Evolution of a political industry with examples from Chinese history

Abstract

In explaining the development and operation of states, analysis has focused on economics (e.g. production, and the buying and selling of products) and its relationships with laws, customs, and government, as well as with the distribution of national income and wealth; however, researchers have paid less attention to the economic efficiency of the associated “political industry”. This lacuna is puzzling because politics is a form of industry that is born when a state forms, that develops as the state matures, and that flourishes as democracy and globalization become dominant. The state functions as a monopoly that reaps huge profits, and either seeks more profit through military or political intervention in the affairs of other states or uses military or political force to protect itself against such behavior by other states. A growing focus on human rights causes this industry to flourish while giving birth to new political systems that weaken autocratic politics. To reduce the costs of political affairs by increasing their efficiency, states have explored both top-down and bottom-up approaches. To understand the nature and functioning of this industry, I discuss its origins and subsequent development to provide insights into how the functioning of a state can become more effective. I provide specific Chinese examples to show how these approaches work.