front cover of Capitalism from Below
Capitalism from Below
Markets and Institutional Change in China
Victor Nee and Sonja Opper
Harvard University Press, 2012

More than 630 million Chinese have escaped poverty since the 1980s, reducing the fraction remaining from 82 to 10 percent of the population. This astonishing decline in poverty, the largest in history, coincided with the rapid growth of a private enterprise economy. Yet private enterprise in China emerged in spite of impediments set up by the Chinese government. How did private enterprise overcome these initial obstacles to become the engine of China’s economic miracle? Where did capitalism come from?

Studying over 700 manufacturing firms in the Yangzi region, Victor Nee and Sonja Opper argue that China’s private enterprise economy bubbled up from below. Through trial and error, entrepreneurs devised institutional innovations that enabled them to decouple from the established economic order to start up and grow small, private manufacturing firms. Barriers to entry motivated them to build their own networks of suppliers and distributors, and to develop competitive advantage in self-organized industrial clusters. Close-knit groups of like-minded people participated in the emergence of private enterprise by offering financing and establishing reliable business norms.

This rapidly growing private enterprise economy diffused throughout the coastal regions of China and, passing through a series of tipping points, eroded the market share of state-owned firms. Only after this fledgling economy emerged as a dynamic engine of economic growth, wealth creation, and manufacturing jobs did the political elite legitimize it as a way to jump-start China’s market society. Today, this private enterprise economy is one of the greatest success stories in the history of capitalism.

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front cover of The New Institutionalism in Sociology
The New Institutionalism in Sociology
Mary C. Brinton
Russell Sage Foundation, 1998
Institutions play a pivotal role in the economic functioning of any society. Understanding the foundation of social norms, networks, and beliefs within institutions is crucial to explaining much of what occurs in modern economies. Recently, economic sociologists have explored how ties among individuals and groups facilitate economic activity, while "institutional economists" have focused on the formal "rules of the game" that regulate economic processes via government and law. The New Institutionalism in Sociology argues that a full understanding of economic life will depend on blending these new lines of research on institutions with traditional sociological insights into the social structures that lie at their core. The contributors to this volume explore many questions about the way institutions emerge and operate. How do grassroots mores and practices evolve to an institutional level? How do institutional norms then regulate economic activity, and what are the advantages of formal versus informal constraints? What are the sources of trust and cooperation in trading markets? What role do cultural networks play in the economic survival of immigrant communities? And how does conflict and bargaining affect the evolution of community norms? The New Institutionalism in Sociology also discusses how economic fluctuations arise from interactions between local agencies and the institutional environment. Among the topics addressed here are the influence of labor activism on the distribution of income, the association between highly competitive "winner-take-all" job markets and increased wage inequality in the United States, and the effect of property right conventions on technical innovation and productivity in pre-industrial England. A final section explores how deeply embedded cultural traditions have colored the transition from state socialism to market economies in Eastern Europe. The New Institutionalism in Sociology establishes a valuable template for a sociological conception of economic organization. Its interdisciplinary paradigm signals an important advance in understanding how institutions shape social and economic life.
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front cover of Remaking the American Mainstream
Remaking the American Mainstream
Assimilation and Contemporary Immigration
Richard Alba and Victor Nee
Harvard University Press, 2003

In this age of multicultural democracy, the idea of assimilation--that the social distance separating immigrants and their children from the mainstream of American society closes over time--seems outdated and, in some forms, even offensive. But as Richard Alba and Victor Nee show in the first systematic treatment of assimilation since the mid-1960s, it continues to shape the immigrant experience, even though the geography of immigration has shifted from Europe to Asia, Africa, and Latin America. Institutional changes, from civil rights legislation to immigration law, have provided a more favorable environment for nonwhite immigrants and their children than in the past.

Assimilation is still driven, in claim, by the decisions of immigrants and the second generation to improve their social and material circumstances in America. But they also show that immigrants, historically and today, have profoundly changed our mainstream society and culture in the process of becoming Americans.

Surveying a variety of domains--language, socioeconomic attachments, residential patterns, and intermarriage--they demonstrate the continuing importance of assimilation in American life. And they predict that it will blur the boundaries among the major, racially defined populations, as nonwhites and Hispanics are increasingly incorporated into the mainstream.

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