Chinese local state entrepreneurialism：A case stud

Sincethe1980s,Chinahasbeenundertakingatransitionfromacentrallyplannedeconomytoamarketeconomythroughdecentralisation,givinglocalstatesmoredecision-makingpowerandprovidingincen-tivestoapplyentrepreneurialpolicies.Thispolicyhasbeensuccessfulintermsofeconomicdevelopment.TheaverageannualGDPgrowthofChinahasbeenmaintainedatarateofabove10percentduringthelastthreedecades.Afterevaluatingandexplainingdifferentdefinitionsofentrepreneurialismintheliterature,andincorporatingtheprocessandimpactsoftransitiontoamarketeconomyinChina,theauthorsinterpretthe‘entrepreneurialcity’asatypeoflocalstateentrepreneurialismfromperspectivesofriskmanagementandthereorganisationoflocalgovernanceforthepromotionofeconomiccompetitive-ness.ThisarticleusesChangchuntoexaminetheargumentthatlocalstateentrepreneurialismismainlydeterminedbytheendogenousimpulsesofacity,althoughtherearesomeexogenousinfluences.ThroughanassessmentoftheevolutionoflocalstateentrepreneurialisminChangchun,theauthorsconcludethattheprocessofChineselocalstateentrepreneurialismisdifferentfromothercountriesfortworeasons:thestronginfluenceofthegovernment’sforceineconomicdevelopment,andthefactthatthelegaciesofthecentrallyplannedeconomyhavetobeaddressedwhilepromotingentrepreneurialism.Since1978,Chinahasbeenundergoingaprofoundtransitionfromaplannedeconomytoamarketeconomythroughreformsaimingtointroducemarketmechanismsandtograntlocalstatesmoreincentivesviadecentralisation.Thedirectresultsaretherisingoflocalcorporatisminruralareas(Qi,1992;1995)andafocusoncitiesbecomingthekeyplayersindevelopmentwiththeobjectiveofincreasingGDP(Yu,2005).Localstateentrepreneurialismatthemunicipalitylevelhasbeenapopularapproachtoincreasingcompetitivenessandtoattractinginwardinvestment.EntrepreneurialismhasbeenconceptualisedasanurbanneoliberalismbeingwidelydiscussedinliteraturesintheWesterncountries(BrennerandTheodore,2005;Hall,2006,LockieandHiggins,2007).However,studiesoftheentrepreneurialcityaremuchlesscommoninChina.Thedominantperspectiveof‘restructuringtheory’(MaandWu,2005)indirectlyexplainstheemergenceoftheentrepreneurialcityastheresultofcrisismanagementintheregimeofaccumulationinaplannedeconomy.Accordingtotheargument,thedualcrisisassociatedwiththeplannedeconomyliesfirstintheinabilityofstatedominancetodealwithincreasedcomplexityandresourcemobility,and,second,theinabilityofthesocialistregimetoavoidthetendencytowardsIDPR,31(2)2009LiYuandLiZhuChineselocalstateentrepreneurialismAcasestudyofChangchunLiYuisDirector,InternationalCentreforPlanningandResearch,SchoolofCityandRegionalPlanning,CardiffUniversity,GlamorganBuilding,KingEdwardVIIAvenue,CardiffCF103WA;email:[e-mail],InstituteofUrbanPlanningandConstruction,ChinaAcademyofUrbanPlanning&Design,5ChegongzhuangXiRoad,Beijing100044,PRChina;email:[e-mail]2008;revisedpaperreceivedandacceptedMarch2009LiYuandLiZhu200over-accumulation.Inthiscase,themajortaskofChineserestructuringistorescalethenation-stateandtograntmoreincentivesandpowertolocalstates,leadingtotheriseoflocalstateentrepreneurialism.Urbanrestructuringandtheentrepreneurialcityarethusdeterminedbyforcesexogenoustothelocalstateviatop-downforce,andevenorchestratedbythecentralstate(Wu,2003).Thisargumentprovidesaconvincingexplanation,butoffersonlyapartialunder-standing.Infact,theriseoftheentrepreneurialcitycorrespondswiththeriseofthelocalstateasthemainactororganisingproductionandconsumptioninthecontextofcompetition.Itisshapedbybothextra-localandlocalfactors,andisdeterminedbybothexogenousandendogenousconditions.Evenso,theroleoflocalcontextisnotgiventheemphasisitdeserves.Thehistoricalandlocalcontingenciesorpath-dependencyofevolvingprocessesareunderevaluated.Toaddressthisresearchgap,thisarticlefocusesontheprocessoflocalstateentre-preneurialismtoemphasisethe‘evolutionary’and‘internal’logicratherthanmodechangeandtop-downinfluences.Bydoingso,itaimstocontributetoanunderstandingoftheemergenceoftheentrepreneurialcityandurbanrestructuringprocessesinChina.Changchunhasbeenselectedasacasestudybecauseitpossesseskeyfeaturesoflocalstateentrepreneurialism.Ithasadoptedanexplicitentrepreneurialdiscourse/imagetolaunchinnovativestrategiestoimprovethecompetitivenessofthecity.EntrepreneurialismresearchConceptsoftheentrepreneurialcityasatypeoflocalentrepreneurialismInWesterncountries,theriseofentrepreneurialismistheresultoftheshiftawayfrom‘aconcernwithbroad-basedwelfareandsocialpolicies(theprovisionofwelfare,serviceandcollective)totheadoptionofamoreoutward-orientedstancedesignedtofosterandencouragelocaldevelopmentandeconomicgrowth’(HubbardandHall,1998,13).ThisshiftistriggeredbythecrisesoftheFordist-Keynesianregimeintermsofdeindustrialisation,structuralunemploymentandfiscalausterityatnationalandlocallevels.Itleadstoadeclineinthepowerofthenationalgovernmentandanincreaseintheimportanceoflocalauthorities(Harvey,1989).Asaresult,localauthoritiesareimbuedwiththecharacteristicsoncedistinctivetobusiness,suchasrisk-taking,inventiveness,promotionandprofitmotivation.Itiscommonlyhe