Wang Anshi Reforms 1069-1073 (1 Feb 1069 Jahr – 1 Jun 1073 Jahr)

Beschreibung:

III. Wang Anshi Reforms—Conservative View
Conservative Faction:
• Sima Guang (Ssu-ma Kuang) 1019-1086
• Su Xun (Su Hsun) 1009-1066 Father of Su Shi and Su Zhe
• Su Zhe (Su Che) 1039-1112
• Chang Xia (Cheng Hsia)
• Fan Chen
• Cheng Yi (Ch’eng I) 1033-1107 – Important for Neo-Confucianism
• Shao Yong (Shao Yung) 1011-1077 Not a politician (Gernet HCC pg. 308)
View of Conservatives (Cambridge: pgs. 387-388)
1. Despite increase in size of population, the economic pie remains relatively fixed
2. Relation between rich and poor was benign and mutually beneficial
a. Wealthy served as pillars of society and provided capital (land and credit) and security to the poor
b. The poor assist the wealthy with their labor
c. The fixed economic pie defines the relation between the economy and the state- Economy works best with the least Governmental interference
-----------Money making money (via interest) was still relatively new-------------
3. Cause of Economic and Financial Crisis (conservative view)
a. Irresponsible spending of the State
i. You can’t increase government revenues beyond a certain limit without decreasing the incomes of the people.
ii. Therefore, root out things that harm the formation of wealth {Excess officials, excess troops, excess expenditures (Su Zhe)}
“The output of the world in money and goods is of a fixed and definite amount. If it is in the hands of the state then it is not in the hands of the people” When the state extracts wealth from the people, “bandits swarm like wasps” Sima Guang (Cambridge: pg. 388)







III. Wang Anshi Reforms- Reformers View
Reformer Faction:
• Wang An Shi (1021-1086)
•
View of Reformers: (Cambridge: pg. 388)
1. Economy is not fixed (not a closed system)
a. Commerce in South had regional specialization and household production for the market (and reliance on the market)
2. Commerce increased the role of money, money multiplies itself through commercial transactions and interest on loans
a. Therefore, Economy is dynamic, not static
3. Economic Dynamism could only be sustained by the State
“… to utilize all under Heaven to produce wealth for all under Heaven and to use the wealth of all under Heaven to meet the needs of all under Heaven” Wang Anshi (Campridge: pg. 389)
4. Rather than a benign relationship between rich and poor, the relationship was viewed as coercive and predatory (“ Engrossers”= Chien-ping) This view goes back to Xunzi (293-238 BC) Human nature is bad.
5. Small farmers supported the burden of direct taxation and corvees were the deep seated reasons for the states weakness (Gernet HCC pg. 306)
6. Must create an ideologically uniform bureaucratic government
a. National School system
b. Reform National Exam
c. Promulgate his commentaries of the Classics as key for passing exams
d. Fill education posts with like-minded people
7. Emperor must silence critics and spearhead uniformity
8. Grant autonomy to agents in the field so as not to hamstring them by rules and regulations (but allowed for local corruption?)
a. Critics of men in the fields were portrayed as “villainous self-interested partisans”



Wang Anshi took over Council of State, the Censorate and Remonstrance Bureaus
• 1069- Green Spouts
• 1071- Exam Reform, Hired Service Policy
• 1072- State Trade Policy
• 1073-Mutual Security (Pao-Chia) made Universal
• 1085- Emperor Shenzong dies- Dowager Empress Begins to unravel New Policies
After Green Sprouts, Wang Anshi forced many opponents out. Many went to Loyang (Henan)

Reforms
I. Rural Credit (“Green Sprouts”)
Original Issue: The interim between the old and new harvest created a difficult time for peasants (out of food and seed). By mid-11th century, 80% of rural households were in the lowest tow economic brackets. Didn’t have enough land to a family of five (Cambridge: pg. 394) so many became hired labor/tenant farmers. Large landowners buying up peasants land or giving loans with exorbitant interest rates (100%) = “Engrossers”
Typically in the past, the Government would do land redistribution (up through the 8th Century) but the Government was not strong enough.
Reform Solution:
• Loan cash to peasants to be repaid in grain (for use by army)
• 0% interest- Break up the Engrossers
• No forced loans allowed
Within a few months, to cover the bureacrateic expenses, they began to charge interest.
Over time, the lucrative lure of interest coupled with promotions of regional officials who sold many loans led to an increase in interest rates and the forcing of peasants to take loans.





II. Hired Service:
Original Issue: Once you hit a certain economic class, you were hit with a heavy tax burden and burdensome service obligations (drafted into Government service for 2-3yrs). It was so costly for the household some would commit suicide or lower their rank to avoid it. Many draft service reforms had been tried in the past.
Reform Solution:
• Became a new very unpopular tax which eventually included the poor, also new fees began to be added.
• Profits then were given as interest bearing loans to peasants (Green Sprouts) and then also used to buy goods (State Trade). Profits from the sale of these (marked up goods) went back to interest bearing loans.
III. State Trade
Original Issue: Large landowners would buy out all of a foreign traders goods (to monopolize it) at near cost. Then they would wait until it was in need to sell it to the local merchants at a great markup, and then share the profit with the original trader.
Reform Solution:
• Government buys goods from Tibetan traders
o Resell to merchants on credit at a marked up price
o State makes money on markup and interest
• Government buys stagnant goods. Merchants take a loan to buy the goods at a negotiated price
o Merchants then sell them at a reasonable price when the marked improved (rather than price gouging like the Engrossers)
State functionaries began to harass merchants, encroached on essential goods (not stagnant goods) driving up prices of staples.
State functionaries began to work directly (rather than as intermediaries) to buy and sell goods, creating their own monopolies--- take profits and use as loans to get interest.
IV. Mutual Security System
Original Issue: Mercenary armies were costly, not effective and created issues during peacetime.
Reform Solution:
• Create a compulsory formal leadership and structure over local population
• Designed to quell local bandits and criminals
• Wang Anshi envisioned replacing the mecenary army with it.

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