Rising Powers: Unequal Powers, Authoritarian Powers, Unstable Powers?

Lead Research Organisation: University of Glasgow
Department Name: College of Social Sciences

Abstract

Taken together, Russia and China account for 41 per cent of the total territory of the BRICs, and for 51 per cent of their total population and 63 per cent of their GDP/PPP. On Goldman Sachs projections China will be the world's largest economy by 2050, and Russia its sixth largest; per head of population, on the same projections, Russia will have the world's fourth largest GDP/head and China its twelfth largest.

A striking feature of the two countries is not just the rate but also the strikingly inegalitarian nature of their development - notwithstanding a shared (post)communist legacy. Indeed on most conventional measures, these two countries are now among the most unequal in the world. According to Russian official statistics, the Gini coefficient had risen to .42 by 2010; the best estimates of Chinese Gini coefficients indicate a very similar rise from .26 in 1983 - just after the introduction of the contract responsibility system - to .45 in 2006, the last year available. On World Bank figures, Gini coefficients were already higher in Russia than in the UK, and higher in China than in the United States. Reflecting these developments, China had moved up to second place in Forbes' list of the world's billionaires by 2011, with Russia in third place.

One of the oldest findings of political science is that there is an association between economic inequality and political instability. As Aristotle pointed out in his Politics, 'when men are equal they are contented'; he drew attention to the people of Tarentum, who, 'by sharing the use of their own property with the poor, [gained] their good will'. Accordingly, 'democracy appears to be safer and less liable to revolution than oligarchy'. Concerns of this kind have been apparent in many later writers, including John Stuart Mill, who provided in his Representative Government for additional votes for those who exercised 'superior [managerial] functions' on the reasonable assumption that the poor would otherwise use their electoral preponderance to put through 'class legislation'.

We seek in this project to examine the following propositions: (i) that these two BRIC countries are becoming increasingly unequal; (ii) that within them, political power and economic advantage are increasingly closely associated; (iii) that their political systems have increasingly been employed to ensure that no effective challenge can be mounted to that combination of government position and economic advantage, either by 'ballot box' or other avenues; and that (iv) set against a broader comparative perspective, an increasingly unequal society in which government is effectively immune from conventional challenge is likely to become increasingly repressive, or unstable, or both (with considerable implications for the international community as a whole).

We propose to draw our evidence from national and international statistics, the academic literature that has appeared in both countries as well as the West, a series of interviews with policy specialists and relevant government officials, two dozen focus groups that will focus on issues of social justice and politics as perceived by ordinary citizens, and a detailed empirical analysis of the management of the largest companies in both countries in order to establish their connections with senior state officials. A final part of the analysis will employ crossnational evidence (including both aggregate and individual-level data such as the World Values Survey) to test a series of hypotheses relating to the association between inequality and political instability, setting both countries within a context that will include (for instance) the countries that have been affected by the 'Arab Spring'.

Planned Impact

We envisage beneficiaries in five main areas:

- UK government, with particular reference to the Foreign and Commonwealth Office, the Department for International Development and the Department for Business, Innovation and Skills as well as the Scottish government and UK representation abroad, and including the relevant parliamentary groups at Westminster and Holyrood;

- government outside the UK, including EU institutions such as ECRAN (the Europe China Research and Advice Network), which is a three-year project funded by the European Union to provide advice on China to European policy-makers, and within Russia and China themselves, making use in the former case of the extensive high-level connections of our proposed Moscow-based associates

- International non-government agencies, including our existing contacts with the World Bank in China and Washington DC, and with other bodies such as UNRISD in Geneva and the British Council

- UK secondary and higher education, including the large university classes that are taught by members of the investigatory team and the research students they supervise, helping in this way to develop UK capacity in the study of these two countries that is informed by contemporary social science (a research studentship is itself part of this application)

- the UK and international public, through for instance the project website and regular contributions to the printed and electronic media.

Russia and China are respectively the world's largest country and its most populous; they are among the world's largest economies and on current projections will be still more important in the decades to come; between them, they dominate the BRICs. The proposal would draw on many years of specialised study and within-country experience on the part of the investigators, together with the established authority and insights of experts within these countries themselves, a command of the relevant languages and advanced statistical skills to deliver a series of important benefits to public policy in the UK and beyond including:

- for UK government, an empirically grounded and rigorous analysis of the development prospects of two major international players, with a particular focus on the extent to which growing (but perhaps stabilising) levels of domestic inequality may prejudice their stability in the near and medium-term future; we would expect to provide our advice most often in the form of portable presentations of a kind that we have been given to understand would be the most suitable for such purposes but also (for instance) through meetings with UK diplomatic representatives within these countries themselves

- for UK higher and secondary education, through lectures, occasional ad hoc conferences and research supervision (including the linked postgraduate studentship), we would provide a means of developing additional capacity in language-based area studies as recommended by the International Benchmarking Review of UK Politics and International Studies (2007), making use of the outstanding resources that are available on or within easy reach of the Glasgow campus

- for UK and broader international audiences, a flow of expert commentary on issues that directly affect them and their future. The stability of two of the world's largest economies has for instance a direct bearing on the development of international markets, issues of global security and legal and illegal migration among others; our commentaries would be make use of the applicants' extensive connections and long experience of work in the printed and electronic media, and of the project website.
 
Description NEW DATA AND KNOWLEDGE. We conducted focus groups on attitudes to inequality in Russia and China, which generated a new dataset now publicly available through the UK Data Service Archive. We supplemented this new data with analyses of secondary survey data and compared historical processes and policy developments in both countries. The project resulted in new knowledge about Russian and Chinese people's attitudes to social and economic inequality and redistributive welfare programmes as well as the relationship of social governance to authoritarian political systems. We did not find evidence that authoritarian regimes in Russia and China are especially at risk of political instability as a consequence of the inequality which has arisen during market reforms. Rather, we found that both have shown an ability to adapt to rising inequality by developing new strategies of self-legitimation to replace Communist ideology, and by developing or adapting social programmes to meet the needs, however minimally, of key sections of the population. This does not mean, however, that we found local populations to be content with inequality or with existing levels of social protection. Rather it reflects the fact that governments in both countries have shown themselves to be skilled at managing the policy agenda, guiding public opinion and co-opting or repressing political opposition. In these circumstances, we do not think that economic inequality poses significant danger to either regime, but neither is there any automatic race to the bottom in terms of social governance. This leads to the important policy implication that both the Russian and Chinese government remain under continuing pressure to develop or maintain social welfare programmes as part of broader strategies aimed at promoting social and political stability. NEW RESEARCH QUESTIONS OPENED UP. Our research has opened up important new questions about the nature of post-socialist social contracts under authoritarian regimes, the role of political culture in sustaining perceptions of legitimacy, how popular demands for redistributive policies respond to economic and financial crises, the political implications of the emergence of a middle class, and the influence of policy communities and political institutions in shaping social policies. NEW NETWORKS AND COLLABORATIONS. There has been a great deal of interest in our findings from other researchers and invitations to present and discuss further analysis and possible research projects with colleagues in the Rising Powers and Interdependent Futures series of research programmes.
Exploitation Route We hope that other social researchers and social scientists will use our very rich focus group discussion database. We have placed that database in the UK Data Service Archive (Study Numbers 852589 and 852592) to enable other researchers to do qualitative analyses using our data. We hope this will encourage researchers to develop proposals involving the collection of new datasets, including surveys. Our findings on the implications of social inequality for political stability are of interest to UK FCO and other agencies interested in monitoring political developments in China and Russia. Our findings on attitudes to social welfare provision and on the nature of the policy processes in social governance will be valuable to businesses interested in investing in the infrastructure of social welfare provision, not only in Russia and China, but also in other rising powers. Our findings on how populations respond to rising inequality will be of interest to a wide range or academic and non-academic users with an interest in contemporary societies, government and justice.
Sectors Government, Democracy and Justice,Security and Diplomacy

URL http://www.gla.ac.uk/schools/socialpolitical/research/politics/projects/risingpowers/
 
Description Since our project concluded in November 2016 the investigators have continued to engage with potential users of our findings. We presented our preliminary findings at a workshop for PI's of the Rising Powers and Interdependent Futures research programmes, held in Manchester in March 2014, and for an international audience at three panels of the annual conference of the European Consortium for Political Research in Glasgow in June 2014. We contributed to the policy briefing report How do Rising Powers Drive Global Change (2017) and to the Rising Powers and Interdependent Futures final conference in Manchester in June 2017. We presented further results at the ASC (German Social Science) Conference at the Institute for East Asian Studies, University of Cologne, in December 2017, and at a conference organised by FAFO, Oslo, in September 2018. The key academic output of our project was published in January 2017 in a special section of Europe-Asia Studies (vol. 69, no. 1) entitled "Authoritarian Powers: Russia and China Compared" and a further contributions have appeared in China Quarterly, Russian Politics and the Journal of Chinese Governance. Our publications and a video introduction to our project are also prominently displayed on the Risingpowers.net project website as well as our departmental pages. We have encountered a good deal of interest in our research, in particular the key finding that there is no automatic race to the bottom on social governance. Contributions by the investigators have also been mentioned in the press in Rising Powers countries, for instance in the Russian newspaper Komersant (10 October 2017) and South China Morning Post (10 March 2018), and we have made contributions to broadcast media including BBC Radio Scotland and STV2. While we cannot demonstrate any direct material effects of increased understanding, we believe that our project has helped both policy makers and business stakeholders to refine their strategies for engagement with these two rising powers and thus reap the benefits going forward.
First Year Of Impact 2017
Sector Government, Democracy and Justice,Security and Diplomacy
Impact Types Societal,Economic,Policy & public services

 
Title Rising powers Part 1 - Social equality forum China: Focus group transcripts 
Description This data set consists of transcripts from 10 focus group discussions on themes related to social equality in China. The focus group discussions were conducted by Horizon Research Consultancy using a discussion guide written by the Investigators. They were held in nine cities chosen to represent east, west and south China, including 4 provincial capitals: Beijing, Changsha, Guangzhou, and Shanghai, and 5 prefecture level cities: Baoding, Fuzhou, Luoyang, Mianyang, and Suzhou. The respondents included a mix of ages, genders, blue and white collar workers, and included at least one migrant (from another province) in each focus group. Separate focus group discussions were held for respondents with mainly urban hukou (residence registration) and for respondents with mainly rural hukou. There were two discussions in Guangzhou, one for each residence registration category. The focus groups in Baoding and Suzhou were held only for respondents age 18-29. Further details of recruitment and stratification are given in the documentation. The focus group discussions dealt with household and national economic change, perceptions of social fairness, and welfare values. Specifically, respondents were asked about the state of the national and local economies, their household economy, how they define rich and poor people and how they position themselves in relation to these categories. They were asked about whether they perceived differences in wealth between individuals, regions and between urban and rural areas as fair, and whether such differences are increasing or decreasing. Finally they were asked about whether the rich should take more responsibility for the welfare of the poor, about their own personal responsibility and that of the state and businesses. Prior to taking part in the focus group discussions, participants completed a screening questionnaire, which also served to collect basic information, including gender, age, marital status, ethnicity, level of education, self-assessed adequacy of income, occupation, hukou, property ownership and type of neighbourhood. The screening questionnaire and information on participants are included. The transcripts are provided in English and Chinese. The Chinese text was transcribed by Horizon from audio files by someone familiar with the local dialect. The English translations were done by a native English speaker with help from a Chinese assistant. The participants are identified in the transcripts by a seat number, which corresponds to the information on participants in the Excel files. Where individuals' names were disclosed in the discussion, these have been replaced by their seat number. A set of brief notes from the translator is included. A parallel set of focus group discussions was held in Russia and is available as the collection Social Equality Forum Russia: Focus Group Transcripts (see Related Resources). 
Type Of Material Database/Collection of data 
Year Produced 2017 
Provided To Others? Yes  
Impact This data allowed us to engage with the discourse on welfare, inequality and related issues in urban China and informed our qualitative and quantitative analyses. 
URL http://reshare.ukdataservice.ac.uk/852589/
 
Title Rising powers Part 2 - Social equality forum Russia: Focus group transcripts 
Description This data collection consists of transcripts from 12 focus group discussions on themes related to social equality in Russia. The focus group discussions were conducted by the Institute of Applied Politics in Moscow, directed by Dr Kryshtanovskaya; using a discussion guide written by the Investigators. They were held in 12 cities chosen to represent different regions of the country, with an emphasis on provincial cities: Ufa, Kaliningrad, Ekaterinburg, Tiumen, Saratov, Ulyanovsk, Volgograd, Ivanovo, Irkutsk, Obolensk, Vladivostok and Protvino. The respondents included a mix of ages, genders, blue and white collar workers. The focus groups in Protvino and Ulyanovsk were held only for respondents age 18-29. The focus group discussions dealt with household and national economic change, perceptions of social fairness, and welfare values. Specifically, respondents were asked about the state of the national and local economies, their household economy, how they define rich and poor people and how they position themselves in relation to these categories. They were asked about whether they perceived differences in wealth between individuals, regions and between urban and rural areas as fair, and whether such differences are increasing or decreasing. Finally they were asked about whether the rich should take more responsibility for the welfare of the poor, about their own personal responsibility and that of the state and businesses, as well as about progressive income taxes and the degree to which the state should control the economy. The discussion guide is provided in Russian and English. Basic information about the respondents, including gender, age, and occupation are provided at the top of each focus group transcript. Each participant is identified by their given name only. The transcripts are provided in Russian. The Russian text was transcribed by the Institute of Applied Politics from audio files. A parallel set of focus groups was conducted in China and are available as the collection Social equality forum China: Focus group transcripts (see Related Resources). 
Type Of Material Database/Collection of data 
Year Produced 2017 
Provided To Others? Yes  
Impact This data set allowed us to engage with the discourse on social inequality, welfare and related policy issues in Russia and informed both qualitative and quantitative analyses. 
URL http://reshare.ukdataservice.ac.uk/852592/