Notes Chapter 1 1. Criton M. Zoakos, “In the Grip of China’s Bear Hug: Berlin’s Big Gamble with Germany’s Economic Future.” The International Economy XXIV, no. 4 (Fall 2010): 47. 2. Note that the official quarterly data series starts from the first quarter of 1992. The quarterly estimates cited for earlier years are from Table 4 in: Jia Yueqing, “A New Look at China’s Output Fluctuations: Quarterly GDP Estimation with an Unobserved Components Approach.” George Washington Univer- sity Research Program on Forecasting. Working Paper No. 2011–006, 2011, http://www.gwu.edu/∼ forcpgm/2011-006.pdf 3. Thomas G. Rawski, “Measuring China’s Recent GDP Growth: Where Do We Stand?” August 29, 2002, http://www.pitt.edu/∼tgrawski/papers2002/ measuring.pdf 4. Chen Wei, ‘ “Zhongguo Moshi Lun’ zhi Fansi” [“A Reassessment of the ‘China Model’ ”]. Beijing Spring, January 31, 2011, http://beijingspring.com/bj2/ 2010/280/2011131221531.htm. Chapter 2 1. Genesis 1:28. 2. John Locke, Two Treatises of Government (London: Thomas Tegg, 1823), 118. 3. Locke, 118. 4. Karl A. Wittfogel, Oriental Despotism: A Comparative Study of Total Power (New Haven: Yale University Press, 1957). 5. Mark Elvin, The Retreat of the Elephants: An Environmental History of China (New Haven: Yale University Press, 2004), 128. 6. Elvin, 117. 7. Wittfogel, 27. 8. Elvin, 176. 9. Robert B. Marks, Tigers, Rice, Silk, and Silt: Environment and Economy in Late Imperial South China (Cambridge: Cambridge University Press, 1998), 106. 10. Wittfogel, 27. 180 N OTES 11. Marks, 107. 12. X. L. Ding, “The Illicit Asset Stripping of Chinese State Firms.” The China Journal 43 (January 2000): 2. 13. Armen Alchian. “Property Rights,” in The New Palgrave: A Dictionary of Economics, ed. John Eatwell, Murray Milgate, and Peter Newman (London: Macmillan Press, 1987), 1032. 14. Yoram Barzel, Economic Analysis of Property Rights (Cambridge: Cambridge University Press, 1997), 132–138. 15. Barzel, 138. 16. Robin Dean and Tobias Damm-Luhr, “A Current Review of Chinese Land- Use Law and Policy: A ‘Breakthrough’ in Rural Reform?” UCLA Pacific Rim Law and Policy Journal 19, no 1 (2010): 150–151, http://digital.law. washington.edu/dspace-law/bitstream/handle/1773.1/500/19PacRimL%26 PolyJ121%282010%29.pdf?sequence=3. 17. Dean and Damm-Luhr, 152. 18. He Qinglian, “ ‘Land Enclosure Movement’ Feeds Chinese Local Govern- ments.” Epoch Times, June 19, 2006, http://www.hlrn.org/img/violation/ land%20enclosure%20movement,%20china.htm. 19. Gregory M. Stein, “Acquiring Land Use Rights in Today’s China: A Snapshot from on the Ground.” UCLA Pacific Basin Law Journal 24, no 1 (2006): 31, http://ssrn.com/abstract= 942813 20. Freedom House, Freedom in the World 2011—China, June 17, 2011, http:// www.unhcr.org/refworld/docid/4dfb658533.html. 21. See the illustrations on page of 2 of the June 2010 edition of Beijing Spring. 22. He Qinglian, “The Land-Enclosure Movement of the 1990s.” The Chinese Economy 33, no 3 (2000): 57–88. 23. These statistics are available at http://www.cbrc.gov.cn/chinese/home/ docViewPage/110009.html. 24. A complete list is available at http://www.sasac.gov.cn/n1180/n1226/n2425/ index.html. 25. National Bureau of Statistics, ZhongguoTongjiNianjian 2011 [China Statisti- cal Yearbook 2011] (Beijing: China Statistics Press, 2011), Table 5–4. 26. National Bureau of Statistics, 39. 27. Huang Yasheng, Capitalism with Chinese Characteristics: Entrepreneurship and the State (Cambridge: Cambridge University Press, 2008), 16–17. 28. Huang, 17. 29. Vladimir I. Lenin, “Five Years of the Russian Revolution and the Prospects of the World Revolution.” Report to the Fourth Congress of the Commu- nist International, November 13, 1922. V. I. Lenin Internet Archive 2002, http://www.marxists.org/archive/lenin/works/1922/nov/04b.htm. 30. National Bureau of Statistics, Table 5–14. 31. Wittfogel saw “hydraulic despotism” as a departure from this sequence and as evidence that evolution from one of these Marxian stages to the next is not inevitable. 32. Huang, 39. N OTES 181 33. Unirule Institute of Economics, “Guoyou Qiye de Xingzhi, Biaoxianyu Gaige” [The Nature, Performance, and Reform of the State-owned Enter- prises], 2011: 6, http://www.unirule.org.cn/xiazai/2011/20110412.pdf. 34. Unirule Institute of Economics, 86. 35. Unirule Institute of Economics, 89. 36. Unirule Institute of Economics, 88. 37. Unirule Institute of Economics, 5. 38. Unirule Institute of Economics, 5–6. Chapter 3 1. See Chapter 2, Part g in: Nicolai Bukharin, Historical Materialism: A Sys- tem of Sociology (Marxists Internet Archive, 2002), http://www.marxists.org/ archive/bukharin/works/1921/histmat/index.htm. 2. See Chapter IV, Part 2 in: Joseph Stalin, History of the Communist Party of the Soviet Union (Bolsheviks): Short Course (Marxists Inter- net Archive, 2008), http://www.marxists.org/reference/archive/stalin/works/ 1939/x01/index.htm. 3. Bukharin, Chapter 2, Part c. 4. John M. Keynes, The General Theory of Employment, Interest, and Money (New York: Prometheus Books, 1997), 161. 5. Keynes, 315. 6. Keynes, 162. 7. Keynes, 320. 8. See Chapter XVII, Part 6 in: Karl Marx, Theories of Surplus Value (1863), http://www.marxists.org/archive/marx/works/1863/theories- surplus-value/index.htm. 9. See Chapter 17 in: Rudolf Hilferding, Finance Capital: A Study of the Latest Phase of Capitalist Development (London: Routledge & Kegan Paul, 1981), http://www.marxists.org/archive/hilferding/1910/finkap/index.htm. 10. See Chapter 20 in: Ludwig Von Mises, Human Action: A Treatise on Economics (Forth Revised Edition) (San Francisco: Fox and Wilkes, 1996),http://mises.org/Books/humanaction.pdf. 11. The earliest of these was the model given in: Paul A. Samuelson, “Inter- actions between the Multiplier Analysis and the Principle of Acceleration.” Review of Economic Statistics 21 (1939): 75–78. 12. Robert E. Lucas, “Expectations and the Neutrality of Money.” Journal of Economic Theory 4 (1972): 103–124. 13. This would also be true in Jevon’s sunspot model, where variations in solar radiation affect the economy through changes in crop yields. See: William S. Jevons, “Commercial Crises and Sun-Spots.” NatureXIX (November 14, 1878): 33–37. 14. Harold Demsetz, “Information and Efficiency: Another Viewpoint.” Journal of Law and Economics 12 (1969): 1–22. 15. Keynes, 378. 182 N OTES 16. Keynes, 378. 17. See Chapter 3, Section 19 in: Nicolai Bukharin and EvgeniiPreobrazhensky, The ABC of Communism (Marxists Internet Archive, 2001), http://www. marxists.org/archive/bukharin/works/1920/abc/index.htm. 18. Chapter 3, Section 20. 19. Ludwig Von Mises, Socialism: An Economic and Sociological Analysis (New Haven: Yale University Press, 1951), 121. 20. Mises, 122. 21. Bukharin and Preobrazhensky, Chapter 3, Section 19. 22. Mises, Socialism, 122. 23. See Part IV in: Friedrich Hayek, “The Use of Knowledge in Society.” American Economic Review XXXV, no. 4 (1945): 519–530, http://www. econlib.org/library/Essays/hykKnw1.html. 24. Michael Polanyi, The Tacit Dimension (Garden City, NY: Doubleday, 1966). 25. James C. Scott, Seeing Like a State: How Certain Schemes to Improve the Human Condition Have Failed (New Haven: Yale University Press, 1998). 26. Daniel Cloud, The Lily: Evolution, Play, and the Power of a Free Society (Baltimore: Laissez Faire Books, 2011). 27. Scott, 314. 28. Scott, 314. 29. Mises, Human Action, 566. 30. Alec Nove, An Economic History of the USSR (London: Penguin Books, 1992), 271. 31. Bukharin and Preobrazhensky, Chapter 3, Section 21. 32. Nove, 271. 33. Janos Kornai, The Socialist System: The Political Economy of Communism (Princeton, NJ: Princeton University Press, 1992), 187. 34. See Chapter 3 in: Karl Kautsky, The Dictatorship of the Proletariat (Marxists Internet Archive), http://www.marxists.org/archive/kautsky/1918/ dictprole/ch03.htm. Kolakowksi called Kautsky the “embodiment of Marxist orthodoxy” in the generation following Marx and Engels (Kolakowski, 2005, 379). 35. See Chapter 2 in: Vladimir I. Lenin, Left Wing Communism: An Infantile Disorder (Marxists.org 1999), http://www.marxists.org/archive/lenin/works/ 1920/lwc/index.htm. 36. Vladimir I. Lenin, “Report on the Work of the Council of People’s Commissars.” Address to the Eighth All-Russia Congress of Soviets, December 29, 1920. V. I. Lenin Internet Archive 2002, http://www. marxists.org/archive/lenin/works/1920/8thcong/ch02.htm. 37. Kornai, 191. 38. Kornai, 192. 39. Kornai, 188. 40. Kornai, 193. 41. Alexander Eckstein, China’s Economic Development: The Interplay of Scarcity and Ideology (Ann Arbor: University of Michigan Press, 1976), 301–302. N OTES 183 42. Eckstein, 304. 43. Eckstein, 314–319. 44. Liu Shaoqi served as head of state from 1959 to 1968. 45. Barry Naughton, “The Third Front: Defense Industrialization in the Chinese Interior.” The China Quarterly 115 (September 1988): 353–362. 46. Frank Dikotter, Mao’s Great Famine: The History of China’s Most Devastating Catastrophe, 1958–1962 (New York: Walker & Co., 2010). 47. Chen Yun,Chen Yun Wenxuan: 1956–1985 [Selected Works of Chen Yun: 1956–1985] (Beijing: People’s Publishing House, 1986), 78. 48. Jan S. Prybyla, The Political Economy of Communist China (Scranton, PA: International Textbook Co., 1970), 387. 49. People’s Daily, “Quan Guo Yi Pan Qi” [The Whole Country as a Chess Board], February 24, 1959: 1–2. 50. John B. Starr, Continuing the Revolution: The Political Thought of Mao (Princeton, NJ: Princeton University Press, 1979), 147. 51. Starr, 148. Note that there is an important difference between Hayek’s “decentralized knowledge” and Mao’s “scattered and unsystematic” ideas. The former consists of idiosyncratic information about matters such as local production possibilities or supply and demand conditions in some particular market that have little or no relevance outside of their immediate context. This kind of knowledge, which Hayek argued is generally of the greatest economic value, is not amenable to “systematization” or “concentration.” 52.