Government and Entrepreneurship: The Evolution of Entrepreneurship in China

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Duration: 3:46
Source: Stanford ECorner
Author: Tarun Khanna, Harvard Business School
Copyright: Creative Commons: by-nc-nd
Found: Nov 5, 2009

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The point I try to make in this book is that the equation of government is inefficient is inappropriate: it depends on the context. In this context (China) it is turning out now that membership in the Communist Party of China, the one country in the world that you can’t imagine a less communist country in the sense of communism's original meaning, but the membership in the Communist Party of China has gone from roughly 10 million ten years ago to 80 million today. So 80 million members today, more than the population of most South American countries I think or equal to that. 80 million members of the Communist Party of China. Why is this? This will tell you a little bit about the challenge that China will face going forward. The bargain that the Communist Party of China struck post 1978 when it opened the country up, with the citizenry was you guys should shut up when we don't give you your personal rights. In return we will make sure your tummies are full but we will do it our way and we will deliver on that promise. And I think it is very reasonable that the population took up that promise and said, "This is perfect," because everybody's first concern is to make sure they can feed themselves and their families. When that promise was fulfilled, the next bargain that the Communist Party offered was we will give you clothes and a roof over your head but you need to shut up, don't protest. That bargain was met. Then they promised we will give you TVs and cars, and bicycles and motorcycles and mopeds and clean roads and trees on the roads. And that promise has been met on the Eastern seaboard, not in the rest and that has curtailed dissent. Not completely. Today the number of protests in China, the official count of violent protests in China today is 85,000. The Chinese Ministry of State has some long complicated name, I can't remember it now. The Ministry of Internal State Security publishes on its website that there were 85,000 violent protests in the major cities...
Language: English
Category: Business
Tags: Tarun Khanna, Harvard Business School
Country: United States


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