ProtoSociology

Volume 29, 2012

China's Modernization II

Business Opportunities and Philanthropic Initiatives
Private Entrepreneurs, Welfare Provision and the Prospects for Social Change in China

This paper explores the different ways in which the Chinese Party-state has promoted for-profit service provision and the philanthropic initiatives of private entrepreneurs, in order to elucidate the changing nature of China’s social contract. Throughout the 1980s and up to the mid-1990s the prevalent social contract, built around the idea that market mechanisms would bring economic prosperity to all citizens, had largely not been challenged. That changed in the late 1990s as a result of rising socio-economic inequalities, massive lay-offs from state owned enterprise reform, rising urban poverty, rising health care costs, the countryside consistently falling behind urban levels of development, and other social issues. Over the last decade there has been a reconfiguration and rearticulation of the social contract in China, with social welfare policy becoming a key element of the Party-state’s efforts to maintain legitimacy. Initially adopting an ambivalent position towards the private provi­sion of core public services such as health and education, the Party-state now recognises the important role played by private service providers, and has introduced legislation designed to protect the providers of such services, while also ensuring that their activities can be regulated more closely.