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Dai, Shuanping

Working Paper China's idiosyncratic economics: An emerging unknown monism driven by pluralism

Working Papers on East Asian Studies, No. 111/2017

Provided in Cooperation with: University of Duisburg-Essen, Institute of East Asian Studies IN-EAST

Suggested Citation: Dai, Shuanping (2017) : China's idiosyncratic economics: An emerging unknown monism driven by pluralism, Working Papers on East Asian Studies, No. 111/2017, University of Duisburg-Essen, Institute of East Asian Studies (IN-EAST), Duisburg

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NG PAPERS ORKI W

Working Papers on East Asian Studies

May 2017 Shuanping Dai

Junior Professor of – Chinese Economic Studies at the Institute of East Asian Studies and Mercator School of Management, University of Duisburg-Essen. W https://www.uni-due.de/in-east/people/dai_shuanping.php

E [email protected]

Institute of East Asian Studies / Institut für Ostasienwissenschaften University of Duisburg-Essen Duisburg Campus, Forsthausweg 47057 Duisburg, Germany T +49(0) 203 379-4191 F +49(0) 203 379-4157 E [email protected] ISSN: 1865-8571 (Printed version) / 1865-858X (Internet version) Download: https://www.uni-due.de/in-east/news/green_series.php © by the author, May 2017 

Content

1 Introduction: A Marxian ’s Denunciation 5

2 A Brief of “Mainstream forwards, backwards” 6

3 A Possible Way to be Pluralist in China 9

Conclusion 12

References 13

3 Dai: China’s Idiosyncratic Economics: An Emerging Unknown Monism Driven by Pluralism

Shuanping Dai

China’s Idiosyncratic Economics: An Emerging Unknown Monism Driven by Pluralism

Working Papers on East Asian Studies, No. 111, Duisburg 2017

This paper is a chapter prepared for the volume Teaching Economics in the 21st Century, London, New York: Routledge, 2017.

Abstract China’s economics education started at the beginning of the 20th century, when China was learning from the Western civilization, and accordingly economics curriculum system was introduced as well. As the communist government was established in 1949, economics education in China was interrupt- ed, started to follow a conventional Marxism, and almost acted as ideological education approach and as a tool to economic plan. The fundamental economic reform from 1980s brought modern economics back to China, and from 1990s, who were educated in Europe and the USA introduced Western Economics, of which majority are , to China’s Universities, and the popular eco- nomics textbooks and curriculum prevailed in China as well. This made the existing eco- nomics education struggling in the research evaluation and classroom, although the Communist Party still is giving strong support to Marxism. The 2005 debate between Marxist and Neoliberalism actually reflected two monism tried to lead whole China’s economics education. A hidden issue behind the learning from the West is that China’s economists are keeping pursuing an approach based on China’s reality, which in particular has been reinforced by the recent impressive economic success. Generally, China’s economists have a common sense of that China did not follow a single economic theory to lead its reform and development, and believe that China’s success can contribute to economics, although none tells what is a China’s idiosyncratic economics. Hence, an unknown monism might be emerging in China, but pluralism may act as a channel for understanding Chinese economy, and accordingly be the essential parts of China’s idiosyncrasy economics, which will be a new monism.

Keywords China’s Idiosyncratic Economics; Education; Monism; Marxian

4 1 Introduction: A Marxian Economist’s Denunciation

1 introduction: A Marxian Economist’s Denunciation

China is transforming from a planned economic ebb, which makes Marxian theory suppressed system to a economic one, which is also and unpopular in China; meanwhile, western characteristic of its economics education. This neoliberal economics has assumed a significant chapter starts with a denunciation Some Issues role in China’s transition from a planned econo- in Economics Teaching and Research by a famous my to a hence becoming dom- Chinese Marxian economist, Liu Guoguang, pub- inant in economics teaching. Of course he also lished in Economic Research Journal, which is analyzes the internal reasons from the Marxian one of the most influential economic journal, in economists’ side. Some universities have aban- 2005. Liu’s serious denunciation was in fact part doned lectures on Marxian Political Economy, of a non-public dispute between Marxian eco- which was partly a result of unclear education- nomics and (i. e. neolib- al aims and principles in Chinese higher educa- eralism economics) during the transformation, tion institutes. In particular, some universities and reflected a fight between the two monism recruited economics professors who only were that attempted to lead China’s entire economics educated with neoliberal principles rather than education. Eventually, over years, Marxian eco- with Marxism, which further negatively impact- nomics gradually fell into danger of becoming ed Marxian economics teaching; in addition, completely abandoned. It earnestly points out Marxian economists did not provide competitive that “western economics has been increasingly economics textbooks, as compared to the works influential and Marxism economics is weaken- done in neoliberal economics. Nevertheless, ing in directing current theoretical economics some Chinese scholars believe that the neolib- teaching and research [in China]. Such situation eral economics invasion did not induce Marxian makes us anxious.” (Liu 2005: 4) Political Economy’s decline; rather it happened as a result of Chinese Marxian economists not “Any intention to enfeeble and abandon Marxism possessing comprehensive research in their can weaken the leading power of Chinese Com- own field; in particular, they did not understand munist Party (CPS) and may change the direction Marxism well from an economic theoretical per- of socialism” (Liu, 2005: 6). The logic behind this spective (Hu 2008). argument is straightforward and easily under- standable, if we agree on equalizing socialism However, neoliberal economists have never re- and Marxism. China, as a socialist country, must sponded to this denunciation, which is full of po- adhere to socialist principles in its economic litical ideological concerns. In the last ten years, development strategy and institutional settings, new liberal economics developed much fast- and especially must establish a socialist market er than before and dominated most economic that is one of the Party’s fun- departments in China; some universities even damental pursuits. As neoliberal economics is once abandoned Marxian political economy lec- increasingly dominating Chinese economics ed- tures, although such politically incorrect behav- ucation, Marxian economics, which used to serve ior cannot be survived for long in a centralized as the only option for students, is increasingly education system. Most liberal economists in becoming threatened regarding its existence. China, however, deeply believe that mainstream Liu (2005) therefore aggressively criticizes the economics serves as the only way to integrate neoliberal economics and accordingly Chinese and communicate with global economics com- economists and concludes that foreign hostile munities. Hence, they have no incentive to de- forces are continuously westernizing China. In bate with Marxian economists, and do not wish addition, international is at a low to bear any non-academic risk to do so. This is

5 Dai: China’s Idiosyncratic Economics: An Emerging Unknown Monism Driven by Pluralism

an inescapable fact, which may have strong former socialist countries as well. This triggers impacts on economics teaching in China. Such us to think about the strong connection between segregation which exists in different economist socialist political economy and socialist politics, groups in China also tells that they are deliber- and stimulates us to discuss what type of eco- ately staying in their own field and searching for nomic idiosyncrasy has a higher possibility to a breakthrough point to eventually be the dom- become successful in China. Socialist market inating force in economics education. The CPC economy, which is a reform objection of the CPC exerts a strong influence in China’s social sci- and China, did not originate with , and ence research, but does not select Marxism as has not yet received internationally acceptable a unique approach and instead keeps open any theoretical support. Hence, China’s economic options that may benefit China’s social sciences. idiosyncrasy requires more theoretical sources, Concerning an example in China’s idiosyncratic which might provide the space for pluralism in Political Economy, Xi Jinping, the CPC’s gener- economics teaching. al secretary, argues that “upholding and devel- oping China’s idiosyncratic political economy A hidden issue behind the learning from the West should be directed by Marxian political economy, is that China’s economists continue pursuing and summarize and refine China’s practical ex- an approach based on China’s reality, which the perience in reform and socialist construction, recent impressive economic success has rein- meanwhile assimilating western economics’ forced. This chapter will illustrate this ambitious beneficial elements.” agenda. Generally, China’s economists have a common sense that China did not follow a sin- Since the 1990s, motived by the economic suc- gle economic theory to guide its reform and de- cess and the establishment of the socialist mar- velopment, and believe that China’s success can ket economic system and by the reflections of contribute to economics, although none disclos- the de-Soviet Union paradigm and de-doctri- es what a China’s idiosyncratic economics is. naire socialism, Chinese economists have de- Hence, an unknown monism might be emerging voted efforts to investigate an appropriate the- in China, but pluralism may act as a channel for oretical framework to explain China’s economic understanding the Chinese economy, and ac- success and to direct further reforms. Along cordingly serve as the essential parts of China’s with China’s gradual opening, its academic re- idiosyncratic economics, which will be a new search environment has become free and active, monism. However, it also might fail. No mature the former political economy paradigm applied economic schools currently exist and there are in the past was criticized and abandoned; mean- not enough spaces to promote divergent eco- while, neoliberalism that has become deeply at- nomic approaches; yet, any efforts might face a tached to the market economy started to domi- challenge from a Marxism-leading monism and nate economic research. Such a decline of polit- would be strongly influenced by China’s specific ical economic research indeed occurred in other political-economic nexus.

2 a Brief History of “Mainstream forwards, Marxism backwards”

China’s economics education started at the be- introduced as well. Before the translation of ginning of the 20th century, when China was The of Nations into Chinese, China’s eco- learning from Western civilization, and accord- nomics education was almost blank, although ingly the economics curriculum system was the Chinese population had created nearly one

6 2 A Brief History of “Mainstream forwards, Marxism backwards” third of global economic production. As an eco- versities, and the popular economic textbooks nomic entity, China governed its economy suc- and curriculum prevailed in China as well. Most cessfully with its conventional wisdom until economists, including the Marxists, welcomed the closed system was interrupted in the 18th such fundamental changes within a context of century. Since then, China has started to adapt absorbing western economics into Marxian eco- to the ways of thinking, theoretical framework, nomics. However, this eventually made the exist- research methods, and modern economic ter- ing socialism economics education struggle in minology (Tan 2000). Such interactions among the research evaluation and classroom, although academic systems of thought reflect China’s rise the CPC is still strongly supporting Marxism. and decline, which is partly the reason Chinese economists are enthusiastic about establishing Several landmark events fundamentally a China’s idiosyncratic economics in the context changed China’s economics education. The initial of the latest successful economic development. event, which Lawrence Robert Klein (Nobel Lau- reate) organized and led, was the Summer Palace Peking University established the first econom- Econometric Research Training Workshop in 1980. ics department in China in 1912, which paved Approximately 100 junior economists and stu- the way for economics modernization in China. dents attended this training program. This work- Before 1949, China’s economics education and shop is considered an enlightenment in China’s research followed two approaches. One was economics education and research. Economists, introduced from Europe and the United States, for example, (University of Penn- huge numbers of English and Japanese eco- sylvania), Gregory C. Chow (Princeton­ Universi- nomic works were translated into Chinese; and ty), Lawrence Lau (Stanford University), Cheng many Chinese economists trained in Western Hsiao (University of Southern California), gave countries returned to China and dominated uni- lectures mainly on , and also Mac- versity economics teaching and research. The roeconomics and . This initial second approach regarded introducing Marxism, event most importantly encouraged the Chinese which China’s revolution and anti-invasion ef- economists, who were well educated before in forts triggered. Starting in the 1930s, the United States and interrupted in research, to and other examples of Karl Marx’s works were return back to teaching mainstream economics. quickly translated (Lin and Hu 2001). Ford Class served as an additional influential Western mainstream economics education in project, which had 681 graduates in total, orga- China became interrupted as the Chinese com- nized at China’s Renmin University and Fudan munist government established itself in 1949. University in 1985 and 1995. Major education strictly followed conven- support came from Ford Foundation that favors tional Marxism, and almost acted as an ideolog- neoliberalism. Within a time span of 11 years, ical education approach and as a tool guide for this project invited economics professors main- . Instead, the western main- ly from the United States to give lectures on 20 stream economics was treated as capitalists’ subjects including , Microeco- decadent thinking and criticized. nomics, Econometrics, , and Inter- national Economics. They designed the curricu- The fundamental economic reforms during the lum according to that given to the fresh PhD stu- 1980s brought modern economics back to Chi- dents and used the latest version of textbooks in na, and from the 1990s, economists who were the United States. The professors invited were educated in Europe and the United States intro- top ranking as well at that time, and the Nobel duced western economics, of which the majori- Laureates such as Angus Stewart Deaton, Rob- ty were classified as neoliberals in China’s uni- ert F. Engle, Leonid Hurwicz, as well as Robert

7 Dai: China’s Idiosyncratic Economics: An Emerging Unknown Monism Driven by Pluralism

A. Mundell, were active in this project. Many stu- institute selects the best bachelor students, who dents in this class then went abroad mainly in are especially talented in mathematics and oth- the United States to pursue an economics doc- er natural science fields, for the Double-degree toral degree, and eventually became the most Class of and Mathemati- influential force in China’s economics education cal Economics, and provides education following in the 21st century. It could be concluded that the the curriculum system at the top universities in Ford Class project is a diffusion process of neo- the United States. liberalism economics in China. Other Chinese universities quickly learned such In the internationalization process of China’s economics education and research patterns, es- economics education, Gregory C. Chow from pecially after China became much open and lib- Princeton University played an important role. eralized around 2000. Universities started to re- China’s central government frequently invited cruit famous economists from the United States him to discuss reforming economics education as Deans of economics and schools, and its relevance to economic reform in the through providing incredible competitive sala- 1980s (for details, see Chow 1989). Besides the ries and establishing “special reform zones” in events introduced above, he also worked close- economics teaching and research, and in recruit- ly with the Chinese Ministry of Education to se- ing new faculties. Shanghai University of Finance lect graduate students to study economics in and Economics, for example, employed Tian the United States and Canada; for example, sixty Guoqiang (Minnesota PhD 1987; and Professor American and Canadian universities accepted at Texas A & M University) to reform its economic sixty-three students with his recommendation, school in 2004. Tian enjoys a high level of favor in and most of them received financial support mainstream economics and coherently leads the from the hosting universities, the Chinese gov- economics school to have a focus on publication ernment, and the Ford Foundation. Following in the top-level mainstream economic journals. this, more and more students have been encour- Similar reforms are very common in other Chi- aged to study in the United States, and many of nese universities; for instance, Qian Yingyi (Har- them returned to China after obtaining doctoral vard PhD 1990, and Professor at the University degrees or professorships. This represented an of California, Berkeley) at Tsing­hua University. additional milestone event, a new round of eco- This new round of reforms in reality helped Chi- nomics teaching’s internationalization through nese universities to integrate with mainstream returnee economists and their reforms in China. economics, and meanwhile it changed the whole In 1994, Justin Yifu Lin (Chicago PhD 1986) re- atmosphere of China’s economics teaching and turned from Yale University and the China Center research as well. Currently, the number of top for Economic Research (CCER) under the Ford journal publications has become the most im- Foundation’s initial support and the . portant parameter for almost every economics It aims to “mobilize domestic and international school in China; therefore, neoliberal economics resources for bringing together a group of well- is developing into the dominating approach in or- trained economists to contribute to economics der to create enough top publications. education and research at Peking University, …, to contribute to China’s market-oriented reform At the exact same time, China has experienced and development, as well as to the development a high level of economic success and deep inte- of modern economic theory” (Lin 2007: 66). In gration with the world, while Marxist economics the same year, Zou Hengfu (Harvard PhD 1989) is facing serious difficulties in explaining China’s established the Institute for Advanced Economic economic development; in particular, the tran- Study (two years later, changed to the Institute for sition of former socialist countries into - Advanced Study, IAS) in Wuhan University. This ist democracies stifled Marxist thought. Hence,

8 3 A Possible Way to be Pluralist in China the situation of “Mainstream forwards, Marxism mote the research in this field, although the backwards” is easily understandable. reason behind this is complicated. For instance, many students consider Marxism as outdated, Marxian Political Economy is an introductory and not all teachers can provide a clear answer course for economic students in Chinese uni- for this from an academic perspective. Such a versities, and is a general knowledge course confusing situation makes neoliberalism much for students with little or no economic back- more popular and more easily understood, as ground. Moreover, Das Kapital and the History of students learn more about it. Consequently, less Economic School Thoughts are compulsory for Marxist economists are sufficiently educated, the economists. On the surface this may signal and in many universities, non-Marxist scholars that China strongly favors Marxism and plural- teach Marxian political economy. ism in economics teaching. However, this is not the case, because the main parts of economics All economic schools are nevertheless inclusive courses are neoliberalism courses and these as they were being introduced in China, although heterodox courses are isolated from others. In- neoliberalism, same as in other countries, be- stead, microeconomics and macroeconomics, came eventually dominant. For instance, in the which both act as the introductory courses about 1930s, Guo Dali, Wang Yanan translated The Marxian political economy, are to be reinforced Wealth of Nations, Das Kapital and several clas- and extended in other courses. For example, sical economic books, although they were not students may learn theory in both Marxian mainstream at that time. Such inclusive tra- political economy and microeconomics; howev- ditions, however, are preserved properly, as a er, most students may forget what Karl Marx’s whole, China’s economic education is trying to theory is after examinations; instead, the princi- remain open to all economic schools, and the ple of demand and supply will become general dominating neoliberalism cannot alter this. Ma- knowledge, as it leads students in understand- ny non-mainstream scholars can easily survive ing courses in another three years of bachelor in the universities where mainstream domi- courses. Hence, a systemic curriculum structure nates, but might not attract the majority of stu- is fundamental to guide the economics teaching dents. Courses like Marxist Political Economy, Das in a certain direction. Kapital, and History of Economic Thoughts are compulsory for the bachelor students majoring In addition, China’s Marxian Political Economy in economics in universities. Nevertheless, we has its own problems. For instance, the teach- should not take this as an evidence to demon- ing content of political economy cannot mostly strate China’s economics education still adheres come from Marx’s original works and the CPC’s to the Marxist tradition (see, for example, Jiang documents; and economists are unable to pro- and Lu 2016).

3 a Possible Way to be Pluralist in China

Wang Yanan (1946) initiated the term “Chinese of China’s specific characteristics in various as- Economics“ in his monograph The Principle of pects of its economic system. In the era of Wang [the] Chinese Economy, with aims to establish an (1946), China was experiencing a transition from original theory, which fits Chinese , to a colonial and feudal society to a modern one. explain Chinese economic and social develop- The existing western theory did not have ex- ment. A proposition for the discussion on estab- act constructed research on that, and therefore lishing China’s economics lies in a consideration could not adapt to such a transition. Concurrent-

9 Dai: China’s Idiosyncratic Economics: An Emerging Unknown Monism Driven by Pluralism

ly, China’s economy was severely undeveloped na is approaching to a market economy status, and scientific infrastructure and outcomes were which has a “new classical, in particular general deficient as well. Hence, there existed an urgent equilibrium framework” (Tian 2016: 43). A close need to adapt or establish a framework to im- argument comes out of Lin and Hu (2001), that prove development. Nevertheless, establishing the straightest way for Chinese economists to be China’s economics did not mean creating a com- integrated with the world economies is to take pletely new theoretical system, but rather build- the “normalized theoretical models and empiri- ing on and absorbing the existing economic the- cal methods”, otherwise, the research on China’s ory, based on China’s practices and reality. reform and development that can contribute to economics will be very limited, especially if the China’s expanding economic scale has initiated a integration issue cannot be properly solved. An rich economic phenomenon, which is a valuable ideal scheme naturally is to educate the young source for economic theory innovation (Lin 2007; generation with western mainstream econom- Tian 2016). Western economists, especially the ics, which may ensure that China’s economic re- neoliberalists, have failed in predicting China’s search integrates with the rest of world to the reform; instead, China has created its own ap- greatest extent. Indeed, most of China’s univer- proaches, for instance, China’s dual-track sys- sities have adapted this approach from the be- tem during marketization reforms in the last de- ginning of this century, and the dominating neo- cades serves as an example of this, which is out liberal economics was highly welcomed soon of the existing theoretical framework. This also thereafter, following this logic. tells us that any abuse of theory based on other countries’ experiences may lead to catastrophic Nevertheless, a common sense among those results. Hence, many Marxist economists claim propositions is that the western mainstream that China’s success highly depends on its so- economics is not the only way to explain China’s cialist system and institutional arrangement. In reform and development experience, and Chi- economic teaching and research, Chinese econ- na’s special story may provide a unique channel omists must prioritize Marxist political economy, for economic theory innovation. However, it is and western mainstream economics should be controversial to suggest a way to explore a new in a subordinate position (Lin 2016); Sinicized development model under the assumption of Marxism is the fundamental principle of Chi- China’s specialty. In addition, whatever to explain na’s socialism political economy (Pang 2012). China’s development, or to develop a China’s Neoliberal elements, such as private ownership, economics, even or to develop Marxism political a completely economy, and nonin- economy, most Chinese economics more or less tervention, are not feasible and unacceptable in have an inclination to monism. This may relate China (Liu 2005). This is one Marxism approach to China’s academic tradition. to establish China’s idiosyncratic (Marxian Po- litical) economics, because “ must Some economists (e. g. Yang 2016) argue that the have a natural and indivisible connection with process of neoliberalism dominating in China ac- social institutions, political orientation, and val- tually reflects the idea that China does not have ue; it is therefore really misleading to copy the an historical tradition in economic research, and internationalization approach nature science is now eager to integrate with the community. takes in social science” (Lin 2016: 17). However, this was overreacting. Economics in China become a pure mathematical game, which Another group of economists proposes that Chi- lacks deep thinking about what happens in Chi- na’s idiosyncratic economics must be a “mar- na. If we search in the literature for the most ginal innovation” on the new classical economic influential studies explaining China’s devel- framework, through absorbing China’s story. Chi- opment, Chinese scholars have not conducted

10 3 A Possible Way to be Pluralist in China them. Instead Chinese scholars have repeated has becomes a basic social for Chinese. many established works using China’s data. At Until recently, the Hundred Flowers Movement in the same time, the Marxist economists did not 1950s had a coherent pursuit as 2000 years ago. create any significance in developing Marxism, Regarding as an exam- although they comprise the major ple, it has a coherent logic with China’s reform in contemporary China. Chinese Marxists’ activ- experience and traditional wisdom in the way of ities have a strong connection with how the CPC thinking, and this might be an advantage for Chi- stresses on that. Currently, Marxists claim that nese economists (Jia 2006). Marxist political economy should constitute the dominating economic field in China, because We propose that China’s idiosyncratic economics China is a socialist system. Most research re- can serve as a possible way to integrate more garding this, however, relates to how the CPC’s economic schools into Chinese academia be- policies and arguments evolve. Such highly po- cause of China’s socialist system’s openness litical connected research might not be convinc- that shapes China’s reform and development ing for students, and more fundamental reform strategies. As we observed, although the CPC is needed in economics teaching. has a strong will to stick to the socialist system, it also provides adequate freedom for different Thanks to the tight connection between Marxism academic voices in policymaking and education. and heterodoxies, it would be feasible to intro- Pluralism actually is one of basic values in Chi- duce heterodox theories in China, and heterodox na. Hence, Marxist political economy will be sup- economists may find more space to follow a plu- ported at the political level, but will not consti- ralism than they can in other countries. More- tute a dominating economic school in China. over, China does need pluralism to challenge the dominating role of western mainstream An additional concern will be how to process economics (Zhang 2016). For instance, several this fundamental change in economics, if we economists initiated a Research Training School have a common sense on “China’s idiosyncratic in Jilin University, China, with an aim at integrat- economics”; there must be huge challenges, for ing heterodox economic theory with Marxian Po- instance, in its methodology, theoretical frame- litical Economy and promoting pluralism in eco- work, core concepts, as well as in the interac- nomics teaching. tions with the existing theory, and in particular, with mainstream economic thinking. Tian, pub- Pluralism’s feasibility exists in many neoliber- lished his microeconomic textbook (Tian 2016) alism leading research institutes and univer- with an aim at integrating China’s reality into the sities. The CCER, for example, established by current prevail microeconomic theory. He ex- Justin Yifu Lin and other neoliberalists, has an plained how China’s reality is connected with mi- ambitious goal to help China integrate with the croeconomic theory in several paragraphs, after world economic communities; however, it inter- introducing the theory. This is obviously far from acts with , famine eco- China’s economics. nomics, and structural economics perfectly well. In addition, China has a long pluralist tradition, Pluralist economics has been introduced in Chi- which might be a fundamental condition. Since na as soon as it was initiated, although it did not the Spring and Autumn Period (approximately create any influence and propose an operation- 771 to 476 BC) of ancient China, the Contention al scheme (Jia and Xu 2009; Yang 2016; Zhang of a Hundred Schools of Thought has profound- 2016). Furthermore, China’s scholars are invis- ly influenced and shaped China’s social con- ible in the International Initiative for Promoting sciousness up to the present day. The idea of a Political Economy (IIPPE). This is very intriguing. peaceful coexistence among different thoughts Chinese economists who have a pluralist favor

11 Dai: China’s Idiosyncratic Economics: An Emerging Unknown Monism Driven by Pluralism

sometimes strategically connect the pluralism tion in the top-ranking journals as core criteria with Marxism, for example, Zhang (2016) argues (Tian 2016a). In general, those top journals form that “In next few years, an innovative China’s the base for neoliberalism; in particular, the idiosyncratic economics will become a major peer review system has endogenously impeded concern for the Marxists, and China’s economic the publication possibility of heterodox works, practice will be the cornerstone for these efforts. and seriously damaged pluralism in economics In the long run, China’s economics will approach teaching and research. However, China still has to become a synonym of Marxism economics, a vigorous trend to support pluralism. In 2016, …, and, with innovation in theory based on Chi- the Ministry of Education (MoE) initiated an eval- na’s economic practice, becomes a major part uation program that counts the publications in of Marxism economics.” (Zhang 2016: 18) More- top journals; for instance in economics, which over, in the context of criticizing the monism of includes 12 journals, American Economic Review, neoliberalism, which “has badly threatened the Econometrica, Journal of Political Economy, Quar- spread of pluralism in China” (Jia 2006: 59), both terly Journal of Economics, Journal of Finance, Re- sides may have many in common to contribute view of Economic Studies, Journal of International China’s idiosyncratic economics. Economics, Journal of Econometrics, Journal of , Journal of Monetary Econom- An additional core issue regarding plural eco- ics, Journal of Labor Economics, and Review of nomics teaching will be how to create a plural- Economics and Statistics. This initiative’s original ist culture, which is largely related to academic idea centered on leading scholars paying more tradition in universities. For instance, concerning attention to publication quality over quantity. how to reform the existing evaluation system in Following this announcement, however, not only Chinese universities to adapt with the pluralism, economists, but also scholars immediately ex- neoliberalists and Marxists hold different opin- pressed strong opposition, which forced the MoE ions. The former consider publication and cita- to cancel this evaluation indicator.

Conclusion

This chapter discussed the possibility to imple- with the mainstream and insist that neoliber- ment a pluralist economics teaching, taking the alism is the best way to explain China’s story in chance to establish China’s economic idiosyn- a formal approach. Both sides are monist and crasy. Currently, the two most influential eco- exclusive. nomic groups are Marxists and neoliberalists, who possess strong willingness to promote We proposed a third way of a monism com- themselves as the dominating group in Chi- bining with pluralism by abandoning ideolog- na. The special socialist system and one-party ical constriction. This is an unknown monism political institutions are the most encouraging but reflects China’s features. Based on China’s for the Marxian, who believes the only possi- economic education reforms, and academic ble way to achieve the goal is Marxian socialist tradition in universities, we argue that this is a political economy, and that the western main- possible way to promote pluralism, and plural- stream economics is harmful for China; where- ist economics teaching will be helpful for estab- as the neoliberalists perceive that integrating lishing an idiosyncratic economics.

12 References

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Working Papers on East Asian Studies Back Issues

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No. 87 / 2010 Marcus Conlé: Health Biotechnology in China: No. 103 / 2015 Kai Duttle, Tatsuhiro Shichijo: Default or National, Regional, and Sectoral Dimensions Reactance? Identity Priming Effects on Overconfidence in Germany and Japan No. 86 / 2010 Anja Senz, Dieter Reinhardt (eds.): Green Governance – One Solution for Two Problems? Climate No. 102 / 2015 Martin Hemmert: The Relevance of Inter- Change and Economic Shocks: Risk Perceptions and Coping personal and Inter-organizational Ties for Interaction Quali- Strategies in China, India and Bangladesh ty and Outcomes of Research Collaborations in South Korea No. 85 / 2010 Heather Xiaoquan Zhang: Migration, Risk No. 101 / 2015 Shuanping Dai, Wolfram Elsner: Declining and Livelihoods: A Chinese Case Trust in Growing China. A Dilemma between Growth and Socio-Economic Damage No. 84 / 2010 Marcus Conlé, Markus Taube: Anatomy of Cluster Development in China: The case of health biotech No. 99 / 2014 Anna L. Ahlers, Thomas Heberer, Gunter clusters Schubert: ‘Authoritarian Resilience’ and Effective Policy Im- plementation in Contemporary China – A Local State Per- No. 83 / 2010 Sven Horak: Aspects of Inner-Korean Rela- spective tions Examined from a German Viewpoint

No. 98 / 2014 Werner Pascha: The Potential of Deeper No. 82 / 2010 Thomas Heberer, Anja-D. Senz (Hg.): Chinas Economic Integration between the Republic of Korea and Rolle in den internationalen Beziehungen – globale Heraus- the EU, Exemplified with Respect to E-Mobility forderungen und die chinesische Außenpolitik

No. 97 / 2014 Anja Senz, Dieter Reinhardt (Eds.): Task No. 81 / 2009 Flemming Christiansen, Heather Xiaoquan Force: Connecting India, China and Southeast Asia – New Zhang: The Political Economy of Rural Development in China: Socio-Economic Developments Reflections on Current Rural Policy

No. 96 / 2014 Markus Taube: Grundzüge der wirtschaft­ No. 80 / 2009 Chan-Mi Strüber: Germany’s Role in the lichen Entwicklung und ihre ordnungspolitischen Leitbilder Foreign Direct Configuration of Korean Multi­ in der VR China seit 1949 national Enterprises in Europe

No. 95 / 2013 Yasuo Saeki, Sven Horak: The Role of Trust No. 79 / 2009 Thomas Heberer, Anja-D. Senz (Hg.): Task in Cultivating Relation-specific Skills – The Case of a Multi- Force: Entwicklungspolitik und -strategien in Ostasien am national Automotive Supplier in Japan and Germany Beispiel der chinesischen Umweltpolitik

15 Dai: China’s Idiosyncratic Economics: An Emerging Unknown Monism Driven by Pluralism

No. 78 / 2008 Werner Pascha, Cornelia Storz: How are No. 61 / 2004 Thomas Heberer, Nora Sausmikat: Bilden Markets Created? The Case of Japan’s Silver Market sich in China Strukturen einer Zivilgesellschaft heraus?

No. 77 / 2008 Werner Pascha, Uwe Holtschneider (Hg.): No. 60 / 2004 Thomas Heberer, Anja Senz (Hg.): Feldfor- Task Force: Corporate Social Responsibility in Japan und schung in Asien: Erlebnisse und Ergebnisse aus der Sicht Österreich politikwissenschaftlicher Ostasienforschung

No. 76 / 2008 Yu Keping: China’s Governance Reform from No. 59 / 2004 Li Fan: Come by the Wind. Li Fan’s Story in 1978 to 2008 Buyun Election

No. 75 / 2008 Thomas Heberer: Task Force: Entwicklungs- No. 58 / 2004 Li Minghuan: Labour Brokerage in China politik in China: Herausforderungen, Lösungsstrategien und ­Today: Formal and Informal Dimensions deutsch-chinesische Entwicklungszusammenarbeit No. 57 / 2004 Dorit Lehrack: NGO im heutigen China – No. 74 / 2008 Markus Taube: Ökonomische Entwicklung in ­Aufgaben, Rolle und Selbstverständnis der VR China. Nachholendes Wachstum im Zeichen der Glo- balisierung No. 56 / 2004 Anja Senz: Wählen zwischen Recht und Pflicht – Ergebnisse einer Exkursion der Ostasienwissen- No. 73 / 2007 Norifumi Kawai, Manja Jonas: Ownership schaften in die Provinz Sichuan / VR China Strategies in Post- South-East Asia: The Case of Japanese Firms No. 55 / 2004 Werner Pascha, Cornelia Storz: Workshop Organisation und Ordnung der japanischen Wirtschaft IV. No. 72 / 2007 Werner Pascha, Cornelia Storz, Markus Themenschwerpunkt: Wahrnehmung, Institutionenökonomik Taube (Eds.): Workshop Series on the Role of Institutions in und Japanstudien East Asian Development – Institutional Foundations of Inno- vation and Competitiveness in East Asia No. 54 / 2004 Thomas Heberer: Ethnic Entrepreneurs as Agents of Social Change. Entrepreneurs, clans, social obli- No. 71 / 2006 Norifumi Kawai: Spatial Determinants of gations and ethnic resources: the case of the Liangshan Yi Japanese Manufacturing Firms in the Czech Republic in Sichuan No. 70 / 2006 Werner Pascha, Cornelia Storz (Hg.): Work- No. 53 / 2003 Hermann Halbeisen: Taiwan’s Domestic shop Institutionen in der Entwicklung Ostasiens I – Offen- Politics since the Presidential Elections 2000 heit und Geschlossenheit asiatischer Wirtschaftssysteme No. 52 / 2003 Claudia Derichs, Wolfram Schaffar (Hg.): No. 69 / 2006 Christian Göbel: The Peasant’s Rescue from Task Force: Interessen, Machstrukturen und internationale the Cadre? An Institutional Analysis of China’s Rural Tax and Regime. Die WTO-Verhandlungen zum GATS (Dienstleis- Fee Reform tungsabkommen) und sein Einfluss auf Asien No. 68 / 2006 Thomas Heberer: Institutional Change No. 51 / 2003 Markus Taube: Chinas Rückkehr in die Welt- and Legitimacy via Urban Elections? People’s Awareness gemeinschaft. Triebkräfte und Widerstände auf dem Weg zu of Elections and Participation in Urban Neighbourhoods einem „Global Player“ (Shequ)

No. 67 / 2006 Momoyo Hüstebeck: Tanaka Makiko: Scharf- No. 50 / 2003 Kotaro Oshige: Arbeitsmarktstruktur und züngige Populistin oder populäre Reformerin? industrielle Beziehungen in Japan. Eine Bestandsaufnahme mit Thesen zur Zukunftsentwicklung No. 66 / 2006 Momoyo Hüstebeck: Park Geun-hye: Als Prä- sidententochter zur ersten Staatspräsidentin Südkoreas? No. 49 / 2003 Werner Pascha, Cornelia Storz (Hg.): Work- shop Organisation und Ordnung der japanischen Wirtschaft No. 65 / 2006 Werner Pascha, Cornelia Storz (Hg.): Work- III. Themenschwerpunkt: Institutionenökonomik und Japan- shop Organisation und Ordnung der japanischen Wirtschaft studien V. Themenschwerpunkt: Deutschlandjahr in Japan – eine Zwischenbilanz No. 48 / 2003 Institute of East Asian Studies (Ed.), Frank Robaschik (compilation), with contributions from Winfried No. 64 / 2004 Christian Göbel, Thomas Heberer (Hg.): Task Flüchter, Thomas Heberer, Werner Pascha, Frank Roba­ Force: Zivilgesellschaftliche Entwicklungen in China / Task schik, Markus Taube: Overview of East Asian Studies in Force: Civil Societal Developments in China Central and Eastern Europe

No. 63 / 2005 Thorsten Nilges: Zunehmende Verschuldung No. 47 / 2002 Ulrich Zur-Lienen: Singapurs Strategie zur durch Mikrokredite. Auswertung eines Experiments in Süd­ Integration seiner multi-ethnischen Bevölkerung: Was sich indien begegnet gleicht sich an

No. 62 / 2004 Jun Imai: The Rise of Temporary Employ- No. 46 / 2002 Thomas Heberer: Strategische Gruppen ment in Japan. Legalisation and Expansion of a Non-Regular und Staatskapazität: Das Beispiel der Privatunternehmer Employment Form in ­China

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No. 45 / 2002 Thomas Heberer, Markus Taube: China, the No. 29 / 2000 Karl Lichtblau, Werner Pascha, Cornelia European Union and the United States of America: Partners Storz (Hg.): Workshop Klein- und Mittelunternehmen in or Competitors? ­Japan V. Themenschwerpunkt: M & A in Japan – ein neues In­strument der Unternehmenspolitik? No. 44 / 2002 Werner Pascha: Wirtschaftspolitische Re- formen in Japan – Kultur als Hemmschuh? No. 28 / 1999 Rainer Dormels: Regionaler Antagonismus in Südkorea No. 43 / 2002 Werner Pascha, Klaus Ruth, Cornelia Storz (Hg.): Themenschwerpunkt: Einfluss von IT-Technologien No. 27 / 1999 Claudia Derichs, Tim Goydke, Werner Pascha auf Strukturen und Prozesse in Unternehmen (Hg.): Task Force: Ein Gutachten zu den deutschen/­europäi­ schen Außen- und Außenwirtschaftsbeziehungen mit Japan No. 42 / 2002 Karin Adelsberger, Claudia Derichs, Thomas Heberer, Patrick Raszelenberg: Der 11. September und die No. 26 / 1999 Susanne Steffen: Der Einsatz der Umwelt- Folgen in Asien. Politische Reaktionen in der VR China, Japan, politik in der japanischen Elektrizitätswirtschaft Malaysia und Vietnam No. 25 / 1999 Claudia Derichs: Nationbuilding in Malaysia under Conditions of Globalization No. 41 / 2001 Claudia Derichs, Thomas Heberer (Hg.): Task Force: Ein Gutachten zu Beschäftigungspolitik, Alters- No. 24 / 1999 Thomas Heberer, Arno Kohl, Tuong Lai, vorsorge und Sozialstandards in Ostasien Nguyen Duc Vinh: Aspects of Privat Sector Development in Vietnam No. 40 / 2001 Werner Pascha, Frank Robaschik: The Role of Japanese Local Governments in Stabilisation Policy No. 23 / 1999 Werner Pascha: Corruption in Japan – An Economist’s Perspective No. 39 / 2001 Anja Senz, Zhu Yi: Von Ashima zu Yi-Rap: Die Darstellung nationaler Minderheiten in den chinesi- No. 22 / 1999 Nicole Bastian: Wettbewerb im japanischen schen Medien am Beispiel der Yi-Nationalität Fernsehmarkt. Neue Strukturen durch Kabel- und Satelliten­ fernsehen? Eine wettbewerbstheoretische Analyse No. 38 / 2001 Claudia Derichs: Interneteinsatz in den Duis­burger Ostasienwissenschaften: Ein Erfahrungsbericht No. 21 / 1999 Thomas Heberer: Entrepreneurs as Social am Beispiel des deutsch-japanischen Seminars „DJ50“ Actors: and Social Change in China and Vietnam

No. 37 / 2001 Zhang Luocheng: The particularities and No. 20 / 1999 Vereinigung für sozialwissenschaftliche major problems of minority regions in the middle and west- ­Japan-Forschung (Hg.): Quo vadis sozialwissenschaftliche ern parts of China and their developmental strategy Japan-Forschung? Methoden und Zukunftsfragen

No. 36 / 2001 Thomas Heberer: Falungong – Religion, No. 19 / 1999 Bong-Ki Kim: Das Problem der interkultu- Sekte oder Kult? Eine Heilsgemeinschaft als Manifestation rellen Kommunikation am Beispiel der Rezeption Deweys von Modernisierungsproblemen und sozialen Entfrem- in China dungsprozessen No. 18 / 1998 Werner Pascha, Cornelia Storz (Hg.): Work- No. 35 / 2001 Claudia Derichs, Thomas Heberer, Patrick shop Klein- und Mittelunternehmen in Japan IV. Themen­ Raszelenberg (Hg.): Task Force: Ein Gutachten zu den politi- schwerpunkt Netzwerke schen und wirtschaftlichen Beziehungen Ostasien–NRW No. 17 / 1998 Andreas Bollmann, Claudia Derichs, Daniel Konow, Ulrike Rebele, Christian Schulz, Kerstin Seemann, No. 34 / 2000 Ulrich Jürgens, Werner Pascha, Cornelia Stefanie Teggemann, Stephan Wieland: Interkulturelle Kom- Storz (Hg.): Workshop Organisation und Ordnung der japa- petenz als Lernziel nischen Wirtschaft I. Themenschwerpunkt: „New Economy“ – Neue Formen der Arbeitsorganisation in Japan No. 16 / 1997 Werner Pascha, Cornelia Storz (Hg.): Work- shop Klein- und Mittelunternehmen in Japan III. Themen­ No. 33 / 2000 Winfried Flüchter: German Geographical schwerpunkt Innovation Research on Japan No. 15 / 1997 Winfried Flüchter: Tokyo quo vadis? Chancen No. 32 / 2000 Thomas Heberer, Sabine Jakobi: Henan – und Grenzen (?) metropolitanen Wachstums The Model: From Hegemonism to Fragmentism. Portrait of the Political Culture of China’s Most Populated Province No. 14 / 1997 Claudia Derichs: Der westliche Universali- tätsanspruch aus nicht-westlicher Perspektive No. 31 / 2000 Thomas Heberer: Some Considerations on China’s Minorities in the 21st Century: Conflict or Concilia- No. 13 / 1997 Werner Pascha: and tion? Social Stabilization: A Dual Challenge for Korea

No. 30 / 2000 Jun Imai, Karen Shire: Flexible Equality: No. 12 / 1996 Claudia Derichs: Kleine Einführung in die Men and Women in Employment in Japan Politik und das politische System Japans

17 Dai: China’s Idiosyncratic Economics: An Emerging Unknown Monism Driven by Pluralism

No. 11 / 1996 Mikiko Eswein: Die Rolle der Berufsbildung No. 5 / 1995 Chen Lai: Die Kultur des Volkskonfuzianis- beim sozialen Wandel in Japan mus: Eine Untersuchung der Literatur zur kindlichen Erzie- hung (Meng xue) No. 10 / 1996 Mikiko Eswein: Erziehung zwischen Konfu­ zianismus und Bismarck. Schule und Erziehungssystem in No. 4 / 1995 Carsten Herrmann-Pillath: Die Volksrepu­blik Japan und die Republik China: Die Gratwanderung zweier chinesi- scher Staaten zwischen Politik und Wirtschaft No. 9 / 1996 Werner Pascha: On the Relevance of the German Concept of “” for Korea No. 3 / 1995 Carsten Herrmann-Pillath: On the Impor- tance of Studying Late Qing Economic and Social History for No. 8 / 1996 Carsten Herrmann-Pillath: Strange Notes the Analysis of Contemporary China or: Protecting Sinology on Modern Statistics and Traditional Popular Religion in Against Social Science China: Further Reflections on the Importance of Sinology for Social Science as applied on China No. 2 / 1995 H. J. Beckmann, K. Haaf, H. Kranz, W. Pascha, No. 7 / 1996 Ralph Lützeler: Die japanische Familie der B. Slominski, T. Yamada: „Japan im Netz“. Eine Material- Gegenwart – Wandel und Beharrung aus demographischer sammlung zur Nutzung des Internet Sicht No. 1 / 1995 Claudia Derichs, Winfried Flüchter, Carsten No. 6 / 1995 Werner Pascha (Hg.): Klein- und Mittelunter­ Herrmann-Pillath, Regine Mathias, Werner Pascha: Ostasia- nehmen in Japan – Dokumentation eines Workshops tische Regionalstudien: Warum?

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