By James C. Mulvenon
In 1978, confronted with the strain to modernize and a declining price range, the chinese language People's Liberation military (PLA) reluctantly agreed to hitch China's financial reform force, increasing its inner economic climate to market-oriented civilian creation. This paintings examines PLA's position within the economic climate as much as 1998.
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Additional info for Soldiers of fortune: the rise and fall of the Chinese military-business complex, 1978-1998
Thus, the Admiralty was the outstanding example of that typically Elizabethan compromise between the government and the vested interests, by which the former nominally administered the latter but the latter in reality manipulated the former. 43 In a similar way, the participation of the PLA in commerce was also a compromise between military and civilian interests, in which the civilian leadership permitted the PLA to marketize its internal economy to replace lost central fiscal support. The result was a significant proliferation of military corruption, alongside the expansion of ostensibly legal enterprises.
Like the PLA, it exploited its infrastructure by hiring out its trucks and jeeps for local transport. 11 One curious case that begs for explanation is why the Soviet Red Army did not exploit its military economic privileges during the waning days of the Cold War. Even today, the Russian case is an outlier, because the military's economic participation is largely illegal. One factor may have been that the Soviet military structure did not control its own agricultural and industrial enterprises. For the PLA, it was this economic capability that formed the foundation of its multibillion-dollar military-business complex.
5 Only a small number of PLA factories continued to produce large quantities of military goods, and even those units maintained related but separate civilian production lines. 7 Third, there was a pronounced international component to Chinese military commercial activity, as an increasing percentage of PLA economic ventures looked abroad for sources of valuable foreign exchange. Nearly all of the major military-run conglomerates, such as the China Xinxing Import-Export Corporation, had an import-export arm, specifically tasked to market and sell PLA-produced goods and services overseas.
Soldiers of fortune: the rise and fall of the Chinese military-business complex, 1978-1998 by James C. Mulvenon