p e t i t i v e n e s s . R e g i o n a l i n t e g r a t i o n has o c c u r r e d i n m a r k e t s t h r o u g h t h o u s a n d s of vertically o r g a n i z e d , q u a s i - i n t e g r a t e d c o r p o r a t e networks. In J a p a n ' s d u a l d o m e s t i c e c o n o m y s u b c o n t r a c t o r s c a n n o t d e f e n d themselves against various p r e s s u r e s t h r o u g h which corporations s q u e e z e profit m a r g i n s i n h a r d limes. T h e s a m e i s increasingly t r u e Asia. J a p a n ' s r e g i o n a l p r o d u c t i o n alliances a r e b o t h increasing efficiency a n d r e m a i n i n g exclusive. For b o t h J a p a n a n d t h e risks

J.

o f this may b e c o m e clearer should embraced developm e n t t u r n i n t o captive d e v e l o p m e n t ( H a t c h a n d Y a m a m u r a 1996: 3 1 ) . In parts of N o r t h e a s t a n d S o u t h e a s t a o r d e r t h u s has u n d e r J a p a n e s e l e a d e r s h i p t h a t reflects institutional n o r m s a n d practices. w o u l d , h o w e v e r , be a mistake to p o s e t h e issue t e r m s of t h e d e l i b e r a t e by t h e d o m i n a n t actors Japan 22, is, r a t h e r , an e x t e n s i o n of t h e d o m e s t i c practices o f t h e model of an i n t e r l o c k i n g system of a n d c o r p o r a t e policies largely taken for g r a n t e d a n d that b e i n g a d a p t e d to new in world m a r k e t s 176, F o r n u m e r o u s e x a m p l e s see p p . offers a plausible for why Asian policy has b e e n u n c h a n g i n g in l i n k i n g i n t e r n a t i o n a l p u b l i c finance (such as official e x p o r t credits, e x p o r t a n d i n v e s t m e n t g u a r a n t e e s ) closely t o private capital a n d financial flows (such as d i r e c t foreign i n v e s t m e n t , t r a d e , b a n k l e n d i n g ) 1996: 27, 305-14, I n s u m , J a p a n has r e g i o n a l i z e d c e n t r a l parts of m o d e l of capitalism a n d in so d o i n g has significant ways s h a p e d Asia's

networks T h e r e exist in alternatives to J a p a n e s e - c e n t e r e d p r o d u c t i o n alliances. T h e s e alternatives, a t times b r i n g t o g e t h e r C h i n e s e c o m m e r c i a l a n d m a n u f a c t u r i n g n e t w o r k s with t h e t e c h n o l o g y of US c o r p o r a t i o n s . C l u s t e r e d in t h e 1990s a r o u n d p r o d u c e r s based Taiwan a n d S i n g a p o r e spread of s u c h networks [joints t o t h e e m e r g e n c e o f alternatives. With varying d e g r e e s of success t h e Asian NIEs a r c s e e k i n g to e s c a p e from tight e m b r a c e by d e v e l o p i n g alternatives to t h e regionalizahon s d e v e l o p m e n t a l policies. T o s o m e e x t e n t J a p a n e s e lions themselves p r o v i d e o p p o r t u n i t i e s for r e d u c i n g t e c h n o l o g i c a l d e p e n d e n c e . For example, as major c o r p o r a t i o n s a r e f o r c i n g t h e i r parts s u p p l i e r s , m o r e o r gently, t o regionalize t h e i r o p e r a t i o n s r a t h e r t h a n b u i l d i n g up business tics with local firms, t h e possible flow of from J a p a n to East a n d S o u t h e a s t Asia further constricted (Hatch 2 8 0 ) . Yet n o t J a p a n e s e m e d i u m - s i z e d a n d small suppliers a r e a b l e o r willing t o r e g i o n a l i z e t h e i r o p e r a t i o n s . T h e s e may e n t e r tie-ups with local funis to w h o m they sell t h e i r know-how for a fee. In Japanese e x p o r t s lo Asia e x c e e d e d e x p o r t s to t h e USA by a b o u t 40 p e r c e n t ( H a t c h a n d Y a m a m u r a 9, 163). Although the potential importance of trade should not overestimated, n o t lost on c o r p o r a t i o n s or g o v e r n m e n t s t h r o u g h o u t 169-70, 177). Asian g o v e r n m e n t s seek to lessen d e p e n d e n c e through policies. Korea, for e x a m p l e , has tried to foster n a t i o n a l

t e c h n o l o g y and Asian regionalism 235 programs c o n g l o m e r a t e s , t h u s h o p i n g to lessen technology on a n d P a r k 1987: Yet, i n t h e mid-1980s its c o n s u m e r g o o d s i n d u s t r y i m p o r t e d m o s t o f t h e parts for its e x p o r t p r o d u c t s s u c h as v i d e o cassette r e c o r d e r s , microwave ovens, facsimiles, p e r s o n a l c o m p u t e r s , a n d p r i n t e r s ; in the 1990s t h e Korean semi-conductor industry r e m a i n s heavily d e p e n d e n t o n J a p a n ese i m p o r t s ( S m i t h 748-9). In contrast, Taiwan, Thailand, and Malaysia tailor r e s p o n s e t o local c i r c u m s t a n c e s a n d t o existence of a n d s i t u a t e d e c o n o m i c n e t w o r k s r u n by overseas Chinese and 1996: 84; 2000; Ernst 2 0 0 0 b ) . T h u s h o p e t o s i d e s t e p excessive d e p e n d e n c e o n J a p a n e s e p r o d u c e r s . C h i n a h o l d s t h e key to m a n y i m p o r t a n t aspects of Asia's future. the Chinese intellectuals in a view, h o l d i n g t h e belief t h a t scientific m e t h o d s u n l o c k all secrets of t h e u n i v e r s e (Kwok 1965). M a r x i s m - L e n i n i s m with its utilitarian view of s c i e n c e built on this legacy. It stressed t h e close r e l a t i o n b e t w e e n t h e o r y a n d science and technology; it masses a n d t h e party t h e u l t i m a t e a r b i t e r o f t h e utility of science; it saw s c i e n c e an i n s t r u m e n t for t h e transformation of traditional culture a n d the of Chinese nationalism against foreign a n d it believed in t h e p l a n n e d c h a r a c t e r of all scientific a n d t e c h n o l o g i c a l evolution Before t h e C u l t u r a l Revolution, Soviet-style c e n t r a l i s m h a d prevailed s c i e n c e a n d t e c h n o l o g y e s t a b l i s h m e n t . Since t h e 1978 reforms s c i e n c e a n d t e c h n o l o g y parks have s p r u n g u p h i g h - t e c h n o l o g y f i r m s have b e e n set u p different p a r t s o f C h i n a , informed different policy logics (Segal 1999; Saich 1 9 8 9 ) . As business a n d g o v e r n m e n t seek t o a r t i c u l a t e n e w p a r t n e r s h i p s , r e t a i n s c o n t i n u i n g r e l e v a n c e for c o n t e m p o r a r y C h i n a and Segal 2 0 0 0 ) . I n t h e words o f D i n g o f S h a n g h a i ' s Institute o f Studies is always a flying f o r m a t i o n with J a p a n as the head goose. O u r long, so a r e n ' t a b o u t t o fly in f o r m a t i o n " ( H a t c h 2000: 3 5 4 ) . C h i n a i s c u r r e n t l y i n n o position t o d e f i n e emerging technology o r d e r . But as e c o n o m i c a n d political i m p o r t a n c e rises, it may b e c o m e so in s e l e c t e d m a r k e t s e g m e n t s t h e not too distant future. If it d o e s , C h i n a will r e i n f o r c e r a t h e r t h a n c h a l l e n g e has historically d e a l t with p r o b l e m s o f t e c h n o l o g y . A n a u t o n o m o u s n a t i o n a l d e v e l o p m e n t in an i n h e r e n t l y h i e r a r c h i c a l i n t e r n a t i o n a l division of l a b o r China's preferred goal. A n d powerful n a t i o n a l a n d governments c o h e r e n t political strategics fostering t e c h n o l o g i c a l are the n a t u r a l m e a n s for e n h a n c i n g military security a n d e c o n o m i c petitiveness. W h a t h o i d s for C h i n a n o t h o l d for t h e Overseas C h i n e s e . F o r Hatch and (1996: 96) t h e talk a b o u t " G r e a t e r C h i n a " a n d

lib

Peter j.

the that an m a n u f a c t u r i n g a n d financial n e t w o r k is b e i n g built up and around China n o t h i n g b u t "idle c h a t t e r . " In t h e i r view, C h i n e s e networks a r c no m o r e t h a n a scries of ad hoc deals between sprawling lacking synergy. H a n d i c a p p e d ability to adopt even T a i w a n e s e b u s i n e s s m e n "have felt c o m p e l l e d to o p e n wide t h e i r a r m s " to J a p a n e s e 9(5). C h i n e s e n e t w o r k s rent-seeking, J a p a n e s e o n e s t e c h n o l o g i c a l efficiency. this t h e a r c h i t e c t u r e of is strictly h i e r a r c h i c a l J a p a n a t t h e a p e x . J a p a n c o n t r o l s t h e flow and technologies and provides p r o d u c e r s i n o t h e r c o u n t r i e s capital a n d i n t e r m e d i a t e i n p u t s . S o u t h Korea a n d T a i w a n , t h o u g h closing development gap quickly, specialize i n s o m e w h a t lower t e c h n o l o g i c a l p r o d u c t s a n d r e m a i n d e p e n d e n t on i m p o r t s o f key t e c h n o l o g i e s a n d i n t e r m e d i a t e p r o d u c t s . A n d t h e NIEs S o u t h e a s t Asia p r o v i d e raw materials, m a r k e t s and upgrading platforms for assembly a n d , increasingly, indigenous production 207). O t h e r scholars d i s a g r e e for g o o d r e a s o n s . H o n g Kong, for e x a m p l e , a pivot a r o u n d which t h e e c o n o m y of S o u t h e a s t revolves, a n d a vital place for o p e r a t i n g in all of m a j o r m a r k e t s of t h e world e c o n o m y Michael account of the astonishing turn-around US e l e c t r o n i c s i n d u s t i y "has rested large o n t h e g r o w i n g technical sophistication a n d c o m p e t i t i v e s t r e n g t h o f Asian-based p r o d u c e r s i n t h e C h i n a Circle, S i n g a p o r e , a n d S o u t h K o r e a " (1997: 141). C o n f r o n t e d by a potentially c r i p p l i n g d e p e n d e n c e their c o m p e t i t o r s for c h i p s , displays a n d precision c o m p o n e n t s , a n d o t h e r vital t e c h n o l o g i e s U S f i r m s d e c i d e d t o m a k e u n d e r lying t e c h n o l o g i e s m o r e o p e n a n d c o m p e t i t i v e t o f i r m s Chinese networks. "In c o n j u n c t i o n with g o v e r n m e n t policies a n d local private investors Asia, US firms gradually t u r n e d t h e i r Asian p r o d u c t i o n n e t w o r k s i n t o flexible supply-base alternatives to J a p a n e s e firms" In o t h e r words, in c o n t r a s t J a p a n e s e firms, US p r o d u c e r s transferred t h a t t u r n e d t h e i r Asian p r o d u c t i o n networks from simple assembly affiliates to technologically Asian p r o d u c e r s c o m p e t ing effectively t h e p r o d u c e r s of J a p a n e s e t e c h n o l o g i e s . This policy t h u s exemplifies a US r e s p o n s e to excessive d e p e n d e n c e on key c o m of J a p a n e s e s u p p l i e r s a n d a toward an e m e r g i n g Asian p r o d u c t i o n n e t w o r k of p r o d u c e r s greatly s t r e n g t h e n e d by t h e decision of US c o r p o r a t i o n s t o m a k e a d v a n c e d t e c h n o l o g i e s available. T h e rapidity of that d e v e l o p m e n t resulted from t h e of US corporate with b o t h s u p p o r t i v e g o v e r n m e n t policies a n d local Asian investments. T h e h a r d disk drive i n d u s t i y is a g o o d illustration al. 2 0 0 0 ) . It was t h e globalization of t h e o p e r a t i o n s of small a n d y o u n g firms like Seagate assured t h e i r growth a n d a n d p r o p e l l e d U S i n d u s t i y first t o S i n g a p o r e a n d t h e n t h r o u g h o u t

t e c h n o l o g y and Asian regionalism 237 S o u t h e a s t Asia. M o r e e s t a b l i s h e d US firms J a p a n e s e firms lowed still later, n e v e r p o s i n g a s e r i o u s t h r e a t to US d o m i n a t i o n of this T h e d u a l s t r u c t u r e of t h e i n d u s t r y e v i d e n t , with R&D located in Silicon Valley a n d a n d a r o u n d S i n g a p o r e . Like Korea a n d T a i w a n , S i n g a p o r e ' s g o v e r n m e n t is p e r f e c t i n g a strategy to leverage a d v a n c e d t e c h n o l o g y which d o e s n o t receive i m p o r t e d t e c h n o l o g y , b u t d e v e l o p s an o r g a n i z a t i o n a l system for m a n a g i n g t e c h n o l o g y leverage i n t h e i n t e r e s t o f q u i c k a d a p t a t i o n , diffusion a n d through systems of p r o d u c t i o n t h a t link firms ( W o n g 2 0 0 0 ) . Asian gove r n m e n t s have p e r f e c t e d a strategy t h a t leverages technology w h i c h , based on an i n f o r m e d a s s e s s m e n t of t e c h n o l o g i c a l trajectories, seeks to diffuse capabilities r a t h e r g e n e r a t i n g n e w k n o w l e d g e in individual firms. A l t h o u g h t h e specific institutional a n d o r g a n i z a t i o n a l of factors that has o p e r a t e d Asia differs from c o u n t r y lo c o u n t r y , all governments relied on a strategy of l e v e r a g i n g t e c h n o l o g y to a c c e l e r a t e the process of creating competitive advantages industries where no a d v a n t a g e initially existed ( M a t h e w s 199(5: 1-5; Mathews a n d C h o 2 0 0 0 ) . Local Asian i n v e s t m e n t s w e r e a n i m p o r t a n t a v e n u e for s i d e s t e p p i n g excessive r e l i a n c e o n J a p a n . T h a i l a n d , a n d Malaysia, a m o n g o t h e r s , tailor t h e i r r e s p o n s e to local c i r c u m s t a n c e s a n d to t h e e x i s t e n c e of differently c o n f i g u r e d overseas C h i n e s e e c o n o m i c n e t w o r k s (Zysman a n d B o n u s 84). R e s i d e n t e t h n i c C h i n e s e investors played t h e p r i n c i p a l private e n t r e p r e n e u r i a l role t h e C h i n a Circle, S i n g a p o r e , a n d later in Malaysia, Indonesia, and Thailand The b y t h e e n d o f t h e 1980s, was b u r g e o n i n g indigenous electronics production throughout the r e g i o n , with m o s t of it, o u t s i d e u n d e r t h e c o n t r o l of overseasChinese capital. 1997: 148; see also Keller a n d

2000)

Firms Taiwan S e m i c o n d u c t o r M a n u f a c t u r i n g a n d U n i t e d Microelectronics act as c o n t r a c t o r s t h a t m a k e c h i p s based on t h e designs of t h e i r c u s t o m e r s . T o g e t h e r they c o n t r o l a b o u t two- t h i r d s o f t h e f o u n d r y m a r k e t w h i c h in a few years t i m e e s t i m a t e d lo grow a b o u t half of t h e total o u t p u t of the semi-conductor industry 2000, Furthermore, first-tier T a i w a n e s e firms have m a t u r e d in t h e i r c o n t r o l o v e r key t e c h n o l o gies a n d a r c themselves n o w r i d i n g h e r d o n a n extensive i n d i g e n o u s s u p p l y base that s p r e a d i n g t e c h n o l o g y to " t h o u s a n d s of small a n d m e d i u m - s i z e d e s i g n , c o m p o n e n t , parts, sub-assembly, a n d assembly h o u s e s " t h a t have b e c o m e p a r t of a local p r o d u c t i o n n e t w o r k a n d supply base ( B o n u s 1997: 152). T e c h n i c a l specialization t h u s h e l p e d b o t h U S f i r m s a n d i n d i g e n o u s Asian p r o d u c e r s i n l o o s e n i n g t h e i r d e p e n d e n c e o n J a p a n e s e producers. In the coming decades leadership in industry

J.

could pass From US a n d J a p a n e s e firms lo i n d i g e n o u s producers, a n d p a r t i c u l a r t h o s e located t h e C h i n a Circle which m i g h t conceivably e n d u p relying o n vast d e m a n d a n d c o n s i d e r a b l e technical know-how. Both g o v e r n m e n t policy a n d c o r p o r a t e i n v e s t m e n t thus c a m e t o g e t h e r astonishing of personal computer and industries. In a span of less t h a n two d e c a d e s Taiwan t r a n s f o r m e d itself from a lowwage e c o n o m y t o t h e third of technologies. It did so n e i t h e r t h r o u g h a state-led industrial nor through r e l i a n c e on t h e of m a r k e t t h e governm e n t exploited the economic advantages could b e derived from t h e i n t e r n a t i o n a l c o l l a b o r a t i o n between p r o d u c e r s Silicon Valley a n d t h e H s i n c h u - T a i p e i r e g i o n . T h o s e c o n n e c t i o n s w e r e m a d e possible f i r s t a n d f o r e m o s t by t h e large c o m m u n i t y overseas T a i w a n e s e e n g i n e e r s a n d literally t h o u s a n d s of T a i w a n e s e e n g i n e e r s that r e t u r n e d especially in t h e 1990s. t h e 1970s flow of was from Taiwan to t h e USA, later t h e r e was a substantial r e t u r n m i g r a t i o n that t h e T a i w a n e s e g o v e r n m e n t strongly e n c o u r a g e d . Highly skilled, t h e s e overseas C h i n e s e w e r e d i s t i n g u i s h e d b y b o t h s t r o n g e t h n i c a n d professional identities which p e r m i t t e d deep technical c o m m u n i t i e s of and 2000: As largest g r o u p of Silicon foreign-born e n g i n e e r s , C h i n e s e also were by far t h e largest g r o u p of foreign-born C E O s . Many of these b u s i n e s s m e n often m o r e c o m f o r t a b l e t h a n successful e n t r e p r e n e u r s from o t h e r Asian c o u n t r i e s s e t t i n g up b r a n c h o p e r a t i o n s in Valley 14, 2 2 ) . g r o u p was a target as t h e Taiw a n e s e g o v e r n m e n t established a b u r g e o n i n g v e n t u r e capital m a r k e t in t h e early 1980s to h e l p build up its high-tech industry. A o n e d o l l a r investm e n t in v e n t u r e capital m a r k e t s p r o d u c e s t h r e e to five times as m a n y p a t e n t s as a d o l l a r in r e s e a r c h a n d d e v e l o p m e n t 2). The outcome a variety of linking a n d engin e e r s as well as US firms o p e r a t i n g Silicon Valley a n d H s i n c h u - T a i p e i . The of Greater China and financial a n d networks has affected strategy of J a p a n e s e c o r p o r a t i o n s since t h e Since J a p a n e s e p r o d u c e r s h a d r e l u c t a n t t o diffuse technology lo Asian s u p p l i e r s Michael that t h e r e will be a quick turn-around t h e c o r p o r a t e strategies of firms favor of from an i n d e p e n d e n t e m e r g i n g Asian supply base (1997: 149, D i e t e r Ernst, o n t h e o t h e r h a n d , sees J a p a n e s e c o r p o r a t i o n s a s rapidly o p e n i n g t h e i r p r o d u c t i o n networks i n e l e c t r o n i c s l o e x t e n d t h e g e o g r a p h i c coverage a n d t h e d e g r e e o f local of regional p r o d u c t i o n activities. In his J a p a n e s e c o r p o r a t i o n s have a s t r o n g interest i n b o t h d e v e l o p i n g a n d h a r n e s s i n g resources and technological capabilities ( E r n s t 1997: In c o n t r a s t to t h e 1980s,

t e c h n o l o g y and Asian regionalism

239

in the 1990s, Ernst writes, "The of Japanese higher level nent suppliers thus increasingly have to rely on domestic Asian subcontractors, mostly through various contractual, nonequity arrangements such as consignment production and contract manufacturing" 223). development, were it to occur on a large would signal a historic shift from an era "in which, East Asia, Japan possessed a full-set industrial and technological to an age in which technical transfer and mutual interdependence in technology arc discussed with the total development of East Asia mind" (Seki 1994: 32). Change, at best, however, will come Ernst and both agree that even in the 1990s, most key components still must be from Japan or from Japanese firms producing in the region (Ernst 1997: 223; Bonus 1997: The competitive networks are interlacing political create a structural predisposition for openness. direct foreign investment is targeted, by sector and country, to harmonize with the transformation of Japan's economy. But the dependence of Asian (including Asian-based affiliates) on the US market in particular a factor supporting the continued openness of Asian regionalism (Kalo 205-8). Japanese engagement in the rich US and European markets remains unabated. And terms of both direct foreign investment and exports, have been leading the way Asia since the late 1980s, much of it centered in the financial and manufacturing networks of overseas Chinese. Openness to is the likely path for Asian regionalism. and

networks

and

the

character

of Asian

regionalism

source of the Japanese and Chinese networks differs greatly. Japanese capitalism flowered an era of state-building, Chinese capitalism in an era of state collapse (Hamilton 1996: 332-3, 336). The number of overseas Japanese is dwarfed by the numbers of overseas Chinese. And Chinese business networks are more extensive and have deeper historical roots than do Japanese networks. Since the midnineteenth century Japanese officials built up Japanese networks in full awareness of the severe competition that Japanese firms face confronting Chinese (Skinner 1979: 1984: 1988, 1997). Different historical origins thus have shaped the different character of and Japan's economic extension In the words of "In contrast to the exceedingly close tics between the Japanese abroad and their home islands, the Chinese global network possess no fixed national point of origin, no central "(1993: 167).

240

Peter J. Katzenstein

general pattern evident specific industrial sectors s u c h as electronics (Katzenstein 1997a: 3 9 - 4 0 ) . networks of firms rely stantially o n k n o w n J a p a n e s e s u p p l i e r s with c o m p a r a b l e t e c h n i c a l capacities. Overseas C h i n e s e firms d r a w on n e t w o r k s of increasingly highv a l u e d a d d e d t e c h n i c a l specialization of small a n d m e d i u m - s i z e d firms s c a t t e r e d t h r o u g h o u t Asia. J a p a n e s e n e t w o r k s a r e closed, J a p a n - c e n t e r e d , and long-term. Chinese networks open, and disposable ( B o n u s 1994: 3 ) . C o n s i d e r t h e c o n t r a s t b e t w e e n J a p a n e s e a n d C h i n e s e business networks t h e case of T h a i l a n d . Based on careful field r e s e a r c h Mitchell Sedgwick 8), concluded Japanese multinationals Thailand have r e p r o d u c e d an of l a b o r a n d s t r o n g c e n t r a l i z a t i o n of d e c i s i o n - m a k i n g t h e " F o r d i s m " - that they to avoid in post-war J a p a n B e y o n d i n t e r n a l p l a n t d y n a m i c s , however, t h e strict c e n t r a l i z a t i o n is also reflected t h e p o s i t i o n of subsidiaries q u a r t e r s . Subsidiaries in T h a i l a n d a r e p a r t of a tightly c o n t r o l l e d a n d rigorously h i e r a r c h i c a l o r g a n i z a t i o n a l s t r u c t u r e e x t e n d i n g d o w n from Japan. I n c o n t r a s t , d o m i n a t e d b y t h e C h i n e s e T h a i l a n d ' s business c o m m u n i t y has to c h a n g i n g c o n d i t i o n s o v e r But t h e r e c e n t e r a of intern a t i o n a l i z a t i o n o f the economy, the most recent generation of C h i n e s e e n t r e p r e n e u r s have r u n t h e i r business a l o n g t r a d i t i o n a l C h i n e s e lines a n d m a i n t a i n e d close c o n t a c t s with t h e C h i n e s e b u s i n e s s c o m m u n i t ies H o n g K o n g , S i n g a p o r e , Taiwan a n d C h i n a . Rapid c o r p o r a t e g r o w t h r e s u l t e d from i n t e r n a t i o n a l alliances, typically with t h e Overseas C h i n e s e w h o a r e o p e r a t i n g i n h o r i z o n t a l a n d o p e n n e t w o r k s , r a t h e r t h a n vertical a n d closed o n e s as t r u e of J a p a n ( H a m i l t o n a n d Waiters 1995: 94, 99-100). Asian regionalism is built on o r g a n i z a t i o n a l characteristics of business t h a t differ greatly different d i m e n s i o n s set vertical J a p a n e s e f i r m n e t w o r k s a p a r t from h o r i z o n t a l C h i n e s e o n e s a s Hamilton and his c o l l e a g u e s h a v e s h o w n ( H a m i l t o n at. 1987: Hamilton a n d Feen1997: 6 7 - 7 3 ) . In t e r m s of o w n e r s h i p , s h a r e h o l d i n g of g r o u p firms in c o n t r a s t s with family o w n e r s h i p a n d p a r t n e r s h i p for t h e Overseas Chinese; n e t w o r k s revolve a r o u n d c r o s s - s h a r e h o l d i n g a n d m u t u a l d o m i n a t i o n r a t h e r t h a n m u l t i p l e positions h e l d b y c o r e p e r s o n n e l ; networks involve c r o s s - s h a r e h o l d i n g , loans a n d ventures r a t h e r t h a n cross-investments by individuals a n d firms; s u b c o n t r a c t relations a r e s t r u c t u r e d o r semi-formal r a t h e r t h a n informal a n d highly flexible; i n v e s t m e n t p a t t e r n s a r e reflected vertical a n d h o r i z o n t a l integration rather than and growth patterns are marked by

Japan, t e c h n o l o g y and

regionalism 2 4 !

bank-financed g r o u p r a t h e r t h a n i n f o r m a l f i n a n c i n g a n d reinvestment 1997: 183). T h e J a p a n e s e a n d C h i n e s e forms o f o r g a n i z i n g Asian r e g i o n a l i s m a r c both a n d c o m p e t i t i v e . T h e n e w c r o p o f C h i n e s e tycoons Southeast has c o l l u d e d with J a p a n e s e business as true, example, of the M o t o r G r o u p i n T h a i l a n d , t h e Astra C o m p a n y a n d Group Indonesia, the G r o u p in Philippines, a n d t h e Kuik B r o t h e r s in Malaysia 1995: 189; 1998: C h a p t e r 6 ) . But C h i n e s e a n d J a p a n e s e business a r c also l o c k e d i n c o m p e t i t i o n with o n e a n o t h e r . J a p a n e s e firms find it very difficult to work w i t h o u t C h i n e s e m i d d l e m e n w h o d o m i n a t e t h e local including both p r o d u c t i v e a n d distributive n e t w o r k s . F o r i n s t a n c e , of joint ventures between J a p a n e s e and Indonesian firms, 70 percent of the I n d o n e s i a n p a r t n e r s were local C h i n e s e (Brick 1992: 1995: 189). A n d H o n g K o n g elites a n d t h e overseas C h i n e s e business elite have b e n e fited from t h e c u l t u r a l affinities as well as old familial a n d business to o v e r c o m e p r o b l e m s o f trust a n d reliability. B o t h forms regionalism are defined m a r k e t t e r m s (Katzenstein 1997a: 14). Asian m a r k e t s , h o w e v e r , do n o t consist of a series of unconnected and atomized transactions. give e x p r e s s i o n i n s t e a d t o i n s t i t u t i o n a l i z e d r e l a t i o n s h i p s t h a t i m p l i c a t e d e e p l y b o t h business a n d g o v e r n m e n t . F o l l o w i n g t h e g r o w t h o f J a p a n e s e d i r e c t foreign i n v e s t m e n t , especially after 1985, m u l t i n a t i o n a l c o n t r o l an u n p r e c e d e n t e d s h a r e of foreign t r a d e in Asia. trade a c c o u n t s for a b o u t 8 0 p e r c e n t o f total J a p a n e s e e x p o r t s a n d half o f Japanese imports 1994: 2 ) . A n d foreign i n v e s t m e n t has s p u r r e d t h e g r o w t h o f vertical structures from J a p a n t h r o u g h o u t Asia, a s J a p a n e s e p r o d u c e r s have e x t e n d e d t h e i r d o m e s t i c s u b c o n t r a c t i n g a r r a n g e m e n t s on a r e g i o n a l B o t h , h o w e v e r , a n d t h e Asian r e g i o n a l i s m they h e l p d e f i n e , avoid f o r m a l i n s t i t u t i o n a l i z a t i o n ( K a t z e n s t e i n 1997a: 4 0 - 1 ) . is m a r k e d by t h e w e a k n e s s of f o r m a ! i n t e r n a t i o n a l i n s t i t u t i o n s . It is d e f i n e d p r i m a r i l y by i n s t i t u t i o n s o p e r a t i n g markets. Japanese s t r u c t u r e s a n d C h i n e s e family f i r m s b r i n g a b o u t e c o n o m i c i n t e g r a t i o n w i t h o u t f o r m a l , political In t h e 1990s Asian r e g i o n a l i s m open to d e v e l o p m e n t s in t h e global e c o n o m y . Its e c o n o m i c form networklike. political s h a p e is A n d its political d e f i n i t i o n is contested.

Germany and Europe Asia's r e g i o n a l t e c h n o l o g y o r d e r differs greatly from E u r o p e ' s . B e c a u s e technology regionally d e e p l y e m b e d d e d in E u r o p e a n d less e x p o s e d to t h e i n t e r n a t i o n a l e c o n o m y , e c o n o m i c security is n o t a d e c l a r e d objective

242 P e t e r J. Katzenstein o f G e r m a n policy. F r o m t h e political a n d business of Europe, including d e p e n d e n c e on European markets does not constitute a potential t h r e a t . If a n y t h i n g , creates e c o n o m i c a n d political o p p o r t u n i t i e s . G e r m a n y seeks to d e f e n d traditional posiu o n of t h e "good s e c o n d " a b r o a d array of policies. R a t h e r t h a n a t t e m p t i n g t o c r e a t e t h e c o n d i t i o n s for leap-frogging, G e r m a n policy at diffusing t e c h n o l o g i c a l a d v a n c e s to import. G e r m a n y t h u s lacks s e n s e of nerability a n d s t r o n g ideological c o m m i t m e n t t o t h e goal o f e n h a n c e d technological autonomy. E m b e d d e d E u r o p e a n d n o t particularly e x p o s e d lo p o t e n t i a l i n t e r r u p t i o n s in t h e supply of raw m a t e r i a l s , G e r m a n institutions have n e v e r r e g a r d e d t h e i r security as b e i n g closely related t o e c o n o m i c security a n d t e c h n o l o g i c a l a u t o n o m y . T h e c o n c e p t o f i n t e r d e p e n d e n c e d o e s , however, have a d e e p p u b l i c r e s o n a n c e . G e r m a n policies a n d politics a n d m o s t o f institutions a r e p e r m e a t e d b y t h e n o t i o n that t h e c o u n t r y ' s f u t u r e lies with a d e e p e n i n g a n d b r o a d e n i n g o f E u r o p e a n i n t e g r a t i o n r a t h e r t h a n with e n h a n c e d n a t i o n a l nomy. T h e national of Germany was p r e d i c a t e d o n t h e s i m u l t a n e o u s a c c e l e r a t i o n of E u r o p e a n i n t e g r a t i o n . A n d in m o n e t a r y i n t e g r a t i o n has b e c o m e t h e m o s t i m p o r t a n t political e x p e r i e n c e for E u r o p e t h e 1990s. In t h e a r e a of Germany u n a m b i g u o u s in its b a c k i n g of i n t e r n a t i o n a l c o r p o r a t e alliances, i n c l u d i n g E u r o p e a n c o r p o r a t e alliances, as t h e n a t u r a l vehicle for r e s p o n d i n g to t h e wave of In s e m i - c o n d u c t o r s t h e G e r m a n supports a special p r o g r a m which S i e m e n s to Phillips. In aviation, supports the Airbus a n d t h e For a d v a n c e d n u c l e a r r e a c t o r s a n d fuel cycles G e r m a n y has e n t e r e d c o m p l e x c o n s o r t i a with o t h e r E u r o p e a n c o u n t r i e s . A n d , s e e k i n g t o s t r e n g t h e n n a t i o n a l t e c h n o l o g i c a l capabilities since t h e mid-1980s, G e r m a n y has p a r t i c i p a t e d actively the European C o m m u n major p r o g r a m s , s u c h as Esprit a n d E u r e k a 1990: Reflecting b o t h G e r m a n y ' s d e e p e n t a n g l e m e n t i n E u r o p e a n d its position of relative t e c h n o l o g i c a l b a c k w a r d n e s s , especially electronics, German more Japanese experts a r e c o m m i t t e d t o t h e necessity o f i n t e r n a t i o n a l c o o p e r a t i o n and 1994: 1 9 0 - 2 ) . T h e partial p o o l i n g o f policy E u r o p e a n processes t h e 1980s t h u s follows a g e n e r a l p a t t e r n that sets J a p a n a n d G e r m a n y , a n d Asian a n d E u r o p e a n regionalism Because of the p e a n level, the about half its constitutes the

g r o w i n g i m p o r t a n c e o f policy initiatives a l t h e E u r o s e c o n d half o f 1980s t h e g o v e r n m e n t r e d u c e d b y support electronics industiy, though government's understanding core of

and Asian regionalism 243 sector (Grande and 1994: 1 9 7 - 8 ) . E u r o p e a n t i o n n o t n a t i o n a l a u t o n o m y has i n c r e a s i n g l y s h a p e d G e r m a n y ' s t e c h n o logy policy. G e r m a n firms r e c e i v e d DM 1.2 from t h e m a j o r p r o g r a m s of t h e EU ( E S P R I T I a n d II a n d RACE I) 485). And share of EC expenditures in total r e s e a r c h a n d d e v e l o p m e n t b u d g e t increased from 4 p e r c e n t 1980 to 12 p e r c e n t 1991 2 1 6 ) . W h i l e G e r m a n b u s i n e s s s h a r p l y r e d u c e d f u n d i n g o f basic r e s e a r c h , E u r o p e a n policy initiatives s o u g h t t o c o u n t e r t h e t r e n d with specific p r o grams basic r e s e a r c h p o t e n t i a l for c o m m e r c i a l t i o n . T h e C o m m i s s i o n was c o r r e c t in its a s s e s s m e n t of h o w to c o m p l e m e n t n a t i o n a l p r o g r a m s , b u t i t was overly o p t i m i s t i c i n its e x p e c tation of a t a r g e t e d i n d u s t r i a l policy c o u l d t r a n s l a t e i n t o m a r k e t a b l e products A l t h o u g h E u r o p e a n policy initiatives were q u i t e substantial a b s o l u t e t e r m s , it was d w a r f e d c o m p a r i s o n to n a t i o n a l outlays. B e t w e e n 1987 a n d 1991 EC f u n d i n g a m o u n t e d to than 2 p e r c e n t o f t h e total r e s e a r c h f u n d i n g o f t h e f e d e r a l g o v e r n m e n t a n d t h a n half a p e r c e n t o f G e r m a n y ' s total expenditure and 1995: 1 6 4 ) . I t i s t h u s n o t s u r p r i s i n g t h a t E u r o p e a n policy failed i n r e v e r s i n g t h e E u r o p e a n a n d G e r m a n lags i n h i g h - t e c h n o logy p r o d u c t s , specifically i n e l e c t r o n i c s (Van and 125-55, 209-52; 1990: 1 3 3 - 7 ; 1991; 1992; P e t e r s o n 1 9 9 3 ; G r a n d e a n d H a u s l e r 1994: 2 0 1 - 3 1 5 ; R e g e r a n d K u h l m a n n 1995). T h e n a t i o n a l a n d E u r o p e a n cross-currents affecting G e r m a n y ' s t e c h n o policy can be illustrated the various p r o g r a m s funded t h e 1990s. T h e EU supports its large E S P R I T p r o g r a m E u r o p e a n against U S a n d J a p a n e s e t h e G e r m a n Federal Ministry o f Research, as part of the European Silicon p r o g r a m a n d G e r m a n - A m e r i c a n industrial c o o p e r a t i o n , subsidizes the d e v e l o p m e n t o f S i e m e n s a n d IBM; a n d individual states, such as subsidize t h e i n v e s t m e n t p l a n s o f J a p a n e s e chip producers in Germany (Grande and 1994: 2 8 8 - 3 1 5 , contradictions policy a r e s t r u c t u r a l , a n d growing will i n c r e a s e . refers h e r e to t h e g r o w t h of a d e n s e , m u l t i d i m e n s i o n a l b a r g a i n i n g system w h i c h d o m i n a t e d fully by t h e C o u n c i l of Ministers in w h i c h n a t i o n a l g o v e r n m e n t s meet n o r by the of corporate and bureaucratic actors 504). E c o n o m i c a n d t e c h n o l o g i c a l differences b e t w e e n t h e E u r o p e a n states a n d r e g i o n s a r e so l a r g e that it highly i m p r o b a b l e t h e s e will arrive a t o p t i m a l policy s o l u t i o n s t h a t t h e h o m o g e n e o u s , G e r m a n i n n o v a t i o n system p r o m i s e s at least t h e o r y . E x p e n d i t u r e s for r e s e a r c h a n d developm e n t i n G e r m a n y a r e 2 0 0 times l a r g e r t h a n i n G r e e c e o r I r e l a n d a n d t h e big E u r o p e a n t h r e e ( G e r m a n y , F r a n c e a n d B r i t a i n ) a c c o u n t for

244

j.

75

o f total E u r o p e a n e x p e n d i t u r e s o n research a n d d e v e l o p m e n t 507). Contradictory are by d e v e l o p m e n t s in t h e c o r p o r a t e sector. In t h e e l e c t r o n i c s i n d u s t i y , for e x a m p l e , t h e 1960s a n d 1970s t h e federal g o v e r n m e n t h a d to deal only with S i e m e n s a n d a small n u m b e r o f a d d i t i o n a l f i r m s . B u t e s c a l a t i n g costs i n p r o d u c t d e v e l o p merit a n d lagging c o m p e t i t i v e n e s s p r o d u c e r s have to a of strategic a global scale t h a t a r e l e a d i n g to a l o o s e n i n g of b e t w e e n g o v e r n m e n t a n d business 1994: National programs seeking to e n h a n c e the competitiveness of national p r o d u c e r s have b e c o m e "leaky." JESSI's histoiy illustrates t h e tension b e t w e e n t h e efforts o f n a t i o n a l g o v e r n m e n t s t o c r e a t e c o m p e t i t i o n b e t w e e n t h e t h r e e world r e g i o n s t h a t g r o w i n g c o o p e r a t i o n b e t w e e n S i e m e n s , IBM a n d T o s h i b a l e n d s l o u n d e r c u t While t h e is i m p o r t a n t in s t r u c t u r i n g a r e g i o n a l c o m p l e m e n t lo n a t i o n a l policies, s o a r e r e g i o n a l p r o d u c t i o n n e t w o r k s . M o r e often t h a n n o t they o p e r a t e a t r a t h e r t h a n s u p r a n a t i o n a l levels. C h a r l e s Sabel, R i c h a r d L o c k e a n d H e r r i gel have investigated p r o d u c e r c o m m u n i t i e s in specific industrial districts t h a t a r e r e l a t e d in d e n s e networks s u p p o r t i n g flexible quality p r o d u c t i o n ( P i o r e a n d Sabel 1984; L o c k e 1995; 1996). T h e s e networks often have l o n g histories which specific t e c h n o l o g i c a l a n d institutional capacities a r c r e b u i l t over Geographically p r o d u c e r s built institutions a n d f a s h i o n e d identities t h a t p r o v i d e d for collective g o o d s typically in design a n d p r o d u c t i o n a n d occasionally i n f i n a n c e a n d m a r k e t i n g . Success in a n d world m a r k e t s often followed. C o m p a r e d to J a p a n e s e s t r u c t u r e s , these E u r o p e a n p r o d u c t i o n networks a r c egalitarian n o t h i e r a r c h i c a l ; a n d they e n h a n c e social h o m o g e n e i t y r a t h e r t h a n hete r o g e n e i t y (see also 1996: 2 9 - 3 3 ) . I n brief, w h a t m a t t e r e politically a t E u r o p e a n level d u r i n g t h e p a s t half-century a r e n o t p r o d u c t i o n n e t w o r k s which is c o n trolled o r diffused b u t a n e m e r g i n g E u r o p e a n t o which b o t h G e r m a n y a n d t h e states are d e p e n d e n t on are drawn. ContemporE u r o p e a n politics revolves a r o u n d t h e d e e p e n i n g a n d b r o a d e n i n g o f E u r o p e i n t e r m s o f b o t h m e m b e r s h i p a n d issue c o v e r a g e , n o t a r o u n d and production. Thus m a t t e r s little politically that t h e p r o clivity o f G e r m a n c o r p o r a t i o n s for o u t w a r d p r o c e s s i n g a n d p a r t i c i p a t i o n growth o f p r o t e c t e d d o m e s t i c r a t h e r t h a n e x p o s e d E u r o p e a n o r global has n o t n o t a b l y e n h a n c e d t h e t e c h n o l o g i c a l capacities o f t h e s o u t h e r n a n d c e n t r a l E u r o p e a n states. T r a n s f e r p a y m e n t s from t h e E u r o p e a n U n i o n (EU) b u d g e t t o weak r e g i o n s m a t t e r m o r e . E u r o p e has d e v e l o p e d its own institutional logic as a and gove r n a n c e s t r u c t u r e t h a t differs f u n d a m e n t a l ways from t h e c o r p o r a t e a n d e t h n i c s t r u c t u r e s that t o g e t h e r Asia.

Japan,

and Asian

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In sum, on of technology is deeply e m b e d d e d in an E u r o p e a n policy n e t w o r k s . Policy is c a u g h t b e t w e e n c o n t r a d i c t o r y impulses. In the area of high-technology the G e r m a n g o v e r n m e n t c a n n o t achieve its objectives by itself; a n d a g a i n s t t h e wishes of t h e G e r m a n g o v e r n m e n t little can b e a c h i e v e d a t t h e E u r o p e a n level ( G r a n d e a n d 1994: 5 0 5 ) . I n t e c h n o l o g i e s E u r o p e has b e c o m e in s o m e a r e a s s u c h a substantial s o u r c e of f u n d i n g that t h e G e r m a n g o v e r n m e n t has greatly c u r t a i l e d s c o p e o f n a t i o n a l s u p p o r t o f techn o l o g i e s d e e m e d to be of critical i m p o r t a n c e . S u c h a policy m a k e s s e n s e E u r o p e . T h e r e is no basis for c o m p a r a b l e policies in Asia.

Conclusion W h e r e i s Asian r e g i o n a l i s m h e a d i n g o n q u e s t i o n s o f The a n s w e r t o this q u e s t i o n d e p e n d s i n p a r t o n o u r views o n t h e f u t u r e evolution o f J a p a n ' s capacity for t e c h n o l o g i c a l i n n o v a t i o n . T h e rapidity with w h i c h J a p a n has i m p o r t e d , a d a p t e d , diffused a n d r e e x p o r t e d t e c h n o l o g y is, as H e r b e r t has s h o w n , t h e result of t h e m a t c h i n g of specific i n s t i t u t i o n a l practices of t h e J a p a n e s e polity with specific r e q u i r e m e n t s of t e c h n o l o g i c a l systems ( 1 9 9 1 : T h e adaptations of medium-techn o l o g i e s with tightly c o u p l e d systems of limited causal c o m p l e x i t y to hight e c h n o l o g i e s r e q u i r e m e d i u m - l o n g p r o d u c t i o n r u n s that l e n d themselves to improvements through innovations in production p r o c e s s e s a n d p r o d u c t t e c h n o l o g i e s . W i t h relatively low u n c e r t a i n t i e s a n d n o m o r e t h a n m o d e s t i n t e r a c t i o n s b e t w e e n different c o m p o n e n t s o f systems, efficient g o v e r n a n c e o f t e c h n o l o g y can d r a w o n devices t h a t c h a r a c t e r i z e t h e J a p a n e s e polity m o r e generally: s t r o n g c o m p e t i t i o n b e t w e e n firms, c o o p e r a t i o n a m o n g f i r m s i n p r e - c o m m c r c i a l r e s e a r c h , a n d ministerial g u i d a n c e toward specific t e c h n o l o g i c a l trajectories. W h e r e o t h e r c o n d i t i o n s a s i n aviation o r t h e n u c l e a r industry, t h e m i s m a t c h o f institutions has m a d e J a p a n ' s e x p e r i e n c e less successful. D e c i s i o n - m a k i n g typically has b e e n too c e n t r a l i z e d , t o o c o n s e n s u s - o r i e n t e d , a n d has t h e private s e c t o r with t o o m u c h risk: In a n u t s h e l l J a p a n ' s institutions have n o t p r o v i d e d a d e q u a t e govern a n c e s t r u c t u r e s for global, n o n - i n c r e m e n t a l t e c h n o l o g i c a l c h a n g e t h a t r e q u i r e a c o m b i n a t i o n of d e c e n t r a l i z e d a u t o n o m y in t h e s e a r c h for innovative s o l u t i o n s a n d highly c e n t r a l i z e d project m a n a g e m e n t in vast development programs. (Kitschelt 1 9 9 1 : 485) a r g u e s t h a t t h e m i s m a t c h e s w h i c h Kitschelt a n d o t h e r d e n t s o f "big" s c i e n c e a n d t e c h n o l o g y have d e t e c t e d i n J a p a n e s e institutions may be d e c r e a s i n g . J a p a n developing a a n d distinctive

244

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o f total E u r o p e a n e x p e n d i t u r e s o n research a n d d e v e l o p m e n t 507).

policies a r e also e n c o u r a g e d by the c o r p o r a t e sector. In t h e e l e c t r o n i c s i n d u s t i y , for e x a m p l e , in t h e 1960s a n d 1970s t h e federal g o v e r n m e n t h a d to deal only with S i e m e n s a n d a small n u m b e r of a d d i t i o n a l firms. But e s c a l a t i n g costs in p r o d u c t m e n t a n d lagging c o m p e t i t i v e n e s s p r o d u c e r s have to a multiplication strategic a global scale t h a t a r e l e a d i n g to a l o o s e n i n g of b e t w e e n g o v e r n m e n t a n d business 1994: 5 I 5 - 1 G ) . National programs seeking to e n h a n c e the competitiveness of national p r o d u c e r s have b e c o m e histoiy illustrates t h e tension b e t w e e n t h e efforts o f n a t i o n a l g o v e r n m e n t s t o c r e a t e c o m p e t i t i o n b e t w e e n t h e t h r e e world r e g i o n s that g r o w i n g c o o p e r a t i o n b e t w e e n S i e m e n s , IBM a n d T o s h i b a t e n d s t o u n d e r c u t W h i l e t h e EU important s t r u c t u r i n g a r e g i o n a l c o m p l e m e n t to n a t i o n a l policies, s o regional M o r e often t h a n n o t they at r a t h e r t h a n s u p r a n a t i o n a l levels. C h a r l e s Sabel, R i c h a r d L o c k e a n d have investigated p r o d u c e r c o m m u n i t i e s in specific industrial that arc related d e n s e networks s u p p o r t i n g flexible quality p r o d u c t i o n ( P i o r e a n d Sabel 1984; L o c k e 1995; H e r r i g c l 1996). T h e s e networks often have l o n g histories specific t e c h n o l o g i c a l a n d institutional capacities a r e r e b u i l t Geographically small-scale p r o d u c e r s built institutions a n d fashioned identities t h a t p r o v i d e d for collective g o o d s typically in design a n d p r o d u c t i o n a n d i n f i n a n c e a n d m a r k e t i n g . Success n a t i o n a l a n d world m a r k e t s often followed. C o m p a r e d to J a p a n e s e s t r u c t u r e s , t h e s e E u r o p e a n p r o d u c t i o n n e t w o r k s a r c egalitarian n o t h i e r a r c h i c a l ; a n d they e n h a n c e social h o m o g e n e i t y r a t h e r t h a n hete r o g e n e i t y (see also et 29-33). brief, w h a t m a t t e r s politically at t h e E u r o p e a n level t h e past half-century a r c n o t p r o d u c u o n networks which is trolled o r diffused b u t a n e m e r g i n g E u r o p e a n polity t o which b o t h G e r m a n y a n d t h e states that a r c d e p e n d e n t o n arc drawn. Contemporary E u r o p e a n politics revolves a r o u n d t h e d e e p e n i n g a n d b r o a d e n i n g o f E u r o p e i n t e r m s o f b o t h m e m b e r s h i p a n d issue c o v e r a g e , n o t a r o u n d a n d p r o d u c t i o n . T h u s it m a t t e r s little politically that t h e p r o clivity of G e r m a n c o r p o r a t i o n s outward processing and participation i n t h e growth o f p r o t e c t e d d o m e s t i c r a t h e r t h a n e x p o s e d E u r o p e a n o r global m a r k e t s has n o t notably e n h a n c e d t h e t e c h n o l o g i c a l of the southern and central European T r a n s f e r p a y m e n t s from t h e European Union b u d g e t t o weak r e g i o n s m a t t e r m o r e . E u r o p e has developed institutional logic as a multi-level a n d multi-sectoral gove r n a n c e s t r u c t u r e t h a t differs f u n d a m e n t a l ways from corporate and e t h n i c s t r u c t u r e s that together

t e c h n o l o g y and Asian regionalism 245 In s u m , on of t e c h n o l o g y G e r m a n y is e m b e d d e d in an E u r o p e a n policy n e t w o r k s . caught between impulses. t h e area o f h i g h - t e c h n o l o g y German government cannot achieve objectives by itself; a n d against t h e wishes of t h e G e r m a n g o v e r n m e n t little can b e a c h i e v e d a t t h e E u r o p e a n level ( G r a n d e a n d 1994: In t e c h n o l o g i e s E u r o p e has b e c o m e s o m e a r e a s s u c h a substantial s o u r c e funding that the German g o v e r n m e n t has greatly c u r t a i l e d t h e s c o p e of n a t i o n a l s u p p o r t of techd e e m e d to be of critical i m p o r t a n c e . S u c h a policy m a k e s sense in E u r o p e . T h e r e is no basis for c o m p a r a b l e policies in

Conclusion W h e r e i s Asian r e g i o n a l i s m h e a d i n g o n q u e s t i o n s o f t e c h n o l o g y ? T h e a n s w e r t o this d e p e n d s in o n o u r views o n t h e future tion o f J a p a n ' s for t e c h n o l o g i c a l i n n o v a t i o n . T h e rapidity which J a p a n has i m p o r t e d , a d a p t e d , diffused a n d r e e x p o r t e d t e c h n o l o g y as H e r b e r t Kitschelt has s h o w n , t h e result of t h e m a t c h i n g of specific institutional practices of t h e J a p a n e s e polity specific r e q u i r e m e n t s of t e c h n o l o g i c a l systems ( 1 9 9 1 : 4 8 0 - 9 1 ) . T h e of medium-techn o l o g i e s with tightly c o u p l e d systems of limited causal c o m p l e x i t y to technologies require p r o d u c t i o n r u n s that l e n d themselves to improvements through incremental innovations in production processes a n d p r o d u c t t e c h n o l o g i e s . W i t h low u n c e r t a i n t i e s a n d n o m o r e t h a n m o d e s t i n t e r a c t i o n s b e t w e e n different c o m p o n e n t s o f t e c h n o l o g i c a l systems, efficient g o v e r n a n c e of t e c h n o l o g y can draw on devices c h a r a c t e r i z e t h e J a p a n e s e polity m o r e generally: s t r o n g c o m p e t i t i o n b e t w e e n firms, c o o p e r a t i o n a m o n g firms research, and g u i d a n c e toward ories. W h e r e o t h e r c o n d i t i o n s prevail, as aviation or the n u c l e a r industry, t h e m i s m a t c h o f institutions has m a d e J a p a n s e x p e r i e n c e less successful. D e c i s i o n - m a k i n g typically has b e e n too c e n t r a l i z e d , t o o a n d has left t h e private s e c t o r with t o o m u c h risk: In a n u t s h e l l institutions have n o t p r o v i d e d a d e q u a t e govern a n c e s t r u c t u r e s for global, n o n - i n c r e m e n t a l change that r e q u i r e a of d e c e n t r a l i z e d a u t o n o m y the search for innovative s o l u t i o n s a n d highly c e n t r a l i z e d project m a n a g e m e n t vast development programs. (Kitschelt 1991: 485) F u m i o K o d a m a a r g u e s t h a t t h e m i s m a t c h e s which Kitschelt a n d o t h e r stud e n t s o f "big" s c i e n c e a n d t e c h n o l o g y have d e t e c t e d institutions may be d e c r e a s i n g . J a p a n is d e v e l o p i n g a new a n d distinctive

246

J. Katzenstein

high-tech t h a t favors its of institutional govern a n c e in six specific areas: m a n u f a c t u r i n g , diversification, R&D p r o d u c t d e v e l o p m e n t , i n n o v a t i o n p a t t e r n a n d societal diffusion of t e c h n o l o g y . "A p a r a d i g m shift in i n n o v a t i o n , driven by t h e r a p i d evolution of s c i e n c e a n d is o c c u r r i n g a n d favors t h e J a p a n e s e system" 1995: 3 ) . I n n o v a t i o n n o t a series of dramatic breakthroughs of but the " c o m p o u n d " or "fusion" of t e c h n o l o g i e s cross-fertilization from diff e r e n t scientific fields, as optoelectronics, and ( M a k i h a r a 1998: 5(51). v a u n t e d ability to m a k e i n c r e m e n t a l in i m p o r t e d t e c h n o l o g i e s increasingly m a t c h e d by a g r o w i n g ability to foster radical t e c h n o l o g i c a l a d v a n c e s in specific a r e a s (Taylor a n d Y a m a m u r a 2(5-7). J a p a n t h u s m a y b e i n t h e process o f b e c o m i n g a polity t h a t is well suited to t h e p a r a d i g m of t h e i n f o r m a t i o n i n d u s t r i e s ( S a m u e l s 1994: 15). B u t J a p a n ' s p o o r e c o n o m i c p e r f o r m a n c e d u r i n g t h e 1990s suggests a less optimistic possibility. J a p a n is r e p o r t e d to be b e h i n d by f o u r to five years in significant i n f o r m a t i o n t e c h n o l o g i e s 1999: 8 ) . Most c o m p a n i e s c o n t i n u e t o invest t h e i r b u d g e t disproportionately in hardware a n d m a n u f a c t u r i n g r a t h e r t h a n software a n d services A n d J a p a n e s e l e a d i n g r e s e a r c h e r s themselves believe iagging b e h i n d t h e U n i t e d States a n d E u r o p e i n m o s t a r e a s o f basic r e s e a r c h ( M a k i h a r a 1998: R e c e n t c h a n g e s in policy h a v e d o n e little to d a t e to c h a n g e this s i t u a t i o n . In s u m m a r y of a substantial n u m b e r of studies o f t h e p e r f o r m a n c e o f J a p a n e s e R&D A r t h u r A l e x a n d e r points to substantial weaknesses have b e c o m e m o r e e v i d e n t t h e 1990s. W i t h s basic sciences in a m u c h w e a k e r position t h a n its a p p l i e d r e s e a r c h ( C o l e m a n 2 0 0 1 ) , a n d d e s p i t e its g r o w i n g i n v o l v e m e n t i n t h e private R & D system o f t h e U n i t e d States (Reid a n d 1996: 3 9 - 1 3 9 ) , t h e t e c h n o l o g i c a l f u t u r e looks significantly less s e c u r e n o w t h a n d i d a d e c a d e or two earlier. T h e f i t b e t w e e n institutions a n d i s c o n t i n g e n t a n d can b e r e i n f o r c e d , o r a l t e r e d , b y significant c h a n g e s i n s p h e r e . Even d u r i n g t h e 1970s a n d 1980s w h e n political e c o n o m y was p e r f o r m i n g s o well, n o t p r o g r a m t h a t g o v e r n m e n t a n d business initiated t u r n e d o u t t o b e a c o m m e r c i a l o r t e c h n o l o g i c a l success. A n d d e s p i t e t h e serious e c o n o m i c setbacks t h a t J a p a n has suffered i n t h e 1990s, m a n y new t e c h n o l o g i e s a r c b e i n g d e v e l o p e d successfully a n d profitably. W e lack t h e e m p i r i c a l i n f o r m a t i o n a n d d e p t h o f knowl e d g e that would p e r m i t u s t o sort o u t t h e i n d e p e n d e n t effects o f institutions Japan's economic In a world in which R&D system in J a p a n as in m o s t o t h e r c o u n tries, no l o n g e r o r g a n i z e d a l o n g strictly n a t i o n a l lines, internationalization c h o s e n policy ( F r a n s m a n 1 9 9 5 ) . In a

t e c h n o l o g y and Asian regionalism 247 historical case for an i n s t i t u t i o n a l o p e n i n g of t e c h n o l o g y r e g i m e s has m e r i t s . F o r c e n t u r i e s t h e C h i n e s e g o v e r n m e n t , for h a d s o u g h t t o g u a r d carefully t h e t e c h n o l o g i c a l secrets o f silk p r o d u c t i o n . Similarly, s i n c e t h e e i g h t e e n t h c e n t u r y E u r o p e a n g o v e r n m e n t s have tried t o k e e p t e c h n o l o g i c a l i n n o v a t i o n s within n a t i o n a l b o r d e r s t h u s s e e k i n g t o p r e v e n t l e a k a g e t o o t h e r c o u n t r i e s . Even w h e n t h e s e policies p r o v e d futile they w e r e c o n s i d e r e d legitimate ( N e l s o n 1990: I n m o d e r n times, g o v e r n m e n t a t t e m p t s t o n a t i o n a l i z e s c i e n c e have b e e n largely ful. is increasingly t r u e of as well. T h e worldwide availability of t e c h n o l o g i e s of best-practice is a relatively r e c e n t e x p e r i e n c e . According to Horn: T h e e n t i r e c o n c e p t of a t e c h n o l o g y [has] i n h e r e n t limits t h e p r e s e n c e o f a n o p e n i n t e r n a t i o n a l t r a d e a n d i n v e s t m e n t system. A particular technology first p r o d u c e d an individual c o u n t r y , but can t h e n b e licensed o r sold a b r o a d o r a p p l i e d t h r o u g h foreign affiliates. T h e know-how involved will b e c o m e diffused s o o n e r o r later. 67-8) W h e t h e r Asia will retain c o n t r o l l e d r e g i o n a l t e c h n o l o g y o r d e r or evolve n e w a n d , possibly, m o r e o p e n o n e s will d e p e n d substantially o n which o f two views Japan be closer to t h e t r u t h : t h e e x h a u s t i o n an old J a p a n e s e technology o r d e r or the generation of a new one. In case, it unlikely t h a t a r e g i o n a l o r d e r will c o m e to pass in w h i c h , in t h e words o f Seki, " t h e d e v e l o p m e n t o f m u t u a l t e c h n o l o g i c a l to form an Asian n e t w o r k will be for t h e stability a n d p r o s p e r i t y of t h e e n t i r e r e g i o n i n t h e twenty-first c e n t u r y " (1994: 100). Japanese t e c h n o l o g y falter, o t h e r Asian states, s u c h as C h i n a , m i g h t take its place. Alternatively, h i g h - t e c h n o l o g y i n d u s t r i e s d o m i n a t e d b y USA o r E u r o p e a n p r o d u c e r s c o u l d f u r t h e r a n c h o r Asia in global h i e r a r c h i e s . In the USA still p r o v i d e d 71 p e r c e n t of J a p a n ' s t e c h n o l o g y i m p o r t s while t a k i n g only 2 9 p e r c e n t o f technology exports 1998: 5 6 0 ) . R e g i o n a l p r o d u c t i o n alliances t h u s may b r o a d e n i n g e o g r a p h i c a l s c o p e w i t h o u t necessarily b e i n g m o r e s u p p o r t i v e o f goal o f e n h a n c e d n a t i o n a l a u t o n o m y . Even if J a p a n w e r e to lose its e s t a b l i s h e d position at t h e a p e x , d e e p l y e n t r e n c h e d characteristics o f distinctive noo r d e r a r e likely t o e n d u r e .

Acknowledgment I w o u l d like to t h a n k t h e e d i t o r s a n d p r o j e c t cisms a n d c o m m e n t s o n p r i o r drafts.

for t h e i r criti-

248 P e t e r J. Katzenstein

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Chapter 7

Historical capitalism, East West Giovanni and Mark

Hui,

Hung

Seiden

E a s t - W e s t r e l a t i o n s over t h e past 500 years p r e s e n t two puzzles. T h e first c o n c e r n s t h e e x t r a o r d i n a r y g e o g r a p h i c a l e x p a n s i o n o f t h e E u r o p e a n system of states. By 1850 or shortly t h e r e a f t e r , t h a t system h a d c o m e to e n c o m p a s s t h e e n t i r e g l o b e , t h e r e b y r e d u c i n g t h e C h i n a - c e n t e r e d tributet r a d e system to a regional subsystem of a now global economy. What m o s t p u z z l i n g a b o u t this t e n d e n c y which is w h a t we shall u n d e r s t a n d by " t h e of t h e - arc m o d e s t origins. On t h e eve of its first m a j o r e x p a n s i o n across t h e Atlantic t h e C a p e in t h e late fifteenth c e n t u r y , t h e E u r o p e a n system of states was a p e r i p h e r a l a n d c h a o t i c c o m p o n e n t o f a global e c o n o m y t h a t h a d l o n g b e e n c e n t e r e d on Asia. spite of first e x p a n s i o n , two c e n t u r i e s l a t e r no E u r o p e a n or A m e r i c a n state h a d m a n a g e d to c r e a t e within domains a national e c o n o m y t h a t c o u l d m a t c h t h e size, c o m p l e x i t y a n d p r o s p e r i t y o f t h e C h i n e s e e c o n o m y . A n d yet, within t h e s h o r t s p a n o f a n o t h e r tiny "Great" was p o i s e d to i n c o r p o r a t e within domains the entire I n d i a n s u b c o n t i n e n t , a n d t h e n , i n c o o p e r a t i o n a n d c o m p e t i t i o n with other to t u r n C h i n a from t h e c e n t e r i n t o a p e r i p h e r a l c o m p o n e n t o f t h e global e c o n o m y . H o w c a n w e e x p l a i n this t u r n a r o u n d ? T h e s e c o n d puzzle c o n c e r n s t h e e x t r a o r d i n a r y vitality o f t h e East Asian r e g i o n in t h e 150 years since s u b o r d i n a t e i n c o r p o r a t i o n in t h e E u r o p e a n - a n d later N o r t h A m e r i c a n - c e n t e r e d global e c o n o m y . B y 1970 o r shortly t h e r e a f t e r , this vitality t r a n s l a t e d a crisis of W e s t e r n h e g e m o n y has yet to be resolved. I n t e g r a l to this crisis has b e e n an a c c e l e r a t i o n of e c o n o m i c g r o w t h in t h e Easl r e g i o n that has m a d e a r e - c e n t e r i n g of t h e global e c o n o m y on East Asia a distinct historical possibility, r e c e n t setbacks n o t w i t h s t a n d i n g . T h i s t e n d e n c y — which is w h a t we shall u n d e r s t a n d by "the rise of East - is no less p u z z l i n g t h a n t h e first. T h e and chaos h a d b e e n e m b l e m a t i c o f E u r o p e o n t h e eve of its overseas e x p a n s i o n c a m e to c h a r a c t e r i z e East Asia t h r o u g h o u t t h e last half o f t h e n i n e t e e n t h a n d f i r s t half o f t h e twentieth c e n t u r y . T h e results w e r e devastating. By 1950, C h i n a h a d b e c o m e o n e of t h e w o r l d ' s poorest J a p a n h a d b e e n r e d u c e d to a vassal state of t h e U n i t e d

260 A r n g h i ,

Hung and Selden

a n d t h e C o l d W a r was c r e a t i n g a u n b r i d g e a b l e gulf b e t w e e n m a r i t i m e East Asia a n d M a i n l a n d C h i n a . A n d yet, less t h a n half a c e n t u r y l a t e r t h e gulf was by a d e n s e of e x c h a n g e s ; J a p a n a n d o t h e r lesser o f East "capitalist p e l a g o " h a d r e p l a c e d t h e U n i t e d States a s t h e w o r l d ' s l e a d i n g c r e d i t o r nations; and Mainland weight t h e global e c o n o m y was increasi n g far m o r e rapidly t h a n that o f a n y entity o f c o m p a r a b l e graphic W h e t h e r this is t h e p r e a m b l e to a of t h e global e c o n o m y on East Asia t o o early to tell. But w h e t h e r will or not, explaining the dynamic of the t u r n a r o u n d a n d how the t u r n a r o u n d relates, if at all, to t h e of t h e C h i n a - c e n t e r e d t r i b u t e - t r a d e system a n d t h e East Asian r e g i o n a l e c o n o m y c o n s t i t u t e s a m a j o r c h a l l e n g e for t h e historical social sciences. In s e e k i n g at least partial s o l u t i o n s to t h e s e puzzles, we shall b e g i n by r e c a s t i n g t h e c o n t e n t i o n s of p r e v i o u s c h a p t e r s in an analytical f r a m e w o r k that focuses on t h e d y n a m i c of systems of states. N e x t , we use w o r k to s e e k a s o l u t i o n to t h e first puzzle t h r o u g h a c o m p a r a t i v e analysis of t h e still distinct b u t related d y n a m i c s of t h e East Asian a n d E u r o p e a n inter-state systems i n early m o d e r n times. T h e n , w e analyze t h e d y n a m i c a n d c o n t r a d i c t i o n s o f t h e single global system t h a t e m e r g e d o u t o f t h e n i n e t e e n t h - c e n t u r y globalization of t h e E u r o p e a n system of states. Finally, we s e e k a s o l u t i o n to t h e s e c o n d puzzle by investigating t h e r e l a t i o n s h i p b e t w e e n t h e e c o n o m i c vitality o f East Asia u n d e r U S h e g e m o n y a n d t h e historical legacy of t h e t r i b u t e - t r a d e system.

Concepts for analysis I n t h e i r c o n t r i b u t i o n s t o this v o l u m e , S u g i h a r a , P o m e r a n z , a n d H a m i l t o n and C h a n g present new and arguments s u p p o r t o f t h e view that e c o n o m i c d e v e l o p m e n t i n East Asia t h r o u g h t h e e i g h t e e n t h c e n t u r y was most at least as a d v a n c e d as in E u r o p e . I n d e e d , as Bin Wong A n d r e G u i l d e r F r a n k 0 9 9 8 ) a n d P o m e r a n z himself 2000) h a d previously a r g u e d , i n t h e late e i g h t e e n t h c e n t u r y t h e C h i n e s e n a t i o n a l m a r k e t far s u r p a s s e d a n d density any W e s t e r n n a t i o n a l market. greater a n d density o f t h e C h i n e s e n a t i o n a l m a r k e t were d u e to much greater I t was d u e also t o levels of c o m m e r c i a l i z a t i o n , a g r i c u l t u r a l productivity, s o p h i s t i c a t i o n of m a n u f a c tures a n d p e r capita i n c o m e s a s h i g h as, o r h i g h e r t h a n t h o s e o f wealthiest c o u n t r i e s . Implicitly or explicitly, t h e p r o p o n e n t s of view argue further that the nineteenth-century "great divergence" between the e c o n o m i c a n d political f o r t u n e s of E u r o p e a n d East Asia be traced to a p r i o r t e c h n i c a l a n d of E u r o p e a n institutions vis t h e i r East Asian The

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Historical capitalism, East and c o n t e n t i o n t h a t t h e buyer-driven o r g a n i z a t i o n o f textile p r o d u c t i o n a n d d i s t r i b u t i o n t h a t e m e r g e d in late i m p e r i a l C h i n a c o n s t i t u t e d a highly effic i e n t a l t e r n a t i v e t o t h e p r o d u c e r - d r i v e n , "Fordist" type o f o r g a n i z a t i o n t h a t e m e r g e d i n t h e early t w e n t i e t h c e n t u i y t h e U n i t e d States. M o r e generally, as S u g i h a r a a r g u e s in his c h a p t e r , t h e e c l i p s i n g of t h e East Asian industrious revolution by the E u r o p e a n the course of t h e n i n e t e e n t h c e n t u i y was n o t d u e to a lesser e c o n o m i c of t h e East Asian d e v e l o p m e n t a l p a t h . R a t h e r , it was d u e to a bifurcation of t h e two p a t h s a n d a g r a d u a l e x h a u s t i o n of t h e p o t e n t i a l for efficient growth along the industrious revolution Most o f t h e s e a c c o u n t s limit t h e m s e l v e s t o d e s c r i b i n g r a t h e r t h a n explaining the divergence q u e s t i o n . P o m e r a n z (2000) d o e s p r o v i d e a n e x p l a n a t i o n by t r a c i n g t h e d i v e r g e n c e to differences in r e s o u r c e e n d o w m e n t s a n d in c o r e - p e r i p h e r y r e l a t i o n s h i p s - to t h e fact, t h a t that the A m e r i c a s p r o v i d e d c o r e r e g i o n s of N o r t h w e s t E u r o p e with a far m o r e a b u n d a n t supply o f p r i m a r y p r o d u c t s a n d d e m a n d for m a n u f a c t u r e s t h a n East Asian c o r e r e g i o n s c o u l d o b t a i n from t h e i r own p e r i p h e r i e s . As he p u t s it in his c o n t r i b u t i o n to this v o l u m e , difference allowed E u r o p e a n a n d i n v e s t m e n t t q d e v e l o p i n laborsaving, l a n d a n d e n e r g y - g o b b l i n g d i r e c t i o n s a t t h e m o m e n t when intensification of r e s o u r c e p r e s s u r e s previously s h a r e d by all c o r e w e r e f o r c i n g East Asian d e v e l o p m e n t a l o n g ever m o r e labor absorbing paths. e x p l a n a t i o n o f t h e d i v e r g e n c e o f t h e E u r o p e a n a n d East Asian d e v e l o p m e n t a l p a t h s is c o m p e l l i n g so far as goes b u t begs a n u m b e r of q u e s t i o n s t h a t b e a r directly on t h e two puzzles t h a t we set o u t to solve in this c h a p t e r . F o r t h i n g , it d o e s n o t tell us why s t a r t i n g in t h e fift e e n t h c e n t u i y E u r o p e a n states s h o w e d a m u c h s t r o n g e r disposition t h a n East Asian states t o e x p a n d territorially overseas a n d t o c r e a t e t h e k i n d o f r e l a t i o n s with t h e i r overseas d o m a i n s t h a t eventually e n a b l e d Britain t o o p e n u p t h e p a t h o f t h e industrial r e v o l u t i o n . W h a t forces d r o v e E u r o p e a n states t o b u i l d overseas e m p i r e s a n d t o establish t h e k i n d o f c o r e - p e r i p h e r y relations with t h e i r overseas d o m a i n s t h a t enabled European economies to develop in and labor-saving d i r e c t i o n s ? T o we should add that the great d i v e r g e n c e b e t w e e n t h e East Asian i n d u s t r i o u s - r e v o l u t i o n p a t h and the European p a t h was p r e m i s e d o n a g r e a t e r E u r o p e a n c o m m a n d n o t j u s t over natural a n d energy resources b u t financial resources as W h e r e d i d t h a t g r e a t e r c o m m a n d c o m e from b e a r i n g in m i n d that, as F r a n k 283, has convincingly argued, China remained through the eighteenth centuiy the "ultimate sink" world's money?

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A n o t h e r set of q u e s t i o n s arise f r o m t h e fact t h a t t h e o n s e t of t h e "first" industrial r e v o l u t i o n in Britain was associated a s h a r p c o n t r a c t i o n of European empires t h e A m e r i c a s a n d a q u i c k e n i n g of t h e p a c e of British territorial e x p a n s i o n in Asia. W h a t was t h e c o n n e c t i o n this g e o g r a p h i c a l shift o f E u r o p e a n colonialism a n d t h e s u b s e q u e n t diffusion o f t h e industrial revolution from textiles to railways, s t e a m s h i p s a n d an i n c r e a s i n g n u m b e r a n d variety of capital goods? A n d h o w d i d this diffusion political a n d relationships between E u r o p e and t h e rest of t h e world in a n d East in p a r t i c u l a r ? Finally, w h a t forces p r o m o t e d t h e e v e n t u a l of t h e i n d u s t r i o u s a n d industrial r e v o l u t i o n p a t h s that S u g i h a r a sees e m e r g i n g first in J a p a n a n d t h e n in t h e East Asian r e g i o n at large? W h y d i d t h e fusion start in J a p a n w h e n it did, and what are c h a n c e s t h a t i t will d e c r e a s e i n c o m e inequalities worldwide, as S u g i h a r a O u r c o n t e n t i o n in this c h a p t e r is that, o r d e r to a n s w e r t h e s e q u e s t i o n s , we m u s t focus on two r e l a t e d aspects of t h e c o m p a r a t i v e a n d relational d y n a m i c o f t h e E u r o p e a n a n d East regions. O n e concerns t h e r o l e of r e l a t i o n s within a n d b e t w e e n t h e two world r e g i o n s a n d t h e o t h e r t h e r o l e o f capitalism i n s h a p i n g a n d global processes. O n t h e first a s p e c t little n e e d s t o b e a d d e d t o w h a t has a l r e a d y b e e n said i n t h e I n t r o d u c t i o n . T h e c o m p a r i s o n o f institutions o r d e v e l o p m e n t a l p r o c e s s e s as they o p e r a t e or u n f o l d different worldr e g i o n a l systems is essential to an u n d e r s t a n d i n g of t h e m a c r o - d y n a m i c of t h o s e systems. T h e r e a r e n o n e t h e l e s s aspects o f t h a t d y n a m i c t h a t e m e r g e o u t of t h e and of t h e and, therefore, can only b e g r a s p e d b y c o m p a r i n g t h e c o m b i n a t i o n s a n d i n t e r a c t i o n s themselves r a t h e r t h a n t h e u n i t s t h a t c o m b i n e a n d A n especially i m p o r t a n t i n s t a n c e of s u c h systemic aspects of r e g i o n a l m a c r o - d y n a m i c s is a f e a t u r e of early m o d e r n E u r o p e a n states is widely r e c o g n i z e d to distinguish t h e m from East Asian states in g e n e r a l a n d C h i n a in p a r t i c u l a r . d i s t i n g u i s h i n g f e a t u r e i s t h e i n t e n s e c o m p e t i t i o n t h a t set E u r o p e a n states against o n e a n o t h e r a n d r e c u r r e n t l y to the displacement of o n e state by a n o t h e r in t h e of r e g i o n a l l e a d e r . As we shall s e e , a l t h o u g h East Asian aiso c o m p e t e d with o n e a n o t h e r , t h e n a t u r e o f t h e i r m u t u a l c o m p e t i t i o n was very different from t h e E u r o p e a n , as witnessed a m o n g o t h e r t h i n g s b y t h e fact t h a t t h r o u g h t h e e i g h t e e n t h a n d i n t o t h e early n i n e t e e n t h c e n t u r y C h i n a o c c u p i e d a far m o r e stable h e g e m o n i c position in t h e East Asian inter-state system t h a n any state d i d in t h e E u r o p e a n system. A s T a k e s h i has s h o w n , d u r i n g often p r o t r a c t e d p e r i o d s of stability, t h e C h i n a - c e n t e r e d tributary-trade system frequently p r o v i d e d a basis for m e d i a t i n g inter-state r e l a t i o n s a n d a r t i c u l a t i n g hierarchies with m i n i m a l r e c o u r s e to war, certainly by c o m p a r i s o n with Europe.

East and W e s t 263 Be t h a t as it may, t h e s c o p e a n d intensity of inter-state c o m p e t i t i o n a r c systemic p r o p e r t i e s t h a t c a n o n l y b e g r a s p e d b y p a y i n g d u e attention t o o t h e r systemic p r o p e r t i e s , s u c h a s t h e n u m b e r a n d variety o f states t h a t i n t e r a c t in a given setting, t h e d i s t r i b u t i o n of p o w e r a n d r e s o u r c e s a m o n g t h e i n t e r a c t i n g states, and nature of complementarities a m o n g t h e i n t e r a c t i n g states, t h e rules a n d n o r m s t h a t i n f o r m t h e i n t e r a c t i o n , a n d so o n . As o u r analysis will show, t h e identification of syst e m i c p r o p e r t i e s m u s t pay special a t t e n t i o n t o t h e strategics a n d s t r u c t u r e s o f specific states. T h e states t h a t a r e o u t for here are c h o s e n n o t b e c a u s e of t h e i r significance as r e p r e s e n t a t i v e e x a m p l e s of a region s b u t b e c a u s e of t h e i r significance in s h a p i n g systemic structures a n d T u r n i n g n o w t o t h e r o l e o f capitalism i n r e g i o n a l a n d global d e v e l o p m e n t a l p r o c e s s e s , we c o n c u r with F r a n k in n o t finding at all useful t h e n o t i o n of capitalism u n d e r s t o o d as a m o d e of p r o d u c t i o n . Unlike however, f i n d a n a l t e r n a t i v e n o t i o n o f capitalism essential to a n s w e r i n g several of t h e q u e s t i o n s raised earlier, a n d especially t h e q u e s t i o n o f why m o n e y capital a c c u m u l a t e d m o r e rapidly a n d massively in E u r o p e a n t h a n in East Asian c o r e r e g i o n s even w h e n C h i n a was t h e u l t i m a t e sink o f world m o n e y . T h i s alternative n o t i o n of capitalism is b a s e d on c h a r a c t e r i z a t i o n of t h e world of t r a d e as a t h r e e - l a y e r e d s t r u c t u r e . In this s t r u c t u r e , "capitalism" occupies t h e t o p layer a n d of those participants in trade who systematically a p p r o p r i a t e t h e largest profits, r e g a r d l e s s o f t h e p a r t i c u l a r n a t u r e o f t h e activities (financial, c o m m e r c i a l , industrial o r a g r i c u l t u r a l ) in w h i c h they a r e involved. T h i s layer p r e s u p p o s e s t h e e x i s t e n c e of a lower ( i n t e r m e d i a t e ) layer - t h e " m a r k e t e c o n o m y " - c o n s i s t i n g of r e g u l a r p a r t i c i p a n t s i n b u y i n g a n d selling activities w h o s e rewards a r c m o r e o r less p r o p o r t i o n a t e to t h e costs a n d risks in these activities. Finally, at t h e b o t t o m o f t h e h i e r a r c h y t h e r e lies t h e " n o n - m a r k e t e c o n o m y " o f b a r t e r a n d self-sufficiency, c o n s i s t i n g o f individuals a n d o r g a n i z a t i o n s that participate (or n o t a t all) i n b u y i n g a n d selling b u t w h o s e activities a r e directly or indirectly an i m p o r t a n t s o u r c e of vitality for t h e u p p e r layers 1 9 8 1 : 2 3 - 5 ; 1982: 2 1 - 2 , 2 2 9 - 3 0 ; see also 1977: 39-78). T h e usefulness o f this definition has n o t w h o uses to d i s t i n g u i s h " b e t w e e n a c o m m e r c i a l capitalism a n d t h e o p e r a t i o n of a S m i t h i a n d y n a m i c s of e c o n o m i c e x p a n s i o n . " In his view, C h i n a h a d g o n e f a r t h e r t h a n any E u r o p e a n state in t h e c r e a t i o n of a economy in p r o m o t i n g a n d e x p e r i e n c i n g a S m i t h i a n d y n a m ics o f e c o n o m i c e x p a n s i o n ) b u t "did n o t h a v e s o m e o f t h e o r g a n i z a t i o n a l forms a n d f i n a n c i a l i n s t i t u t i o n s o f early m o d e r n E u r o p e t h a t p r o m o t e d the creation of c o m m e r c i a l c a p i t a l i s m " (1997: 5 0 - 1 ) . M o r e specifically:

264

Hung and Selden Much commercial was n e e d y governm e n t s a n x i o u s t o e x p a n d t h e i r r e v e n u e bases t o m e e t expenses war Amidst the mercantilist competition a m o n g Europ e a n m e r c h a n t s a n d t h e i r g o v e r n m e n t s for wealth a n d p o w e r , m a r itime e x p a n s i o n played a role of p a r t i c u l a r i m p o r t a n c e . B o t h E u r o p e a n m e r c h a n t s a n d t h e i r g o v e r n m e n t s b e n e f i t e d from t h e i r c o m p l e x r e l a t i o n s h i p , t h e f o r m e r g a i n i n g fabulous profits, t h e latter securing much-needed revenues T h e i m p e r i a l C h i n e s e state d i d n o t d e v e l o p t h e s a m e k i n d o f m u t u a l d e p e n d e n c e o n rich L a c k i n g t h e scale of financial difficulties e n c o u n t e r e d in E u r o p e b e t w e e n t h e s i x t e e n t h a n d e i g h t e e n t h c e n t u r i e s , C h i n e s e officials h a d less r e a s o n s t o i m a g i n e n e w forms o f f i n a n c e , h u g e m e r c h a n t loans, a n d t h e c o n c e p t of p u b l i c as well as private d e b t . N o t only d i d they depend o n m e r c a n t i l e wealth t o s u p p o r t t h e state, they also feared t h e potentially disruptive c o n s e q u e n c e s o f b o t h c o n c e n t r a t e d wealth a n d t h e pursuit of s u c h wealth. ( W o n g 1997: 146; e m p h a s i s

t h e original)

As wc shall see, t h e r e is a close c o r r e s p o n d e n c e b e t w e e n this a n d o u r own assessment c o m p a r a t i v e East Asian a n d E u r o p e a n d y n a m i c s early m o d e r n times. Nevertheless, o u r distinction b e t w e e n a ( S m i t h i a n ) m a r k e t dynamic and a capitalist d y n a m i c d o e s n o t c o n f i n e t h e latter t o c o m m e r c i a l activities, a s W o n g d o e s . B r a u d e l himself u n d e r s c o r e d h o w t h e essential f e a t u r e of historical capitalism over its t h a t is, over its e n t i r e lifetime, has b e e n "its u n l i m i t e d capacity for change and r a t h e r t h a n t h e c o n c r e t e forms included) a s s u m e d at different places a n d at different times ( B r a u d e l 1982: 4 3 3 ; e m p h a s i s in t h e o r i g i n a l ) . T h i s c o n c e p t u a l i z a t i o n explicitly i n c l u d e s "industiy" a s o n e o f t h e "specializations" that c a m e t o c h a r a c t e r ize historical capitalism at a c e r t a i n stage of its T h i s specialization led m a n y "to r e g a r d i n d u s t i y as t h e final flowering w h i c h gave capitalism its identity." B u t this is a [After] t h e initial b o o m o f m e c h a n i z a t i o n , t h e m o s t a d v a n c e d k i n d o f capitalism reverted to eclecticism, to an indivisibility of interests so to speak, as if t h e characteristic a d v a n t a g e s t a n d i n g at t h e c o m m a n d i n g h e i g h t s of t h e e c o n o m y consisted precisely of not h a v i n g to c o n f i n e o n e s e l f to a single c h o i c e , of b e i n g e m i n e n t l y a d a p t a b l e , h e n c e non-specialized. ( B r a u d e l 1982: 3 8 1 ; e m p h a s i s in t h e original; t r a n s l a t i o n a m e n d e d as i n d i c a t e d in Wallerstein 1991: 213) As t h e s e passages show, t h e d i s t i n g u i s h i n g f e a t u r e of a B r a u d e l i a n capitalist d y n a m i c is n o t t h e u n d e r t a k i n g of c o m m e r c i a l rather t h a n industrial or

Historical

East and W e s t 265

agricultural activities. It is instead the continual of resources from one kind of to another in an pursuit of monetary profit. As in Karl "general formula of capital" the investment of money (M) in a particular combination of commodities (C), be it purely commercial or commercial-industrial or whatever, strictly instrumental to an increase in of the assets from M to (1959: Indeed, in a strictly capitalist dynamic the transformation of money into commodities may be skipped altogether (as Marx's "abridged formula of capital," whenever systemic circumstances allow the capitalist stratum to reap greater profits the credit system than in the trade and production of commodities. has been recurrently the case in the leading centers of capitalist accumulation, from early fifteenth-century Genoa, Florence and Venice to late twentiethcentury United States, Western Europe, Japan, Singapore and Hong Kong 1994). If the capitalist dynamic best symbolized by a of Marx's general and formulas of capital and the Smithian market dynamic is best symbolized by formula of commodity exchange, in which money (M) is mere means in the transformation of a set of commodities C into another set of greater use value. the main difference between the two dynamics is that, other things being equal, the first tends to generate surpluses of means of payment (the accumulation of such surpluses being pursued as an end in itself), whereas the second does not (money being just a means of transforming one set of commodities into another of greater use value). This difference, as we shall helps in explaining why in the seventeenth and eighteenth centuries the leading capitalist states of Europe came to be affected by a surplus of capital, comparison with China's shortage, in spite of the persistent balance of payment surplus Europe. In the analysis that follows we shall show how the intense politicalmilitary competition that from the start set European states against one another was an essential ingredient in the enlarged reproduction of the capitalist dynamic that recurrently engendered an ever growing surplus of capital within the European regional system. This ever growing surplus of capital, in turn, provided both the means and incentives of new rounds of political-military competition on an ever expanding geographical scale. Directly and indirectly, this self-reinforcing cycle of capital accumulation and territorial expansion was the main driving force of those technological and organizational innovations revolutions" included) that eventually moved the European system to dominion globally. Our analysis will nonetheless also show that this self-reinforcing cycle attained its limits once resulted the incorporation of the East Asian

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within t h e s t r u c t u r e s o f t h e g l o b a l i z i n g E u r o p e a n system. In the short-to-medium run, the impact of the incorporation proved highly disruptive for t h e East Asian system. O v e r however, t h e incorp o r a t i o n c r e a t e d r e g i o n a l a n d world-systemic c i r c u m s t a n c e s favorable t o the fusion of t h e a n d i n d u s t r i o u s r e v o l u t i o n s p a t h s that constitutes t h e m a i n s p r i n g o f t h e r e c e n t East Asian e c o n o m i c r e n a i s s a n c e .

The European and East Asian dynamics compared In c o m p a r i n g the structures a n d dynamics E u r o p e a n a n d East Asian r e g i o n a l systems, we m a y b e g i n by n o t i c i n g t h e a l m o s t e x a c t c o r r e s p o n d e n c e b e t w e e n t h e p e r i o d o f E u r o p e a n histoiy that B r a u d e l has called t h e sixteenth centuiy a n d t h e M i n g p e r i o d i n East Asian ( 1 3 6 8 - 1 6 4 3 ) . In t h e c o u r s e of these t h r e e c e n t u r i e s t h e two regional d y n a m i c s c a m e t o i n f l u e n c e o n e a n o t h e r t o a n u n p r e c e d e n t e d d e g r e e a n d , a t t h e s a m e t i m e , t h e s e e d s for t h e s u b s e q u e n t d i v e r g e n c e b e g a n to g e r m i n a t e . T h e d i v e r g e n c e materialized in t h e two centuries following t h e P e a c e o f W e s t p h a l i a t h e West a n d t h e d e m i s e M i n g in t h e East. B u t its o r i g i n s can be traced to t h e different r e s p o n s e s of t h e two r e g i o n s ' l e a d i n g g o v e r n m e n t a l o r g a n i z a t i o n s t o t h e f o u r t e e n t h c e n t u r y collapse Mongol empire and the consequent disintegration of t h e Afro-Eurasian t r a d i n g system r e c o n s t r u c t e d by J a n e t A b u - L u g h o d (1989). L e t us look at e a c h of these two regional r e s p o n s e s in t u r n .

The European T h e E u r o p e a n r e s p o n s e was c h a r a c t e r i z e d by l o n g wars that w e n t far toward l a u n c h i n g a B r a u d e l i a n capitalist d y n a m i c in a n d intrastate relations. O n e s u c h war p i t t e d t h e m a i n i n t e r m e d i a r i e s a n d beneficiaries of E u r o p e a n t r a d e with t h e East, t h e Italian city-states, against o n e a n o t h e r i n what B r a u d e l has called t h e "Italian" H u n d r e d Years W a r (1976, I : 3 3 1 , 3 8 8 ) . T h e o u t c o m e o f secular s t r u g g l e i n f l u e n c e d t h e s u b s e q u e n t t r a n s f o r m a t i o n o f t h e E u r o p e a n world system i n t h r e e ways. First, t h e P e a c e o f L o d i t h a t a t t h e e n d war in institutionalized t h e n o r t h e r n Italian b a l a n c e of p o w e r , p r o v i d e d a m o d e l for t h e institutionalization of t h e E u r o p e a n b a l a n c e of p o w e r by t h e W e s t p h a l i a treaties two c e n t u r i e s later 1988: 178). S e c o n d , t h e state t h a t e m e r g e d victorious from t h e c o n f r o n t a t i o n (Venice) b e c a m e t h e p r o t o type of t h e s t r o n g capitalist state in t h e d o u b l e s e n s e of "perfect e x a m p l e " a n d " m o d e l for f u t u r e i n s t a n c e s " of s u c h a state - a m o d e l t h a t was still a d v o c a t e d b y l e a d i n g m e m b e r s o f t h e British business c o m m u n i t y a t t h e e n d o f t h e N a p o l e o n i c W a r s ( I n g h a m 1984: 9 ) . Finally, least r e c o g n i z e d b u t m o s t i m p o r t a n t , t h e g r e a t loser o f t h e war ( G e n o a o r m o r e precisely

Historical

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expatriate Genoese business diaspora) became the capitalist driving force behind the subsequent overseas expansion of the Iberian states 1994: Equally significant were the belter known Anglo-French Hundred Years War and subsequent expulsion of from the Iberian peninsula. These consolidated the formation in the European subcontinent of competing national stales of approximately equal capabilities in a condition of permanent struggle for power in peace and war. Integral to this condition was the intense interstate competition for mobile capital that, as Max noted 249), created unique opportunities for the take-off of a capitalist dynamic in Europe. These unique opportunities were created two ways. On the one hand, intense inter-state competition for mobile capital inflated the profits as well as the "invisible" but nonetheless substantial power of the transnational ethnic business communities that had come to control the most prolific sources of mobile capital in Europe the Florentine, the Genoese and the German, and to a lesser extent the and the English al. 1994). On the other hand, it created extraordinary incentives for the rulers of territorial states of Europe to tap directly the sources of mobile capital through an "internalization" of capitalism within their domains, that by themselves undertaking, or by encouraging their own merchant classes to undertake, the lucrative business of long-distance trade the East. For most of the sixteenth the first tendency was predominant. The histoiy of the European overseas expansion of this period has largely been written in terms of Iberian leadership, both in the rounding of the Cape and in the conquest of the Americas. That the Portuguese and the Spaniards were themselves following in the footsteps of Venice in their attempts to appropriate the largest share possible of European trade is a widely acknowledged fact. What remains to be acknowledged what we may call - to paraphrase Alan (1993) - the leadership "from behind" that the Genoese capitalist diaspora exercised the Iberian states. This leadership was largely invisible because of the particular relationship of political exchange through which it operated. In relationship, the Iberian rulers specialized in the highly visible pursuit of power and organization of overseas expansion, while the Genoese capitalist diaspora specialized in the less visible pursuit of profits and transformation of the products of overseas expansion money and credit (Arrighi 1994: 109-26). Thanks to relationship, in the seventy years that Braudel calls the "Age Genoese" (1557-1627), Genoese merchant-bankers came to exercise a rule over European finances comparable to exercised in the twentieth centuiy by the Bank of International Settlements at Basel -

268

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"a

that was so d i s c r e e t a n d s o p h i s t i c a t e d t h a t historians for a l o n g failed to n o t i c e it" 1984: 157, 164). F o r m o s t of this p e r i o d , a c c o r d i n g to R i c h a r d "it was n o t t h e Potosi silver m i n e s , b u t t h e G e n o e s e fairs of e x c h a n g e w h i c h m a d e possible for Philip II to c o n d u c t his world p o w e r policy d e c a d e after d e c a d e " in 1983: 4 7 ) . By 1617, G e n o e s e capitalists h a d s q u e e z e d so m u c h o u t of t h e i r I b e r i a n c o n n e c t i o n as to t u r n Spain P o r t u g a l , in de words, " t h e I n d i e s of t h e G e n o e s e " ( q u o t e d in Elliott 1970: 9 6 ) . Increasingly, h o w e v e r , t h e for t h e r u l i n g g r o u p s o f emerging national or states t o t a p directly t h e sources o f m o b i l e capital b e c a m e p r e d o m i n a n t . T h e chief i n s t r u m e n t i n was t h e l a u n c h i n g o f j o i n t - s t o c k c h a r t e r e d c o m p a n i e s . A l t h o u g h E n g l a n d was t h e first to several of these c o m p a n i e s , t h r o u g h o u t t h e s e v e n t e e n t h c e n t u r y by far t h e m o s t successful ( a n d t h e m o d e l t h a t o t h e r s s o u g h t to r e p l i c a t e ) was t h e D u t c h ( V O C ) . T h e V O C i n a u g u r a t e d a new era, n o t j u s t in business histoiy, as (1974, 1982) has m a i n t a i n e d , b u t also European a n d world histoiy. W i t h o u t t h e large a n d steady cash flow g e n e r a t e d by t h e activities o f t h e V O C i n S o u t h e a s t A m s t e r d a m m a y have n e v e r b e c o m e t h e site of t h e first stock e x c h a n g e in p e r m a n e n t session a v o l u m e a n d a density of t r a n s a c t i o n s t h a t o u t s h o n e all previous stock markets 1982: 2 2 4 - 7 ; Israel 19S9: 7 5 - 6 ; 2 5 6 - 8 ) . O n c e established, a n d u n t i l it was d i s p l a c e d by L o n d o n the eighte e n t h c e n t u r y , t h e A m s t e r d a m stock e x c h a n g e b e c a m e t h e c e n t r a l clearing h o u s e o f E u r o p e a n high finance. T h i s function o f c e n t r a l f i n a n c i a l e n t r e p o t p u t in t h e h a n d s of t h e D u t c h capitalist oligarchy a p o w e r t h e l a r g e r territorial states of E u r o p e t h a t b o r e no to t h e limited ( a n d s h r i n k i n g ) political-military capabilities of t h e D u t c h state (Arrighi a n d Silver et al 1999: C h a p t e r s 1, 2 ) . T h e success o f t h e V O C i n S o u t h e a s t a n d t h e lesser success o f t h e t h e Atlantic, initiated a r a c e a m o n g E u r o p e a n states to form exclusive overseas c o m m e r c i a l e m p i r e s . race g a i n e d m o m e n t u m after t h e E u r o p e a n b a l a n c e o f p o w e r was institutionalized by t h e T r e a t i e s of W e s t p h a l i a (1648) - an institutionalization largely d u e t o D u t c h l e a d e r s h i p "from T h e Atlantic s o o n b e c a m e a n d remained t h r o u g h o u t the eighteenth century the arena of the c o m p e t i t i v e struggles e n g e n d e r e d by this race. But remained the arbiter of the E u r o p e a n struggle. As Charles in t h e late s e v e n t e e n t h c e n t u r y , w h o e v e r c o n t r o l l e d t h e Asian t r a d e was in a p o s i t i o n to "give law to all t h e c o m m e r c i a l world" ( q u o t e d in Wolf 1982: 125).

Historical capitalism, East and W e s t 269 East

dynamic

E u r o p e a n a n d East Asian r e g i o n a l systems i n early m o d e r n times sufficiently similar to m a k e t h e i r c o m p a r i s o n analytically m e a n i n g f u l . Both c o n s i s t e d of a multiplicity of political j u r i s d i c t i o n s t h a t a p p e a l e d to a c o m m o n c u l t u r a l (i.e., h e r i t a g e a n d t r a d e d extensively within t h e i r r e g i o n . A l t h o u g h c r o s s - b o r d e r t r a d e was m o r e publicly regulated in East Asia t h a n E u r o p e , since S o n g times private overseas t r a d e h a d flourished a n d t r a n s f o r m e d t h e n a t u r e o f t r i b u t e t r a d e itself. As T a k e s h i H a m a s h i t a n o t e s system: A l t h o u g h t h e categories a n d q u a n t i t i e s o f g o o d s t o b e t r a d e d w e r e also officially p r e s c r i b e d , t h e v o l u m e of private t r a d e gradually i n c r e a s e d over t i m e . A s a result, t h e m a m p u r p o s e o f t h e t r i b u t e t r a d e c a m e l o b e t h e p u r s u i t o f profits t h r o u g h t h e unofficial t r a d e t h a t was ancillary to t h e official system.

Equally i m p o r t a n t for o u r p u r p o s e s was t h e of trade networks l i n k i n g c e n t r a l a n d s o u t h e r n coastal C h i n a a n d t h a t were entirely i n d e p e n d e n t o f t h e t r i b u t a i y system, a n d often directly flouted i m p e r i a l edicts. W e c a n even d e t e c t a n a l o g i e s i n t h e inter-state c o m p e t i t i o n t h a t c h a r a c terized t h e two r e g i o n a l systems. T h e s e p a r a t e d o m a i n s t h a t w e r e h e l d t o g e t h e r b y t h e t r i b u t e - t r a d e system c e n t e r e d o n C h i n a were "close enough to influence one another, but t o o far a p a r t t o assimilate a n d be assimilated." T h e system p r o v i d e d t h e m with a symbolic framework of mutual i n t e r a c t i o n t h a t n o n e t h e l e s s was loose e n o u g h t o e n d o w p e r i p h e r a l c o m p o n e n t s with c o n s i d e r a b l e a u t o nomy the Chinese center. Thus, J a p a n and Vietnam were peripheral m e m b e r s o f t h e system b u t also c o m p e t i t o r s with C h i n a i n t h e exercise of t h e I m p e r i a l title a w a r d i n g f u n c t i o n , e s t a b l i s h i n g a tributaiy type r e l a t i o n s h i p with t h e Ryukyu k i n g d o m , a n d V i e t n a m with Laos ( H a m a s h i t a 1994: 92; 1997: S u g i h a r a g o e s even f u r t h e r in m a i n t a i n i n g t h a t t h e diffusion best a n d o r g a n i z a t i o n a l knowh o w w i t h i n East Asia m a k e s it "possible to t h i n k of t h e p r e s e n c e of an East Asian political system, at least with r e g a r d to C h i n a a n d J a p a n , with m a n y features a n a l o g o u s t o t h e system i n E u r o p e " 38). M o r e o v e r , t h e C h i n e s e c e n t e r itself r e c u r r e n t l y c a m e u n d e r p r e s s u r e s a n a l o g o u s t o t h o s e t h a t fueled inter-slate c o m p e t i t i o n for m o b i l e capital E u r o p e . P r e s s u r e s of this k i n d c o n t r i b u t e d to t h e g r e a t e x p a n s i o n of C h i n e s e private sea t r a d e d u r i n g t h e S o u t h e r n S o n g p e r i o d T h e heavy military e x p e n d i t u r e s a n d r e p a r a t i o n s involved in t h e wars with

270 Arrighi, Hui, Hung and Selden Mongol and peoples on China's frontiers i n d u c e d t h e S o n g c o u r t to e n c o u r a g e private sea t r a d e as a s o u r c e of r e v e n u e - a s o u r c e that b e c a m e all t h e m o r e essentia! with t h e loss of c o n t r o l of t h e N o r t h a n d t h e silk r o u t e , a n d t h e w e a k e n i n g state capacity t o sustain s u c h profitable g o v e r n m e n t m o n o p o l i e s a s salt, i r o n a n d wine p r o d u c t i o n 1987: 1989: 19; Lin a n d Z h a n g 1991: 13). Particularly significant was t h e S o u t h e r n S o n g e n c o u r a g e m e n t of C h i n e s e navigation t e c h n o l o g y t h r o u g h t h e provision o f f i n a n c i a l a n d technical s u p p o r t to shipbuilders. Chinese j u n k s then became the most a d v a n c e d vessels in t h e world. T h e i r flat-rear a n d sharp-base design allowed t h e m to navigate speed t u r b u l e n t seas a n d C h i n e s e p i o n e e r e d t h e use o f t h e c o m p a s s i n navigation ( L o 1969: 7 7 - 9 1 ; C h e n 1989). Finally, military p r e s s u r e a n d territorial losses in t h e n o r t h p r o v o k e d a i n c r e a s e i n n o r t h - s o u t h m i g r a t i o n s toward t h e r e g i o n s s o u t h o f t h e Yangzi River. T h e s e w a r m e r r e g i o n s were t h e m o s t suitable for h i g h y i e l d i n g wet-rice cultivation (Bray 1986: 119). As t h e p o p u l a t i o n of t h e s e r e g i o n s i n c r e a s e d rapidly, a c h i e v i n g d e n s i t i e s far h i g h e r t h a n t h o s e in Europe, so did the o f t h e t e c h n i q u e s o f wet-rice a g r i c u l t u r e l e a d i n g to w h a t M a r k Elvin C h a p t e r 9) has called t h e "revolution in f a r m i n g . " T h e efficiency of wet-rice cultivation in g u a r a n t e e i n g sufficient food supplies e n a b l e d farmers t o i n c r e a s e t h e q u a n t i t y a n d variety o f p r o d ucts that they cultivated a n d m a r k e t e d a n d to e n g a g e in activities. As Since t h e productivity of fields c o u l d be a c h i e v e d t h r o u g h a d d i t i o n a l i n p u t s o f labor, a r e a s u n d e r wet-rice cultivation c o u l d s u p p o r t increasingly g r e a t e r densities o f p o p u l a t i o n . T h e d e m o g r a p h i c g r o w t h m a d e possible by intensive f a r m i n g b o t h facilitated an e x p a n s i o n in n o n agricultural o c c u p a t i o n s a n d e x e r t e d a d o w n w a r d p r e s s u r e o n l a b o r 59) U n d e r t h e i m p a c t o f state e n c o u r a g e m e n t a n d t h e d e v e l o p m e n t o f rice cultivation, t h e m a r i t i m e t r a d e a n d t h e m a r k e t e c o n o m y o f t h e coastal r e g i o n s e n t e r e d a l o n g u p s w i n g c h a r a c t e r i z e d by a d v a n c e s in navigation t e c h n o l o g y , t h e c o n s o l i d a t i o n o f t h e "sea silk r o u t e , " a n d t h e f l o u r i s h i n g of Guangzhou, and smaller port on the Southeastern coast as c e n t e r s of tributary t r a d e . At t h e s a m e private sea t r a d e , linking coastal r e g i o n s a n d t h e S o u t h C h i n a Sea, s p u r r e d b y t h e f o r m a t i o n o f C h i n e s e c o m m u n i t i e s t h r o u g h o u t insular S o u t h e a s t Asia, soon surpassed o r tributary t r a d e t o b e c o m e t h e d o m i n a n t m o d e o f e c o n o m i c e x c h a n g e b e t w e e n C h i n a a n d m a r i t i m e Asia (Lo 1969: 5 7 - 8 ; 1991a: 4 0 5 - 8 ; M m 1995: 2 9 - 3 0 ) . T h i s " c o m m e r c i a l r e v o l u t i o n "

Historical capitalism, East and W e s t t h e fall t h e S o n g in 1276. t h e Yuan ( 1 2 7 7 - 1 3 6 8 ) , c o n t i n u i n g s u p p o r t for private sea t r a d e a n d C h i n e s e m i g r a t i o n t o east Asia led to t h e f o r m a t i o n of overseas C h i n e s e t r a d i n g n e t w o r k s across t h e S o u t h e r n Seas a n d t h e I n d i a n O c e a n a s extensive a s a n y o f t h e c o n t e m p o r a r y E u r o p e a n n e t w o r k s (Shiba 1983: Y a n g 1985: 3 2 - 4 , C h e n 1989: 1989: 21; 1994: 5 7 - 6 0 ) . T h e m a i n t e n d e n c i e s t h a t c h a r a c t e r i z e d t h e capitalist t r a n s f o r m a t i o n o f t h e E u r o p e a n system can t h u s be d e t e c t e d also in t h e East Asian system t e n d e n c i e s t h a t w e r e especially s t r o n g S o n g a n d Y u a n times (see, e x a m p l e , Y a n g 1952; a n d 1973: C h a p t e r 14). l e n d s credibility t o C h r i s t o p h e r C h a s e - D u n n a n d T h o m a s H a l l ' s c o n t e n t i o n t h a t capitalism "nearly o c c u r r e d first" S o n g C h i n a (1997: 4 7 ) . U n d e r t h e M i n g however, t h e t e n d e n c i e s i n q u e s t i o n d i d n o t b e c o m e s t r o n g e r as they d i d in E u r o p e , w h e r e they even t h e m o s t powerful states to a capitalist logic t h e r e b y p r o p e l l i n g competition toward t h e f o r m a t i o n o f overseas c o m m e r c i a l a n d territorial e m p i r e s . O n the con t h e y w e r e b r o u g h t u n d e r c o n t r o l t h r o u g h g o v e r n m e n t a l policies t h a t p r i o r i t i z e d security a n d t h e s t r e n g t h e n i n g o f d o m e s t i c t r a d e a n d a t times b a n n e d o r foreign trade. T h i s r e o r i e n t a t i o n o f C h i n e s e policies o r i g i n a t e d i n serious r a t i o n o f e c o n o m i c c o n d i t i o n s a n d f i n a n c i a l crisis t h a t c h a r a c t e r i z e d t h e transition from Yuan to Ming rule. O n c e the Ming regime consolidated, t h e capital was shifted from N a n j i n g to Beijing in o r d e r to p r o t e c t m o r e effectively t h e n o r t h e r n p a r t e m p i r e from t h e t h r e a t o f M o n g o l i a n invasions. T h e shift led t o t h e f u r t h e r e x t e n s i o n t o t h e n o r t h o f t h e circuits o f m a r k e t e x c h a n g e s t h a t h a d f o r m e d i n t h e s o u t h u n d e r t h e S o n g with a c o n s e q u e n t c o n s o l i d a t i o n o f t h e n a t i o n a l e c o n o m y 1 9 9 5 ) . T h e M i n g r e p a i r e d a n d e x t e n d e d t h e c a n a l system c o n n e c t i n g t h e p r o s p e r o u s r i c e g r o w i n g s o u t h e r n r e g i o n s t o t h e n o r t h e r n political c e n t e r , i n o r d e r t o g u a r a n t e e t h e s u p p l y o f f o o d t o t h e capital a n d t h e s u r r o u n d i n g r e g i o n . T h e f u r t h e r g r o w t h o f t h e m a r k e t e c o n o m y a n d "canal cities" like in t h e lower Yangzi r e g i o n was t h e r e b y facilitated and W u 1985: 8 3 - 6 , 2 6 9 - 7 2 ; 1988: 5 1 - 2 ; H u n g 2001a: 4 9 1 - 7 ) . Also i m p o r t a n t in this r e s p e c t was t h e early p r o m o t i o n of c o t t o n g r o w i n g i n t h e n o r t h . T h e e n s u i n g specialization o f t h e n o r t h i n t h e p r o d u c t i o n o f raw c o t t o n a n d o f t h e lower Yangzi i n t h e m a n u f a c t u r i n g o f c o t t o n textiles fostered n o r t h - s o u t h t r a d e a l o n g t h e g r a n d c a n a l , p r o m o t i n g f u r t h e r t h e e x p a n s i o n o f t h e n a t i o n a l m a r k e t (Wu 1965: 230-3). While p r o m o t i n g formation a n d expansion of a national market, t h e M i n g g o v e r n m e n t i m p o s e d a d m i n i s t r a t i v e restrictions o n sea t r a d e a n d o n C h i n e s e m i g r a t i o n t o S o u t h e a s t Asia i n a n a t t e m p t t o m a i n t a i n c e n t r a l c o n t r o l o v e r r e v e n u e s a n d c o n t a i n t h e p o w e r o f Overseas C h i n e s e and m e r c h a n t s . B e t w e e n 1405 a n d 1433 further sought to

272 Arrighi, Hui, Hung and Seiden e x t e n d t h e r e a c h o f t h e C h i n e s e state sponsoring seven g r e a t to S o u t h e a s t Asia a n d across t h e I n d i a n O c e a n . W i t h ships t h a t displaced tons, c o m p a r e d to t h e 300-ton flagship o f Vasco D a s e a b o r n e capacity a t this t i m e h a d n o p e e r (McNeill 4 4 ) . W h i l e s t r e n g t h e n i n g political a n d c o m m e r c i a l relations, m a n i f e s t i n g military a n d s e a f a r i n g p o w e r t h r o u g h o u t a large r e g i o n , t h e r e b y e x t e n d i n g t h e o f t h e East Asian r e g i o n a l system, t h e Z h e n g e x p e d i t i o n s C h i n e s e suzerainty, e x t e n d e d tributary-trade relations, a n d s a n c t i o n e d a n d e n c o u r a g e d C h i n e s e migration a n d t r a d e t h r o u g h o u t m a r i t i m e East Asia a n d as far as t h e East coast o f Africa. T h e s e e x p e d i t i o n s , turned out to be expensive. They were therefore discontinued, a n d the Ming regime t u r n e d inward, r e s t r i c t i n g t h e n u m b e r o f tributary missions, i n g private m a r i t i m e c o m m e r c e a n d even b a n n i n g t h e b u i l d i n g o f seagoi n g ships. T h e M i n g b e c a m e m o r e p r e o c c u p i e d with i m m e d i a t e military t h r e a t s , n o t a b l y b u t n o t exclusively t h o s e o n its n o r t h e r n frontiers. Suspicious of unofficial e x t e r n a l t r a d e , it s t r e n g t h e n e d i n t e r n a l t r a d e a n d cracked down on unauthorized external trade m a r i t i m e Asia (McNeill 1982: 47; Z h a n g H u i 1995: 3 4 - 8 , 53; W a n g 1998: T h e e v e n t u a l lifting of t r a d e restrictions in o c c u r r e d in t h e m i d s t of a serious political, e c o n o m i c a n d social crisis. By t h e early sixteenth t h e capacity of t h e M i n g r e g i m e to r u l e effectively was seriously internally b y w i d e s p r e a d c o r r u p t i o n a n d i n c r e a s i n g b u d g e t deficits. I n t e r n a l d e g r a d a t i o n was a c c o m p a n i e d b y m o u n t i n g e x t e r n a l p r e s s u r e , i n t h e n o r t h from t h e e x p a n s i o n o f t h e and a l o n g t h e s o u t h e a s t e r n coast f r o m t h e e x p a n s i o n o f illegal t r a d e w h i c h bypassed M i n g tax Carried out by armed Chinese and J a p a n e s e traders or "Japanese pirates," in t h e chara c t e r i z a t i o n ) , t h e illegal t r a d e was actively e n c o u r a g e d by local J a p a n e s e w a r l o r d s w h o s o u g h t t o use t h e profitable t r a d e i n C h i n e s e p r o d u c t s t o f i n a n c e t h e i r m u t u a l struggles ( H u a n g 1969: 1 0 5 - 2 3 ; Wills 1985: C h a p t e r i ; Lin 1987: 1991: He 1996: 4 5 - 7 ; H u n g 2001c: B u t with t h e f i n a n c i a l l y s t r a p p e d M i n g c u t t i n g back o n t h e costly tributary t r a d e , a n d u n a b l e t o exercise effective military c o n t r o l o v e r s o u t h e r n coastal a r e a s , private t r a d e b e c a m e o n c e again t h e form o f e c o n o m i c e x c h a n g e t h e r e g i o n ( Z h a n g 1991: 48-50). T h e s e various t e n d e n c i e s r e i n f o r c e d o n e a n o t h e r r e s u l t i n g the explosive growth of social d i s t u r b a n c e s the century ( T o n g 1991). F a c e d with t h e g r o w i n g u n g o v e r n a b i l i t y o f t h e e m p i r e , t h e M i n g rulers s o u g h t to solve t h e crisis by grievances t h r o u g h tax r e f o r m s a n d t h e e x p l o i t a t i o n o f t h e private t r a d e . Corvee labor, o n e o f t h e p r i m a r y causes o f p e a s a n t h a r d s h i p a n d u n r e s t ,

capitalism, East and W e s t 273 with in c r o p form, w e r e r e p l a c e d by t h e "SingleW h i p T a x " payable silver. T h e c r i p p l e d p a p e r c u r r e n c y was a b a n d o n e d in favor of a silver s t a n d a r d , a n d in o r d e r to e x p a n d t h e silver influx from overseas, restrictions o n sea t r a d e with S o u t h e a s t were relaxed a n d licensed s e a f a r i n g m e r c h a n t s w e r e t a x e d (Wills 1979: 2 1 1 ; 1986; 1991: C h a o 1993; Flynn a n d 1995; 1996; 1987; H u n g 498-500). i m p o r t a n t shift i n f i s c a l , m o n e t a r y a n d t r a d e policies was m a d e possible a n d e n c o u r a g e d by t h e massive silver influx from overseas t r a d e , p r i n c i p a l l y initially t h e t r a d e with J a p a n , t h e silver s u p p l i e r in t h e region, and subsequently E u r o p e a n d t h e A m e r i c a s (Atwell 1998: 4 0 3 - 1 6 ) . A t t h e s a m e l i m e , restrictions o n sea t r a d e t o S o u t h e a s t were r e l a x e d a n d t h e M i n g b e g a n t o tax licensed s e a f a r i n g m e r c h a n t s (Wills 1979: C h a o 1993; and 1995; Q u a n 1996, 1 9 8 7 ) . I t i s n o historical a c c i d e n t t h a t t h e shift c o i n c i d e d the Spanish conquest of t h e P h i l i p p i n e s in t h e late 1560s a n d t h e o p e n i n g of t h e Potosi silver m i n e s fin Bolivia) in t h e 1570s ( B r o o k 1998: 2 0 5 ) . S p a n i s h s h i p m e n t s o f m u c h o f t h e i r S o u t h A m e r i c a n silver t o base i n Manila t o pay for C h i n e s e e x p o r t s h e l p e d e a s e t h e M i n g f i s c a l crisis a n d g r o w i n g p r e s s u r e o n t h e peasantry. A t t h e s a m e they a new firm t r a d e l i n k b e t w e e n t h e E u r o p e a n a n d t h e East Asian r e g i o n s . F r o m t h e sixt e e n t h u n t i l well t h e e i g h t e e n t h c e n t u i y , fully t h r e e - q u a r t e r s of n e w world silver f o u n d its way to C h i n a , a p r o d u c t b o t h of highly c o m p e t i t i v e e x p o r t s of silk, p o r c e l a i n a n d tea, a n d a C h i n e s e thirst for silver t h a t d r o v e silver p r i c e s to levels twice t h o s e p r e v a i l i n g in o t h e r p a r t s world (Flynn et al 1999: 2 3 - 4 ) . T h e e x p a n s i o n o f intra- a n d i n t e r - r e g i o n a l t r a d e u n d e r t h e late M i n g b o o s t e d t h e f o r t u n e s n o t j u s t o f C h i n a s coastal a r e a s a n d m a r i t i m e East Asia b u t o f t h e O v e r s e a s C h i n e s e a s well. D u r i n g t h e f i r s t two h u n d r e d years o f M i n g r u l e t h e t r a d e n e t w o r k s o f t h e overseas C h i n e s e h a d t i n u e d t o e x p a n d , d e s p i t e restrictions o n private overseas t r a d i n g a n d o n Chinese migrations to Southeast T r a d e a n d t h e associated m i g r a t i o n b e c a m e the principal means for significant p a r t s o f t h e p o p u lation o f t h e s o u t h e a s t coastal r e g i o n s o f C h i n a , t h e s o u r c e o f extraprofits for m e r c h a n t s , a n d t h e s o u r c e o f r e v e n u e for local g o v e r n m e n t s ( H u i 1995: 3 5 - 6 ) . " C h i n e s e m e r c h a n t s , craftsmen a n d sailors," i n J o h n words, "became extremely vigorous participants in b u i l d i n g a new w o r l d o f t r a d e a n d a r o u n d the South China Sea" (1998: 3 3 3 ) . F r o m t h e f i f t e e n t h c e n t u i y d e s p i t e M i n g restrictions, p e r i o d i c reverses a n d c h a l l e n g e s from Muslims a n d o t h e r s , C h i n e s e w e r e t h e d o m i n a n t t r a d e r s t h r o u g h o u t t h e East Asian r e g i o n , s o m e l i s h i n g business, c o m m e r c i a l , a n d f i n a n c i a l n e t w o r k s e x t e n d i n g t o t h e village level across S o u t h e a s t Asia. T h e y l i n k e d C h i n a a array of p a r t n e r s e m b r a c i n g a k a l e i d o s c o p e of p e o p l e s a n d c u l t u r e s across East

274 Arrighi,

Hung and Selden

and a steady flow of remittances back lo the southeastern coastal villages that spawned the migration and which in turn became among the most productive, and commercially expansive regions Easl Asia (Wang 1998: Hui 1995). The power of the Overseas Chinese was consolidated by the arrival of the Europeans, who, far from curbing the activities of Chinese traders, boosted trade throughout the the Japanese supply of silver and linking regional trade to global networks. Unlike local rulers, moreover, they had little restraint in challenging the authority of the Chinese imperial court. They thus provided political and military support for Chinese traders who the restrictions imposed by the Chinese government. resulted in an increasing involvement of Chinese merchants in highly profitable smuggling activities with active European encouragement (Chang 16; and 1994: 71, 74-5, 79-83; Hui 1995: 67-8; also Chang 1969: 69-85). Europeans also destroyed many indigenous trading classes and networks an effort to consolidate their control over local resources and populations. They thereby strengthened the capacity of the overseas Chinese, who escaped the onslaught, to monopolize the role of commercial intermediaries between the Europeans and the polities and societies 1977: 191-5; 1984: 147, 1990: 652-4; 1991: 334). And the more valuable and exclusive Chinese trading networks became in their role, the more Europeans were induced to compete one another in securing the cooperation of the overseas Chinese. The formation of a large merchant community in for example, was the result of deliberate Dutch policy, which sought to gain a monopoly of eastern and southeastern Asian trade through making use of the Chinese trading networks already established throughout the Malay archipelago, the coasts and Japan They welcomed Chinese cooperation and tried to woo them wherever possible away from the Portuguese and the Spanish. In that way, a Dutch supported chain of Chinese communities grew up between Batavia and areas like the Moluccas to the east, am to the north and China and Japan to (Wang 1991: 88) The wealth and power of Chinese merchants attained new heights the course of the seventeenth-century transition from Ming to Qing rule. Despite the injection of trade revenues and taxes in the form of silver, Ming financial difficulties skyrocketed the costly Chinese military campaign to oust Japanese forces from the 1590s,

Historical capitalism, East and W e s t 275 o u t b r e a k of warfare with t h e in t h e and m o u n t i n g corruption at court and t h r o u g h o u t the administration. Japanese restrictive policies i m p o s e d in t h e 1630s, c o m b i n e d with t h e sharp decline E u r o p e a n silver s u p p l i e s t h e 1630s a n d 1640s, r u p t e d silver inflow C h i n a a n d i n c r e a s e d p e a s a n t b u r d e n s b y driving t h e p r i c e of silver. T h e result was a r e s u r g e n c e of e m p i r e - w i d e t u r b u l e n c e c u l m i n a t i n g in t h e collapse of t h e M i n g in 1644 1986 a n d 1998: It was at this that t h e Z h e n g m e r c h a n t family c r e a t e d a m a r i t i m e e m p i r e i n s o m e respects c o m p a r a b l e t o t h e c o n t e m p o r a r y D u t c h e m p i r e in S o u t h e a s t Asia. By t h e 1620s, t h e i r a n d c o m m e r c i a l p o w e r , centered and G u a n g d o n g on S o u t h C h i n a coast a n d e x t e n d i n g to T a i w a n , was s u c h t h a t eliminated whatever maritime supremacy h a d m a n a g e d t o establish i n t h e r e g i o n . I n t h e 1630s, Z h e n g styling himself " t h e King o f S o u t h C h i n a , " h a d seized c o n t r o l o f extensive t r a d e networks t h a t l i n k e d coastal C h i n a a n d lucrative S o u t h e a s t Asian m a r k e t s . Utilizing r e s o u r c e s a n d c o n t a c t s h e h a d g a i n e d w h e n w o r k i n g for t h e D u t c h V O C a n d t r a d i n g the Portuguese and S p a n i s h , Z h e n g d e p l o y e d E u r o p e a n - s t y l e warships a n d f i r e a r m s t o d o m i n a t e m a r i t i m e t r a d e , defy M i n g tax c o l l e c t o r s a n d naval forces, a n d d e f e n d his k i n g d o m . A t its z e n i t h , t h e m o n o p o l i z e d t h e silk a n d ceramics t r a d e a n d built a s p h e r e o f i n f l u e n c e t h a t s t r e t c h e d from G u a n g d o n g a n d Fujian t o and Southeast B y 1650, had c r e a t e d a r e b e l stale on t h e s o u t h e a s t coast. But, failing to d e f e a t t h e M a n c h n s , i n 1662 they r e t r e a t e d t o T a i w a n , e x p e l l e d t h e D u t c h a n d f o u n d e d t h e k i n g d o m o f T a i w a n . A f o r m e r D u t c h g o v e r n o r o f colonial Taiwan 1675 c o m p a r e d t h e Z h e n g s as a s e a b o r n e p o w e r to t h e rise of t h e D u t c h E u r o p e a centuiy earlier 1903 Wills 1979, 1998; 1988; W o n g 1983; H u n g 2 0 0 1 c ) . observing that m a r k e t i n g J a p a n e s e wares a b r o a d t h e V O C was following footsteps o f t h e H o (1994: 44) has c l a i m e d with s o m e reason that T h e Z h e n g n e t w o r k s o f c o m m e r c i a l a n d political i n t e l l i g e n c e m u s t h a v e b e e n at least as effective as t h o s e of e i t h e r of its m a i n e n e m i e s , and the Dutch Arguably, Zheng organization had some s a m e traits a s t h e V O C . Equally i m p o r t a n t , t h e Z h e n g m a r i t i m e e m p i r e was from t h e start a key player in t h e o n g o i n g dynastic struggle in m a i n l a n d C h i n a , A r e s p e c t e d ally of t h e M i n g in t h e stages of t h e struggle - w h e n m a n y m e m b e r s of t h e Z h e n g family b e c a m e officers a n d g e n e r a l s of t h e M i n g a r m y Z h e n g Z h i l o n g a t t e m p t e d t o switch sides after t h e Q i n g a r m y e n t e r e d Fujian i n T h e attempt as the Q i n g responded to Z h e n g

Arrighi,

Zheng t h e i r downfall in

The

divergence

Hung and b y jailing a n d eventually But u n d e r the power the r e a c h e d n e w h e i g h t s until

of the

and

T h e expatriate business networks ist o r g a n i z a t i o n s of Chinese and o t h e r ethnic networks capitalist o r g a n i z a t i o n s of out:

Asian

dynamics

t h e p r e - e m i n e n t capitalinvite c o m p a r i s o n with t h e that c o n s t i t u t e d t h e p r e - e m i n e n t East Asia. As pointed

from Egypt Japan, shall g e n u i n e capitalists, t h e r e n t i e r s of t r a d e , a n d t h e i r t h o u s a n d s of auxiliaries — the commission agents, brokers, a n d b a n k e r s . A s for t h e t e c h n i q u e s , possibilities o r g u a r a n t e e s o f e x c h a n g e , any o f t h e s e g r o u p s of would s t a n d with its western equivale n t s . Both inside a n d o u t s i d e I n d i a , T a m i l , Bengali a n d merc h a n t s f o r m e d close-knit p a r t n e r s h i p s with business a n d c o n t r a c t s passing in t u r n from o n e g r o u p to a n o t h e r , j u s t as they m i g h t E u r o p e from t h e F l o r e n t i n e t o t h e the Genoese, the South G e r m a n s o r t h e English. 486) Although this passage d o e s n o t refer explicitly to C h i n e s e business networks, e l s e w h e r e he draws a parallel b e t w e e n t h e m e r c h a n t s a n d b a n k e r s o f S h a n x i p r o v i n c e a n d t h e overseas C h i n e s e o r i g i n a t i n g from a n d o t h e r s o u t h e r n coastal p r o v i n c e s , o n t h e o n e a n d Florentine, Genoese, and m e r c h a n t s o n t h e o t h e r (1982: 153). Moreover, as we have just underscored, the Zheng e m p i r e h a d s o m e traits i n c o m m o n with t h e V O C , t h e half-governmental a n d half-business o r g a n i z a t i o n t h a t the seventeenth century displaced e x p a t r i a t e business n e t w o r k s a s t h e l e a d i n g of E u r o p e a n capitalism. T h e r e can b e d o u b t , t h e r e f o r e , that capitalist o r g a n i zations c o m p a r a b l e to t h e E u r o p e a n c o u l d a n d d i d e m e r g e in East Asia as well. As William Rowe has n o t e d , "whatever t h e r e a s o n , t h e d i v e r g e n c e s b e t w e e n C h i n e s e a n d W e s t e r n social histories since 1500 a r e n o t d u e t o t h e fact t h a t t h e progressive West d i s c o v e r e d capitalism a n d t h e state a n d C h i n a d i d n o t " (1990: 2 6 2 ) . T h e p r e s e n c e o f c o m p a r a b l e capitalist o r g a n i z a t i o n s , however, d i d n o t m a k e t h e d e v e l o p m e n t of t h e two regional systems equally capitalist in orie n t a t i o n . For capitalism t o b e c o m e d o m i n a n t a t t h e level o f t h e system, a n a d d i t i o n a l i n g r e d i e n t was r e q u i r e d . W h i l e a c k n o w l e d g i n g t h e p r e s e n c e China and t h e s u r r o u n d i n g r e g i o n of business n e t w o r k s as capitalist as

East and W e s t 277 those of the Genoese and the how "the Chinese example most separating the and original; cf. W o n g 1997: H u n g 2001a:

himself u n d e r s c o r e s s u p p o r t s m y insistence o n 588; e m p h a s i s the

F o r c o n t r a r y [to t h e ] a r g u m e n t no m a r k e t e c o n o m y C h i n a d i d have a economy with c h a i n s of local m a r k e t s , its s w a r m i n g p o p u l a t i o n of small artisans a n d i t i n e r a n t m e r c h a n t s , its busy s h o p p i n g streets a n d u r b a n c e n t e r s . S o a t g r o u n d level, t r a d e was brisk a n d well-provided for, e n c o u r a g e d by a g o v e r n m e n t primarily c o n c e r n e d a g r i c u l t u r a l p r o d u c t i o n ; but at upper levels, the state e x p r e s s e d u n m i s t a k a b l e hostility to any individual m a k i n g himself " a b n o r m a l l y " rich So there could be no capitalism, e x c e p t c e r t a i n c l e a r l y - d e n n e d g r o u p s , b a c k e d by the state, s u p e r v i s e d by t h e state a n d always m o r e or less at mercy. ( B r a u d e l 1982: 5 8 9 ; e m p h a s i s in t h e original) In B r a u d e l ' s s c h e m e of things, o b t a i n i n g i n t h e E u r o p e a n states

situation c o n t r a s t s s h a r p l y with that w h i c h capitalism d i d t r i u m p h .

Capitalism only t r i u m p h s w h e n it b e c o m e s identified with t h e state, the In first g r e a t p h a s e , t h a t of t h e Italian city-states of V e n i c e , G e n o a , a n d F l o r e n c e , p o w e r lay the hands elite. In s e v e n t e e n t h - c e n t u r y H o l l a n d t h e aristocracy of t h e g o v e r n e d for benefit a n d even a c c o r d i n g to t h e directives of the b u s i n e s s m e n , m e r c h a n t s , a n d m o n e y - l e n d e r s . Likewise, England t h e G l o r i o u s R e v o l u t i o n of 1688 m a r k e d t h e accession of business similar to t h a t in H o l l a n d . ( B r a u d e l 1977:

emphasis added)

T h e c o n t r a s t i s u n d o u b t e d l y e x a g g e r a t e d . N e v e r t h e l e s s , B r a u d e l ' s hyperbole d o c s p o i n t to an a s p e c t of t h e capitalist t r a n s f o r m a t i o n of t h e E u r o p e a n r e g i o n a l system from t h e f i f t e e n t h t h r o u g h t h e e i g h t e e n t h centuries that has no parallel in t h e d y n a m i c of t h e East Asian regional system. the of stales w h i c h capitalism b e c a m e identified - t h e Italian city-stales, t h e D u t c h p r o a n d eventually a stale, t h e English, t h a t was in t h e p r o c e s s of b e c o m i n g n o t a nationstale b u t t h e c e n t e r of a w o r l d - e n c i r c l i n g m a r i t i m e a n d territorial In sequence, each is l a r g e r a n d m o r e c o m p l e x t h a n its p r e d e c e s sor, a n d it sequence, more anything t h a t evinces the capitalist t r a n s f o r m a t i o n E u r o p e a n r e g i o n a l system. A n d conversely, t h e a b s e n c e of a n y t h i n g c o m p a r a b l e to s u c h a s e q u e n c e c a n be taken as clearest sign in spite of e x i s t e n c e of organizations a n a l o g o u s to t h e E u r o p e a n varieties a n d of g r e a t e r advances t h a n in

278 Arrighi, Hui, Hung and Selden E u r o p e in the formation of market t h e East Asian r e g i o n a l itself was n o t at t i m e in t h e process of b e c o m i n g capitalist. In p i n n i n g d o w n t h e d i f f e r e n c e b e t w e e n a r e g i o n a l system t h a t was a n d o n e t h a t was n o t b e c o m i n g capitalist, it m a y be helpful to c o n c e i v e of the transformation as an or m o r e " a rash o f demics" 1998: 1 3 9 - 4 0 ) . I n t h e E u r o p e a n system t h e capitalist virus s p r e a d r a p i d l y from its o r i g i n a l focus in tiny city-states a n d e x p a t r i business networks to larger m o r e powerful states. T h e s e m o r e powerful slates capitalism by following in t h e footsteps of t h e city-states in s e e k i n g to p r o m o t e a n d r e a p t h e profits of long-distance trade, and by t h e i r own n a t i o n a l s t o u n d e r t a k e t h e activities previously m o n o p o l i z e d by f o r e i g n e r s o r g a n i z e d transn a t i o n a l b u s i n e s s n e t w o r k s . As a result, as m o d e of a c c u m u l a tion a n d r u l e t u r n e d f r o m a n interstitial a d o m i n a n t property of the In t h e East Asian system, in c o n t r a s t , capitalism d i d n o t b e c o m e i d e n t i fied with t h e system's m o r e powerful states. F o r all we k n o w t h e capitalist m i g h t very well have b e e n as w i d e s p r e a d as even m o r e wides p r e a d t h a n ) in E u r o p e . But if so t h e " i m m u n e " system East Asia was s t r o n g e r , s o t h a t n o rash o f e p i d e m i c s e n s u e d . U n d e r t h e M i n g a n d cially t h e Q i n g , capitalism b e c a m e even m o r e a n interstitial f o r m a t i o n t h a n i t h a d b e e n u n d e r t h e S o n g o r t h e Yuan. I t b e c a m e e m b o d i e d m o r e exclusively i n Overseas C h i n e s e d i a s p o r a a n d was m a r g i n a l i z e d S o u t h e r n C h i n e s e coastal areas, t h e result that i n f l u e n c e on t h e scats o f p o w e r r e m a i n e d insignificant, d e s p i t e its i m p o r t a n c e in l i n k i n g t h e C h i n e s e coast to S o u t h e a s t Asia. At the of the t h a t is, capitalism was " e x t e r n a l i z e d " in t h e sense t h a t developed most fully o n t h e o u t e r r i m s r a t h e r t h a n a t t h e c e n t e r o f t h e most powerful states. T h e r e w e r e t h r e e partial a n d t e m p o r a r y e x c e p t i o n s l o tendency. O n e was i n s u l a r S o u t h e a s t Asia after t h e d i s e n g a g e m e n t from t h e A l t h o u g h m a n y S o u t h e a s t Asian states c o n t i n u e d t o r e c o g n i z e C h i n e s e suzerainty formally a n d symbolically, t h e i r political a n d e c o n o m i c d e p e n d e n c e o n t h e M i n g c o u r t d e c r e a s e d while t h e i r c o n n e c t i o n s with private t r a d e r s s t r e n g t h e n e d . Many o f these were a u t o n o m o u s slates, c o m m e r c i a l n o d e s t h a t thrived o n t h e of Their n u m b e r i n c r e a s e d c o n s i d e r a b l y d u r i n g t h e c o m m e r c i a l b o o m o f t h e sixt e e n t h c e n t u r y . W h e n t h e P o r t u g u e s e arrived i n 1509, S o u t h e a s t Asian t r a d e was c o n c e n t r a t e d on W i t h i n half a c e n t u r y of t h e Port u g u e s e c o n q u e s t o f Melaka i n trade had dispersed a m o n g the rising centers of and and in the course of t h e n e x t c e n t u r y , as A n t h o n y Reid ( 1 9 9 3 : 2 0 8 - 1 4 ) observes, at least fiftyf i v e s u c h political a n d c o m m e r c i a l c e n t e r s e m e r g e d i n c l u d i n g Manila, Hue, Champa and

East and W e s t 279 of a u t o n o m o u s port-states p r e s e n t s m a n y similarities a n d earlier f o r m a t i o n s of p o r t - a n d city-states the M e d i t e r r a n e a n , N o r t h a n d Baltic Seas. I n B r a u d e l ' s s e n s e , a t least s o m e o f t h e S o u t h e a s t Asian states w e r e as capitalist as t h e i r E u r o p e a n p a r t s . N e v e r t h e l e s s , individually a n d collectively they n e v e r " m o d e l s " for t h e l a r g e r East Asian as t h e Italian city-states d i d for t h e l a r g e r E u r o p e a n states. O n t h e c o n t r a r y , s o m e cases they were a b s o r b e d by t h e l a r g e r states in t h e case of absorption by V i e t n a m ) . In a few o t h e r cases they themselves b e c a m e r e g i o n a l powers within t h e C h i n a - c e n t e r e d t r i b u t e - t r a d e system as in t h e of Siam. F o r t h e m o s t they w e r e i n c o r p o r a t e d within the domains of E u r o p e a n colonial empires, thereby contributing to the f u r t h e r s p r e a d o f t h e capitalist within t h e e x p a n d i n g E u r o p e a n system a n d to containment t h e c o n t r a c t i n g East Asian system. T h e s e c o n d e x c e p t i o n was J a p a n i n t h e period In p e r i o d , J a p a n l a c k e d a c e n t r a l i z e d a u t h o r i t y a n d was in a c h r o n i c state o f war a m o n g w a r l o r d s . Cities a n d l o n g - d i s t a n c e t r a d i n g c o m m u n i t i e s thrived n o t only t h e r e was n o c e n t r a l a u t h o r i t y c a p a b l e o f cont a i n i n g capitalism as in M i n g C h i n a . T h e y thrived because the p e t i n g w a r l o r d s s o u g h t t h e assistance o f cities a n d in their a t t e m p t s t o s e c u r e r e v e n u e ( B r a u d e l 1982: 5 8 9 - 9 4 ) . A s Perry A n d e r s o n 440) has n o t e d , f r a g m e n t a t i o n of p o l i u e s a n d g r o w t h of towns m a d e t h e J a p a n e s e s c e n a r i o c o m p a r a b l e t o t h e E u r o p e a n . Nevertheless, the subsequent of by and the d e f e a t in t h e war with C h i n a on K o r e a n soil f r o m 1592 to 1598 p r e v e n t e d t h e J a p a n e s e variety of t h e capitalist virus s p r e a d i n g to t h e entire region. T h e t h i r d e x c e p t i o n t o t h e t e n d e n c y toward t h e of in East was t h e g r o w i n g p o w e r of t h e Z h e n g c o m m e r c i a l empire t h e t r a n s i t i o n from t h e M i n g t o t h e Q i n g . A s w e have s e e n , n o t only was this c o m m e r c i a l e m p i r e c o m p a r a b l e to t h a t of t h e D u t c h . F o r a while at least, it also w i e i d e d i n f l u e n c e on t h e dynastic struggles t h a t were b e i n g waged o n m a i n l a n d C h i n a . N e v e r t h e l e s s , t h e comparability of the Z h e n g and the Dutch commercial empires m a k e s t h e i r o p p o s i t e fates particularly instructive. I n t h e E u r o p e a n c o n t e x t , t h e D u t c h b e c a m e t h e l e a d e r s o f t h e institutionalization o f t h e b a l a n c e o f p o w e r a m o n g E u r o p e ' s territorial states, e m p o w e r m e n t of capitalist strata within these s a m e states, a n d t h e intensification of t h e i r m u t u a l c o m p e t i t i o n i n b u i l d i n g overseas c o m m e r c i a l a n d territorial e m p i r e s . In t h e East Asian c o n t e x t , in c o n t r a s t , downfall of Z h e n g c l e a r e d t h e way for t h e d e m i l i t a r i z a t i o n o f t h e C h i n e s e m e r c h a n t s , the consolidation of national economy-making both Qing China and Tokugawa and the precipitous decline p o w e r a n d influence Overseas C h i n e s e the territorial states a n d t h e

280 Arrighi,

Hung and

consolidating European colonial As Pomeranz 204) notes, the Zheng empire "stands as an illuminating example of a kind of activity that successfully paralleled European armed trading and colonization but was a normal part the Chinese state system." does not answer, indeed, does not even raise the question of why in early modern times capitalism spread like an in the European world but did not catch on East All he says, more implicitly than explicitly, is that the be traced to a prior greater development of a market economy, because a market economy was more developed in many of East Asia included, than in Europe. But if, as we think, the prior of a market economy does not explain the difference, what does? It seems to that the most plausible and economical explanation both structural and relational. structural explanation has to do primarily the more balanced and decentralized structure of power in the European than in the East Asian inter-state system. Without such a power structure, it would have been difficult, if not impossible, for capitalist organizations that were either territorially insignificant or without a territorial foundation at to wield the kind of power and influence that the Italian city-states did the fourteenth and fifteenth centuries, the Genoese diaspora in the sixteenth century, and the Dutch Republic in the seventeenth and early centuries. Nor would inter-state competition for mobile capital among the larger organizations of the European system have been as intense as was throughout these centuries. And in the absence of these conditions, is hard to imagine how the capitalist epidemic would have spread the European system as fast as did Arrighi evidence support of contention comes precisely from East where the huge territorial and demographic of China, combined with the power exercised through the system, created a fundamental underlying imbalance and centralization of power the region. As this imbalance and of power were consolidated first under the Ming, and after an interlude under the Qing, the possibility that capitalist would become models of for the larger territorial states (as was the case in fifteenth-century Europe) became in East Asia even more remote than it already was. The same imbalance and centralization did not prevent expatriate ethnic networks of merchant-bankers comparable to the European from forming in East But they did prevent these networks from gaining the upper hand relationships of political exchange the rulers of the most powerful territorial state, as the Genoese network did with Imperial Spain in the sixteenth And finally, for all similarities with the Dutch maritime empire, the Zheng empire really never had a chance to lead "from behind" the larger territorial of East to

Historical capitalism, East and West 281 of power as the principle regulating their mutual relations (as the Dutch Republic did the European states at Westphalia), for the simple reason that in East there was no such balance of power to institutionalize (Hung 2001a: Hung 2001c). This (comparative) structural explanation of the divergence of the European and East Asian developmental paths in early modern times can be seriously misleading unless it is combined a relational explanation, namely with the fundamental asymmetry of East-West trade as a source of wealth and power in the two systems. For throughout early modern times, East-West trade was an incomparably more important source of commercial wealth and power for the governmental and business organizations of the West than of the East, most notably in the case of China. It was fundamental asymmetry that made the fortunes of Venice and induced the Iberian states, instigated and assisted by Genoese rivals, to seek a direct link with the markets of the East. And it was same asymmetry that underlaid the low returns, relative to costs, of Zheng fifteenth-century expeditions in the Indian Ocean. Were it not for asymmetry, Zheng He might well, in Kennedy's words, have sailed "around Africa and Portugal several decades before Henry the Navigator's expeditions earnestly to push south (1987: 7). Columbus' accidental "discovery" of the Americas while seeking a shorter route to the wealth of Asia changed the terms of the by providing European governments and businesses with new means to seek entry in Asian as well as with a new source of commercial wealth and power in the Atlantic. But almost two centuries after the discovery, the Dutch were still in a position to paraphrase - to lay down the law to the commercializing European world by monopolizing one of the most profitable of Asian trades. In the East Asian system, in contrast, the primary source of inter-state power and legitimation continued to be situated at the center of the largest territorial state, China. Once the attempt of Taiwan regime to fight back on the mainland imploded, the Qing succeeded itself firmly as the The

of the

global

economy

on

Europe

With consolidation of Qing in China, trend toward national economy-making initiated by the Ming resumed greater vigor. Its ultimate result was remarkable peace, prosperity, and demographic growth that China experienced for much eighteenth Sugihara (this volume) aptly calls the "Chinese miracle." By worldhistorical standards this was a remarkable achievement and a source of inspiration for leading figures of the European Enlightenment. Leibniz,

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Voltaire, and Quesnay, among others, "looked to China for moral tion, guidance in institutional development, and supporting evidence for their advocacy of causes as varied as absolutism, and an agriculturally based national economy" (Adas 79; Hung 2000: Hung 2001b: The most striking contrast with European states was the Chinese size and population. Francois characterization, the empire was "what Europe would be if the latter were united a single sovereign" - a characterization which was echoed Adam remark that China's "home market" was as big as of "all different countries of Europe put together" (Quesnay 1969: 1983: 170). Equally impressive was the peace and tranquillity of these huge and populous domains which European visitors and residents of China, Jesuit missionaries in particular, contrasted with Europe s social strife and incessant warfare (Adas 1989: 80-1; Hung 2000: 12-17). To be sure, in the early eighteenth century Qing China its borders dramatically into Inner through various military campaigns, and in 1788-9 was at war also in the south Vietnam. In comparison with contemporaiy Europe, and indeed with East itself in the sixteenth and early seventeenth centuries, inter-slate relations in East were nonetheless remarkably peaceful. Even the most convinced proponents of China as a model for Europe qualified their enthusiasm by acknowledging the stagnation of scientific learning in China relative to European advances the preceding century or two. Nevertheless, neither Leibniz and Voltaire, nor the Jesuit writers whose accounts inspired them, saw any contradiction between relative stagnation in the sciences and excellence in the art of government and in moral philosophy. After all, European advances in the sciences had occurred in the context of generalized warfare, state breakdowns and social strife, and had done little to produce stable government and tranquil lives (Adas 1989: The contrast between peace and stable government, on the one hand, and war and scientific progress, on the other, was symptomatic of an fundamental divergence between the of the East Asian and European regional For the same inter-state competition that propelled the capitalist transformation of the European system was relentlessly prompting globalization as well. As William McNeill sums up with specific reference to the period the cockpit of western Europe, one improved modern-style army shouldered hard against rivals. This led to only local and temporary disturbances of the balance of power, which diplomacy proved able to Toward the margins of the European radius of action, however, the result was systematic expansion - whether in India, Siberia or the Americas. Frontier expansion turn sustained an

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expanding trade network, enhanced taxable wealth Europe, and made support of the armed establishment less onerous than would have been the case. Europe, in short, launched itself on a self-reinforcing cycle in which its military organization sustained, and was sustained by, economic and political expansion at the expense of other peoples and polities earth. (1982: 143) No self-reinforcing cycle of this kind could be observed in East Qing China did expand its frontiers north and west, but the economic benefits of expansion fell far short of what would have been required to sustain the of an armament race, European-style. As Wong points out, the logic of political emphasizing competition with foreign states had little in common with emphasis on the mutual benefits of domestic Rather than extract resources from the Chinese state was more likely to invest in them. Political expansion to incorporate new frontiers committed the government to a shift of resources lo the peripheries, not extraction from them. Late imperial Chinese political economy obeyed a set of principles much at odds with those of [European] mercantilism. (1997: The same principle Wong notes for domestic peripheries to a large extent applied also to peripheral regions of the tributary-trade system. As previously noted, the separate political jurisdictions of the East Asian inter-state system did in a sense compete with one another. Sugihara for example, detects a competitive relation two complementary tendencies typical of Tokugawa Japan: its attempt to create a tribute-trade system centered on Japan instead of China, and its extensive absorption of technological and organizational knowledge in agriculture, mining and manufacturing from Korea and China. In other words, as (1994: put "Japan was trying to become a mini-China both and materially." In this endeavor Japan was eventually highly successful, matching and eventually overtaking Qing industrious revolution (see Sugihara, Chapter 3, this volume). Nevertheless, kind of competition drove the East Asian developmental path not closer but further apart from the European: toward a deepening of the division of labor within households and micro-regions rather than between metropolitan core regions and overseas peripheral regions; toward short-distance rather than long-distance (interregional) toward state-making rather than war-making.

284 Arrighi, Hui, Hung and Selden

The

of divergence can be gauged by the opposite trends of trade in the two systems the eighteenth and nineteenth centuries. In period, a growing number and of European states and business organizations built overseas commercial empires of growing scale, scope and sophistication. As a result of these activities, European trade not only expanded far more rapidly than the seventeenth century, but expanded so as to promote a division of labor with the Americas that enabled European regions to specialize and land- and energy-intensive directions. East Asian states, in contrast, no tendency to build overseas commercial empires. Even trade contacts among Asian countries, as Sugihara acknowledges, "shrank sharply from the 8th century and did not recover until the West forced China and Japan to open their ports to foreign trade in the middle of the 19th century" (1996: As a the very success of the industrious both in and Japan intensified the shortage of natural resources, forcing development in both countries along ever more resource-saving, paths. Under these circumstances, the East Asian region continued to expand but remained an interstitial formation. As William Skinner notes, the scorched earth policy through the Qing denied mainland resources to Taiwan destroyed the prosperity of China's southeast coast: for periods of varying lengths between and 1683, the population of the coastal strip from to Guangdong was forcibly removed inland, and most settlements - villages, market towns, and cities were burned to the ground. In 1717 Chinese were forbidden once again to go privately overseas, and in the fate of the whole east Coast region was sealed for nearly a century by the designation of Guangzhou as the sole port for foreign trade. The economic decline and then stagnation of the southeast coast over the next 150 years, turn, provoked dramatic centrifugal effects: Millions emigrated permanently and tens of thousands left the region to spend their productive years By 1800 Hakkas from the Han were settled permanent enclaves in Sichuan, Taiwan, West Borneo, and Bangka, and merchants from subregion were firmly established in great commercial centers throughout Southeast and in every other of China. (Skinner 1985: 278-9) These migrations further expanded the and scope of Chinese trading networks on the outer boundaries and interstices of the East Asian

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tribute trade system. The main of this expansion, however, were neither East Asian nor the overseas Chinese. The inwardlooking developmental policies of Qing China and Tokugawa Japan left a political the maritime regions of East and Southeast Asia that the demilitarized Chinese merchants were ill-equipped to fill. Gradually, the void was filled by European states, and merchants whose capacity to subordinate to their own ends the Overseas Chinese increased rapidly at the turn and nineteenth centuries. Critical in this respect was the continuing decline of Chinese shipbuilding industries and navigation technologies at a of rapid European advances in both 1974: 281; 1993: 136; Hui 1995: 79-80). Rapid improvements in shipbuilding industries and navigation technologies were but one aspect of the great leap of European capabilities that ensued from the so-called first industrial revolution. was not the outcome of greater European advances along the industrious revolution path and the formation of market since in both respects the East Asian region was equally if not more advanced, as Sugihara, Pomeranz and Hamillon and Chang (this volume) argue from ferent was the culmination of centuries of operation of McNeill's cycle" of escalating military competition sustaining, and in turn being sustained by economic and political expansion at the expense of other peoples and politics of the earth. This self-reinforcing cycle did not create the kind of core-periphery relations between Europe and Americas according to Pomeranz enabled Britain to open up land- and industrial-revolution path. It played also a decisive role in creating the conditions for the of the revolution in the capital goods industries. As McNeill underscores: 11

both the absolute volume of production and the of products that came from British factories and forges, 1793-1815, was profoundly affected by government expenditures for war purposes. In particular, government demand created a precocious industiy, excess of peacetime needs, as the postwar depression showed. But also created the condition for future growth by giving British ironmasters extraordinary incentives for finding new uses for the cheaper products their large-scale furnaces able to turn out. Military demands on the British economy thus went far to shape the sequent phases industrial allowing the improvement of steam engines and making such critical innovations as the railway and iron ships possible at a time and under conditions which simply would not have existed without the wartime impetus to iron production. 1-12)

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A r r i g h i , Hui, H u n g and

This impetus to production in Britain s capital goods industries was associated with a massive expansion of British public expenditure from million 1792 to £123 million in 1815. Such an expansion was out of all proportions to Britain's tax revenue, resulting in a three-fold increase in the sum needed annually to service the British public debt from £9 million 1783 to £30 million 1815 (Jenks 1938: 17; Dickson 1967: 9; Ingham 1984: 106). It imagine how this massive expansion of British public debt could have occurred (let alone boosted British wealth and power, instead of undermining them), were not for the fact that prior to the start of the Napoleonic Wars had bought back the national debt from the Dutch, and London had displaced Amsterdam as the main financial entrepot of Europe and the Americas (Arrighi 1994: Arrighi and Silver et al 1999: 51-6). It in connection that the shift of British territorial expansion from North America to South Asia acquires full world historical significance. It has been authoritatively staled that the plunder perpetrated by the East India Company following military victory at Plassey "did not start the Industrial Revolution, but did help Britain to buy back the Debt from the Dutch" (Cam and Hopkins 1980: More important, Plassey plunder initiated the process of conquest of a territorial empire in India that, as we shall sec in the next section, was an essential ingredient of the globalization of the UKcentered system of rule and accumulation. This globalization radically changed the between the European and East Asian regional systems. The two interacting but separate dynamics of previous centuries began to merge into a single dynamic - the dynamic, that of the subordinate incorporation of the East Asian regional system within structures of globalizing European system. To this new dynamic we now turn. East Asia in the UK-centered system

capitalist

In analyzing the subordinate of East within the structures of the European system, we shall begin by underscoring the Asian foundations of British global supremacy in the nineteenth and early twentieth Our argument be that tribute extracted from India, rather than any special competitive advantage in commodity was central to Britain's ability to occupy and retain for than a century the position of political and economic center of the globalizing European system. We shall further argue that the need to facilitate the transfer of Indian tribute to the British center was the primary motivation of the British-led onslaught on the China-centered tribute-trade system. The onslaught transformed but did not destroy the legacy of that system.

capitalism, East and W e s t

At first, dynamic had disastrous consequences for the power, wealth and welfare of the region's and peoples. Over however, it created conditions conducive to the East Asian economic renaissance of the late centuiy. Asian

The

foundations

of

the

UK-centered

capitalist

system

Contrary to widespread opinion, global supremacy was not based on any kind of superiority in the in which its business enterprises were organized. In Britain no less than China, family enterprise was the rule most branches of manufacturing, commerce and finance: The of enterprise in eighteenth- and nineteenth-century Britain was a product of a complex array of legal, economic and cultural forces. With the spectre of bankruptcy ever present, a combination common law partnership and unlimited liability meant that many businessmen preferred lo be associated their family connections than outsiders established a peculiarly type of familial capitalism persisted and evolved through the nineteenth centuiy and into the twentieth. (Rose 1994: To we should add that in the West "familial capitalism" became even more dominant in the nineteenth centuiy than it had been the preceding two centuries. By the end of the eighteenth centuiy joint-stock tered companies had become an endangered species, with remaining specimen - the English East India Company - leading an increasingly precarious existence until the abolition of the Company's China trade monopoly in 1833 sounded its death knell. As this early form of Western corporate capitalism withered away, first in the Atlantic and later in Asia, "the more flexible system of competitive enterprise emerged triumphant" 1957: 46; also Arrighi 1994: 244-50; et 1999: 104-6, 114-16). more flexible system of competitive enterprise consisted of networks of family businesses. It often stated that Chinese capitalism did not experience the of vertical that gave to the multidivisional, multi-national corporation typical of US capitalism (sec, for example, 1996: 26 and Wong 57-8). What is just as often forgotten is that throughout the entire period of British hegemony British capitalism also failed to experience vertical integration. Indeed, if anything, British business seems to have been more vertically integrated at the beginning than at of the nineteenth centuiy.

288 Arrighi, Hui, Hung and Seiden

the early stages of the revolution, leading London and textile manufacturers had ventured into the direct procurement of raw cotton the United and the West Indies. After the end of the Napoleonic Wars, however, they found more profitable to specialize in production at home, leaving the purchase of inputs and sale of outputs the of specialized firms that promoted and financed the formation of truly global commission agents and small general merchants also 1979: In manufacturing an early tendency toward the vertical integration of spinning and weaving was reversed after 1850. As a result, at the turn of the and twentieth centuries, the British system of business was more than ever an ensemble of highly specialized family firms held together by a complex of commercial transactions a web that was centered on Britain but spanned the entire world 1966: 371; Tyson 1968: 119; Hobsbawm 1968: 1977: 1982: 204-5,212; el al 1999: The global competitiveness of British business was due not to any peculiarity of its units but to the world-encompassing nature of British commercial networks. As Copeland has underscored with special to the cotton industry, fragmented structure of British business involved high transaction costs. Nevertheless, these high transaction costs were more than compensated for by the advantages of being located at the center of dense networks of specialists connected to the markets of the entire world by a highly flexible commercial network (1966: 371). As foreign competitors developed techniques of production, procurement and distribution more efficient than the British, either through verintegration notably the United States) or horizontal combinations (most notably in Germany), British business could meet the challenge by specializing more fully in the activities associated with role as the central entrepot of world commerce and finance. It was precisely at the time of waning industrial supremacy finance triumphed, her services as shipper, trader, insurance and intermediary the world's system of payments, became more indispensable. Indeed, if London ever was the real economic hub of the world, the pound sterling foundation, was between 1870 and 1913. (Hobsbawm 1968: As a group of London bankers at the turn of the century, the industrialization of other countries enhanced the importance of a single clearing house. And the world's clearing house always be where there is the greatest ownership of capital." The British "arc

Historical

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the people who and those who have capita! always share in the of brains and muscles of other countries" (quoted 1993: 305). This was certainly the case on the eve of the First World War, when nearly one-half of assets were overseas and about 10 percent of its national income consisted of interest on foreign investment 1953: 3, 23). As Peter (1969: 329) noted, British foreign investment "was not but the of organized by financiers and businessmen much with a to the trade that would be flowing when the enterprise was railway building the United States, and a in countries like Australia, Canada. South Africa and Argentina "was instrumental opening up these vast land masses and developing export sectors in produce for Britain" (see also Chapman, 1992: Capital lending was no less "blind" in creating for own exports: The complex of activities into which capital lending fitted can be most clearly seen such a case as China where the British firm was in the They organized raising of loans to Chinese provincial governments (on which they the margin). They supplied the railways at a profit, sometimes shipped the ment on their own shipping lines, which brought freight charges, and supplied equipment and arms lo the contestants the wars whose strategy was being shaped by railways. (Mathias 1969: 328) The abundant liquidity that accumulated in, or passed through, British hands was a powerful instrument in the competitive struggle not just commodity markets but in armament as well. From the through the 1860s most technological breakthroughs design of ships were pioneered by France. And yet, each French breakthrough called forth naval appropriations Britain that the French could not match, so that it was "relatively easy for the Royal Navy to catch up technically and surpass numerically each time the French changed basis of competition" (McNeill 1982: role as the central entrepot of world commerce and finance that underlaid the competitiveness British business was the outcome of a long drawn-out process. It originated in Britain's growing supremacy European colonial and overseas trade the eighteenth and early nineteenth centuries but became truly global in scope only when Britain liberalized its trade In the twenty years following the repeal of the Corn Laws 1848 and Navigation Acts in close to one-third of the exports of the rest of the world to Britain. Massive and rapidly expanding imports cheapened the costs of vital supplies Britain, while

290 Arrighi, Hut, Hung

providing the means of payment for the rest of the British manufactures. A large and growing number of states and territories were thus "caged" in a world-scale division of labor that strengthened each interest in participating the British-centered market, the more so as that market became virtually the sole source of critical inputs and outlet for remuneratively disposing of outputs. But if unilateral free trade enabled Britain to consolidate and expand role as the central commercial arid entrepot of the world, it was its overseas empire that provided and resources lo keep expanding the sway of the global market and to practice free trade unilaterally in spile of persistent deficits its balance of trade among others, Frank 1978). Critical in both respects was Britain's Indian empire. India s huge demographic resources buttressed Britain's global power both militarily and financially. Militarily, in Lord words, "India was an English barrack in the Oriental Seas from which may draw any number of troops without paying for them" 1975: 341). for entirely by the Indian tax-payer, these troops were in a European-style colonial army and used regularly the endless of wars one count, seventy-two separate campaigns between 1837 and 1900) through which Britain opened up Asia and Africa to Western trade, investment and influence. They were "the iron fist in the velvet of Victorian expansionism the coercive force behind the internationalization of industrial capitalism" 1990: 481). Military manpower was not the only kind of tribute that Britain extracted from India. Equally important, the infamous Home Charges and the Bank of England's control over foreign exchange reserves, jointly turned India the "pivot" of global financial and commercial supremacy. India's balance of payments deficit with Britain and surplus the rest of the world enabled Britain lo settle deficit on current account the rest of the world. Without India's forcible contrito the balance of payments of Imperial Britain, would have been for the latter "to use the income from her overseas investment for further investment abroad, and to give back to the international monesystem the liquidity she absorbed as investment income." Moreover, Indian reserves "provided a large de which British monetaiy authorities could use to supplement their own reserves and to London the centre of the international monetaiy system" (de Cecco, 1984: 62-3). In sum, the nineteenth-century UK-centered global capitalist system rested from beginning to end on tribute from India. It was tribute from India that made possible the sixfold increase in British public expenditure that in laid the of British supremacy in the capital goods industries over the next century. And it was tribute from India

Historical capitalism, East and W e s t 291

in world-scale of when industrial supremacy began to wane. Tribute and trade were thus as closely in the UK-centered global as they were in the China-centered regional system. The difference is that the tribute that India paid to Britain - at first as sheer plunder and then, increasingly, the form of military manpower and means of payments was a form of imposed taxation that had no counterpart the East Asian system. Substantively, corresponded more closely to the original meaning of the Chinese term for "tribute" than did relations in the China-centered tribute-trade system. In term, means the act of submission through which vassal stales sought recognition from the central state, while gong means the valuable offerings of the vassal states to the central state - a imposed tax. Ever since the lishment of a unified taxation system under the and Han dynasties more than two thousand years ago, however, tributaiy relations between the Chinese imperial court and vassal states no longer included the collection of a tax. On the contrary, especially after the Tang dynasty, and with the sole exception of the Yuan dynasty, vassal states offered the imperial court only symbolic gifts and received in return much more valuable gifts. What was nominally "tribute," was in fact a transaction motivated by the symbolic or material interests of the vassal and states a two-way transaction in which the vassals benefited economically far more than the central state (Gao 1993: The human and material resources that Britain extracted from India, in contrast, were and remained a coercivcly imposed tax. Moreover, they were essential to capacity to hold the center global capitalist system. The mobilization and deployment of Indian tribute on the scale required to reproduce and consolidate this capacity, however, presented difficult problems. It was precisely this challenge that drove Britain to with China in the two mid-nine nth Opium Wars. Throughout the first half of the nineteenth centuiy, opium was, in Joseph words, "the West's only feasible entree into the China market" (1972: 10). precisely, it was the only commodity that could contain the hemorrhage of silver from the West to China. From a British perspective, the significance of British sales of Indian opium to China lay in the that such sales played in facilitating the transfer of Indian tribute to the metropolis. As the statistical department at the East India House put it explaining the triangular relationship: "India, by exporting opium, assists in supplying England with tea. China by consuming opium, facilitates the revenue operations between India and England. England by consuming tea contributes to increase demand for the opium of India" (Thornton 1835: 89). The need to expand the India-China trade in order to facilitate the revenue operations between India and England had been from the start

Hut, Hung and Seiden

the

stimulus the expansion of the opium trade. As early as Lord then Governor General of India, saw (he expanof the trade as essential to paying at least in part for Chinese exports of tea and silk to Britain and other European and, above all, as the only way which the vast tribute Bengal could be transferred to England through 1982: 96; Chapter 2). When the abrogation of the India trade monopoly induced India Company redouble efforts in promoting opium smuggling shipments expanded rapidly (more than between and 1823-33) and soundness of advice was fully vindicated. In the words of a contemporaiy account, from the opium trade: The Honourable Company has derived for years an immense revenue and through them the British Government and nation have also reaped an incalculable amount of political and financial advantage. The turn of balance of trade between Great Britain and favour of the former enabled India to increase tenfold her consumption of British manufacture; contributed to support the vast fabric of British dominion in the East, to defray the expenses of His establishment India, and by the operation of exchanges and remittances in teas, to pour an abundant revenue into the British Exchequer and benefit the nation to an extent of £6 million yearly. (Quoted 106-7) The "Honourable Company" was squeezed out of lucrative branch of British commerce the abrogation of its China monopoly in 1833. But the abrogation further emboldened the forces of free trade, which on to agitate for "the strong arm of to bring down the restrictions the Chinese government imposed on their freedom of action. Chinese government for its part, far from yielding to British pressures, moved swiftly to suppress a trade that was as baneful for China as it was beneficial for Britain. Beyond the deleterious impact on the fabric of Chinese society of a growing number of addicts, the opium trade had highly disruptive political and economic effects on the Chinese proceeds of opium smuggling trickled down to Chinese officials whose corruption seriously impaired the execution of official policy all spheres and directly and indirectly fed social unrest. At the same the trade caused a massive and drain of silver from China to India: 1.6 million taels a year 2.1 million taels a year and 5.6 million taels a year in the two years preceding the first Opium el al. 1957: 34). Taking the period 1815-50 as a whole, 150 million Mexican Silver Dollars flowed out of China (Lin the imperial

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of 1838 emphasized in announcing the decision to destroy the trade, the of the on the financial and fiscal integrity of the Chinese state by implication, on its capacity to hold the center of the East Asian regional system) were devastating. "If steps not be taken for our defence," declared the edict, "the useful wealth of China will be poured into the fathomless abyss of transmarine regions" (quoted in 1951: 143) - a "pouring." we may add, which is precisely what the British were after. In putting the vigorous and incorruptible Lin charge of the suppression of opium smuggling, the Chinese government had no intention of thwarting commercial opportunities in other branches of foreign trade, such as silk, tea and cotton goods, which it continued to Lin himself was careful drawing a distinction between the illegal opium trade which he was determined to suppress with or without the cooperation of the government and legal forms of trade, which he invited the British government to encourage as a substitute for the illegal traffic 1958: 18, 28-31, 46, 123; Hao But having failed to persuade the British government to cooperate in the suppression of the traffic the name of international iaw and common morality, he proceeded to confiscate ancl destroy smuggled opium ancl to incarcerate some smugglers. This police operation was denounced the British Parliament as "a grievous a wicked offence - an atrocious violation of justice, for which England had the right, a strict and undeniable right," by "the law of God and man," demand reparation by force if refused peaceable applications" (quoted 1970: 153; see also Owen 1934). Evidently, two quite different views of international law and common morality held sway Britain and China. But while the Chinese view claimed a right to lay down and enforce the only at home, the British claimed a right to lay down and enforce the law not at home but in China as To paraphrase Karl Marx (1959: 235), between equal rights force decides, and Britain had all the firepower needed to make view of right and wrong prevail over the Chinese. China had no answer to the warship that in a single clay February destroyed war junks, five forts, two military stations, and one shore battery (Parker 1989: 96). After a disastrous an explosion of major rebellions, and a second, equally disastrous war with Britain by France), China virtually ceased to be the center of a in itself" (the East Asian system) to become a subordinate member of the centered global capitalist system.

294 Arrighi, East

Asian

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under

dominance

Marx and

famously claimed cheap commodities were the with which the European bourgeoisie down all Chinese Walls" (1967: 84). Contrary to this claim, even after British gunboats battered down the of governmental regulations enclosed the Chinese domestic economy, the British variant of family capitalism had a hard time in Chinese variant both in China and the East Asian region. From the imports British cotton textiles did devastate some sectors and regions of the Chinese economy, most notably which had long been a base of nankeen production, and exports. With the newly invented power loom enabling British manufacturers to quadruple output and halve price, and world cotton prices falling as a result of widespread introduction of gin, the industries of the Lower Yangzi had a hard surviving the competition of foreign-made cotton yarn (Johnson 1993: Yet British cotton cloth was never able to compete in rural markets with stronger Chinese cloth. As late as handicraft industry still supplied 86 percent of the Chinese market for cotton cloth. By then, foreign imports were rapidly displacing handicraft spinning of cotton yarn, which suffered an estimated 50 percent contraction between 1871-80 and But the use of cheaper, machine-produced foreign yarn gave new impetus to the domestic weaving which managed to own and even expand 1970: 1987: 148; Xu et ai. 1992: 155-7; see also Sugihara, Chapter 3, this volume, and Hamilton and Chang, Chapter 5, volume). The competitiveness of Western firms that set up production faciliues within China was even less impressive. They could never penetrate effectively the vast interior of the country and had to rely on the indigenous Chinese traders for the supply of the raw materials and the marketing of their products 1993). the case of silk and tea, as opium, Chinese made huge profits by cooperating with the Europeans, while others established their own businesses, gaining the upper hand in competing with foreign businesses (Chen 1984: 58-61; Xu et ai. 1989: In the silk industry, for example, foreign incurred major losses, while local business prospered — the number of workers employed and exports oi" modern, Chinese-owned filatures increasing by a factor of between 1880s and the 1890s. "Foreigners" - lamented a British consul Canton - "had little left to them other than the export trade" (So 1986: 103-16; So and 1995: 47). Western products and businesses did triumph in a few industries. But outside of railways and mines, the triumph was limited to such products as cigarettes, which did not any indigenous product, and kerosene, which replaced local

East a n d W e s t

oil. Generally speaking, it is hard to dispute Andrew Nathans that "the China market spelled frustration for foreign merchants. Foreign goods made but a superficial mark in Chinese markets" 5). Opium, of course, was the great exception, leaving as it did a deep and mark. But while the predominance of opium among Chinese imports throughout the nineteenth may be taken as a measure of the continuing lack of competitiveness of most other foreign goods in the Chinese market, in the final analysis even the opium trade spelled frustration for foreign merchants. Access to the final consumers of the drug could be gained through Chinese intermediaries organized in groups and networks on the basis of language, residence, and political patronage. The "squeeze" that these intermediaries exercised on foreign merchants was the subject of recurrent complaints. Even when formally employed by foreign merchants, Chinese trades, often made more money than their Western principals; they were quick to learn what there was to be learned of Western business techniques; ancl competing with foreign firms they had the great advantage of much lower overheads and of not being "squeezed" by a middleman 1977: 192-3; Hut 1995: 91, By the end nineteenth these advantages had enabled Chinese traders to develop own domestic supplies of opium, cutting imports sharply and destroying Britain's on the opium trade. Between 1870 and 1900 opium fell from 43 percent to 15 percent of Chinese imports 1980: 9, 489). Far from destroying forms of family capitalism, the subordinate incorporation of China within the structures of the UK-centered global capitalist system led to a renewed expansion of the Chinese merchant networks and communities that over the previous millennium had developed in the coastal regions of China and the interstices of the tribute-trade system. As the capacity of the Qing government to control channels between the Chinese domestic economy and the outer world declined in the wake of the Opium Wars and intervening domestic rebellions, profitable opportunities for Chinese merchants operating within these networks and communities proliferated. Many of these merchants made their "first tank of gold" the opium trade. But the greatest expansion of the Overseas capitalist stratum was based on the "coolie trade," the procurement ancl transshipment of indentured labor for service overseas and bank profits on their remittances home. The transformation of much of the "periphery" of the China-centered system into a major source of raw materials for European countries created a sudden expansion in the demand for cheap labor the region. At the same time, the ongoing disintegration of the political economy of the Qing inflated the surplus population China and undermined the

294 Arrighi, Hui, Hung and Seiden

Asian

Marx and

dynamics

under

Western

dominance

famously claimed that cheap commodities were the with which the European down all Chinese Walls" (1967: 84). Contrary to this claim, even after British gunboats had battered down the wall of governmental regulations that enclosed the Chinese domestic economy, the British variant of family capitalism had a hard time in the Chinese variant both in China and throughout the East Asian region. From the 1830s imports of British cotton textiles did devastate some sectors and regions of the Chinese economy, most notably Jiangsu which had long been a base of nankeen production, and exports. With the newly invented power enabling British manufacturers to quadruple output and halve price, and world cotton prices falling as a result of introduction of the cotton gin, the industries of the Lower Yangzi had a hard time surviving the competition of foreign-made cotton yarn (Johnson 1993: Yet British cotton cloth was never to compete rural markets with stronger Chinese cloth. As as indigenous handicraft industiy still supplied 86 percent of the Chinese market for cotton cloth. By then, foreign imports were rapidly displacing handicraft spinning of cotton which suffered an estimated 50 percent contraction between 1871-80 and 1901-10. But the use of cheaper, foreign yarn gave new impetus to the domestic industiy, which managed to hold its own and even expand 1970: 371-5; Wu 348; Xu et al. 1992: 355-7; see also Sugihara, Chapter 3, volume, and Hamilton and Chang, Chapter 5, this The competitiveness of Western firms that set up production facilities within China was even less impressive. They could never penetrate effectthe vast interior of the country and had to rely on the indigenous Chinese traders for the supply of the raw materials and the marketing of their products 3993). In the case of silk and tea, as with opium, Chinese made huge by cooperating with the Europeans, while others established their own businesses, gaining the upper hand in competing foreign businesses (Chen 1984: Xu et 1989: 75-81). the industiy, for example, foreign ventures incurred major losses, while local business prospered - the number of workers employed and exports of modern, Chinese-owned filatures increasing by a factor of 30 between the 1880s and the 1890s. "Foreigners" lamented a British consul in Canton - "had little left to other than the export trade" (So So and 1995: 47). Western products and businesses did a few industries. But outside of railways and mines, the triumph was limited to such products as cigarettes, which did not compete any indigenous product, and kerosene, which replaced local

Historical

East and W e s t 295

oil. Generally speaking, it is hard to dispute Andrew observation that "the China market spelled frustration for foreign merchants. Foreign goods made but a superficial mark in Chinese markets" (1972: 5). Opium, of course, was the great exception, leaving as did a deep and long-lasting mark. But while the predominance of opium among Chinese imports throughout the nineteenth centuiy may be taken as a measure of the continuing lack of competitiveness of most other foreign goods in the Chinese market, in the final analysis even the opium trade spelled frustration for foreign merchants. Access to the final consumers of the drug could be gained only through Chinese intermediaries organized in groups and networks on the basis of language, residence, kinship and political patronage. The "squeeze" that these intermediaries exercised on foreign was the subject of recurrent complaints. Even when formally employed by foreign merchants, Chinese middlemen, all often made more money than their Western principals; they were quick to learn what there was to be learned of Western business and in competing with foreign firms they had the great advantage of much lower overheads and of not being "squeezed" by a middleman (Hao 1970: 1977: 192-3; Hui 1995: 91, By the end nineteenth these advantages had enabled Chinese traders to develop their own domestic supplies of opium, imports sharply and destroying Britain's on the opium trade. Between 1870 and 1900 opium fell from 43 percent to 15 percent of Chinese imports Far from destroying indigenous forms of family capitalism, the subordinate incorporation of China within the structures of the global capitalist system led to a renewed expansion of the Chinese merchant networks and communities that over the previous millennium had developed in the coastal regions of China and in the interstices of the tribute-trade system. As the capacity of the Qing government to control channels between the Chinese domestic economy and the outer world declined the wake of the Opium Wars and intervening domestic rebellions, profitable opportunities for Chinese merchants operating within these networks and communities proliferated. Many of these merchants made their "first tank of gold" in the opium trade. But the greatest expansion of the Overseas Chinese capitalist stratum was based on the "coolie trade," the procurement and transshipment of labor for service overseas and bank profits on their remittances home. The transformation of much of the of the system into a source of raw materials for European countries created a sudden expansion in the demand for cheap labor in the region. At the same time, the ongoing disintegration of the political economy of the Qing inflated the surplus population in China and undermined the

296 Arrighi.

Hung and Seiden

capacity of the regime to interfere the of the surplus overseas. As a result, between 1900, more two million tract laborers" were shipped off from China, two-thirds of them to SouthAsia (Hui 1995: 108-9, 1995). From another perspective, can locate this resettlement as the latest phase in the term expansion of Chinese and merchants into Southeast Asia, the basis for the deepening economic bonds linking the region. The boom in the coolie trade expansion of the Overseas Chinese trading diaspora in several related ways. Although transportation was in the of European shipping companies, most other of the trade were controlled by Chinese secret societies in the major ports of China and Southeast Asia. were and became the foundation of many new fortunes among Chinese merchants. Besides making the fortunes of individual merchants, the coolie trade also made the fortunes of the port-cities of Singapore, Hong Kong, and Macao, all of which to varying degrees became major seals and "containers" of the wealth and power of the Chinese business diaspora, and all of which became home to large overseas Chinese populations even as these localities became key nodes of European colonialism in the region. Equally important, the coolie like earlier migrations, left a of Chinese throughout Southeast that strengthened the capacity of the Overseas Chinese to profit from one form or another of commercial and financial intermediation within and across jurisdictions in the East Asian (Peng 259-303; Lin and Zhang 1991: 173; 1995: 127-38, 142-5, 149-53; 1997: As earlier periods of strengthening of their position, the capitalist stratum of the Overseas Chinese benefited from the fiscal and financial pressures faced by the late Qing as a result of wars, rebellions, worsening trade conditions, and natural disasters. These pressures forced the Qing court not only to relax controls on their activities but to turn to the Overseas Chinese for financial assistance. The fact that forces, from the to various organizations associated with Sun were very active in Overseas Chinese centers was a further reason for seeking closer ties with Overseas Chinese business networks. In exchange for assisting the Qing court, the Overseas Chinese obtained offices, titles, protection their properties and connections China, and access to the highly profitable arms trade and government loan business (Huang 1974: 251-2; and Zhang 1991: 180-90; Tsai 1993: These closer were not an unmixed blessing for the Overseas Chinese. From the start, they were the cause of tension with the governments in which they resided or did business (Tate 1979: 22; 1993: 82, 90). Nevertheless, up to the final collapse of the Qing in the Overseas Chinese capitalist stratum managed to profit from the intensifying competition among the region's governments, both indigenous and colonial (Hui 1995: Chapter 3).

Historical

East and West 297

The of Chinese family in China and overseas was not the result intensification of inter-state competition that ensued from the subordinate incorporation of East Asia within the structures of the UK-centered global system. Its most important result for at least one centuiy was the launching of industrialization drives both in China and Japan. has maintained that the strongest motivation for industrialization "was not so much a process of catching up with the West, but more a result of centuries-long competition within Asia" (1994; G-7). Hamashita has argued Japanese industrialization was a response to Japanese difficulties in competing with Chinese rather than Western business networks: The reason why Japan chose the direction of industrialization was defeat in attempts to commercial with China. Japanese merchants faced the well-established power of overseas Chinese merchants built through the trade in Nagasaki during the period. Chinese merchants monopolized the export business for sea-foods and native commodities and Japanese merchants simply could not break their hold. (1988: 20) Japanese industrialization, and the territorial and commercial expansion of Japan that went with it (including the imposition of unequal treaties on China and colonial acquisition of a range of territories in East Asia) were indeed a continuation by new means and in a new systemic context of the attempt to re-center upon itself the East Asian tribute trade system. And as we have ourselves argued, most consumer goods industries Chinese business networks were hard to out-compete not by Japanese but by Western business networks as well. Nevertheless, the change in systemic context transformed radically the nature of the inter-state competition that had characterized the East Asian system since the consolidation of the Tokugawa and Qing regimes and made competition the capital goods industries far more important politically and economically than competition the consumer industries. In the new context, inter-state competition within East Asia was inseparable from attempts to catch up with Western proficiency in the capital goods industries, whose modernization (in East Asia no less than in Europe) was intimately associated with the enhancement of military capabilities. The Opium Wars revealed brutally the full implications of Western military superiority, and thereby awoke the ruling groups of China and Japan to the imperatives of accelerated The awakening led the scholar-official Yuan lo develop the old idea of using the barbarians to control the barbarians into the of using barbarian

Hung and

(and the means to produce them) to control the barbarians 1967: 144). In China the became central to the Movement that took off after the second War (cf. 1983: 197-8; So and 1995: 49-5(3). A few later the Meiji also embraced the idea and propelled Japan along the same path of rapid The armament race had long been a feature of the European system was thus "internalized" by the East Asian system. For about years after they launched, industrialization efforts similar economic in China and Japan. On the eve of the War of 1894, in Albert assessment, "the disparity between the degree of modern economic development in the two countries was not yet (1958: 53). Nevertheless, victory the war was symptomatic of a fundamental difference the impact of the industrialization drive on the social and political fabric of the two countries. In China, the agency of the drive was provincial authorities, whose power the central government had increased considerably in the course of the repression of the rebellions of the and who used industrialization to consolidate their autonomy competition one another. In Japan, in contrast, the industrialization drive was an integral aspect of the Meiji Restoration that centralized power the hands of the central government and provincial authorities (So and 53, The outcome of the Sino-Japancse war, in turn, deepened the underlying divergence in the of Japanese and Chinese industrialization. On the one hand, defeat weakened national cohesion, initiating half a century of political chaos marked by further on sovereignty, crushing war indemnities, the final collapse of the Qing regime and the growing autonomy of warlords, followed by Japanese invasion, and recurrent civil wars between the forces of Nationalism and Communism. On the other hand, victory over China in 1894, followed by victory over Russia in the war of established Japan - to Akira 552) - as "a respectable participant the game of imperialist politics," a position perhaps best substantiated by the Anglo-Japanese alliance from 1902. The acquisition of Chinese territory, most notably, Taiwan in 1895, followed by the peninsula and the securing of Russian rights and privileges South Manchuria 1905, and culminating in China's recognition of Japanese suzerainty over Korea (annexed as a colony in 1910), provided Japan with valuable outposts from which to launch future attacks on China, as well as secure overseas supplies of cheap food, raw materials and markets At the Chinese indemnities amounting to than one-third GNP Japan to finance the expansion of heavy industry and to put its currency on the gold standard. in turn,

Historical

East and W e s t 299

rating London and to tap additional funds for industrial expansion at home and imperialist expansion overseas 422-3; 1984: 143, bifurcation of the Japanese and Chinese paths culminated the 1930s in the eclipsing of Britain by as the dominant power in region. With Japanese of 1931, followed by the occupation of China full-scale invasion an undeclared war on China from and the subsequent conquest of parts of Inner and much of Southeast Asia, ousting European originally occupying these areas, Japan seemed to be finally succeeding re-centering upon itself the East Asian region. The for regional supremacy, however, could not be sustained, not only because of the failure in the course of a fiftccn-ycar war to subjugate but also because Japan, following the Pearl Harbor attack, simultaneously fought the United States and allies. Both fronts would exact heavy burdens on an overburdened Japan, leading to a rollback of its advances Southeast Asia and the Pacific as early as As the massive destruction inflicted on Japan by the US strategic bombing campaign in the final months of the war demonstrated even before Hiroshima and Nagasaki. Japanese advances in Western military could not keep up the most powerful complex era, the USA. But bid collapsed because it called forth in China countervailing forces as firmly opposed to Japanese as to Western domination. Once Japanese had been defeated, the formation of the Peoples Republic of China would contest Western hegemonic drives in a for in East has shaped trends and events the region ever since. US hegemony and the East Asian e c o n o m i c renaissance The establishment of US hegemony at the end Second World War thoroughly transformed inter-stale relations within the East Asian region and the world at large. The transformation involved a foreign military presence in East Asia that had no precedent even at the height of late nineteenth- and early twentieth-century imperialism. At the same time, however, it involved the emergence of hybrid forms of inter-state relations that combined features of historic European and East Asian regional It was in this context that the East Asian region began to experience an economic renaissance that recent setbacks have slowed down but not reversed. In section, we shall first sketch the change the regional political economic context that ensued from establishment of US hegemony and the trajectory subsequent regional economic expansion. We shall then show how expansion has roots in the multiple historical legacies region.

300 Arrighi, The c o n t e x t renaissance

Hung and Seiden and

of the

East

Asian

economic

The US military occupation of Japan in 1945 and the division of the region in the aftermath of the Korean War into two antagonistic blocs created, Bruce words, a US "vertical regime solidified rough bilateral treaties Japan, South Korea, Taiwan and the Philippines) and conducted by a that towered over the foreign ministries of these four countries." Ail became states, deeply penetrated by U.S. military structures (operational control of the South Korean armed forces, Seventh Fleet patrolling of the Taiwan Straits, defense dependencies for ail four countries, military bases on their territories) and incapable of independent foreign policy or defense initiatives There were minor demarches through military curtain beginning in mid1950s, such as low levels of trade between Japan and China, or Japan and North Korea. But the dominant tendency until the 1970s was a unilateral U.S. regime heavily biased toward forms of communication. (Cumings 1997: 155) The militaristic nature of US regime, strengthened by rigid ideological commitments, had no precedent in the East Asian region, with the partial exception of the Yuan regime the late thirteenth and early fourteenth centuries and the Japanese regime the early twentieth century. And yet, the of tribute and trade relations between an imperial center whose economic might was incomparably greater than that of its vassal states invites comparison between the US regime and the old tribute-trade system. The contrast with the global capitalist system is clear. As we have seen, three closely related features characterized the latter: commercial and financial entrepot functions exercised by Britain; Britain's unilateral free trade regime, which widened and deepened those functions; and massive tribute from India, which made Britain's unilateral free trade In all three respects, the UScentered global capitalist system instituted after the end of the Second World War differed radically from UK-centered predecessor. At the height of its hegemony, from the late 1940s through the 1960s, the United States exercised no entrepot functions of global significance; nor did practice free trade nor did it an empire from which to extract military manpower and means of payments. It was instead the "container" of a largely self-sufficient, continentsized economy. This giant state did promote the liberalization of trade but

Historical capitalism. East and W e s t

not through the opening up of its domestic market to the exports of the whole world, as Britain had done. Rather, it did so through a combination of and agreements with and among states that for all practical purposes were vassals the politico-military confrontation with the USSR (cf. Arrighi 1994: At the time, this system presented two important similarities the early modern East Asian system centered on China. One was the disproportionately greater size of the central domestic market relative to all other domestic markets. And the other was the relationship of political and military vassalage the central other states had to accept in order both to receive regime legitimation and to gain access to its domestic market. In this respect, wc may say US supremacy East Asia after the Second World War was realized through the transformation of the the former Chinacentered tribute-trade system into the periphery of a tributetrade system, a transformation that was predicated on breaking their trade and other bonds with China. The US-centered system, however, was far more militaristic in structure and orientation than its China-centered predecessor. Not only was based on a apparatus of incomparably greater size, technological sophistication and destructive power, rather than on a culturally shared notion of a hierarchical world order. More important, the US-centered system also fostered a functional specialization between the imperial ancl the vassal states that had no precedent in old China-centered system. As in Iberian-Genoese relationship of political exchange of Europe mentioned earlier, the United States specialized in the provision of protection and the pursuit of political power regionally and globally, while its East Asian vassal states specialized trade and the pursuit of relationship of political exchange between United Stales and played a decisive in launching the first and most spectacular of the late East Asian economic "miracles." As Franz (1974: 143) wrote at a time when the "miracle" was still the making, "freed from the burden of defense spending, Japanese governments have all their resources and energies an economic expansionism that has brought affluence to Japan and taken business to the farthest economic expansion, in turn, generated a "snowballing" process of concatenated, labor-seeking rounds of investment that promoted and sustained a region-wide economic expansion (Ozawa 1993: 1996: process described in Figure by means of successive descending flows of labor-seeking investment from higher- to lower-income jurisdictions and ascending counter-flows of labor-intensive In this regional labor-seeking mobilize the cheaper or more abundant labor supplies of lower-income locales to contain costs of

302 Arrighi,

Hung and Seiden

China and

exports

7.

T h e s n o w b a l l i n g effect i n t h e

of E a s t

Source: Adapted from O z a w a

production and consumption in higher-income locales, laborin tensive exports lap the wealthier or larger markets of higher-income locales to boost the prices fetched by the productive combinations of Analogous have of course been in operation in other regional economies and global economy as a whole. We nonetheless concur contention that East the density and intensity of such a space have been greater than elsewhere and provide a good of the explanation of the regions exceptionally good economic performance over the last half century. exceptional performance is perceived most clearly in the ascent the global hierarchy of wealth and the rapid increase in its

c a p i t a l i s m , E a s t and W e s t

303

the global market. The Gross National Product (GNP) of a state or group of stales converted in at market exchange rates measures the income or value added that accrues to the residents of that state or group of Expressed as a percentage of GNP, it constitutes the best available measure of the share of the world market (or effective world controlled by the residents of that state or group of states. shows percentage for different regions of the world from 1960 to the latest year for which data are The most striking feature of the is the doubling of the East Asian of world GNP between 1960 and 1999, sharp contrast with the stagnant or declining of most other regions. The only other regions whose share experienced a significant increase arc the Middle East and

Table

Regional shares of world G N P (and population) I960

East Asia

13.0 (38.2)

25.9 (38.3)

(38.0)

(0.5)

(05)

Australia and N e w Zealand North America

25.9 (35.9) 1.6

35.i

30.6

29.2

(0.5) 29.2

(0.5) 29.8

(6.2) South and Central America

5.8

5.7

7.0

5.6

5.8

(9.5)

(9.7)

33.5

32.3

(7.8)

(8.8)

(9.4)

(4.5)

(4.9)

(23.8)

(24.8)

(8.8) W e s t e r n Europe

40.5

38.7

36.4 (9.5)

Sub-Saharan

1.2 (6.8)

Middle East and North Africa (4.0)

(4.2)

(22.0)

(22.7)

South Asia Total

(25.7)

100.0 (100.0)

(100.0)

Source: O u r calculations based on W o r l d Bank Notes East C h i n a . Hong Kong. South Malaysia, pines, Singapore. Taiwan, Thailand. N o r t h America: Canada. United States. South and Central Argentina. Bolivia, Brazil, Chile, Costa Dominican Republic. Ecuador, Salvador, Honduras. Jamaica, Mexico, Nicaragua. Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay. Venezuala. W e s t e r n Europe: Belgium. Denmark, Finland. France. Germany. Luxembourg. Netherlands. N o r w a y , Sweden. Switzerland. United Kingdom. Greece, Ireland, Israel, Italy, Portugal, Spain. Sub-Saharan Africa: Benin, Botswana, Burkina Burundi, C a m e r o o n , Central African Republic, C h a d , Rep. of C o n g o , C o n g o Cote Gabon, Ghana, Kenya. Lesotho, Madagascar. Malawi, Mauritania, Niger, Rwanda. Senegal. South Africa. Tanzania, T o g o . Uganda. Zambia. Zimbabwe. East and North Africa: Algeria, Arab Rep. of Egypt, Morocco, Saudi Arabia, Sudan, Syrian Arab Turkey. South Bangladesh. India, Nepal, Pakistan, Lanka.

304 Arrighi,

Hung and Selden

North Africa, broadly corresponding to the lands former Ottoman Empire (with an increase of 39.5 percent) and South Asia an increase of 47.7 both instances, however, the increase was less than half the increase in the East Asian share. More important, the share of both regions, unlike the East Asian share, was and remained rather insignificant, still accounting for less than 2 percent of world GNP at the end of the period. In the 1990s, in the East Asian share tapered off. It nonetheless that the combination East Asian crisis and the North American resurgence contained rather than reversed the earlier trend toward a rise in the East Asian share and a decline in the North American share. The nature and extent East Asian expansion can be brought sharper relief by examining other indicators. An increase in a regions or share of GNP (or share of the world market) in itself does not tell anything about that or country's or fall the global pecking order, because it may be due primarily or even exclusively to an increase (decrease) that or share of world population. In order lo gauge such a or fall, wc must examine changes in relative GNP per capita (GNPPC). Thus, Tabic 7.2 shows the GNPPC of different regions as a percentage of "world" GNPPC and Table 7.3 shows the GNPPC of the jurisdictions East Asian region also as a percentage of "world" GNPPC. Table 7.2 highlights more than the exceptionally strong economic performance of the East Asian region. Over the four decades recorded the region's ascent in the global value-added ranking surpassed by a margin that of any other region, GNPPC rising more than twice as fast as the world average. The next best performing regions by (Western Europe and South Asia) improved their position relative to world average by than one-fourth the East Table 7.2 Regional GNPPC as percentage of "world" GNPPC

East Australia and N e w Zealand North America South and Central America W e s t e r n Europe Africa Middle East and North Africa South Asia Weighted Average Source: See Table Note Countries included: see Table 7.1.

57.4

69.8

339.4 442.9 70.7 327.6

34.2 330.5 415.7 65.0 353.4

432.8 75.7 384.2

468.9 58.9 41

5.6

37.5 5.0

35.5

5.8

356.9 489.4 59.9

33.9 7.4

H i s t o r i c a l capitalism, E a s t and W e s t

Table 7.3

305

Breakdown of East Asian G N P P C as percentage of "world" G N P P C I960

China

3.3

2.7

Hong Kong 20.9

Taiwan

372.9

369.6

461.7

236.3 500.3

South K o r e a

45.4

54.2

Malaysia

32.7

33.9

Thailand 8.6

Philippines Weighted Average

6.4 346.5

70.6

Singapore Japan

Indonesia

3.5 236.2

577.8

703.8

47.4

56.1

70.8

23.3

36.4

43.7

7.5 24.3

34.2

57.4

69.8

See Table

Asian Thanks strong East was the only lower-income that improved significantly position relative to all three higher-income regions America, Western Europe and its sustained character, the East Asian ascent has been a highly uneven process. As Table 7.3 not only did the degree of overall advancement decline) in the course of the decades vary considerably from to In addition, the speed of the advance (or decline) varied from period to period. Taking the period as a whole, the best performers were Taiwan, Singapore, South Korea, China and Hong Kong, in that order - all but South Korea primary sites of dence of the Overseas Chinese. Table 7.3 also shows that the general advance of the region's jurisdictions (except for the Philippines, which lost ground relative to the world average) had a minor impact on the huge income gaps that separate the wealthier from the poorer countries within the Thus, in spite of their advances, the two most countries in the region (China and Indonesia) remain tries by world standards, while Japan has surpassed by a good margin the average GNPPC of the world's wealthiest regions. As a result, income inequalities among countries within the region not only continue lo mirror income inequalities in the world at large, but are larger than in any other region of A further of the East Asian economic renaissance the comparative success of the regions industrialization. The success can be gauged from Table 7.4, which shows shares of world value added manufacturing for 19(30, 1980 and (the latest year for which a minimally complete set of this kind of data is available). As Table 7.4 shows, East was not the only region increased its share of world

306

Hung and

Table 7.4 Regional shares of "world" value added in manufacturing I960

East Australia and N e w Zealand North America South and Central America W e s t e r n Europe Sub-Saharan Africa Middle East and North Africa South TOTAL Source: O u r calculations

42.2

0.7 0.5 0.4

27.8

28.8

35.6

35.2

33.4 6.0 29.3 0.8 0.6 0.7

29.6 8.7 29.0 0.9 0.8 0.9

26.9 6.9 25.9

29.9 6.6 23.4 0.8

on W o r l d Bank

East China. Hong Kong. Indonesia, South K o r e a . Philippines, Singapore. South K o r e a , Thailand. and N e w Zealand: [No N e w Zealand in and N o r t h America: Canada, United South and C e n t r a ! America: Chile, Colombia, C o s t a Rica. Dominican Republic, Ecuador. Salvador, Guatemala, Honduras, Mexico. Nicaragua. Panama, Paraguay, Peru, Uruguay. W e s t e r n Europe: Belgium. Denmark, Finland, France, Luxembourg. Norway. Sweden. United Kingdom. G r e e c e , Italy, tugal. Spain Netherlands Sub-Saharan Africa: Botswana. Burkina Faso, C a m e r o o n , Central African Republic, C h a d , Congo C o t e d'lvoire, G a b o n . Ghana, Lesotho. Mali. Mauritania, Mauritius. Niger. Nigeria, Rwanda. Senegal, South Africa. Togo, Zambia, Zimbabwe. Middle East and N o r t h Africa: Algeria, Egypt Arab Morocco. O m a n , Saudi Arabia, Tunisia, Turkey. South Bangladesh, India, Pakistan, Sri Lanka.

value manufacturing. Indeed, taking the period as a whole, all low-income regions did, while the share of all high-income regions declined. There are nonetheless two important differences between the increase of the East Asian share and of all other low-income regions. First, the share of all other low-income regions remained small, their combined share at the end of the period being only 37.5 percent of the Western European share and 20.4 percent of the North American share. The East Asian share, contrast, by had surpassed both the European and the North American share by a good margin. Second and most important, East Asia was the only region for which the increased share in industrial output was associated a major upgrading in the global value-added pecking order measured by relative The upgrading and the Middle East and North Africa was far less significant, while South and Central America and Sub-Saharan Africa experienced a downgrading (see Table 7.3). It follows that rapid industrialization in East was not (or even a product of relocation of low-value-added manufacturing activities to regions. There was, of course, of of low-value-added manufacturing activities to East Asia, indeed, far more than anywhere else. Nevertheless, the fact that East Asia improved

capitalism, East and W e s t 307

position global ranking the high-income regions so is indicative the fact that its rapid industrialization was the expression of competitiveness not at the lower end of the value-added chain but also al the and higher ends. has been true not only in such obvious cases Japan, Taiwan, Singapore and South Korea, but also for China and to a lesser extent Thailand and Malaysia. In of this more balanced competitiveness, is no exaggeration to say by the 1990s East was well on way to regaining the industrial supremacy had held for so long in modern times. East but by no means least, the financial dimension of the East Asian economic renaissance. The of the economy general, and of the of high-income in is a widely acknowledged phenomenon of the 1980s and 1990s. Indeed, the explosive growth of world financial markets in the course of these two decades is the strongest piece of evidence in the armory of advocates of the thesis that we have entered a new phase of deepening (cf. among others, Harvey 1995; Cohen 1996; Arrighi and Silver et 1999; Held et al. 1999; Rowley and Benson 2000). Most accounts of this tendency focus on the of the US government and business in promoting and benefiting from the financial of and 1990s. Just as however, the underlying tendency toward the demise of the United States and the rise of Japan and "Greater China" as the world's leading creditor nations. Tables 7.5 and 7.6 starkly illustrate change of guard with the period since 1980 displaying the Focusing exclusively on US-Japanese relations, 6; cf. Fingieton 1995) has recently noted that Japan's continuing advance in relative to the United States in the 1990s had a major impact on their respective balances of payments, for the simple reason that generates eleven times more exports per unit of output than service Large and 7.5

Current account

United States United Kingdom Germany China Hong Kong Singapore Japan

o r deficit

[million US$. annual average)

+ 3,320

+440

+ 925

+ 2,352 +895

n.a.

n.a.

n.a.

n.a. n.a. -420

n.a. -684

n.a.

+

+ 3,495 + + +

+ +

-2,990

Source: O u r calculations based on International Monetary Fund

+ 23,570

and 2000).

308 Arrighi,

Table 7.6

Hung and

shares of the ten largest official foreign exchange reserves

Region East Asia North America W e s t e r n Europe Others Total Source: O u r calculations based on

9.72

32.30

78.12

65.62

52.98 0.00

0.00

100.00 Almanac

89) and (2002:

in the of trade and in the US balance, in turn, have deepened the reversal of positions between the two countries in the international credit system: now exporting more in real terms than nation since America's days of global economic dominance in 1950s a the first years of the 1990s net external from $294 billion to billion. Meanwhile, U.S. net external liabilities rocketed from $49 billion lo billion. In the long run this changing balance of financial power will be about the only thing historians will remember about economic the last decade. Yet it was the one thing that Western observers generally overlooked. If we broaden the picture lo take into the rapidly growing capital outflows from the "China Circle" (as shown only part Table 7.5, because of the lack of data for Taiwan) combined with the large and growing East Asian share in world value added in manufacturing (as shown Table 7.4) and the continuing upgrading of the region in the global value-added ranking (as shown in 7.3) — warning about a fundamental Western misreading of the begins lo true (cf. and 2000). As we have seen, by some indicators the East Asian rise does appear to have slowed down 1990s, especially Japan. persistent recession Japan has been accompanied by unabated expansion the region, most the PRC, raising the possibility that we may indeed be as Gills and Frank (1994: put it - "at the beginning of a return [to a global economy] in which parts of play again a leading role as they did the not so distant past." Be that as it may, the question that concerns us here and to which we must now turn is whether we can detect any connection between the region's ongoing economic renaissance and multiple historical heritages.

Historical Lineages

of

the

East

Asian

economic

East and West 309

renaissance

The of East Asia's multiple shaping and sustaining the regions economic integration and expansion is best perceived by focusing on the succession of agencies that have played a role in the process of labor-seeking investments depicted in Figure This succession can be likened to "a rocket" - a process, that is, in which the leading of each created the conditions for the emergence of the leading agencies of the next. In the stage, the main agency of expansion was the US government, whose of power propelled the upgrading of the Japanese economy and created the political conditions of the subsequent expansion of the Japanese subcontracting system. In the second stage, Japanese business itself became the main agency of expansion. As the catchment area of investment and subcontracting networks came to encompass the entire East Asian Overseas Chinese business networks were revitalized. In the new climate provided after 1970 by the US-China opening, the fortunes of these networks became linked with the double pursuit by the Chinese government of economic advancement and national unification, creating the basis of a grand Chinese economic circle. In the incipient third stage, it is precisely the Chinese government acting at times in concert with the Chinese capitalist diaspora in Taiwan, in Hong Kong, throughout Southeast and in North America that seems to be emerging as a leading agency the expansion of the Chinese and East Asian economies, at a when economy has experienced a decade of stagnation (cf. Arrighi 199(3: From the perspective in chapter, these three stages of the East Asian economic renaissance can be interpreted also as stages of a process of revival of key features of the Easl Asian tribute-trade system in a radically transformed global context. The initial stage was one of seemingly absolute Western supremacy. The Cold War had split the region into two antagonistic camps and reduced most East Asian states to the status of "vassals" of one or the other contending "imperial" center - the United States and the USSR. As the Korean demonstrated, however, even at this stage Western supremacy was more precarious than it seemed. It was indeed this that induced the United States to revive unwittingly a typical feature of the seemingly defunct East Asian tribute-trade system - that is, a regime of "gifts" and trade between the imperial and the vassal states that was very favorable economically to the vassal states. was "the early postwar trade regime of Pax Americana" to which Ozawa 130) traces the of the process of regional economic integration and expansion reproduced in Figure In spite of US "magnanimity," the fault-lines between the US and Soviet

Arrighi.

Hung and Selden

of influence in the region started breaking down soon after they were established - first by the Chinese rebellion against Soviet domination in the late 1950s, and then by the US failure to split the Vietnamese nation along the Cold War divide. The breakdown can ultimately be traced to the lack of legitimacy of US and Soviet pretensions to remake the political geography of East in almost complete disregard of the region's historical heritage of state and integration. Attempts to enforce anti-historical strategic geography backfired, both politically and economically. "Politically, US defeat Vietnam demonstrated that, for all its effectiveness in reproducing a balance of terror the USSR, the high-tech and capital intensive US apparatus was ineffectual in enforcing US commands against the determined resistance of the Vietnamese people backed by Chinese and Soviet support. Economically, massive US spending at home and abroad to sustain the war in Southeast precipitated a major fiscal crisis of the US state and contributed decisively to the collapse US-centered, Woods world monetary system. As a result, US global power precipitously, reaching its nadir at the end of the with the Iranian Revolution, the Soviet invasion of Afghanistan, and a new crisis of confidence in the US dollar and Selden 1972; Anight In the midst of this crisis, the militaristic US regime in East Asia began to as the Vietnam War destroyed what the Korean War had created. The Korean War had instituted the US-centric East Asian regime by excluding Mainland China from normal commercial and diplomatic intercourse the non-communist part of the region, through ancl war threats backed by "an archipelago of American military installations" (Cumings 1997: 154-5). Defeat in the Vietnam War, in contrast, forced the United States to readmit China to normal commercial and diplomatic intercourse with the rest of East The scope of the economic integration and expansion was thereby broadened but the capacity United States to control dynamic politically was reduced correspondingly (Arrighi 1996; Selden 1997). It was this context that the Asian economic renaissance entered its second stage - the stage of Japanese-driven regional economic expansion and integration. As previously noted, Japanese leadership regional economic expansion and integration was based on a division of labor between the US pursuit of power and the Japanese pursuit of profit that had no precedent in the indigenous East Asian tribute-trade system. Nevertheless, the gradual substitution of Japanese business for the US government as the leading agency of regional economic expansion marked the reemergence of a pattern of inter-state relations in region and beyond that resembled more closely the indigenous (East than the transplanted (Western) pattern of inter-state relations.

Historical

East and W e s t

In the historic East Asian pattern, in the system was determined primarily by the relative and sophistication of the national economies. In the transplanted Western pattern, in contrast, centrality had come to be determined primarily by the strength of the complexes. One of the most consequential (and disastrous) of the of East within the structures of the Western system was the "internalization" of industrial militarism the struggle for centrality. In the 1930s and 1940s attempt to center upon itself the East Asian regional system by industrial military means had been a failure. But its unintended result was the establishment of a regime in maritime East that marked the apogee of industrial militarism in the region. The limits of industrial as a source of power were laid bare by the defeat of the United States in Vietnam. But it was the prodigious upgrading of the Japanese national economy from the 1950s through the and the expansion Japanese business networks the region and beyond the 1970s and 1980s, that jointly demonstrated the increasing effectiveness of economic relative to military means as a source of world power. growing influence in world politics in the 1980s was based primarily on the that the Japanese government and Japanese business played in supplying the credit and cheap commodities that enabled the United States to reverse the precipitous decline of its power. Without credit and commodities, the Reagan combination of a drastic reduction in domestic taxation and a major escalation of the armament race with the USSR, if at all possible, would have resulted in an increase instead of a decrease in inflationary pressures at home, and in a further weakening instead of a of the US dollar world financial markets. This transformed the previous relationship of Japanese political and economic vassalage the United States into a relationship of mutual dependence. Japan remained in the grip of US military power. But the reproduction of the US protection-producing apparatus came to depend ever more critically on Japanese finance and Japan's growing economic power in the 1980s was not based on any major technological breakthrough. Rather, it was due primarily to a reversal of a secular trend in business organization that was particularly well positioned to turn to own advantage. For the very expansion of the US system of multinational corporations created conditions favorable to the of nineteenth-century forms of business organization (Arrighi al. 1999). In the words of Manuel and Alejandro

The large with its national vertical structure and the aration of its functions between staff and line, does not appear any more as the last stage of a necessary evolution toward rationalized

312

Hung and Selden

industrial Networks of economic activities, networks of firms, and coordinated of workers appear to comprise an emergent model of successful production and distribution. The feature of tins emergent model its "informality," in sharp contrast with the "formality" dominant model of corporate capitalism based on the of big business, organized labor and big government (Castells and 1989: 27-9; for similar claims, see Piore and Sable 1984: 15, "The trend of a centuiy being reversed" - The editorialized in 1989 - "as now it is the big firms that arc shrinking and small ones that arc on the (quoted Harrison As Bennett Harrison has pointed out, there much exaggeration in these claims. But as he himself acknowledges 244-5), it is nonetheless true the worldwide intensification of competition among corporations that ensued from the proliferation in their number and variety has forced them to subcontract to small businesses activities previously carried out within their own organizations. tendency toward the bureaucratization of business through vertical integration that had made the fortunes of US corporate business since the 1870s, thus began to be superseded one hundred years later by a tendency toward informal networking and the subordinate of small business (Arrighi et 1999). The strategy of big business, operating to turn the advantages of small business an instrument consolidation and expansion of own power has been in evidence everywhere. But nowhere has it been pursued more consistently and successfully than East Asia. Without the assistance of multiple layers of formally independent subcontractors (Japan's External Trade Organization) business would flounder and (Okimoto and 1988: 83-8). Close relationships of cooperation between large and small arc buttressed by informal arrangements among the parent companies themselves the form of semi-permanent trade agreements and inter-group shareholding that enable management to concentrate on long-term rather than short-term performance 1989: Starting in the early 1970s, the scale and scope of contracting system increased rapidly through a spillover a growing number and variety of East Asian states (Arrighi et al 1993: The spillover was an integral aspect of the snowballing process of regional economic integration and expansion strengthened the competitiveness of Japanese business regionally and globally. Japanese business was the leading agency of the spillover. But the spillover could occur as rapidly and extensively as it did only by relying heavily on the business networks of the Overseas Overseas Chinese were from

Historical capitalism, East and W e s t

start the between Japanese and local business in Singapore, Hong Kong and where ethnic Chinese constituted the majority the population - and, later on, most ASEAN countries, where the ethnic Chinese minority a commanding position local business networks. The expansion of the Japanese multilayered subcontracting system was thus supported, not by US political patronage "from above," but also by Chinese commercial and Financial patronage "from below" (cf. Hui 1995; 1995). Over however, patronage from above and below began to constrain rather than support the capacity of Japanese business to lead the regional economic expansion. For the incorporation the snowballing process of politically and militarily autonomous states like China radically the nature of the process. "For the first in a very long notes Jonathan - "there [was] open discussion of Japan's growing economic vulnerability to political forces beyond control and what to do about it." As a representative of Japanese big business explained; "We have military power. There no way for Japanese businessmen to influence policy decisions of other countries This is a difference American business it is something Japanese businessmen have to think about" (Fnedland 1994: 42). difference between US and Japanese business did mean thatjapancse business couid not match the capacity of a US nexus to influence the policy decisions of third countries. Equally important, meant that Japans own policy decisions were far more susceptible to being shaped by US interests than US policies were of being influenced Japanese interests. The specialization pursuit of profit that had propelled the Japanese ascent, in other words, limited the extent to which ascent could go on eclipsing the United States as the center of the regional political economy. Equally important the fact that US business began restructuring itself to compete more effectively Japanese business of East rich endowment of labor and entrepreneurial resources. This development is portrayed in Figure 7.1 by the three flows of labor-seeking investment that connect the United States to the Four Tigers, the ASEAN countries, and China and Vietnam. In original model these flows were missing, presumably to emphasize the fact that the main role played by the United Slates the process of East Asian economic expansion has been as a destination of labor-intensive exports. While undoubtedly true, in the 1980s and 1990s a growing number of US corporations been involved tapping the region's labor supplies, not just through direct investment, but also and especially through all kinds of subcontracting arrangements. Indeed, in the 1990s East emerged as one of the most favored destinations of US-centered commodity Gcreffi 1994).

3

4

Hung and Selden

As and Chang 5, volume) underscore, vertically disintegrated or loosely integrated, buyer-driven commodity chains were a distinctive feature of business organization imperial China and still arc in con Taiwan and Hong Kong. We may therefore interpret the formation and expansion East Asia of chains of kind as another instance of Western convergence toward East terns. This convergence of US radices toward the Chinese model of commodity chains is an of the reversal of the secular trend toward the formation of formally regulated and rigidly specialized business structures noted earlier. But fact that the convergence has been particularly strong the East Asian context due primarily lo the presence the region extensive and strategically positioned business networks of Overseas Chinese - that to condition that facilitated the expansion of Japanese By mobilizing these networks, US business could and did recoup some of its competitiveness both regionally and In so doing, however, it was following in the footsteps of business rather than replacing Japanese business in the of leading agency of regional economic expansion. If the process of snowballing labor-seeking not only continued but gained momentum in the 1990s in spite of a weakening of Japanese leadership, was because the process had entered a third stage - the stage of integration and expansion. For of mainland China regional and global markets the late 1970s and the 1980s brought back into a state whose demographic size, abundance of entrepreneurial and labor resources, and growth potential surpassed by a good margin that of other states ating the region, the United Slates included. less than twenty years after Richard Nixon s mission to Beijing, and less than fifteen after the formal of diplomatic relations between the United States and the PRC, this giant "container" of human resources already seemed poised to become again the powerful magnet of means of payments been in early modern times. If the main attraction of the PRC for foreign capital has huge and competitive of labor from the perspective of cost, quality and control - along the actual and potential markets created by the mobilization of these - the "matchmaker" that has facilitated the encounter of foreign capital and Chinese labor is the Overseas Chinese capitalist diaspora (Lardy 1992: 37-82; and 1994:

Drawn by Chinas capable pool of labor and growing potential as a market that contains one-fifth of the world's population, foreign investors continue to pour money the PRC. Some of

Historical capitalism, East and W e s t

that capital from the Overseas Chinese, from disorder, and communism, who one of the era's most piquant ironies are now Beijing's favorite financiers and models for modernization. Even the Japanese often on the Overseas Chinese to grease their way into China. 1993: 40) In fact, reliance on the Overseas Chinese to case Mainland Chinas regional and world markets is not the true irony of the situation. The true irony of the situation is that one of most conspicuous legacies of nineteenth-century Western encroachments on Chinese sovereignty emerged in the 1980s as a powerful of Chinese and Easl Asian emancipation from Western dominance. As we have seen, the Overseas Chinese diaspora had for centuries been the primary locus of the seeds of capitalism that sprouted in the interstices of the tribute-trade system. But the greatest opportunities for the growth of this interstitial capitalist formation came with the subordinate incorporation of East Asia within the structures of the UK-centered global system in the wake of the Opium Wars. In the early twentieth century, significant parts of the capitalist stratum of the diaspora attempted to transform growing economic power into political influence over mainland China by supporting the 1911 revolution and the in the warlord era. But the face of escalating political chaos associated with and civil war, the takeover of coastal regions by Japan, and the eventual defeat of the GMD by the the diaspora was marginalized. The Communist replenished the entrepreneurial ranks of the diaspora by a new spurt of Chinese migration to Southeast Asia and especially Hong Kong and Taiwan as as United States (cf Wong 1988). Shortly the boom associated with the Korean War revived the flow of interregional trade and created new business opportunities for the Overseas Chinese. And so did the withdrawal of the European and US colonial-era large-scale enterprises and the arrival soon after of new multinational corporations seeking capable jointventure partners 1998: 142). Nevertheless, under the US unilateral regime that emerged out of the Korean War the Overseas Chinese role as commercial intermediaries between Mainland China and the surrounding maritime regions, was stifled as much by the US embargo on trade with the PRC as by the PRC's restrictions on domestic and foreign trade - restrictions that became particularly crippling during the Cultural Revolution of the Baker 1981: 344-5). Moreover, through the 1950s and 1960s the expansion of Overseas capitalism was held in check (both directly indirectly) by the spread of nationalism and national development ideologies and practices

Hung and Selden

in It was held in check indirectly by the privileging of economic links and connections within rather than across national boundaries. And was held check by anti-Chinese campaigns restricted the freedom of action of the Overseas Chinese politically, economically and culturally 1989: 122). In spite of unfavorable environment, Overseas Chinese business networks to hold their own and develop further. By the mid1970s, a rough estimate of in Southeast Asia was US$10-16 billion - an amount that in real terms was two or three times the 1937 figure and placed the Overseas Chinese at the commanding heights of most Southeast Asian economies (Wu and Wu 1980: 1992: 1995: 184—5). The Overseas Chinese were thus eminently well positioned to seize the highly profitable business that were opened up by the expansion of the Japanese system, the growing demand by US corporation for business in the region and, above all, the of the PRC in regional and global markets. As soon as opportunities arose, they quickly seized them to become one of the most powerful capitalist networks in the region, in many ways overshadowing the networks of US and multinationals, and the leading force in foreign investment in China and regional economic and financial integration. Suffice it to mention that by the mid-1990s their assets were estimated to be the order of US$ 1.5-2.0 trillion (Lin 1996: extraordinary expansion was not due solely to the entrepreneurship Overseas Chinese. It just as much due to the determination which the PRC under Deng sought their assistance in the upgrading of the Chinese economy and seeking national unification in accordance with the "One Nation, Two Systems" model whose goals were China's economic expansion and the reunification of China including the recovery of Hong Kong, Macau and, eventually, Taiwan. A close political alliance was established between the Chinese Communist Party and Overseas Chinese business, one that would be strengthened following the 1997 reversion of Hong Kong and the further integration of Hong Kong and other overseas Chinese business interests through their role in governing Hong Kong and their participation China's National People's Congress. As Chinese entrepreneurs began moving from Hong Kong Guangdong almost as fast as (and far more than) they had moved from Shanghai to Hong Kong forty years earlier, the Chinese government redoubled efforts to win the confidence and assistance of the Overseas Chinese. In 1988, many of the privileges previously granted to Hong residents were extended to as well (So and 1995: Chapter 11). The response of capitalists was as enthusiastic as that of Hong Kong's. Taiwanese investments in mainland China shot up from million to billion and to US$2 billion

East and W e s t

in 1990, again next two years (Far September 19, 1992; 12; see also Seiden 1997: By 1990, the combined investments of 12 billion from Hong Kong and Taiwan accounted for 75 percent of the total of all foreign investment, almost 35 times more than Japan (calculated from So and 1994 and Far Eastern Review 19, 1992: 1994: 44). An unknown but by all accounts significant portion of the investment from Hong Kong and to a lesser extent Taiwan was in fact Japanese capital invested through the intermediation of Chinese businesses. It less unlikely that correction of the figures to this fact into account would change substantially the overall picture of an expansion of foreign investment in China increasingly driven by the activities ing activities of intermediation) of the Overseas Chinese operating in close alliance with the PRC's ruling elites. These activities were also instrumental in promoting the rapid growth of the foreign trade of the countries out of which the Overseas Chinese operated. Suffice to mention that 1993 the S613 billion combined exports and imports of China, Hong Kong and Taiwan already surpassed Japan's total trade of S569 billion, and 1998 they accounted for billion compared with Japan s total $668 billion External Trade Organization 7). As we have underscored throughout the chapter, the fortunes of the Overseas Chinese in the indigenous Easl Asian regional system went through considerable and downs over the centuries. The present upturn in their fortunes is one of the clearest signs that the transformations of the global system recent decades have reorganized and restructured rather than destroyed the pre-existing regional system. While some features of the pre-existing system did not the others have been revitalized. It was only to be expected that so fertile a seed-bed of capitalism as the Overseas Chinese would be revived by the incorporation of East a global system that provided a far more favorable environment than the indigenous system for the unfettered development of capitalism. So far, has been associated a widening and deepening of the regional economic expansion. But how far synergy can go, and whether it can go far enough to bring East Asia back to the center of the global economy, remain for now entirely open questions. Conclusion Our analysis started out with two puzzles - one concerning the rise of the West in early modern times and the other the of East Asia our own times. The solution we have proposed to the first puzzle is that the extraordinary geographical expansion of the European system of states from the late fifteenth through the nineteenth century can be traced to two major features of that a balance of power that continually

Arrighi,

Hung and Selden

was in check indirectly by the privileging of nomic links and connections within rather than across national boundaries. And was held in check directly by campaigns that restricted the freedom of action of the Overseas Chinese politically, economically and culturally 1980: 122). In of unfavorable environment, Overseas Chinese business networks managed to hold their own and develop further. By the mid1970s, a rough estimate of in Southeast was billion - an amount that in real terms was equal to two or three times the 1937 and placed the Overseas Chinese at the commanding heights of most Southeast Asian economies (Wu and Wu 1980: 30-4; 1992: 165; 1995: 184-5). The Overseas Chinese were thus eminently well positioned to seize the highly profitable business opportunities that were opened up by the expansion of the Japanese subcontracting system, the growing demand by US corporation for business partners the region and, above all, the reintegration of the regional and global markets. As soon as these opportunities arose, they quickly them to become one of the most powerful capitalist networks the region, many ways overshadowing the networks of US and Japanese multinationals, and the leading force in foreign investment in China and regional economic and financial integration. Suffice it to mention that by the their assets were estimated to be the order of trillion (Lin 236). This extraordinary expansion was not due solely to the entrepreneurship Overseas Chinese. It just as much due to the determination with which the PRC under Deng sought their assistance the upgrading of the Chinese economy and seeking national unification in accordance the "One Nation, Two Systems" model whose goals were China s economic expansion and the reunification of China including the recovery of Hong Kong, Macau and, eventually, Taiwan. A close political alliance was established between Chinese Communist Party and Overseas Chinese business, one that would be strengthened following the 1997 reversion of Hong Kong and the further integration of Hong Kong and other overseas Chinese business interests their in governing Hong Kong and their participation in China's National People's Congress. As Chinese entrepreneurs began moving from Hong Kong into Guangdong almost as fast as (and far more massively than) they had moved from Shanghai to Hong Kong forty years earlier, the Chinese government redoubled efforts to win the confidence and Overseas Chinese. In many of the privileges previously granted to Hong Kong's residents extended to Taiwan's residents as well (So and 1995: Chapter The response of Taiwan's capitalists was as enthusiastic as of Hong Kong's. Taiwanese investments mainland China shot up from million in to US$1 billion 1989, and lo US$2

Historical capitalism, East and W e s t

in 1990, doubling again two years 19, 1992: 12; also Seiden 1997: By 1990, the combined investments of US$12 billion from Hong Kong and Taiwan accounted for 75 percent of the total of foreign investment, almost 35 times more than (calculated from So and 1994 and 1992: 12, and June 9, 1994: 44). An unknown but by accounts significant portion of the investment from Hong Kong and to a lesser extent Taiwan was in fact Japanese capital invested through the intermediation of Chinese businesses. It nonetheless unlikely that any correction of the figures to take fact into account would change substantially the overall picture of an expansion of foreign in China increasingly driven by the activities ing activities of intermediation) of the Overseas Chinese operating in close alliance the PRC's ruling elites. These activities were aiso mental in promoting the rapid growth of the foreign trade of the countries out of which the Overseas Chinese operated. Suffice to mention that in 1993 the S613 billion combined exports and imports of China, Hong Kong and Taiwan already surpassed Japan's total trade of $569 billion, by 1998 they accounted for $900 billion compared with Japan's total billion (Japan External Trade 1999: 7). As we have underscored the chapter, the fortunes of the Overseas Chinese in the indigenous East Asian regional system went through considerable and downs over the centuries. The present upturn in their fortunes is one of the clearest signs that the transformations of the global system in recent decades have reorganized and restructured rather than destroyed the pre-existing regional system. some features of the pre-existing system did not sun'ive the others have been revitalized. It was only to be expected that so fertile a seed-bed of capitalism as the Overseas Chinese would be revived by the incorporation of East in a global system that provided a far more environment than the indigenous system for the unfettered development of capitalism. So far, revival has been associated with a widening and deepening of the regional economic expansion. But how far synergy can go, and whether can go far enough to bring East back to the center of the global economy, remain for now entirely open Conclusion Our analysis started out with two puzzles - one concerning the rise of the West early modern and the other the East our own times. The solution we have proposed to the first puzzle the extraordinary geographical of the European system of Slates from the late fifteenth through the century can be traced to two major of that system: a balance of power continually

3

Arrighi, Hui, Hung and Selden

inter-state competition within the system on the one and the critical that profits from trade with the non-European world (Asia particular) played determining the outcome of that competition on the other. Taken jointly, these two systemic circumstances created an environment conducive lo the combined development of and militarism - a development that sustained and was turn itself sustained by economic and political expansion at expense of other peoples and polities. In the East Asian contrast, the unbalanced structure of inter-state power and the insignificance of profits from trade the non-East Asian world in determining the outcome of competition created an unfavorable environment for the combined ment of capitalism and along the European path. At certain times - as under the Southern Song and the Yuan - the environment was more favorable than at other times. But the further development of national markets under the and the Qing China and in Tokugawa Japan tended to externalize rather than internalize capitalism. Capitalism did thrive East Asian world system, but primarily as an formation embedded the business networks Overseas In the - bearing in mind that these mailers, lo paraphrase Joseph (1954: 163), a centuiy a "short run" this bifurcation of the European and East Asian developmental paths resulted in the further expansion of the market economy China and Japan and a condition of peace and stable government in the East Asian system that contrasted sharply with the situation of generalized warfare and state breakdowns typical of the European system. In the longer run, however, the bifurcation resulted in a strengthening of the capacity and disposition of Western states to pursue the subordinate incorporation of East Asian states within the structures of their own system on the one side, and a decreasing capacity of East Asian to prevent such an incorporation on the other. once the incorporation actually occurred, as did in the wake of the Opium Wars, the historical heritage of the East Asian system did not vanish a generalized convergence toward Western practices and patterns of political and nomic interaction. There was convergence but through a process of hybridization that and eventually revived important features of the East Asian system. In our view precisely process of wc can find a good part of the solution to our second puzzle - the puzzle, that of the vitality of the East Asian region after subordinate incorporation globalizing Western system. More specifically, our argument has been that East Asian dynamic under dominance has through two distinct stages, one

Historical

East and W e s t

to the transition from British to US world hegemony and the other to the period of US In the first stage, vergence was predominantly toward Western practices, as both China and Japan engaged industrialization drives aimed al strengthening themselves militarily in competition one another and with the Western powers in context of escalating rivalries. competition East converged toward the European pattern most disastrous results for China and but eventually, in the Second World War for Japan as well. In the stage, in contrast, a hybrid pattern of political and economic interaction features of the Western and East Asian systems to emerge. Politically, the United States could exercise hegemonic functions the region only by adopting a trade regime that on close inspection had more in common with the tribute-trade system than with the nineteenth-century UK-centered system. Economically, rapid regional integration and expansion could occur only through mobilization and of forms of business organization that more the informally networks of Chinese enterprises than the vertically integrated and managed structures of US enterprises. As the data presented earlier show, the benefits of the regional economic renaissance ensued from this process of hybridization have been among the jurisdictions. Moreover, in most countries but especially in China (where almost two-thirds of the population concentrated) the economic upgrading of the national economy has been accompanied by a sharp increase in income inequalities and the specter of large-scale unemployment. The renaissance has thus been an extremely uneven process that has magnified inequalamong and within the political jurisdictions and brought palpable benefits to no more (and probably less) than one-fifth of the population, while sharply raising expectations of the benefits of prosperity for all. These tendencies constitute a departure from the of more even development characteristic of the historic East Asian system during the era of Chinese preponderance in favor of the Western pattern of uneven development. They constitute also a major limit lo further expansion. For growing inequalities do just engender social and political tensions and resistance and 2000). They also restrain the growth of the regional market thereby reproducing the dependence of the expansion on the willingness and capacity of the United States and other Western countries to absorb increasing labor-intensive imports from East This willingness and capacity cannot be taken granted in of the growing foreign indebtedness of the United States and the near economic stagnation of the EU. the fate of the East Asian economic

320 A r n g h i ,

Hung and Selden

depends on whether East Asians can effective ways and means of moderating nationally and internationally. If such ways and means are found, East well once again the center of global economy.

This

is

Mark would like to emphasize, Sugihara v o l u m e ) also suggests, that this not of low-level equilibrium type. A Smithian. high-level e q u i l i b r i u m trap refers to a situation in which t h e for efficient growth of an e c o n o m y a particular e n d o w m e n t of resources exploited. A l t h o u g h in a situation p r o d u c t i o n , trade a n d i n c o m e c a n n o t grow further, are at historically high levels. A low-level e q u i l i b r i u m trap, in contrast, refers to a situation in which an increase in incomes calls an increase in population that depresses r e t u r n s to a n d brings i n c o m e back to historically levels. 2 This m e t h o d o l o g y i n t r o d u c e s two kinds of in o u r comparative analysis, o n e c o n c e r n i n g m o d e r n times a n d other the nineteenth and twentieth centuries. In the but still distinct E u r o p e a n and Asian of limes, a g r e a t e r n u m b e r a n d variety of stales will o u r story of E u r o p e a n dynamic than o u r story of t h e East Asian dynamic, t h e latter b e i n g focused primarily on China a n d only secondarily on J a p a n . T h i s asymmetry is d u e to t h e fact n o t e d that early m o d e r n times C h i n a s position t h e East Asian region was far m o r e stable than that several states that b e c a m e h e g e m o n i c the p e a n region. This situation c h a n g e d the c e n t u i y , as p e a n regional system global a n d East Asian system b e c a m e a regional sub-system globalized E u r o p e a n From then o n , t h e tinct stories of t h e regional systems m e r g e into a single is single story non-East Asian states the United Kingdom t h e nineteenth centuiy and U n i t e d States in the twentieth c e n t u i y ) East Asian states as protagonists the structuring and of t h e East Asian region. 3 J a p a n doubly challenged C h i n a ' s position as t h e u n i q u e tributaiy in t h e region, first by not s e n d i n g missions China b e g i n n i n g and c o n t i n u i n g t h r o u g h o u t the Tokugawa reign 1999: 8; Wills Flynn a n d Giraldez a n d s e c o n d by exacting tribute from t h e Ryukyus t h r o u g h t h e even as preserved their tributaiy relationship with C h i n a ( H a m a s h i t a V i e t n a m , for t h e Q i n g era required missions from Laos a n d C a m b o d i a although, contrast to to send tributaiy missions lo China 1993: 2 3 4 - 4 0 ) . 4 In t h e and their r e g i m e in Taiwan r e m a i n e d a independent k i n g d o m exacting and conducting with t h e Philippines, t h e Ryukyus, a n d various k i n g d o m s of Southeast Asia. While Z h e n g aspired to oust Manchtis a n d restore the Ming, his successor Zheng repeatedly rejected Q i n g offers of a s e m i - a u t o n o m o u s negotiations t h e 1000s a n d 1070s, a n d p r o p o s e d recognition as a tribute vassal of t h e Q i n g based on Korean a n d Ryukyu

Historical capitalism, East and W e s t

5

6

7

8

E m p e r o r , however, that "the thieves in Taiwan a r e Fujianese, Taiwan is not t o Korea a n d 33-7). T h e n u m b e r of Southeast Asian missions to C h i n a p e a k e d at 52 the In t h e t h e r e were ten missions four states, a n d first of t h e only Champa Melaka sent a total of five T h o u g h t h e Q i n g r e g i m e lifted t h e sea ban it i m p o s e d strict regulations on t h e s h i p b u i l d i n g restricting t h e size a n d weight of a n d outlawed b r i n g i n g on b o a r d 1987: A new era was i n a u g u r a t e d in which " t r a d e was but m a r i t i m e C h i n a had lost its fragile political a u t o n o m y " (Wills J a p a n ' s territorial expansion in t h e 1890s a n d was a c o n t i n u a t i o n on a e n l a r g e d scale of its previous i n c o r p o r a t i o n of t h e Ainu h o m e l a n d of in a n d Okinawa in (Howell 1997: 1997: 6 4 0 - i ; 1991: T h e U n i t e d Slates did of its vassals s u b o r d i n a t e a n d paramilitary functions. T h e s e i n c l u d e d J a p a n e s e supplies of material in t h e Korean a n d Vietnamese wars; a large Korean t r o o p c o n t i n g e n t in Vietnam a n d t h e s u p p o r t for t h e US military effort of various Laotian tribes a n d Tibetan

9 We use G N P instead of G D P data because they include t h e i n c o m e s that the residents of t h e state or g r o u p of states derive from transfers from abroad (such as repatriated profits or w o r k e r remittances) a n d e x c l u d e incomes transferred We do not adjust data for in costs of living not because p r i o r to t h e 1980s " p u r c h a s i n g power parity" (PPP) data for c o u n t r i e s e i t h e r do not or a r e extremely u n r e l i a b l e . not m a k e such an a d j u s t m e n t also because h e r e we a r e interested mainly t h e relative c o m m a n d of t h e residents of different on o n e resources in t h e world r a t h e r than in t h e i r over resources their respective national markets. While G N P data are b e t t e r indicators of t h e s e c o n d kind of c o m m a n d , G N P data converted USS at market e x c h a n g e data) heller indicators of the firM kind of (cf. and 2000 a n d 2000). We have e x c l u d e d from t h e calculations of G N P a n d regional shares thereof t h e former USSR a n d Eastern E u r o p e , a l o n g with s o m e African, Asian and A m e r i c a n countries, because of lack c o m p a r a b l e data for o n e or more of t h e years shown in t h e table. Nevertheless, in 1999 t h e states included in the for a b o u t 90.7 p e r c e n t of world GNP. T h e percentages of T a b l e 7.1 very close a p p r o x i m a t i o n s to t h e shares of t h e world controlled t h e residents of t h e different regions. To this we s h o u l d a d d in when data first b e c a m e available, the f o r m e r USSR a n d Eastern E u r o p e a c c o u n t e d for p e r c e n t of world GNP. By 1999 their s h a r e h a d d r o p p e d to p e r c e n t . T h a t was t h e worst performance of all regions, i n c l u d i n g Africa. It follows that the inclusion of t h e f o r m e r USSR a n d Eastern E u r o p e o u r data set would improve proportionately t h e p e r f o r m a n c e of all t h e regions, East included the above figures have from World Bank 2001). 10 M o r e specifically, over t h e four d e c a d e s 1960-99 t h e GNPPC of Western E u r o p e relative to t h e world average increased by 27 percent, while of East Asia increased by percent. Income in Asia is larger than in any o t h e r region of the world because, u n l i k e any o t h e r East Asia includes both a (Japan) with o n e of t h e highest p e r incomes in t h e world and countries (like

3 2 2 Arrighi, Hui, Hung and Selden Vietnam)

sonic t h e lowest p e r C h i n a ' s actual position of G N P P C has b e e n a highly issue. T h e controversy is partly d u e to a major discrepancy between b a 5 e d and GNPPC n o t e 9 for t h e difference between t h e two kinds of Since this discrepancy h a d been instrumental denying C h i n a "developing n a t i o n " status in t h e negotiations over its into the WTO, hard to tell w h e t h e r t h e discrepancy reflects an of t h e social squeeze of conout of a low i n c o m e , a exaggeration of that capacity bv t h e officials of the World Bank a n d o t h e r international institutions. T h e issue further by t h e growth of i n c o m e inequality within an inequality is estimated to have b e c o m e a m o n g the largest world et al. 2 0 0 1 ) . If is i n d e e d t h e and evidence is compelling, t h e of PRC in global value-added hierarchy would in fact a far upward mobility of a limited n u m b e r of ( p r e d o m i n a n t l y areas on o n e side, a n d a lesser upward (or downward mobility) of m u c h of t h e rest of country. As we u n d e r s c o r e the section, this domestic of C h i n a s e c o n o m i c expansion has i m p o r t a n t implications. has b e a r i n g on o u r present c o n c e r n the p e r f o r m a n c e of c o u n t r i e s a n d regions in g e n e r a t i n g national wealth. 12 Leaving aside "errors a n d omissions," c u r r e n t account 7.5 a r e indicative of Mows of capital a n d

of

shown inflows.

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Historical capitalism. East and West 3 3 3 Trade Essays

of Ming a n d Q i n g : Closed D o o r a n d History IV: Taipei:

( T h e Chinese Feudal G o v e r n m e n t ' s Policies T o w a r d the Overseas C h i n e s e ) . X i a m e n

Index

n u m b e r s in

refer to figures s e p a r a t e d from their textual

266 278 310 8, 260 age factors: costs labor divisions 138, 153; labor force participation 106u90 7, see agriculture: China 82, class 87; commercialization as domestic work 84; farm feminization 152, France g e n d e r e d labor 150-1; g e n e r a t i o n a l labor as inside work J a p a n 84, 142; technology 84: labor productivity 85: land-use 89; physical strength tenant farmers wages 130,

forces 296 CCP 52

J

aircraft m a n u f a c t u r i n g 185 Alexander, 240 a l u m i n i u m industiy 102, Americas 304, Britain 286; of European empires 262; food migration 79, 127, HO; natural resources 9 3 , 94, 127, silver trade 95; trade routes 8 Amity a n d C o m m e r c e , Treaty of 25 26 279 21, 2 4 - 5 anti-colonialism 2

Arabs 63 17, IS A r g e n t i n a 289 131, 132, 187, elites a r m a m e n t race 298, a r m s trade Giovanni 14,52, 92 195, 196 ASEAN 218, 230. 313 period, Japan 279 Asia: e c o n o m i c crisis G D P 220; m a r i t i m e region 17-19; 45; nationalism 47: regionalism 245; 95; wage levels 220; see Asia; Asia; Northeast Asia; S o u t h e a s t Asian Development 218 Asiatic M o d e of P r o d u c t i o n 53 assembly plains 152 Astra Australasia 79 102, 289 automobile 107, 108, 231 aviation industry 242 balance of power 9 2 - 3 balance of trade 308 Sea

185,

Index 335 Bank of I n t e r n a t i o n a l Settlements barbarians 274

297-8

177 beggars 315

Korea 46; national d e b t 286; n i n e t e e n t h century 215, 136; building 289; silver trade 69; tax 286; tea trade 2 9 1 ; expansion 262, 28(5; urbanization 96: vertical World War I

of 270 278 bicycle industry 204 birth control 151, birth rates 1 Boeing 185 30, 32 B o o t h , Ann 85 B o r d e r Research Institute 04 b o r d e r trade 3 2 - 3 , 3 0 b o r d e r l a n d s 37, (58-9; see frontier Bonus.

237, 238, 239

boycotts 101 brand name merchandising 198, 204, brand names Braudel, capitalism 203, 200, 270, 280; G e n o a 2 0 7 - 8 ; m a r i t i m e t r a d e 8; t r a d e structures world e c o n o m i c s 5, 10 Bray, b r e a d w i n n e r role Woods 310 Brewer, 193 b r i d e price Brinton, Mary 154 B r i t a i n / E n g l a n d : Americas 286; capital a c c u m u l a t i o n 2 9 1 ; capital g o o d s 286; China 58, 293; colonialism 27, 58; consuls 20; c o n s u m p t i o n 193; c o t t o n t r a d e OS, 95, 199, 200, 294; businesses as financial e n t r e p o t 286, 2 8 8 - 9 , 300; global networks 288, 315; Glorious 277; 319: household budgets 290; i m p o r t s India 259. 2 9 0 - i , 300: 78, 8 3 - 4 , 94, industrialization 93, 1 knitting

L. 86 B u d d h i s m 57, 72 bullion i m p o r t s 196 B u r m a 27 business a g e n c i e s business 297. see overseas C h i n e s e networks business organization 3 1 3 , William A. 197 C a m b o d i a 230 Canada 289 canal system Canton 55, E u r o p e 265: foreign Kong 265; revolution Japan 265; self-reinforcing 2 6 5 - 6 ; Taiwan 158; expansion 205; township a n d village enterprises 158 capital

Marx 265 goods 286 capital l e n d i n g 289 capita] mobility 207 capital-saving devices 99 C h i n a 100, 130, 174-5, 177, 239, 2 7 1 , 277, 287: Asia 278, 284; Europe 267, 277; relations i Japan 233. 239; Marxism 177-8, militarism e c o n o m i c s 174; overseas Chinese m e r c h a n t s 295, 296: overseas Chinese networks 29(5. 3 1 5 - 1 6 : maximization 87; regional systems 278: Southeast 279; 177, 181, 183, 202. 315; Taiwan US 287; 5

336 Index 263, 266, 276, 280; c o m m e r c i a l 263; 287, Dutch 268; 287, 207; global 204, 205, 300; interstitial 278, 284; petty 120, 138, 162; Smithian 177-8, 263, 204, 265; 174, caravan traders 51 Manuel 31 1-12 Celebes Sea 18 c e m e n t industry 235 C h a m p a 278, C h a n d l e r , Alfred Chang 11, 12, 13, 285, 314 Chao 203 Delta C h r i s t o p h e r 271 87 chemical Chicago study 61 child care child labor: class 131; cotton textiles 182: g e n d e r 155; production household income 138-9; s p i n n i n g sex selection 156-7 China 3; 7, agriculture 82, 150-1; border crossings 62; 101; Britain 58, 293; British cotton g o o d s 199, 200: system 197, bullion imports 190; 130, areas 19, 63, 66, 315; c o m m e r c i a l e x c h a n g e 59; c o m m o d i t y e x p o r t s 196; c o n s u m p t i o n corruption 272, 275; cotton 98, 110, 182, d a u g h t e r s 135, 155; d e m o g r a p h y 280; of 100; development domestic industiy 69, 134; East Asia education emigration 8; 190; familyowned business 173, 186; feudalism

53. resources 263; flexible foreign influence 57: frontier perspective 5 1 , 53, 5 6 - 7 , 02, 64; G D P gender n o r m s 153; g e n d e r roles 131, 134, g e n d e r e d labor 13, 124, GMD 315; G N P p e r capita manufacturing 143; h e g e m o n y 320u2; imperialism 13, 50, 7 0 - 2 . 177, 314; i m p o r t s 60, 101, 294, 295: i n c o m e inequalities 9 4 - 5 ; industrious 84; I n n e r Asia 12; intellectuals 235; internal t r a d e 178, 272; inter-state 5-6; invasion Japan 26, 46, 315, Korea 33, 42, 4 5 - 6 : labor 3 1 4 - 1 5 ; laborintensive industries 99-102; laborsupplying strategy J 42: living s t a n d a r d s 59; m a n u f a c t u r i n g 150; m a n u f a c t u r i n g networks 2 3 4 - 9 ; Maoist m a r i t i m e customs 4 5 - 6 ; market 162, 260, 263-4, 277; Marxism 5 3 - 4 ; mass markets 53-4: merchandising merchants 204; migration military 70, military c a m p a i g n s 2 7 4 - 5 ; military power 6 5 - 6 , 69; Mongols 62, 69; national e c o n o m y 319; 52, 53, 99, 315-16; navigation 20, 285; n i n e t e e n t h century China peasantry 66, 124, 272-3; growth 78, 143; poverty 259; p r o d u c t differentiation production p r o p e r t y rights 190; raw materials 295; reunification plans 316; revolutions 3, 4; differences 1 5 0 - 1 ; Islands 05: SelfS t r e n g t h e n i n g Movement 298; semicolonialism 53; 270, 285, silver trade 273: social welfare 152; Southwest C h i n a

Index 337 62;

Union Taiwan 309, 27, 99, tax relief 27; 14; territories 55, industries 204; t r a d e restrictions 272; with Korea 2 8 - 3 3 , 38, 45, 58; networks 2 7 1 , 2 8 4 - 5 ; treaties 26.25; relations 3 6 - 8 , 269, 280, 285. valuea d d e d chain 307; vertical wage levels 139; Western t r a d e World War II Ming dynast v. overseas C h i n e s e overseas C h i n e s e networks; People's Republic of Qing Song Dynasty; Delta C h i n a Circle

205, 236, 238. 308 20 China M e r c h a n t ' s Navigation C o m p a n y 31 Chinese 70 C h i n e s e m e d i c i n e 38 295 Khan p r o d u c t i o n 237, 238, 2 4 3 28 cigarettes 294 266, 277, 279, 280 thesis 69 class; agriculture 87; child labor consumption craft p r o d u c t i o n roles 18; h u m a n capital Ming 202: social 131, 189; specialization 8 7 - 8 clergy coal industry 94. 107 coastal areas 19, GO, 6 3 , 66, 284, 315 Coble, Parks M. 100 C o c h r a n , S h e r m a n 203 Cold War: East 260, 309; geopolitics influence 107, l a b o r divisions nationalism colonialism 59; Britain 27, 58; Dutch 58, 274, 279, East Asm 3: E u r o p e 7, 58, 262, France 27; Japanese 7; Manchtis 6 4 - 5 ; Western 52, 95 Columbus, Christopher

commercial exchange

5 8 - 9 , 200.

c o m m e r c i a l treaties 26 commercialism 174, 183 commercialization agriculture 84; d e v e l o p m e n t 202; exploitation 157-8; imperial C h i n a Marxism Ming 54, 2 0 2 - 3 ; p r o d u c t i o n 129 commission agents 288 c o m m o d i t i e s : agricultural exports female family m e m b e r s gender prices production 183. 184; traditional 97 c o m m o d i t y chains: 13. 187, 204, textiles e x c h a n g e s 20; global 184-5, producer-driven 190, 204 c o m m u n i c a t i o n networks 80, 109, Communist of C h i n a 2, 52, 99, 106. 147, company c o m p a s s 270 c o n s u m e r g o o d s industry 297; c o r p o r a t i o n s 312; East Asia 262, 283; E u r o p e 262, industrialization 307; relations 12, 207, 269, policy Tokugawa J a p a n 283 competitive 222 computer 223. concubinage conflict 10, 17, 31 29-30 Confucianism 4. 20. i40 conglomerates, c o n s u m e r electronics 107, c o n s u m e r g o o d s industry 235, 297 brand names China class 193; 188; E n g l a n d 193; E u r o p e g e n d e r 139-40; peasantry 133; social factors 187; trade Western 192 labor contractual 228 coolie t r a d e 295, 296

340 Index E u r o p e - rout 24, 2 7 - 8 ; wage levels 132-3, 138; Westphalia, Peace 58, 6 1 - 2 , 206. 268 European Union e x c h a n g e rate exogamy 160 see expansion expatriate business networks 2 7 6 - 7 exploitation 160-1 export duty 30 export-processing zones 152-3 organizations 9 63 45, 57, 04 family: agriculture 138: C h i n a East g e n d e r roles 12, 124, 129; industrious revolution labor divisions 9 1 , 124-5, 129, 148: remittances 152, 159; Tokugawa household businesses 180, 240, 287 Ferghana 63 fertility rates 89, feudalism 53, Albert 298 fifteenth century: overseas C h i n e s e m e r c h a n t s 2 7 3 - 4 ; territorial expansion 2 6 1 ; regulations

finality 99, 159-60 Filipinos 63 Fingieton, E a m o n n 3 0 7 - 8 fishermen 30, 35 63 Florence 265, 267, 277 geese pattern of d e v e l o p m e n t Flynn, D e n n i s 8 food c o n s u m p t i o n industiy 20 1 Fordism 240, 261 foreign e x c h a n g e 290, 508 fossil fuels 127 France: agriculture 84; bourgeoisie capitalism 175; colonialism 27; consuls 26; d o m e s t i c

131; 46; Vietnam 27; warships 289 Frank, A n d r e G u i l d e r 8, 260, 2 6 1 , 263, 308 free t r a d e 58, 292 F n e d l a n d , J o n a t h a n 313 friendship treaties 26 frontier 6 1 , 63, American usage 62, 63, 64; e c o n o m i c s E u r o p e 6 1 - 2 ; expansion 2 8 2 - 3 ; Japan frontier perspective 5 1 , 5 3 , 5 6 - 7 , 02, 64, 69 frontier trade 42 275 19 65 19, 20 70, 71 Gaoyang garment 204 Gates, Hill 129-30, GDP 78, 79, 220; C h i n a 178; Easl 78, industrious 85-6; 8 1 , 105 Geertz, Clifford 207n26 Gelb, g e n d e r : child labor commodities consumption craft production domestic industiy 128, e d u c a t i o n 155; h o u s e h o l d i n c o m e 138, 141-2; i n c o m e inequalities 142; infanticide 89; tabor 13, labor costs 129, 203; labor divisions 12, 13, 128, 134, 144, 148, labor force participation reallocation migration 40, 146, mobility 125, 152; skill levels 131. 158; textile industries wage levels 137, see also w o m e n g e n d e r n o r m s 125-6, 153, 156-7, 159-60 g e n d e r roles: China 128-9, 154; class development family 12, silk production 145 G e n e r a l Motors 185 g e n e r a t i o n a l factors 138, 153

index 265,

277. 280,

301

Gereffi,

177, 175, 218; 217; Customs Union 03; European policy 242, 245; information technology i n t e r d e p e n d e n c e 242; Korea 46; 242, 243; technology 11, 219; policy 242-3; 242; monopolies Gills, 308 g i n s e n g t r a d e 3 1 . 37, 38, 39, 44 Giraldez, 8 global networks 315 globalization 15, 286, 307 perspective 8 GMD 315 GNP 303-4, GNP capita 3 0 4 - 5 . I exchange standard 98 t r a d e 44 jack 38 (club governmental grain c o n s u m p t i o n 143 Mark 177 Michael 292, 293 Susan 153, Grove, Linda 100 Gu 64 G u a n g d o n g 159, 275, 284, 316 G u a n g z h o u 19, 270. guilds 137, 192-3, 194 Gujarat 270 gunpowder empires 65-6 55 Hall, P e t e r 2 1 8 - 1 9 Hall, T h o m a s 271 H a m a s h i t a Takeshi 10-12, 5 7 - 8 , 59, 03, 65, 66, 297 35 Hamillon, 175, 184, 191, 194, 195, 240. 285, 314 Han 54, 55, 56, 64, 71 handicraft p r o d u c t i o n : child labor C h i n a 135-6, i 4 3 ; cotton textiles I99-2O0. 2 0 1 ; East Asia 127: elites 188; mass markets 200; price cuts

S h a n d o n g 201; spinning value-added 144-5; weaving 99 h a r d disk drive industiy 236 Hare, 154, 155. 159 H a r r i s o n , Bennett Hart, 40-1 Harvey, David H a t c h , Waller 2 3 2 - 3 , Hayami, Akira 8 3 - 4 Hayami Akira 8 3 - 4 , 132 Hayami Yujiro S6 201 h e g e m o n y 3 ; Britain 289-90, China 320n2; US 106, 260, 299, 319 Martin 225 244 Hevia, J a m e s 58 3 2 7 4 - 5 , 279 high t e c h n o l o g y industry 204, 247 Hiroshima e x o g e n o u s factors 71 Ho, 275 Ho 64, 202 288 H o d g s o n , Marshall 00 H o l l a n d 268, 277; Dutch colonialism H o n g Kong 236, 309; capital accumulation 265; C h i n a Circle 205; C h i n e s e e n t r e p r e n e u r s Chinese c h a i n s 314: coolie trade 296; G N P p e r capita 305: industrialization 180; labor-intensive industiy 95; overseas Chinese networks 313; port city 19, 59; profit maximization women workers horizontal integration 240-1 Horn, 247 H o r r e l l , Sara horse t r a d e 69 household: h e a d s of 148; individual 159; industrious 89; labor division 283; life cycle service 120, 133-4; value-added see

3 4 2 Index 128, 141-2, region 238 Huang, H u a n g , Philip 134, 203 (Chinese world o r d e r ) 24 H u e 278

180,

huiguan (club house) 195, 149, h u m a n resources 100, J a n e 138, 140, 55, 143 H u n d r e d Years War 267 Hung, 58, 60, 63 of d e v e l o p m e n t 4, 12,

states: see Spam IBM 243, 244 imperialism 3, 4, Britain 290; capitalism 177: C h i n a 70-2, 182-4, 2 0 2 - 3 , 264, 314; E u r o p e 12, 262; 4; regionalism t r a d e 178; states 13 import substitution 68, 80 i m p o r t tax 101 imports 69, 2 8 9 - 9 0 , 295 I n c h o n 39 income C h i n a I 5 I - 2 , 319; 14, 110, gender 142; global J a p a n 149-50; L o r e n z curve 103-5, see also wage levels incorporation 02 i n d e n t u r e d tabor 146, 295 India: 58, 259, 286, 2 9 0 - ] , 300; cotton e x p o r t s 68, 98, cotton s p i n n i n g 94; foreign e x c h a n g e reserves 290; gold exchange standard m e r c h a n t s 20, 270; iron political c h a n g e s growth 78; silver 2 9 2 - 3 ; Tibet 71 Indian O c e a n 271 Indonesia 4, 58, 9 5 , 100, 305 industrial militarism industrial revolution: Britain 78, 8 3 - 4 ,

94, 2 0 1 : E u r o p e 12, 80, fusion industrious revolution 2 6 1 - 2 , 285; technological advance 89 industrialization 102, 106, Britain 93, China 94-5; competition 307: East 305-7: Europe 93, global 9 3 - 6 ; H o n g Kong 186; 3, 297; Korea 9 4 - 5 ; labor-intensive 79, 94, 101, PRC 183, regional 98; rural 100, 108, War 298; small a n d businesses specialization 181, 264; Taiwan wage levels model industrious revolution 8 3 - 4 , capital a c c u m u l a t i o n I family 102; G D P 8 5 - 6 ; industrial revolution 285; strategies specialization 132, 133 industiy 94, 109 informal sector information s h a r i n g 224 information 219-20 infrastructure 109 Inner 10; C h i n a 12; Confucianism 4; pastoral-nomadism 7, 13; C h i n a 282; tributary relations 8-9, 66-7 innovation 215, 246, 247 institutional e c o n o m i c s 8 6 - 7 , 88, 2 8 0 - i institutions 82, S3, 90, 220, 246 intellectuals 235 i n t e r d e p e n d e n c e 6-10, 242 I n t e r n a t i o n a l L a b o u r Organization 85 International Monetaiy Fund 307 inter-state relations 266, 299, capitalism 202; C h i n a 5-0; c o m p e t i t i o n 12, 2 6 2 - 3 , 269, 280, conflict East 5, 6, 282, 318; tribute-trade relations 27, relations 200 investment: capital foreign 232, 239, 289; labor-seeking overseas Taiwan invisible h a n d of market 8 7 - 8 Iranian 310 Akira 298 production 270, 285

Index Delta curve 85 see Muslims Ilagaki. Hiroshi 228 Italy 2, policy industry

280

14: agriculture 84, 8 9 - 9 0 , 279; Asian

185, 2 3 1 ; of trade 308; 6 8 - 9 ; business agencies 14; business networks business spillover 3 1 2 - 1 3 ; capital a c c u m u l a t i o n capital investments 317; capitalism 239; census 90: C h i n a 26, 46, 2 9 8 - 9 , 315, chip p r o d u c t i o n 243; competitiveness 218, 222; cottage industiy 90, 96: cotton 94, 9 5 , 199-200; d e m o g r a p h y 79; d e p e n d e n c y ratios 150; d e v e l o p m e n t 299; domestic industry dynamism economic growth 107-10, 3 0 1 ; e d u c a t i o n electronics industry 240; e x p o r t s to USA fertility rates 89; foreign exchange foreign investment 232; frontier 08; G D P 8 1 , 105; g e n d e r e d labor 13, 125-6, 128, g e n d e r e d wages G N P p e r capita 305; group-based linkages high technology industry 246; h o m o g e n e i t y 56: h o u s e h o l d 89; h u m a n capital 149; imperialism 4: income industrialization 3, 115, information policies 218: information technology institutions 220; insulation 226; 173, 233, Korea 3 1 , 4 5 - 7 , 298; labor 232; labor-intensive industrialization 9 6 - 9 ; labor-supplying strategy 142, 149-50: land 102; land-use 89; p e n i n s u l a 298: life cycle service living s t a n d a r d s 79, 80, 88, 141: machinery industiy 108; M a n c h u r i a 299; married w o m e n 4 9 - 5 0 ; Meiji 3, 90, 97, 298; m e r c h a n t s 194, International Trade and Industiy

343

108, 2 2 3 , 230: 65: National of Science a n d T e c h n o l o g y Policy 2 2 4 - 5 ; New AID plan 230; overseas C h i n e s e networks 315; overseas investment 229; peasantry 88, population growth 80; port cities 108; pre-war industrialization 108; p r o d u c t i o n 228; 136, 145-6; 222, 223, 230, recession 308; regional p r o d u c t i o n 98, 2 3 3 - 4 , 310; r e s o u r c e d e p e n d e n c y 102, 228; rice cultivation 90; rural p r o m o t i o n policies 9 7 - 8 ; Ryukyu Islands 05; Kingdom 27, 209; s a m u r a i class Science a n d Agency 222; 224; s h i p b u i l d i n g 108; silver t r a d e 82, 273; social welfare s t a t e / t e c h n o l o g y 2 2 2 - 4 ; strategic alliances 225; 109, 240, 316; Taiwan 46, 298; tariff trade 232; 13, 216, 221-6, 234. 2 3 7 - 8 ; technology networks transfer 227-34; expansion treaties 26, 46; tributaiy 58, tribute-trade relations 269: twentieth c e n t u i y 5 9 - 0 0 , u r b a n centres 90; US 8 1 , 106, 260, US o c c u p a t i o n 300, value-added chain 307; wage levels 92, 133-4, 149-50; warlords 279; weaving 90; World War II 2, 217, 299; see Tokugawa Japan, of 17, 18 J a p a n Almanac Japan-Korean Treaty 26 J a p a n e s e multinationals 236, 240 Co 289

Sea 18, 19 p r o g r a m 243 57, 282 312, 317 59, 159, 294 Jiangxi 159 Chalmers Johnston, 278 c o m p a n i e s 287

344 Index joint

241 193 J u d d , Ellen 153, 154, 155, 225

239 68 Louis Kuik Brothers 100

272 Treaty of 25 Treaty of 2(3, 44, e m p e r o r 19, 70 Lama 55

corvee 2 7 2 - 3 ; 150; production gender 13, 125-6, 128, 132, 155-6; i n d e n t u r e d

daughters 47

Kalo 40 5, 13, Kawakatsu OS, 09, 283, 297 02, 03, 08, 09 David 132 173, 233, Kennedy, Paul 281 kerosene 294-5 Khans trade treaty 71 28 kimonos 90, 97 kinship n o r m s 124, see also family 245 knitting industry 137 227, 233 know-why 227 Kodama, F u m i o Korea 20, 27, 4 5 - 0 ; chaebol 235; China 33, 4 5 - 0 ; Confucianism c o n s u m e r goods industry 235; Foreign Office 43; g e n d e r e d labor h o m o g e n e i t y 5(5; industrialization Japan 3 1 , 4 5 - 7 , 2 7 4 - 5 , 298; m a r i t i m e customs systems 27, migrant workers 40; Office of State Affairs 43; overseas Chinese 59; Q i n g dynasty 34-0; 65: K i n g d o m 2 3 ; semic o n d u c t o r s 225, 235; tax collection 27; technology policy 2 3 4 - 5 ; trade with China 38, 45, 58; treaty 29, 3 9 - 4 0 ; tributary/foreign state missions 34; tribute-trade relations 3 6 - 8 ; as vassal slate 34; also South Korea Korean War

300, 309,

315

productivity 85, 90, 102, reallocation skills labor 84-5, 89-90 labor age factors 203: China g e n d e r 129, 232; 179; s p i n n i n g 203; young women labor divisions 5, 9 1 : W a r 105; i48; gendered 134, global 290; h o u s e h o l d s 283; international 9 5 - 6 , 105-0, 112, invisible h a n d of market 8 7 - 8 ; labor-supplying laborwithholding township a n d village 158 labor force participation: age factors 148-9, E u r o p e 149; g e n d e r Maoist C h i n a 150-2; married women nineteenth centuiy US 149 industries: C h i n a East 95, 101-2; Japan labor-intensive technology 82, 84, 88, 90, 94 labor market

labor-withholding

land ownership 87 land reclamation land shortage 102, 143 land-use 8 4 - 5 , 89 language: trading Laos

ritual

Index Owen 63 102 Lee, Leibniz, 282 Lewis, Archibald 8 Lewis. A r t h u r 105 Lewis, Martin 7 Li B o z h o n g Li H o n g z h a n g 28, 29, 36, 37, 39-40, 46 42 Liang 5 5 - 6 . 56 peninsula 3 7 - 8 . 298

life cycle 154 Lin

Victor 7 66 w o m e n ' s work

293 natural gas

living s t a n d a r d s : 59; East/West 79, 80, 88, 141; p o p u l a t i o n growth 120; industrial society 134; subsistence 94 loans 34 Locke, Richard 244 Peace of 266 L o r e n z curve 103-5, low-productivity (asks 128-9 loyalty 99 267, 276 Luzon Ma Ma

42 28, 42, 19, 296, 316 machine industry m a c h i n e i y industiy 108, N. 193

McNeill, William 2 8 2 - 3 . 285 M a d d i s o n , A n g u s 7 8 - 9 , SO, 103 Malacca Malacca Strait 19 Malaya 102 4. Malthus, T h o m a s checks 85, trap

86 92

345

M a n c h u r i a 4, 101, 143, 299 M a n c h n s 275; colonialism 6 4 - 5 ; emperor H a n 64; Korea 68, Mongols 54, 70; oppression 52, 54, 56: Q i n g thesis 69 273, 278 m a n - m a d e fibers Mann, 153-4 m a n u f a c t u r i n g industiy 150, 306. 307 networks 2 3 4 - 9 Maoist C h i n a M a p o 39 m a r i t i m e c u s t o m s system 38, 44-5 m a r i t i m e regions trade 8, 264. 273 market e c o n o m y : C h i n a 162, 260, 2 6 3 - 4 , 2 7 1 - 2 , 277; h o u s e h o l d 126; invisible h a n d 8 7 - 8 ; national 260, 318; socialist 65; state 129; 280 market-garden 153 9 8 . 175, merchandising m a r r i a g e : d a u g h t e r s 135, exogamy roles 149-50, 158 Marx, Karl 199, 265, 293, 294 Marxism 8 6 - 7 , 174, 177-8, 235 mass markets mass p r o d u c t i o n 216 massacres 5 3 - 4 , 56 Mathias, P e t e r M a z u m d a r , Sucheta 178, 179, 203 j , R . 86 M e d i t e r r a n e a n world-economy Meiji 3, 298 Mekong 278 merchandising: n a m e s 185-7, 204, China 190, 203; mass 185 30; artisans border trade 3 2 - 3 ; China 30, 264; C h i n e s e 34, 66, 68, 198, 279; E u r o p e 20, 194; guilds 27, 194,

346 Index merchants h a n d m a d e cloth 200; 20, 194, trade 204; networks 200; IS4; 197, textile see overseas C h i n e s e Merrill, H e n r y F. Michael, Franz Middle Ages, guilds 192-3 Middle 303-4 Middle K i n g d o m 24 m i g r a n t workers 40, 63, 147 migration Americas 79, 127, 146; C h i n a 140, 2 7 1 - 2 , 315; coastal areas 284; E u r o p e 94, g e n d e r 40, 147; land reclamation m a r i t i m e regions 2 0 - 1 ; 270; private 8; 157; Yangzi Delta 147 migration ban 151-2 militarism 00, expenditure military power i, 6 5 - 6 , 6 9 - 7 1 ; sec hegemony 44 Ming dynasty: b r o k e r s 197-8; capitalism 2 7 1 ; class 202; c o m m e r c i a l system 54, 2 0 2 - 3 ; cotton 180, decentralization 202; dynamics 266; frontiers 63; hereditary artisans linkages 273; national markets 318; overseas C h i n e s e m e r c h a n t s 2 7 1 - 2 , 273; wage levels Ministry of Agriculture a n d C o m m e r c i a l Affairs 97 of I n t e r n a t i o n a l T r a d e a n d Industiy 108, 223, 230 Mitsui 98 mobility: capital 267; c o m m o d i t y production gender 147-8, h u m a n capital 160-1; inter-regional funds social 189 modernity 5, m o d e r n i z a t i o n 45, 216 193 Paul von 27, 43 Molucca 274 Mongolia 4, 7 1 - 2 , 146, 266, 270

Mongols: C h i n a 62, 69; Western (35-6; M a n c h u s 54, 70; Q i n g r e g i m e 67, 7 1 ; sacred texts 63 Mughals 6 5 , 66 65, 7 1 - 2 Muslims 20, 5 5 - 6 , 40 mutuality 37 4, 230 Myers, R a m o n H. myth 56 Nagasaki 19, 297, 299 19, 23 Nakamura, 96, 109 Nanjing, Treaty of 25 Nankeen N a n k i n g , Treaty 26, 199 N a n k i n g massacre 53-4 N a t h a n , A n d r e w 295 nation-states 47, 5 5 , 70, 88 national e c o n o m i e s 279, National Institute of Science a n d T e c h n o l o g y Policy 2 2 4 - 5 national market 260, 2 7 1 - 2 , National Congress 316 nationalism Asia 47; C h i n a 52, 5 3 , 99, 100, Cold W a r East Asia 56; e x c h a n g e rate natural resources 9 3 , 94, 114, 261 Barry 205 Navigation navigation technology 20, 270, 285 neo-classical e c o n o m i c s 174 Nerchinsk networks 8-9, 200, 2 2 6 - 7 , 244; also business networks; overseas Chinese networks; t r a d i n g New World: see Americas newly industrializing e c o n o m i e s 220, 2 2 8 - 9 , 234, 236, 239 n i n e t e e n t h c e n t u i y 19; Britain 290-1; China 51-2, 53-4: Korea-China 38: labor participation 140; migration regional m e r c h a n t s 198-9; social 215; Japan trade 93; tribute-trade relations 2 3 - 5 ; integration 2 8 7 - 8 Ningbo 26 Nixon, Richard 314

Index 347 nomads non-Han peoples e c o n o m y 263 n o o d l e - m a k i n g m a c h i n e s 115 N o r t h Africa 304 Northeast Asia 8, 9, n u c l e a r power 242 35 Christian 225 o c c u p a t i o n a l specialization 13 B o r d e r Affairs 23 Office State Affairs 43 oil e x p o r t s oil industiy 107-8, 114 Okhotsk, 17, 4 5 , 59 o n e child 151 open model 100 o p e n t r a d i n g locations 32, 36, 42 o p i u m trade 3 1 . 2 9 2 - 3 , 294, 295 O p i u m Wars 3, 196, 2 9 1 , 293, 297-8, 318 oppression 52, 54. 56 original manufacturing Osaka S p i n n i n g C o m p a n y 9 8 Ottoman empire 66 overseas Chinese 316, 317 C h i n e s e m e r c h a n t s : Braudel capitalism 295, 296: coolie trade 295, 296: power 2 7 9 - 8 0 ; E u r o p e a n s 274, fifteenth c e n t u i y 2 7 3 - 4 ; Korea 59; Ming 2 7 1 - 2 , 273; Q i n g r e g i m e 296; Taiwan 59; links 20. 59; transnational capital (lows 60 overseas C h i n e s e networks capitalism 295, 296, C o m m u n i s t Party of C h i n a 316; 309; H o n g K o n g 313: Indonesia 241; Malaysia 235; 236; specialization 240; 235, T h a i l a n d 235, 240: US 226, 236, o w n e r s h i p 87, 240; rights Ozawa, 302, 309,

95 270

55 culture networks 2 2 4 - 5 pastoral-nomadism 7, 13 278 p a t e n t s 225 path dependency 8 3 , 92 patrimonial b u r e a u c r a c y 174 Pax A m e r i c a n a 309 H a r b o r attack 299 peasantry: 133; 2 7 2 - 3 ; d o m e s t i c labor for wives East 87, 88; E u r o p e h o u s e h o l d 124; Japan 88, 1 8 7 - 8 : labor costs 87; 66; p e r i p h e r a l regions 70; 88; rice 87; lax reforms 272 Peking 30 296 P e o p l e ' s Republic of C h i n a 299; expansion 308; e x p o r t s foreign industrialization 186: subcontracting territoriality 55; trade restrictions 315; US 314; valueadded pepper trade 22 P e r d u e , P e t e r 6, 68, 70 Perkins, 79 personal a d o r n m e n t petrochemical 108 Philip II 208 4. 106, 1 1 1 , 2 4 1 , 2 7 3 ; 63 piecework 204 Piore, Michael 182 pirates 272 Pitt, William 137 Battle 286 Brothers 98 P o l a n d 58 p o l i t i c s / e c o n o m i c s 5. 11-12, 106 Kenneth 260, 280, p o p u l a t i o n growth: birth control 144; C h i n a 78, 79, SO, East 92, 127; E u r o p e 127; absorption living s t a n d a r d s 126; resettlement 296

348 Index porcelain 21, 179, 193 port cities: autonomy coolie trade East Asia inter-treaty relations 25; trade 12, 19-20, 284; ports 27, 29-31, 32, 39-40 Porter, Roy 193 Portes, Portugal 267, 268, 278, 281, 301 pottery 97 Sir 199 poverty 151, 150-7, 181, 259 176 society price cutting 144 101 producer-driven organization 261 product 186, 189, 190-2, production Mode 53; China 128; commodities 160-1, 183, 184; flexible 13, 182, 204; household 135: Japan 107, 228; driven 185: merchandising 185; networks 228, 229-30; peasant 88; putting-out system regional 98, 233-4, 244, 247, 310; rural 137, 150; smallscale 87; specialization 288; mode 129; craft production: handicraft production productivity 90, 114; labor 85, 102, land 85 profit maximization 87, 159, 263 profitability 313 proletarians 137 property rights 88, 136-7, 190: see also ownership protectionism 44 Britain 136; China 145, 148; commodity production 184; East Europe 184; Japan 91, 145-6 Prussia purchasing power parities

Quesnay, Francois 282 queue, cutting off 54, 56

system 136, 184, 197,

railway 289 raw materials 228, 230, 295; see also natural resources Evelyn 64 Computing 223, 224 69 recession 308 reciprocity 34, 37 regional forces 3, 52; brand name merchandising 190-1; dynamics 262; economic growth frontier trade 42; geographic factors 215; industiy inter-regional 9, 273; Japan 98, 233-4, networks 98, 244; political factors snowballing process

55

regional laboratories 222-3

Ptisan 19 204 Pye,

emperor 70-1 Qing dynasty 281; buyer-driven commodity chains collapse of 3, 298; commercial system 203; cotton production 180, 182; cultural normalization 72; defenses 52; domestic economy 295; domestic transport tax 27; expansion 60, 66, frontier perspective 53, 03, 09; Hunan 143; imperialism 56, 70-2, 178; Inner 282; inward development 285; Korea Manchus 64; maritime customs system 40-1; Meiji merchants 66, 198; military alliances 65-0; military power 69-70; Mongolia 64-5; Mongols 65, 71-2; Nanking, Treaty of 26; national economy 279; national markets overseas Chinese merchants 296; reemergence 52-3; resistance movements 71; rival states 07; Kingdom 22; sea ban lifted trade 28-33; traditions 54; treaty negotiations 27-8; tribute missions 68; tributetrade relations 20, 23-5; Vietnam 282; wage levels Xinjiang 64-5; Zheng 275-6

Index 349 production 98, 233-4, 244, regionalism 2-3, 215; Asia 218, 245; business organization 240-i; capitalism 278; conflict 12; East Asia 11. Europe 221; globalization 15; 178; merchants 198-9; trading networks 198; US 61 215, 228, 229-30, 232-3, 234 Regulations for Maritime and Overland Trade Between Chinese and Korean 26, 28-33; implementation 36; Korean criticism open trading 42 7, 278 remittances 152, 159 289

9 research and development: alliances 242; Europe 243-4; 242, Japan 222, 223, 230. US 237 resettlement 296 resistance movements 71 resource dependency 102; also natural resources resource-saving 261 revolutions 3, 4 trap 90 rice cultivation: deltas 90; labor 84-5; 87; wet-rice 270; Yangzi Delta 84; yields 86 trade 22 Rix, Alan 267 Group 241 Rose, Mary 287 Rowe, William 276 Rozman, Gilbert rubber 102 differences 150-1, rural promotion policies 97-8 migration 109, 157 Russia 45; border crossings 62; empire 65; as empire Korea Manchuria 298; alliance 71: threat of 55-6; see also Soviet Union Islands 46. 47, 65 Ryukyu 21-5, 27. 269

Sabel, Charles empire 79, 88, 136, Janet 159 Lord 290 salt production 270 Richard 221 samurai class 187 novel 191-2 sappanwood trade 21, 22 scale economies 228. 229 F.I. 192-3 162, 318 Franz 301 journals 224 scorched earth policy 284 sea routes 17-19; see. also maritime customs system Seagate seclusion policy 82 Sedgwick, Mitchell 240 227, 247 Selden, Mark 58, 60, 63 138 Self-Strengthening Movement 298 semi-conductors 223, 225, 235, 237, 242 semi-colonialism 53 Seoul 30, 39 sericulture: service sector seventeenth centuiy 19, 275 sex selection 89, sexism Shandong Shanghai 19, 26, 41, 100 Shenzhen of shipbuilding: China 270, 285, 108, warships 289 Takashi 5 Sho 22 Siam 22, 68, 279 Siam Motor Group Sichuan 146 Siemens 243, 244 Silicon Valley 237, 238 silk cultivation 84, 90 silk production: expansion 142; foreign ventures 294; gender roles imperial workshops 179; skills technology 247; weaving 135

Index silk-reeling Silk I trade 39, standard 273 silver trade: 95; Britain 09; duty (ice Europe 275; India 82, 273; Spain taxation 274 Singapore capital accumulation 205; coolie trade GNP per capita 305; as newly industrializing economy overseas Chinese networks 313; US industry 230-7; value-added chain 307 273 thesis 27 of Nanjing 25 Treaty 25 War 47, 97, 101, 298 sixteenth century: Fast Asia 12; Europe 200; networks merchants 66; overseas expansion 267; social unrest 272; Southeast Asia 7; trade lifted 272 skill levels 131, 135, 158 Skinner, G. William 04, 284 small and medium-sized businesses 109, 183, 230, 240 Small Sword Society 20 Smith, Adam 80, 130, 282 smuggling 36 snowballing process 301-2, 312-13 social capital 109, Social 54 social 173-4, 187, 205 social stability 7, 129, 101 social status of women 7, 13 social 124 social unrest 272 social 1 10, 152 socialist market economy 65 Song dynasty: cotton industiy cross-border 269; economic organization 12, 202; of gender roles 132; navigation 270; Southern Soskice, David 218-19 Africa 79, 289

South China Sea 19 South Korea 2, 230; development 95, GNP per capita 305; man-made natural resources transfer 225; value-added chain 307 7, 8, 9, capitalism 279; Chinese capitalist diaspora 309; 95; cotton trade 180; 100; Portugal 278; suzerainty of China 278; missions Southern Seas 271 sovereignty 17, 24, 58, 315 Soviet Union 309-10 soybean 267, 268, 273, 301 specialization: class 87-8; cotton flexible industrialization 181, 204: industrious revolution 132, 133; occupational overseas Chinese networks 240; production profitability 229, 313; small and businesses 240; Taiwan spice trade 22 spillover 312-13 spinning 99,

181,203,

Island 17 Sri absolutism 61; Britain 26, 27: business networks 9, despotism European 259; human capital Japan market 129 slate formation 02, policy: competition technology rural 97-8; 222-4 steel industiy 107, 108, Nils 208 strategic alliances 225, 247 structuralism 280 subcontracting: advanced technology 182; Asian 239; Japan 240, 316: PRC US 94, 129 assembly sugar cultivation 84, 97

Index trade Sugihara, Kaoru 127, 260,

82, 12G, 281,

Sea 17, 21 2 1 , 22 Sun Vat-sen (Sun 56 Sun 54 Sun Z h o n g s h a n 296 85 Sung superpowers suzerain-vassal relations 26, 28, 29, 278 symbolic gifts Tachiki, D e n n i s 232 35 rebels 26, 296 2, 106, capital a c c u m u l a t i o n 158; capitalism China 204-5, industry c o m m o d i t y chains computer 238; c o n q u e s t of 66; labor GNP per capita 305; H a n 55; industrialization 183, investments in C h i n a J a p a n 46, Japanese multinationals 236; labor-intensive industry 95; m a n - m a d e fibers natural resources overseas C h i n e s e m e r c h a n t s 59; overseas networks 235, 159; specialization 2 3 7 - 8 : textile industries 204; value-added chain 307; Z h e n g e m p i r e 9 3 , 2 7 5 - 6 , 279, 2 8 0 - 1 Taiwan S e m i c o n d u c t o r M a n u f a c t u r i n g 237 44 T a m i l 276 T a n g dynasty 20, 5 1 , 07, 291 tariff 3 0 - 1 , 37, 232 27, 99, Sea 17, taxation: ad valorem 34, 37; Britain coercion m a r i t i m e trade 273; reforms 272; regulations 30; silver t r a d e 274; treaty ports 27 Sully 224 tea trade 69, 2 9 1 , 294

councils 224; Britain capital intensive 105; C h i n a 1 8 0 - 1 , 294; d e p e n d e n c y East Asia 13; e d u c a t i o n elites 217; energy-saving Europe Germany 13, 219; imitation 215; industrial revolution 89; innovation institutions 246; international 214, 224; Japan 13, 234, 2 3 7 - 8 ; 8 5 , 88, 90, 94. 90; labor-saving leveraging strategies 237; licensing networks n i n e t e e n t h c e n t u i y 215; overseas Chinese selfreflection 224; silk p r o d u c t i o n 247; social factors 205; sophistication see also high technology imports 225 policy 234-5, 242-3 technology transfer 82, 216, 225, 227-34 5 3 . 54 temporalities: East Asia global development i n t e r m e d i a t e 9; longer s h o r t e r 2 - 3 , 9; see also individual tenant farmers 137, 147 45 territorial e x p a n s i o n : Britain 202, 280; capita! a c c u m u l a t i o n 205; C h i n a 60, 282; East Asia 1; E u r o p e 207, century 2 0 1 ; frontier 2 8 2 - 3 ; Japan PRC 308 17. 55, 02, 280 textile industries: b r a n d n a m e organization 2 0 1 ; costs China 204; distribution 2 0 1 ; 197; g e n d e r m a n - m a d e fibers Taiwan 204; wages 130, also cotton silk p r o d u c t i o n 197;

352 Index T h a i l a n d 4, multinationals 240; labor intensification 05; overseas 235, 240; Siam Motor 241; chain 307 thirteenth 200 (51, 187 20, 27 Tibet 4, 62; B u d d h i s m 7 1 , 72; frontier 63; India 55, 7 1 ; T a n g dynasties 67 tie-ups, subsystem assembly Tilly, Charles 60, i4S Alexis de 188-9 101 Tokugawa 89-90; castaways Chinese 68; c o m p e t i t i o n 283; d e c l i n e of 3; d e m o g r a p h i c pressures 89; e i g h t e e n t h century 8 9 - 9 0 : family system 88; industrious revolution inward d e v e l o p m e n t 285; e c o n o m y 279; national markets n i n e t e e n t h century 89-90; peasantry 9 1 ; Ryukyu Kingdom 2 2 - 3 topography Toshiba 244 township a n d village enterprises (TVEs) 159, capital accumulation e m p l o y m e n t 156; e n t r e p r e n e u r s 160; female mobility 152; g e n d e r n o r m s 15(5-7; g e n d e r e d labor labor division 158; g o v e r n m e n t protection married women profit maximization 156; labor 160 Toyota trade: b o r d e r 3 2 - 3 , 36, 269; Braudel c o n s u m p t i o n 178; East-West E u r o p e 267, 284; foreign 284; free trade 3 8 - 9 , 58, 292; 42; global 8; illegal 8, 2 1 , 272; imperialism 7-8, 283; internal 272; Korea 45, 58; legal 8; licensing 20; long-distance 8, 264,

273; networks nineteenth centuiy 93; 8, 0(5; proscribed Q i n g 2 8 - 3 3 . 198; century 275; sixteenth c e n t u i y 272; 93 trade commissioners trade regulations 315 trade routes 8, 19-20, 33, 278 networks 59, 60, 271, traditions, inventing 53, 54, costs 288 transnational capital flows

57

312 costs 93 transport revolution transport sector treaty ports 27, 32, relationships 24, 2 5 - 6 , 2 7 - 8 , 46 13, 27, 5 7 - 8 . tribute missions

20, 34, 68, 272,

relations 30, Britain-India C h i n a 8-9, 20, 5 7 - 8 , 260, 269, 283, 286-7; coastal areas 66; 309; India 300; 8-9, 27, Korea n i n e t e e n t h century 2 3 - 5 ; maritime trade Qing China 20, 2 3 - 5 ; powers 279; subsystem 259; port t r a d e US-centred Z h e n g H e 272 Patricia 159 T s u s h i m a Island 47 River 31 p e o p l e 270 T u r k e s t a n 7 1 . 72 Turkic p e o p l e 63 turn-key 227 T u r n e r , Frederick twentieth c e n t u i y 3, 5 9 - 0 0 .

U n i t e d Microelectronics 237 U n i t e d States of America: b o r d e r l a n d s business r e s t r u c t u r i n g 313; capital a c c u m u l a t i o n 287; consuls 26; c o r p o r a t i o n s cotton, raw 288; d e p e n d e n c y 236; dollar crisis

Index 2; 228, 236; frontier 6 1 , 94; h e g e m o n y 106, 200. 319; industry 247; J a p a n 100, 260, 3 0 1 ; Korea 4 5 - 6 ; labor force mass production military e x p e n d i t u r e 310; military 60; occupation J a p a n 300; exports overseas Chinese networks 226, 314; PRC 314; railway b u i l d i n g 289; 237; Reagan Administration regionalism 6 1 ; Soviet U n i o n 3 0 9 - 1 0 ; s u b c o n t r a c t i n g 313; treaty negotiations 2 7 - 8 ; slates 300-1, vertical integration 189-90; world o r d e r 14 U n i t e d States of America-Korea Treaty of Amity a n d C o m m e r c e 25 72 Kathleen u r b a n i z a t i o n 90, 96, 109, 112, 137 value-added chain Van Rob 225 vassal stales 13, 2 8 - 9 , 34, 2 9 1 , Venice 205, 260, 277, 281 v e n t u r e capital 238 vertical integration 182,

208 189-90,

victimization 5 3 - 4 , 57 Vietnam 20; C h a m p a 279; Cold War 310; F r e n c h 27; h o m o g e n e i t y 50; Laos 269; Q i n g China missions 68; tribute-trade relations 269 Vietnam War VOC 268, 275, 276 Voltaire 282 wage levels: agriculture 130, 134; Asia 220; C h i n a 133, 137, 139; cost cutting 99; e i g h t e e n t h c e n t u i y Europe 220; 157-8; g e n d e r 124, h o u s e h o l d 128, 132; J a p a n 92.

353

133-4. subsistence textile industries weaving 130; Yangzi Delia 138 57 5, 204 Wang, 274 Wang Feng warlords 279 warships 289 shortage weaving: cotton Gaoyang 100; 97, J a p a n 90: and women p o w e r looms 294; silk 131, 132, 200; wages 94.

Weber, Max 187. 267 193 Yuan West Indies 2(58 Western m o d e l : colonialism 52, 80. 95; consumption exports 97; 81, interstate relations Westphalia, Peace of 5, 58, 6 1 - 2 , 200, 208 whaling 35 Treaty of 25 Karen 7 Wills, 273 p r o d u c t i o n 270 Wolf, A r t h u r 135 w o m e n : assembly plains 152; cotton production export-processing zones 1 5 2 - 3 ; life cycle p a t t e r n 154; married 161; personal a d o r n m e n t social status 7, s p i n n i n g 181; y o u n g daughters; gender 161 W o n g , Christine R. Bin 175, 283 work-point system working 99, 149 working environ Bank 303, 306 5, 10 world 24, 47

3S4 Index world regions 4, 5, 7 world 5, 59, 60, 67 World 289 World War II: aftermath China 99-100; East Asia Japan 2, 106, 217, 299 5-6, 8, 178, xenophobia 57 Xinjiang 55-6, 62, Xu Xinwu 142, 198,

67

River 31 Yamada, 86 Yamamura, Kozo 224, 232-3, 235-6 merchants 30 massacre 53, 56 Yangzi Delta 82; consumption Lower 147, manufacturing 143; Middle 143, 147; migration rice cultivation 84; tenant Upper wages 138

102 Yellow Sea 18, 30 Yen 229, 233 dynasty 67, 271,

300, 318

Yuan Group 55-6 Zhejiang Zheng 276, Zheng empire 93, 275-6, 279, Zheng He, Admiral 272, 281 Zheng Zhilong 275-6 47 Zhou Fu 28, 35-6 102 63, 70 237