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Are there factors, other than school busing, that might have caused some or all of these statistical shifts?

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Theme: Analyzing History | Learning Block 6-2: Desegregating Boston’s Schools

Desegregating Boston’s Schools

In Brown v. Board of Education (1954)* Landmark case in which the Supreme Court found that segregation of the public schools was unconstitutional because it violated the equal protection clause of the Fourteenth Amendment. The decision overturned <em>Plessy v. Ferguson</em> (1896), thereby striking down the “separate but equal” doctrine. , the Supreme Court ruled unanimously that racial segregation in the public schools is unconstitutional. What it did not provide was an answer to the practical question: How do we do that?

A year later, in a decision that became known as Brown II, the court provided an answer to that question—sort of. It delegated the task of carrying out school desegregation to federal district courts and said that schools in segregated districts should be integrated “with all deliberate speed.” The ambiguity of that phrase was seized on by many opponents as a license for delay, and for close to a decade, there was little progress in integrating many segregated districts. (Civil Rights Movement Veterans, 2016)

The passage of the Civil Rights Act in 1964, coupled with later Supreme Court decisions ordering school districts to speed up the pace of desegregation, lent the process more urgency. But resistance to school desegregation—not just in the South but in many cities of the North and West as well—remained a formidable obstacle to the goal of achieving racial balance in public schools.

In Massachusetts, the state legislature in 1965 passed a law requiring the integration of all segregated schools in the state, the vast majority of which were in the capital city of Boston. (Levy, 1971) But the Boston School Committee resisted, and it was not until 1974—when a federal court ordered a citywide school busing* The transporting of students by bus to schools outside their neighborhoods, especially as a means of ending segregation and achieving racial diversity within a public school district.  plan to end segregation of the Boston schools—that the process of integration finally began.

That process did not go smoothly. Fierce resistance in several of the city’s predominantly white neighborhoods forced state police and National Guard troops to escort African-American students into the schools, and the ensuing “Boston busing crisis” roiled the schools, and the city, for years. (Lukas, 1985) The Boston public schools were not declared fully desegregated until 1987.

This learning block uses the events of the Boston busing crisis as a prism for looking once again at the concepts of cause and consequence, and as a way to illustrate how you can use historical evidence to make an argument that supports your thesis.

Learning Objectives

In this learning block, you will:

  • Describe the causes, course, and consequences of a historical event
  • Use historical evidence to support the development of an analytical thesis statement

References

Civil Rights Movement Veterans (2016). The “Brown II,” “All Deliberate Speed” Retrieved from http://www.crmvet.org/tim/timhis55.htm#1955ads (May 25, 2016).

Lukas, J.A. (1985). Common Ground: A Turbulent Decade in the Lives of Three American Families. New York: Alfred A. Knopf.

Levy, F. (1971). Northern Schools and Civil Rights: The Racial Imbalance Act of Massachusetts. Chicago: Markham Publishing Company.

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Choose an assignment to visit…

  • 5-1 The Struggle for Civil Rights
  • The Early Struggle for Civil Rights
  • The Struggle for Civil Rights, 1900 – 1950
  • The Modern Civil Rights Movement, 1954 – 1968
  • 5-2 Contingency and the Civil Rights Movement
  • The Concept of Contingency
  • Contingency and Dr. King
  • 5-3 The Struggle for Voting Rights
  • The Voting Rights Act of 1965
  • The Impact of the Voting Rights Act
  • The Voting Rights Act: Further Reading
  • 5-4 Historical Writing
  • Introduction of the Paper
  • Writing an Introduction
  • Body and Conclusion of the Paper
  • Tips for Writing a History Paper
  • Week 5 Submissions
  • 6-1 Analyzing Historical Texts
  • Active Reading
  • Critical Analysis
  • 6-2 Desegregating Boston’s Schools
  • Boston, Busing, and Backlash
  • The Consequences of Boston’s Busing Crisis
  • Boston’s Busing Crisis: Further Reading
  • 6-3 Using Historical Evidence
  • Evidence in Your Essay
  • Integrating Text From Sources
  • Exercise: Historical Evidence
  • 6-4 Historical Analysis and Interpretation
  • Drafting an Essay
  • Week 6 Submissions

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Theme: Analyzing History | Learning Block 6-2 | Page 1 of 3

Boston, Busing, and Backlash

The struggle for voting rights, which we looked at in Theme: Analyzing History, Learning Block 3, was a struggle against de jure segregation* Racial segregation that is backed by law. It is any form of segregation that the law permits or even requires. De jure segregation existed in the South for nearly a hundred years after the Civil War.  that existed in just one part of the country: the states of the Old South. But the problem of de facto segregation* Racial segregation that exists not in law but in fact, through differences in housing patterns, income, and other socioeconomic conditions.  was one that existed throughout the country, and its effects were perhaps seen most clearly in the nation’s public schools.

A series of Supreme Court cases in the early 1960s made it clear that de facto school segregation was unconstitutional and that segregated schools would be integrated by court order if necessary. Beginning in the early 1970s, the Court began requiring school busing* The transporting of students by bus to schools outside their neighborhoods, especially as a means of ending segregation and achieving racial diversity within a public school district.  plans, which would send African-American students to largely white schools and send white students to largely African-American schools, as a means of achieving greater racial balance.

In Boston, the city’s small but growing African-American community began protesting the quality of public schools in largely black neighborhoods in the early 1960s. In 1965, in response to a federal investigation of possible segregation in the Boston public schools, the Massachusetts legislature passed the Racial Imbalance Act. The new law outlawed segregation in Massachusetts schools and threatened to cut off state funding for any school district that did not comply. (Levy, 1971)

A R.O.A.R button opposing Boston’s desegregation. (Click button for citation)

Of the 55 Massachusetts schools identified as racially imbalanced, 45 were in the City of Boston. But the Boston School Committee, an all-white elected body led by Louise Day Hicks, refused to acknowledge the segregation and balked at any plan to remedy the situation. Hicks’s opposition to school desegregation boosted her popularity, particularly in the city’s working-class, heavily Irish-American neighborhoods; in 1967, she narrowly missed being elected mayor, but in 1969, she was elected to the city council, and in 1970, she was elected to Congress to represent her home neighborhood, the Irish-American enclave of South Boston. (Lukas, 1985)

The School Committee continued to stonewall demands to implement a meaningful desegregation plan. But in June 1974, federal Judge W. Arthur Garrity, deciding a lawsuit brought against the School Committee by the NAACP* The National Association for the Advancement of Colored People, the nation’s oldest and largest civil rights organization, which was founded in 1909. , ruled that Boston’s schools were unconstitutionally segregated. He ordered that any school whose enrollment was more than 50 percent nonwhite must be balanced according to race.

To achieve that balance, Garrity ordered the schools to adopt a widespread busing plan by the first day of school in September. That announcement triggered a powerful backlash among white parents and students. Hicks formed an anti-busing group called Restore Our Alienated Rights (ROAR) that spearheaded much of the opposition to Garrity’s desegregation order.

While the plan involved the busing of thousands of students from different neighborhoods across the city, the greatest attention was focused on the high schools in South Boston—a heavily working-class and overwhelmingly Irish-American part of town—and Roxbury, an overwhelmingly African-American neighborhood. Garrity’s order effectively paired the two schools, by requiring that they essentially swap hundreds of students.

Decades after the fact, Garrity’s busing order is still hotly debated in Boston. Supporters say that his unyielding approach was the only way to overcome white resistance and achieve racial balance in Boston’s schools. Critics say Garrity focused too much on the goal of achieving mathematical balance, rather than focusing on a plan to improve school quality for both African-American and white children. (Gellerman, 2014)

Robert J. Allison, professor of History at Suffolk University in Boston and author of A Short History of Boston, describes the causes and consequences of the Boston busing crisis in this video:

Click Here to Resume >>

When school opened in September, resistance to the busing plan was fierce. A throng of white protesters greeted the buses rolling into South Boston High School that September with jeers and epithets; some of the protesters began throwing bricks and rocks at the buses and at the state police escorting them. The incident marked the beginning of two years of angry and often violent confrontations between white and black parents, students, police, and protesters. (Wolff, 2015)

Anti-busing protesters attack attorney Theodore Landsmark as he exits Boston City Hall, 1976. (Click button for citation)

From 1974 through 1976, the process of public education in Boston was turned into an ongoing tableau of state troopers and National Guardsmen in riot gear, escorting children into schools past jeering crowds; fights both inside and outside of schools, leading to hundreds of arrests; thousands of high-school students, both white and African-American, boycotting classes on a regular basis; and angry confrontations between protesters and public officials, such as Mayor Kevin White and Senator Edward M. Kennedy, who were deemed to be “pro-busing.” (Lukas, 1985)

All of this did not leave a lot of time for actual education. In the 1974-75 school year, school officials estimated that 12,000 of the school system’s 93,000 students were chronically or permanently absent; in the following year, that figure was estimated at 14,000. (Wolff, 2015) The average rate of absenteeism during the 1974-75 school year was approximately 50 percent. (U.S. Commission on Civil Rights, 1975)

The Boston protests, taking place in the heart of what was presumed to be one of the most “liberal” cities in America, attracted widespread media attention. They exposed sharp racial divisions in the city, and they also highlighted divisions based on class: many of the white protesters in working-class neighborhoods such as South Boston and Charlestown felt aggrieved that their neighborhoods had been singled out for busing, while schools in Boston’s more affluent suburbs were unaffected. (Lukas, 1985)

The worst of the violence and protests was over by the end of 1976, but the city and its schools were permanently changed. By the time Boston’s schools were declared desegregated in 1987, the student population had declined by almost 40 percent and the overwhelming majority of students were nonwhite. (Hoover Institution, 1998) While historians still debate whether the Boston busing crisis was a necessary cause* An event or trend that is essential to causing some other event &ndash; and without which, the second event could not take place.  of these sharp demographic shifts in the city’s public school system, the events of 1974-1976 clearly contributed to changing perceptions of the school system among parents and students.

References

Gellerman, B. (2014) How The Boston Busing Decision Still Affects City Schools 40 Years Later. Retrieved from www.wbur.org/news/2014/06/20/boston-busing-ruling-anniversary, May 26, 2016.

Hoover Institution (1998). Busing’s Boston Massacre. Retrieved from http://www.hoover.org/research/busings-boston-massacre, May 26, 2016.

Lukas, J.A. (1985). Common Ground: A Turbulent Decade in the Lives of Three American Families. New York: Alfred A. Knopf.

Levy, F. (1971). Northern Schools and Civil Rights: The Racial Imbalance Act of Massachusetts. Chicago: Markham Publishing Company.

U.S. Commission on Civil Rights (1975). Desegregating the Boston Public Schools: A Crisis in Civic Responsibility. Retrieved from https://babel.hathitrust.org/cgi/pt?id=umn.31951000497753j;view=1up;seq=1, October 6, 2017.

Wolff, J. (2015). A Timeline of Boston School Desegregation, 1961-1985. Civil Rights and Restorative Justice Project and the Northeastern University School of Law. Retrieved from http://www.racialequitytools.org/resourcefiles/Boston%20Desegregation%20Timeline.pdf

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Theme: Analyzing History | Learning Block 6-2 | Page 2 of 3

The Consequences of Boston’s Busing Crisis

Forty years after the fact, it’s worth asking the obvious question: what were the effects of Boston’s tumultuous school desegregation effort? To put it another way: What were the consequences of this historical event?

In assessing the consequences of any event, we first need to identify the groups or institutions that might have been affected. We could, for instance, look at the effects of busing on individual students—by tape-recording interviews with former students who were actually on the buses, to see what effect the experience had on their later lives. This type of research is known as oral history* The collection and study of historical information using sound recordings of interviews with people having personal knowledge of past events. .

We could also look at the impact of busing on the public school system itself. A few relevant statistics:

  • In 1971-72, three years before busing began, there were 93,000 students in the Boston public schools; 61% were white; 32% were African-American; and 7% were other racial minorities. (U.S. Commission on Civil Rights, 1975)
  • In 1990, three years after the schools were declared desegregated, there were 60,000 students in the Boston public schools; 22% were white; 48% were African-American; and 30% were other racial minorities. (Boston Studies Group, 2010)
  • In 1971-72, Boston public schools had one of the highest dropout rates in the country. (U.S. Commission on Civil Rights, 1975) In 1990, the dropout rate had dropped below the national average. (Boston Studies Group, 2010; National Center for Education Statistics, 2015)
  • In 1970, 10 percent of Boston public school students went on to graduate from college; in 1990, 30 percent did so. (Boston Studies Group, 2010)

Do these statistics tell us all we need to know about the impact of busing on the public school system? Are there factors, other than school busing, that might have caused some or all of these statistical shifts? Are there other ways that we might be able to measure the quality of the Boston public schools, both before and after busing?

What about the impact on the city itself? In the early and mid-1970s, there was a lot of discussion about the possibility of white flight* The large-scale migration of white residents from racially mixed urban regions to more racially homogeneous suburban or exurban regions. , the phenomenon in which white residents move out of mixed-race urban areas and relocate to largely white suburbs. In a narrower sense of the term, white flight can refer to the decision by white parents to take their children out of public schools and send them to largely white private or parochial schools.

Again, consider a few statistics:

  • In 1970, Boston’s population was 641,071, and approximately 82% of residents were white. (U.S. Civil Rights Commission, 1975)
  • In 1990, Boston’s population was 574,283; approximately 59% of residents were white. (Boston Redevelopment Authority, 2011)

Do these statistics suggest that Boston experienced a period of white flight between 1970 and 1990? Would it affect your thinking if you knew that Boston’s overall population had declined by 20 percent between 1950 and 1970—well before school busing began? (Kennedy, 1992)

Are there any other factors that might have caused these demographic changes? It’s worth noting that this was a time of strong suburban growth all around the country: between 1970 and 1990, the proportion of Americans living in suburbs rose from 37.6 percent to 46.2 percent. (US Census Bureau, 2002) Was Boston simply following the national trend toward suburbanization—a trend spurred by increased automobile ownership, expanded access to home mortgages, job growth in suburban areas, and the coming of age of the Baby Boom generation, among many other factors? Or was Boston a special case, with the busing crisis serving as the driving force behind suburbanization in the region?

Next, consider one more statistic:

  • In 2010, Boston’s population was 617,594; approximately 47% of residents were white. (Boston Redevelopment Authority, 2011)

Long after the end of busing, then, the city’s population was increasing, but the proportion of white residents was still declining. Do you think that’s evidence of white flight or some other demographic trend—or maybe a combination of factors?

Mel King. Image courtesy of the South End Historical Society.

Finally, let’s look at the impact of busing on the city’s leadership and institutions. One of the leaders of the resistance to busing was Raymond L. Flynn, an Irish-American state representative and city councilor from South Boston. One of the strongest supporters of the desegregation plan was Mel King, an African-American state representative from Boston’s South End. In 1983, Flynn and King ran against each other for mayor.

Ray Flynn speaking in Boston. (Click button for citation)

King was the first African-American candidate for mayor ever to make it past the preliminary round and into the November final election. Although Flynn won the mayoralty with 65 percent of the vote in 1983, King’s emergence as a strong and credible candidate was seen as evidence that Boston was at least beginning to move past the racial animus that marked the busing era. And Flynn, as mayor, devoted a great deal of time and effort to cooling racial tensions and promoting housing and economic development in largely African-American neighborhoods. (Walker, 2015)

Among Flynn’s significant accomplishments as mayor: in 1991, he sponsored, and Boston voters approved, a referendum to abolish the elected school committee and replace it with a panel appointed by, and directly answerable to, the mayor. The old School Committee that was, throughout the busing era, a defiant symbol of opposition to school desegregation, is now a long-gone relic of the distant past.

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References

Boston Redevelopment Authority (2011). Demographic and Socio-economic Trends in Boston: What we’ve learned from the latest Census data. Retrieved from http://www.bostonredevelopmentauthority.org/getattachment/70ddddcd-760f-49fa-a32e-fb5a80becd34

Boston Studies Group (2010) Boston Public Schools: Trends in Enrollment, Drop-out, and Boston’s Citywide Educational Attainment. Retrieved from http://www.bostonstudies.com/assets/pdf/profile_gallery/bps-profile1.pdf

National Center for Education Statistics (2015). Fast Facts: Dropout Rates. Retrieved from https://nces.ed.gov/fastfacts/display.asp?id=16

U.S. Commission on Civil Rights (1975). School desegregation in Boston. Retrieved from https://www.law.umaryland.edu/marshall/usccr/documents/cr12sch618.pdf

U.S. Census Bureau (2002). Demographic Trends in the 20th Century. Retrieved from http://www.census.gov/prod/2002pubs/censr-4.pdf

Walker, A. (2015). “How should Boston honor Ray Flynn’s legacy?” Boston Globe, May 29, 2015. Retrieved from https://www.bostonglobe.com/metro/2015/05/28/how-should-boston-honor-ray-flynn-legacy/0Fn3MisYQj0IxPVseC0xFM/story.html

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de jure segregation

Racial segregation that is backed by law. It is any form of segregation that the law permits or even requires. De jure segregation existed in the South for nearly a hundred years after the Civil War.

school busing

The transporting of students by bus to schools outside their neighborhoods, especially as a means of ending segregation and achieving racial diversity within a public school district.

 

Brown v. Board of Education (1954)

Landmark case in which the Supreme Court found that segregation of the public schools was unconstitutional because it violated the equal protection clause of the Fourteenth Amendment. The decision overturned Plessy v. Ferguson (1896), thereby striking down the “separate but equal” doctrine.

 

“What business are we in?” and “What business should we be in?”

STRATEGIC MANAGEMENT PROCESS/VISION, MISSION, GOALS AND OBJECTIVES

The Strategic Management Process: Vision, Mission, Values, Goals, Stakeholders

Strategic management is a company-wide process that includes the development of a long-term plan of action that assists an organization in achieving its objectives and fulfilling its company vision.

This course is focused on the steps and stages of preparing and implementing a strategic plan. Although we do not have time in one short course to go through the entire process in detail, by the end of the course you will know what you would need to do, and you will have the tools to develop a plan if you need to participate in the process. The following two readings and PowerPoint presentation are intended to provide you with an overview of the planning process. They also serve as an introduction and overview of the course.

McNamara, C. (2009). Developing your strategic plan. Retrieved on November 6, 2012, from http://www.managementhelp.org/np_progs/sp_mod/str_plan.htm

The strategic planning process. (2007). Retrieved on November 6, 2012, from http://www.quickmba.com/strategy/strategic-planning/

Click on the link for a PowerPoint presentation summarizing Strategic Management by Professor Anastasia M. Luca.

 

Mission, Vision, Values, and Goals

We will begin by studying the first step of the strategic planning process. This is the step that informs the rest of the process. It is also the step that ensures that all parties to the strategic plan are in agreement as to why the company exists, what the company does, where the company should go, and how it should get there. Those who run an organization should continually be asking the following two questions: “What business are we in?” and “What business should we be in?” Why? Because the answers may not necessarily be the same, in which event the strategic course must be corrected.

Mission statements are explicit statements concerning the reason(s) for an organization’s existence. At the most basic level, mission statements articulate what the company is, why it exists, and what it does. The mission statement sets up the long-term direction of the company, reflects the goals of its major stakeholders (i.e., shareholders, customers, suppliers, and employees), and should be capable of standing the test of time.

The mission statement should be the first consideration for anyone engaged in the strategic planning process, or in decisions which have strategic implications. Any action taken by the organization must be compatible with its expressed mission. Following are several mission statements:

The Elephant Sanctuary: “A natural refuge where sick, old and needy elephants can once again walk the earth in peace and dignity.” This is one powerful statement that evokes emotion and instant attachment to the cause of this organization.

Sun Microsystems: “Solve complex network computing problems for governments, enterprises, and service providers.” This is a simple mission statement identifying the company’s market and what the company does.

Ben & Jerry’s Ice Cream: A product mission is stated as: “To make, distribute and sell the finest quality all natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment.” This mission inspired Ben & Jerry’s to build a cause-related company.

Joe Boxer: “JOE BOXER is dedicated to bringing new and creative ideas to the marketplace, both in our product offerings as well as our marketing events. We will continue to develop our unique brand positioning, to maintain and grow our solid brand recognition, and to adhere to high quality design standards. Because everyone wants to have fun every day, JOE BOXER will continue to offer something for everyone with fun always in mind.”

Some mission statements are epic in scope. Here are some examples of mission statements from the past that promised nothing less than revolutionizing an industry:

The Ford Motor Company (early 1900s): “Ford will democratize the automobile.”

Sony (early 1950s): “Become the company most known for changing the worldwide poor-quality image of Japanese products.”

Boeing (1950): “Become the dominant player in commercial aircraft and bring the world into the jet age.”

Wal-Mart (1990): “Become a $125 billion company by the year 2000.”

Vision statements are similar to mission statements in the sense that they also define the organization’s purpose. However, they do so by focusing on the organization’s core beliefs as to how things should be done, and they establish an image of a future that the organization aspires to create. Vision statements are meant to be inspiring. They give direction to employees concerning how they should carry out their jobs, and they signal customers about the values of the organization.

Examples of vision statements:

Heinz: “The world’s premier food company, offering nutritious, superior tasting foods to people everywhere.” Being the premier food company does not mean being the biggest, but it does mean being the best in terms of consumer value, customer service, employee talent, and assuring consistent and predictable growth.

Chevron: “At the heart of The Chevron Way is our vision … to be the global energy company most admired for its people, partnership and performance.”

Pfizer: “To become the world’s most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live.”

Value statements identify the ethos of a company—or the ethics under which an organization plans to conduct business. Every mission and vision is inherently based on the organization’s core values. Some organizations articulate those values (often, they do so in rather lengthy treatises), while others simply depend on their mission and vision to communicate their values.

Goals and objectives parcel out the vision into achievable units that are further subdivided into smaller and smaller units. Goals are quantifiable and measurable, they are important, and they are attainable. Goals can include deadlines, and are expressed in terms of market share, revenue, and profit for the organization as a whole.

The following short articles will give you a better idea about the functions and content of mission and vision statements:

The business vision and company mission statement. (2007). QuickMBA. Retrieved on August 27, 2014, from http://www.quickmba.com/strategy/vision/

McNamara, C. (2009). Basics of developing mission, vision and values statements. Retrieved on November 6, 2012, from http://www.managementhelp.org/plan_dec/str_plan/stmnts.htm

Heathfield, S. M. (2009). Build a strategic framework: mission statement, vision, values. Retrieved on November 6, 2012, from http://humanresources.about.com/cs/strategicplanning1/a/strategicplan.htm

 

Organizational Stakeholders

Organizational stakeholders are all of the individuals and groups of individuals who have an interest in (give-and-take relationship with) the firm. Many people think only of shareholders when they think about stakeholders. However, we will see that shareholders are only one of many groups of stakeholders. It may be helpful to remember what you learned in elementary school about the relationships between squares and rectangles. That is, “All squares must be rectangles but not all rectangles are squares.” Similarly, all shareholders are stakeholders, but not all stakeholders are shareholders.

Classification of Stakeholders

Internal Stakeholders External Stakeholders
Stockholders Customers
Employees Suppliers
CEO and executives Government
Managers and supervisors Unions
Board members Communities (local and beyond)
The general public

The following resources provide a very good overview of organizational stakeholders:

Hammonds, K. (2007). Michael Porter’s big ideas, Fast Company, 44, Retrieved on November 6, 2012, from http://www.fastcompany.com/magazine/44/porter.html

Luca, A. M. (2007). Organizational Stakeholders. Power Point presentation.

Stakeholder analysis. Assessing who or what really counts. (2009). 12manage: The executive fast track. Retrieved on November 6, 2012, from http://www.12manage.com/methods_stakeholder_analysis.html

Welch, J., & Welch, S. (2008). State your business: Too many mission statements are loaded with fatheaded jargon. Play it straight. Bloomberg. Retrieved from http://www.bloomberg.com/bw/stories/2008-01-02/state-your-business

Background on the SLP

The SLP for this course requires that you participate in a simulated business exercise. Simulations are interactive, allowing you to see – and learn from – the results of your decisions. Moreover, you are able to repeat the simulation, improving the quality of your decisions, learning from past mistakes.

Speaking of mistakes, Joe Thomas had been the V.P. of Marketing for the Wonder Company during the five-year period of 2012 through 2016 inclusive. Suffice it to say that the pricing and R&D strategy used by Joe Thomas throughout his tenure has been a disaster. Indeed, year-over-year, the company’s performance has declined significantly. The inevitable result: Joe is fired on December 31, 2016.

On the same day (December 31, 2016), you are hired to replace Joe – and this, just as the company faces the prospects of another dismal new year. Mysteriously, however, you are caught up in a Time Warp, and you are taken back to January 1, 2013. While you find these circumstances to be very strange, you recognize that they do give you the opportunity to erase the financial history from 2013 through 2016, by redoing the unfortunate decisions that have been made by Joe Thomas over this four-year period. As a recent MBA graduate, you are excited by the opportunity, because you know that you have the requisite knowledge and the skill set required to vastly improve the performance of the Wonder Company.

In this simulation, you will be examining income statements and marketing reports to assist you in making decisions about pricing, product development (R&D expenditures), and product life cycles.

Following is a brief summary of what you will do in each SLP:

  1. SLP1:In the first SLP, it is January 1, 2017. You have just replaced Joe Thomas. You are getting ready to create a marketing strategy for 2017. Before doing so however, you need to review the performance of the company over the last four years. You review the financial, marketing, and product data to determine how well your products have fared against the competition during the years 2013 through 2016 inclusive. Confident that you are familiar with the 4-year history of your products, you are ready to move forward into 2017.
  2. SLP2:At the beginning of SLP2, you have mysteriously been caught in a Time Warp, in which you have been taken back to January 1, 2013. You recognize that you now have the opportunity to redo the decisions made by Joe Thomas during 2013, 2014, 2015, and 2016. Of course, you know that you can do better than Joe Thomas. You work your way through each of the four years, making better decisions than Joe along the way, trying to generate more profit and an overall better performance than your predecessor. As you do so, you methodically keep track of your decisions (noting the reasons you have made each decision), and you document the results of your decisions. You write a final report that demonstrates why you made each decision – and the results of your decisions.
  3. SLP3:Alas, in SLP3, the Time Warp has struck again, taking you back once more to January 1, 2013. You realize that you had forgotten to use CVP analysis to support your decision-making process. Using CVP, you evaluate your pricing strategy for the past four years. You have confidence that the use of CVP has helped you to develop a new (and hopefully, a vastly improved) product, pricing, and R&D strategy.
  4. SLP4:In SLP4, you run the simulation using the CVP-related strategy you developed in SLP3. Once again, at the end of each year, you document each decision, and you document your results. Hopefully, your use of CVP has helped to improve your SLP2 results.

NEED TO BRUSH UP ON CVP ANALYSIS?

You were introduced to CVP analysis in your previous courses. The following link will provide a refresher:

Peavler, R. (2017, February 02). How to do Cost-Volume-Profit analysis: An introduction. The Balance. Retrieved from https://www.thebalance.com/how-to-do-cost-volume-profit-analysis-an-introduction-393475

BECOME FAMILIAR WITH THE SIMULATION

When you log into the simulation (you will find the simulation link in the Module 1 SLP), you will see the simulation interface, which provides you with information about the Wonder Company, as well as the input interface to implement your strategy (pricing decisions and R&D budget allocations).

Explore the interface, and become familiar with it and the information it provides. The left-hand menu includes these options:

  • Introduction– Background about the company and its three products; how to play the simulation.
  • Financials– Provides the financial results of the current year and the previous year. Clicking on the tabs at the top of the chart will allow for the display of different company data, as well as data for each of the three products.
  • Market Info– Provides the market results of the current year and the previous year. When you click on the tabs at the top of the chart, different company data and data for each of the three products will be displayed.
  • Make Decisions– This is where you input your pricing and product development budget (R&D %) strategy decisions.
  • View Summary– This provides a summary of important information for each round (year) of the simulation. Here, you can determine your personal score. An advisor will tell you how you are doing.
  • Get Help– This provides additional information about the simulation and some theory that it is based on. You should click on each of these links to gain an understanding: Glossary of Financial Terms; Product Life Cycle (some theory you can use), and Feedback. In this last link, notice the Systems Feedback connections.

Each time you open the simulation (or when you reset it to play again), you will begin on January 1, 2013, and the data you see will show the results for 2012 (the previous year). When you run the simulation, you will always run it for the four-year period of 2013, 2014, 2015, and 2016. At the end of each year, you will see the results for that year and the previous year.

Remember that in preparing the assignments for this module, you must demonstrate that you know how to use the appropriate business tools for such an analysis. This will require you to integrate what you have learned throughout the MBA program.

OTHER USEFUL RESOURCES:

Useful Internet Sites:

You may access some useful Internet and other resources relating to such matters as financial ratios and processes for measurement of organizational resources (both tangible and intangible) at:
http://www.investopedia.com/university/ratios/#axzz2JNe7QCr3
or
http://www.sveiby.com/files/pdf/intangiblemethods.pdf

 

How did participating help you in your efforts to be informed or participate in politics?

For this paper, I need to watch a city hall meeting (link is here https://riversidecountyca.iqm2.com/Citizens/SplitView.aspx?Mode=Video&MeetingID=2119 ) Then here is the criteria from my professor on the paper:
The paper presents a well-detailed account of the proceedings at a government meeting, event, or protest demonstration (which should be political in nature).
The paper provides basic information about who attended, participated or spoke, where/when it took place, what the purpose of the proceeding was, and what happened.
The paper evaluates the effectiveness of political participation at the proceeding documented.
The paper should use reasons and evidence from the meeting/event to support your position.
The paper provides insight into political participating at the local level, and whether participating is worth the time/effort or not.
Additionally, the paper provides an answer to the following questions:
Does the meeting/event lead you to believe in elite democracy or popular democracy?
How did participating help you in your efforts to be informed or participate in politics?
Any insights about politics (or American Politics) that you gained from the event?

What factors prevented the Evergreen lease scheme from being a success?

T317   Innovation: designing for change

Block 2 Unit 2 Design-led innovation

Copyright © 2016 The Open University

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, transmitted or utilised in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without written permission from the publisher.

WEB 04811 9

2.1

Contents

Introduction

In Unit 1 of this block we developed an understanding of sustainability and explored some of the definitions and principles that are used to explain it. We specifically looked at the relationship between sustainability and efficiency in the context of resources, economics and development.

It is important to note that although the problems of sustainability won’t be tackled by efficiency alone, new technologies, strategies and practices concerned with efficiency have had many positive impacts in reducing the environmental damage caused by human activities.

  • Increased efficiency of energy used by domestic products such as fridges and freezers (over 50% in recent years).
  • Lighter weight, more fuel-efficient cars and an increasing number of hybrid and electric cars.
  • More environmentally benign modes of travel in urban centres, e.g. the London bike hire scheme.
  • Better insulated houses and improved building standards, with many products on the marketplace encouraging us to consider home improvements in this area.
  • Increased domestic use of solar power generation and solar thermal technologies, encouraged by (for example) feed-in tariff schemes that pay a KWh price for the energy generated.
  • Businesses, partly in response to increasing environmental legislation, becoming more efficient thus saving resources and limiting waste; it makes business sense to save material and energy resources, limit wastes and work with infrastructures supporting reuse and recycling to make your business as financially viable as possible. Efficiency related strategies and actions are becoming more and more central to many business operations and also, to some degree, more influential on individuals’ and households’ ‘consumption behaviour.

In this unit, we want to prompt you to see things from different perspectives and develop an understanding of the complexity and breadth of sustainable innovation opportunities, with a specific focus on textiles. In the context of textiles, you will read a couple of innovation stories that reflect different scales of approach towards efficiency and sufficiency. At one level we have the international company, Interface, the world’s largest manufacturer of carpet tiles who have endeavoured to adopt strategies and practices of efficiency throughout their entire organisation. We look at how their mission permeates the organisation and how that manifests at the level of design and innovation.

Before we look at the second innovation case, we take some time to think a little more about the idea of sufficiency – a term that I introduced in Unit 1. Connected to sufficiency we explore the concepts of human needs and how these need to be met differently in the future. We explore different reasons for product obsolescence (that also undermine strategies of efficiency) and consider product durability as a response to this.

Our second innovation case illustrates design and innovation activity at the smaller scale of business – the lone entrepreneur – addressing sufficiency (and to a lesser degree, efficiency) in her designer-maker business. Although this may seem a rather fringe initiative in terms of its scale and reach for driving sustainable change, I think it is important to understand a principle here: how individual values and actions are important in developing new practices of sustainability. Perhaps it will inspire you to consider the impact of collective individual actions in developing different insights and responses to sustainability.

This small-scale perspective has relevance to new initiatives in emerging economies. We take a brief look at an example of this in terms of technology crafts in India where small businesses adapt and hack the materials and technologies from existing electronic products to make new ones.

I hope this unit leaves you feeling inspired about the many directions sustainable innovation can take

1  The international organisation

1.1  The vision of Interface

Start of Figure

(www.interfaceglobal.com)

Figure 2.1  Founder and CEO of Interface, Ray Anderson

View description – Figure 2.1  Founder and CEO of Interface, Ray Anderson

End of Figure

Over a decade ago now I spent a few days with Ray Anderson (CEO, Interface) at Schumacher College where he was teaching as part of a Business and Sustainability module, alongside Ed Mayo, then from the New Economics Foundation (NEF is the UK’s leading think tank promoting social, economic and environmental justice). Ray, unfortunately no longer with us, was an inspirational speaker when it came to issues of sustainability in the business context. He took us through his own personal journey from the founder and chairman of Interface, an international manufacturer of carpet tiles, to the champion of a new form of business, one rooted in ecological boundaries.

Start of Figure

(www.interfaceflor.co.uk)

Figure 2.2  Interface flooring

View description – Figure 2.2  Interface flooring

End of Figure

Ray conveyed to us his journey since his ‘epiphany’, as he termed it, after reading Paul Hawken’s book Ecology of Commerce eight years earlier in 1994. His vision for Interface was to create a company that would have zero environmental impact by 2020 (a vision later termed ‘Mission Zero’). He created a sustainability team and together they developed a plan for sustainability in the company. This centred on the analogy of climbing a mountain – as Ray said, like Everest but much, much harder – a mountain of sustainability that would have to be scaled on a number of different fronts in order to successfully reach the summit. The Interface team identified the ‘Seven Fronts’ shown below.

Start of Box

Interface’s Mount Sustainability and the Seven Fronts

Front 1 Eliminate waste: eliminate all forms of waste in every area of business.

Front 2 Benign emissions: eliminate toxic substances from products, vehicles and facilities.

Front 3 Renewable energy: operate facilities with 100% renewable energy.

Front 4 Close the loop: redesign processes and products to close the technical loop using recovered and bio-based materials.

Front 5 Resource efficient transportation: transport people and products efficiently to eliminate waste and emissions.

Front 6 Sensitise stakeholders: create a culture that uses sustainability principles to improve the lives and livelihoods of all of our stakeholders – employees, partners, suppliers, customers, investors and communities.

Front 7 Redesign commerce: create a new business model that demonstrates and supports the value of sustainability-based commerce.

End of Box

1.2  A new way of doing business

This idea of a ‘whole company’ shift in thinking and practice is very radical and Interface have travelled a long way in the intervening 20 years since Ray Anderson first had his epiphany. He describes in his first book Mid-Course Correction (Anderson, 1999) the underpinning philosophy of Mount Sustainability as this need to shift a regular company of the 20th century to a new way of doing business for the 21st century that addressed the dynamic cycling of resources (and wastes as resources) throughout the entire company and supply chain. Figure 2.3 shows the improvements Interface have made in reducing their emissions and wastes and in recovering resources since they introduced their ‘Mission Zero’ in the mid 1990s. Waste to landfill for example has now achieved the Mission Zero goal. Large reductions in water usage are also expected using a newly installed, closed system recirculation system. Interface demonstrate an industrial ecology model, seeking out opportunities to close resource loops, regenerate or eliminate wastes, use renewable energy and reduce the overall production impact of their products.

Start of Figure

Figure 2.3  Our progress to Zero

View description – Figure 2.3  Our progress to Zero

End of Figure

This shift is based on the fundamental sustainability principle of working within the ecological limits of the Earth. The existing model of business doesn’t achieve this as it is underpinned by one-directional linear resource flows that drain resources from the system (as in the water butt analogy in Unit 1). Often the main concern of business in this regime is to sell more material things and to grow larger. Interface, pre 1994, followed this approach, and introduced office carpet tiles to the American market which had previously only been sold in Europe. Carpet tiles usually need to be replaced every ten years or so when they become marked and worn. This provided a steady repeat business and opportunities to develop new markets.

Interface’s strategy to shift away from this model in the mid-1990s and to develop new carpets, emerged from a deliberate effort to redesign the flooring business from scratch in order to eliminate all waste and pollution. As Jim Hartzfield of Interface explained to the authors of Natural Capitalism, product development began with seeking:

Start of Quote

‘New ways of directly satisfying customers’ needs rather than finding new ways of selling what we wanted to make’ and ‘”ecological thinking” led to radically expanding the possibilities we found to meet these needs rather than [to] a new list of constraints that narrowed the design or creative space.’

(Hawken et al, 1999, p. 141)

End of Quote

Start of SAQ

Question

(1 hour)

Start of Question

Look at Figure 2.3 ‘Our progress to Zero’. Which of the Seven Fronts of Mount Sustainability (see Section 1.1) do you think are represented in this statement of progress to Zero?

Describe how you think Interface Europe has achieved zero waste to landfill.

End of Question

Provide your answer…

View answer – Question

End of SAQ

Today Interface is globally recognised for their contribution to sustainable innovation and business strategy. For example, it was named the ‘Most Sustainable Large Corporate’ and also received the Grand Prix prize at the 2012 International Green Awards.

In terms of Mission Zero, Interface is on track to meet these goals. At the 2012 Green Awards Lindsey Parnell, President and CEO of Interface in Europe, Middle East and Africa (EMEAI), responded to the award by stating:

Start of Quote

Interface is now well over halfway towards reaching Mission Zero, having achieved commendable results in areas such as waste management, renewable energy use, carbon reduction and social impact. …

Achievements include an 88 per cent reduction in waste sent to landfill, an 84 per cent reduction in water usage and a 32 per cent reduction in greenhouse gas emissions. 31 per cent of energy used by Interface is from renewable sources and 44 per cent of the materials that it uses are recycled or bio-based.

(Mundil, 2012)

End of Quote

1.3  Design with purpose

You may be thinking ‘But what does design and innovation have to do with all of this?’ Let’s take a look at the main page of Interface’s website. It states:

Start of Quote

We are Interface

By definition, we are the world’s largest designer and maker of carpet tiles. For us, Design is a mindset and sustainability is the journey of a lifetime.

We are Design with Purpose

End of Quote

The next activity will help you think about the relationship between design and innovation and Interface’s endeavours to respond effectively to the challenge that sustainability poses.

Start of Activity

Activity 2.1 Innovation and design

(1 hour)

Start of Question

What do Interface mean by ‘Design is a mindset … We are Design with Purpose’? Watch Video 2.1 where the European Sustainability Director of Interface Flor talks about how design helps to address the challenges Interface encounter. Jot down a list of all the things that you think relate to innovation and design and see if you can also spot connections to the ‘Seven Fronts’ shown in Section 1.1.

Start of Media Content

Video content is not available in this format.

Video 2.1  Interview with Ramon Arratia

View transcript – Video 2.1  Interview with Ramon Arratia

End of Media Content

End of Question

Provide your answer…

View answer – Activity 2.1 Innovation and design

End of Activity

In Video 2.1 the points discussed by the European Sustainability Director of Interface Flor connect to the first five fronts in the Mount Sustainability framework (as illustrated in my response to Activity 2.1). These all reflect design for efficiency strategies. All these points connect to the first five fronts in the Mount Sustainability framework. These are all connected to design and innovation for efficiency.

Ramon Arratia also discusses less tangible activities, such as influencing the behaviour of customers through explaining to them in detail things like the product characteristics and the relationship to sustainability, telling them the sustainability narrative of their products to explain sustainability goals through product /production /service characteristics.

He talks about the role of Interface as an influence on decisions around legislation – the idea that you should lobby to encourage tougher environmental targets, using the power of regulation to push the market to higher environmental standards. This is a very helpful thing to do if you know you’re ahead of the market in responding to these issues. These stakeholder issues connect to Interface’s Front 6 (Sensitise Stakeholders).

A final point to make is, as Ramon says, the need to redesign the way you do business (Front 7 Redesign Commerce). He uses the examples of translating products into services (e.g. leasing carpet tiles rather than selling them); and how you need to create value added services that can expand to adjacent markets at the same time (for example, Interface have shifted from solely focusing on commercial flooring to selling in domestic markets too).

1.4  Examples of sustainable innovation at Interface

Inspired by nature

Interface, as we’ve seen, wants to develop products that would minimise primary resource use. One of the strategies they adopted quite early on was to think about how nature ‘designs’ and what we can learn from observing plants, animals, microbes, soils, etc. This approach is known as biomimicry which means to be inspired by nature and to transfer nature’s designs into design and engineering opportunities. We will discuss biomimicry in more detail in Unit 3 when we look at a whole range of ecodesign strategies.

Interface asked their designers to consider how nature ‘does’ flooring! What emerged from this exploration was an understanding that in fact natural floors look pretty chaotic in terms of colours, patterns and textures (Figure 2.4). This inspired the idea that if you were to design carpets in a similar way you could possibly reduce the need to replace carpet tiles so frequently. Traditionally modular carpet tiles tended to be designed in one colour, so if a part of the carpeted area was worn or spoilt in some way you would need to replace the entire area of carpeting so that the new carpet didn’t stand out from the older carpet surrounding the damaged carpet tiles. This obviously resulted in good tiles being disposed of and replaced by new ones (good for business but not the environment).

Start of Figure

(Interface)

Figure 2.4  Interface designers inspired by the random pattern of the forest floor

View description – Figure 2.4  Interface designers inspired by the random pattern of the forest flo …

End of Figure

One of the first Interface products that resulted from a biomimicry-led design approach was called Entropy (Figure 2.5).

Start of Figure

(Interface)

Figure 2.5  Entropy carpet tiles … design inspired by the random pattern of the forest floor

View description – Figure 2.5  Entropy carpet tiles … design inspired by the random pattern of the forest …

End of Figure

Inspired by the forest floor, Entropy was a non-uniform carpet tile design based on chaos and disorder. These randomly coloured tiles could be used in any pattern and facing any direction. In high traffic areas where tiles show a lot of wear and tear, or when tiles get stained, customers can just replace them because the randomness of the design hides the new tiles amongst the older ones. Installing tiles in a non-directional pattern speeded up the installation process and also reduced the amount of waste produced in fitting the tiles to the floor area.

The benefits of random tiles and non-directional installations are:

  • increased flexibility
  • quick to install
  • less waste
  • longer life cycle
  • easy to maintain and repair.

Entropy became the company’s fastest bestseller. The concept of randomness and non-directional carpet tiles is now a design strategy integrated across the Interface product range.

1.5  Products to services

The seventh front of Mount Sustainability emphasises the need to redesign the way of doing business to harness maximum efficiencies. Interface was an early adopter of the product to services concept. The environmental benefit of this approach is to reclaim and reuse resources. Interface retained ownership (control) of the product (resource) throughout its lifetime by leasing products to customers and maintaining the product in use throughout the contract period of the lease. They attempted to provide a commercial flooring service. This meant Interface kept control of how long their carpet products were used, when they should be replaced, repaired, reused and recycled. Interface can then understand how much resource it has in circulation to better plan how and when to generate new resources from old products in this circular resource flow (a scheme they call ‘life after life’). This was quite a radical shift in business operations and turned out to be too big a challenge for customers and the market to adapt. The box below describes the initial flooring service that Interface launched back in 1995.

Start of Box

The Evergreen lease scheme

In 1995 Interface launched an Evergreen lease under which the company retained ownership of the carpet and remained responsible for keeping it clean in return for a monthly fee. Regular inspections permitted the company to replace only the carpet tiles that showed the most wear and tear, instead of the entire carpet as in the past. This more targeted replacement helped reduce the amount of material required by some 80%. In 1999 the company introduced Solenium, a material that lasts four times longer than traditional carpets, uses up to 40% less raw material and energy used to produce the carpet, and can be entirely remanufactured into new carpets instead of being thrown away or ‘down-cycled’ into less valuable products.

Only a half-dozen or so Evergreen leases were ever actually signed, as most customers opted for a traditional purchase instead. The programme did not succeed for a variety of reasons, some specific to the carpet business. Some customers felt the lease agreement was too complex or too inflexible, locking them into a long-term arrangement that limited their future options. But perhaps the biggest problem was cost – a reflection of Interface’s emphasis on high-quality material and high-quality maintenance services. In the end, the company felt compelled to drop the Evergreen lease.

End of Box

Start of SAQ

Question

(30 minutes)

Start of Question

What factors prevented the Evergreen lease scheme from being a success?

Think of one thing you would have done differently to make the scheme more successful. Briefly describe how this would have benefited the innovation of ‘leasing’ rather than buying carpet tiles.

End of Question

Provide your answer…

View answer – Question

End of SAQ

To date Interface has not reintroduced a service option for its carpet tiles. Perhaps, in this era of concern over the future resilience of the energy supply, a more effective business model can begin to emerge that fully reflects the ecological costs of the system of flooring, and makes a lease model more attractive in terms of economic cost to customers. Interface does offer other services which don’t replace product sales, but rather augment them. For example Cool Carpet® is a carbon neutral service that works by purchasing verified carbon offsets that cancel out the GHG (greenhouse gases) emitted throughout the life of the carpet.

Other services relate to product takeback (ReEntry®), where for a fee Interface divert carpet from landfill, reclaim it and repurpose it where they can. They also offer a maintenance service in a traditional manner to a warranty, to protect and repair carpets in the use phase of their life.

What we see here is the potential difficulty of trying to move from a dominant business model (selling material things) to an ecology-driven model that attempts to control resource flows via services. We see this happening in other sectors too, for example Rolls Royce’s ‘Power by the Hour’ engine leasing scheme (Rolls Royce, 2012). In order to make these new business models more attractive and viable, other types of capital will need to be made more transparent. Remember Forum for the Future’s Five Capitals model from Unit 1? A new system of business that requires a more balanced view of all capitals that are evidenced when environmental impacts and ecological costs across the life cycle of material things are properly evaluated.

 

2  Sufficiency

We have explored efficiency from a number of different perspectives. Now I want to explore the idea of sufficiency from the perspective of people, our relationship with the planet and the material world that surrounds us. We introduced the concept of sufficiency in Unit 1, alongside efficiency, as a type of sustainable innovation strategy:

  1. A technological response – efficiency – designing products and services to have a reduced environmental impact.
  2. A social and cultural response – sufficiency – consuming the right quantity of material goods and services, a quantity that is appropriate for optimal health, wellbeing and happiness.

2.1  What does sufficiency mean?

Start of Figure

Figure 2.6  A cherished teddy bear

View description – Figure 2.6  A cherished teddy bear

End of Figure

Sufficiency emphasises a more sustainable consumption of things. You may have considered sustainable consumption to mean buying ‘green’ products (like organic food or detergents made from natural ingredients) or buying products that can be recycled, are more energy efficient, or even keeping something for a long time because you cherish it (Figure 2.6). Undoubtedly the decisions we make about what we buy and what we discard are part of the sufficiency agenda, but it’s not just what, it’s also ‘how much’?

In Unit 1, Thomas Princen suggests sufficiency reflects a sense of ‘enoughness’. Let’s explain this idea of enoughness in the context of food. When you feel hungry you eat, but at some point most people know they’ve had enough, they’re satiated, and stop eating before they become bloated and feel ill. The problem with industrialised societies’ reliance on materiality as their language of novelty (remember Tim Jackson’s talk in Unit 1) is that we have become too bloated by consuming more and more material things to meet our perceived needs (Princen, 2005). Princen suggests that adopting sufficiency approaches is critical for ‘reversing the biospherical trends and re-organizing society for sustainable resource use. If the resource status of the past was abundance, an ever-present frontier, unending sources and sinks, now it is scarcity.’

Sufficiency, or lack of it, is a much trickier problem to resolve than efficiency. Efficiency can be measured. Actions can be connected to the raw materials, production, use and disposal phases of product lifecycles (where regulation can steer agendas) and organisations can be motivated to deliver new targets. Efficiency, in contrast to sufficiency, can be operationalised, evaluated and achieved. Sufficiency on the other hand predominately exists in the realm of the wishes, desires, demands and the real or perceived needs of different people and societies. The concept of sufficiency encompasses very broad social agendas where arguably there is less leverage to steer individual actions and choices. Developing sustainable strategies of production and consumption using both efficiency and sufficiency approaches is likely to require material and non-material innovations. In innovation terms this is often framed as a shift from products to services – an idea which we will explore in more detail in examples presented throughout the module.

Let’s take a step back for a moment to consider the ‘ingredients’ of consumption. There is a necessity to consume (meeting basic needs); a desire to consume (satisfying wants); and a pressure to consume (responding to our cultural language of novelty). For sufficiency to become a more embedded cultural phenomenon, we need to tackle our ‘consumption make-up’.

2.2  Meeting needs

Meeting needs is a fairly basic idea. You may be familiar with Maslow’s Hierarchy of human needs, represented by a pyramid moving from basic physiological needs such as having food and shelter at the base, to growth needs as you move up the pyramid, to the top which reflects the fulfilment of your creative potential (self-actualisation) (Figure 2.7). Maslow’s framework explains human motivation for doing things in clear, but relatively simple, terms. However, in order to explain needs in a context of resource consumption, I’m going to turn instead to a Chilean economist, Manfred Max-Neef, who for the last 30 years or so has been studying what motivates people’s choices, initially in South America, and then globally. Max-Neef states:

Start of Quote

In the traditional paradigm we have indicators such as the gross national product (GNP) that is in a way an indicator of the quantitative growth of objects. Now we need an indicator about the qualitative growth of people. What should that be? Let us answer the question thus: The best development process will be that which allows the greatest improvement in people’s quality of life. The next question is: What determines people’s quality of life? Quality of life depends on the possibilities people have to adequately satisfy their fundamental human needs.

(Max-Neef, 1991, p. 16)

End of Quote

Start of Figure

Figure 2.7  Maslow’s Hierarchy of human needs

View description – Figure 2.7  Maslow’s Hierarchy of human needs

End of Figure

Max-Neef developed a framework of human needs in which he identifies nine fundamental human needs and four different forms in which these needs can be satisfied: BEING (our qualities and characteristics); HAVING (things, structures, support mechanisms); DOING (our actions); INTERACTING (the context and settings in which needs are met (or not)) (Table 2.1). Satisfiers, Max-Neef suggests:

Start of Quote

Define the prevailing mode that culture or society ascribes to needs. […] Satisfiers may include, among other things, forms of organisation, political structures, social practices, subjective conditions, values and norms, spaces, contexts, modes, types of behaviour and attitudes, all of which are in a permanent state of tension between consolidation and change.

(Max-Neef, 1991, p. 24)

End of Quote

Max-Neef’s research shows human needs are universal across cultures and it is the way in which they are satisfied that is culturally determined.

Start of Table

Table 2.1  Matrix of human needs and satisfiers

Need Being Having Doing Interacting
Subsistence physical and mental health, equilibrium, sense of humour, adaptability food, shelter, work feed, procreate, rest, work living environment, social setting
Protection care, adaptability, autonomy, equilibrium, solidarity insurance systems, savings, social security, health, systems, rights, family, work co-operate, prevent, plan, take care of, cure, help living space, social environment, dwelling
Affection self-esteem, solidarity, respect, tolerance, generosity, receptiveness, passion, determination, sensuality, sense of humour friendship, family, partnerships, relationships with nature make love, caress, express emotions, share, take care of, cultivate, appreciate privacy, intimacy, home, space of togetherness
Understanding critical conscience, receptiveness, curiosity, astonishment, discipline, intuition, rationality literature, teachers, method, educational policies, communication policies investigate, study, experiment, educate, analyse, meditate settings of formative interaction, schools, universities, academies, groups, communities, family
Participation adaptability, receptiveness, solidarity, willingness, determination, dedication, respect, passion, sense of humour rights, responsibilities, duties, privileges, work become affiliated, cooperate, propose, share, dissent, obey, interact, agree on, express opinions settings of participative interaction, parties, associations, churches, communities, neighbourhoods, family
Idleness [Leisure] curiosity, receptiveness, imagination, recklessness, sense of humour, tranquillity, sensuality games, spectacles, clubs, parties, peace of mind daydream, brood, dream, recall old times, give way to fantasies, remember, relax, have fun, play privacy, intimacy, spaces of closeness, free time, surroundings, landscapes
Creation passion, determination, intuition, imagination, boldness, rationality, autonomy, inventiveness, curiosity abilities, skills, method, work techniques work, invent, build, design, compose, interpret productive and feedback settings, workshops, cultural groups, audiences, spaces for expression, temporal freedom
Identity sense of belonging, consistency, differentiation, self-esteem, assertiveness symbols, language, religion, habits, customs, reference groups, sexuality, values, norms, historical memory, work commit oneself , integrate oneself, confront, decide on, get to know oneself, actualise oneself, grow social rhythms, everyday settings, settings which places one belongs to, maturation stages
Freedom autonomy, self-esteem, determination, passion, assertiveness, open-mindedness, boldness, rebelliousness, tolerance equal rights dissent, choose, be different from, run risks, develop awareness, commit oneself, disobey Temporal /spatial plasticity [anywhere]

(Table 1, pp. 32–33 ‘Matrix of needs and satisfiers’ in Human scale development- conception, application and further reflections)

End of Table

The fundamental needs are not hierarchical (as in Maslow’s description of needs) other than the very basic need of subsistence that relates to our physiological needs, satisfied by food, water, shelter and warmth. All other needs can be met through material and non-material means as illustrated in Table 2.1. Industrialised, material-focused cultures over-prioritise the consumption of economic goods as a means to meet needs. In truth this type of consumption often satisfies wants and a participation in the language of novelty, instead of meeting fundamental needs. A shift to focus on the latter may be a possible antidote to unsustainable consumption, but it requires new approaches to economic growth and development.

There are a number of different types of satisfier:

Satisfiers that meet needs

  • singular satisfiers meet a single need (e.g. insurance systems to meet the need of protection or the ballot to meet the need of participation)
  • synergistic satisfiers meet a number of needs simultaneously (e.g. breastfeeding babies meets the babies’ need for subsistence and also meets their needs for protection, affection and identity).

Satisfiers that do not address needs

  • pseudo satisfiers give a false impression of meeting a need e.g. fashion fads give a sense that the need for identity is met; an over-reliance on mechanistic medicine (‘a pill for every ill’) can stimulate a sense that the need for protection has been met. It has been argued, for example, that statins treat conditions that result from high levels of cholesterol such as heart disease (which is a great health innovation) but don’t address the root cause of poor health, which often require changes in diet and exercise (NICE, 2014)
  • inhibiting satisfiers: the way in which these satisfiers work inhibits other needs from being satisfied (e.g. the need for protection is met by an over-protective family which inhibits the fulfilment of other needs such as participation, freedom)
  • violators: these satisfiers claim to satisfy a need but in fact make the need more difficult to meet (e.g. buying a gun for protection doesn’t foster the meeting of the need for protection, if collectively society supports this strategy and everyone has guns ‘for protection’, and ultimately results in a gun-saturated society with greater risks and a perceived need for a heightened level of protection overall).

Start of Activity

Activity 2.2 Satisfiers

(1 hour)

Start of Question

Think about these two satisfiers:

  1. watching TV
  2. belonging to a cycling club.

For each, determine which need(s) are being met and in what way these needs are satisfied.

What other products do you think inhibit or falsely meet fundamental human needs? Jot down a list of three products and the needs that are not met and upload to the forum. Thinking about where needs are not effectively met may provide some inspiration for developing ideas for your own projects later in the module.

End of Question

Provide your answer…

View answer – Activity 2.2 Satisfiers

End of Activity

2.3  Obsolescence and durability

The last section suggested the goal of sustainable levels of consumption (sufficiency) may have some way to go before it is met, as not only are we consuming too many material things (in industrialised societies), but we’re also unaware that by consuming resources in this way, we are not necessarily satisfying our basic needs. At the same time large numbers of people in the industrialising world are also aspiring to ‘Western’ levels of consumption of material goods. This dynamic is wholly unsustainable and has major implications for development and growth (as described by Tim Jackson in Unit 1). While those shifting out of poverty have a real need for development and the infrastructures and securities that enable that, already industrialised nations are in a different position and have an opportunity to explore different ideas of growth and its relationship to material resource consumption. Innovations in technology alongside innovations that enable cultural shifts in perceptions can begin to nurture different types of non-material satisfier that will effectively meet our basic human needs.

Product obsolescence

Another consumption issue, particularly in relation to products and technology, is the planned lifetimes of material things – otherwise known as planned obsolescence. This is a major contributor to the speed at which materials and energy travel through the economic system. If efficiency is about reducing resource use, then sufficiency is about making the resources we do use go further – ‘more from less’. This is a much harder message to ‘sell’ as it contradicts the conventional wisdom of a business approach based upon planned obsolescence. Planned obsolescence (the purposeful design of a limited product life through either technological, physical or cultural product degradation) has provided a strong steer for industrialisation, particularly since the end of the Second World War. Writer and journalist Vance Packard wrote his forward-thinking book The Waste Makers in 1960, as a commentary on the increasingly short lifecycles and technological redundancy found across most product sectors (Packard, 1960). He described obsolescence in two categories: functional obsolescence when the product components fail; and obsolescence of desirability which reflects our desire to seek out novelty (perhaps best illustrated by today’s smart phones’ changing technology and aesthetics). Products become emotionally stale to their owners and consumers seek out replacements (Figure 2.8). Little has changed in the intervening 60 years with the average mobile phone replaced every 20 months (every ten months in the 12–17 age group) (EESC, 2013). Tim Cooper, a Professor of Sustainable Design and Consumption, undertook a survey of 802 households in the UK and found:

Start of Quote

The average age of appliances when discarded ranged from 4 to 12 years, depending on the type of product. Overall, one third of discarded appliances were reported as ‘still functioning’ (notably cookers, hi-fi and stereo, mobile phones and computers). As only around 24% of discarded appliances (by units) were intended for reuse, being donated or sold, it can be deduced that around one in ten still functioned but, even so, were discarded for recycling, incineration or landfill.

(Cooper and Mayers, 2002)

End of Quote

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Figure 2.8  Discarded consumer appliances

View description – Figure 2.8  Discarded consumer appliances

End of Figure

As a note of balance to the planned obsolescence debate we should also add that it is not always the best environmental choice to hang on to an old product. Modern cars for example don’t rust as they used to and engines are much more efficient and last longer; fridges, as mentioned in Unit 1, have become over 50% more efficient in terms of their energy efficiency in use.

Start of SAQ

Question

(30 minutes)

Start of Question

Name two products made obsolete for each of these reasons:

  • functional obsolescence
  • obsolescence of desirability.

Why do you think the products were discarded?

End of Question

Provide your answer…

View answer – Question

End of SAQ

Extending product life

Although from an efficiency perspective we may find new ways to govern resource flows, it is also important to consider ways to extend product life where appropriate to do so. The concept of sufficiency supports new types of economic activity in terms of services of repair, maintenance and upcycling. Upcycling for example maintains or improves the value of the material. It protects the quality of the functionality of the material so, for example, high grade plastic mouldings would remain a high quality material with associated functionality, rather than being down-cycled where material quality is generally eroded and recyclates fulfil functions of a lower quality post processing. In other words, material quality is constantly reduced through recycling processes. It is therefore not efficient to consider recycling as a sustainable panacea; other mechanisms to retain value need to be promoted through our production and consumption metabolisms. Design for sufficiency includes the following strategies, which we will explore further in Unit 3.

  • Repair, Reuse, Recycle
  • Maintenance
  • Adaptation
  • Adornment (e.g. personalisation)
  • Upgradability
  • Product sharing
  • Multi-functionality.

Start of Activity

Activity 2.3 Slower consumption

(1 hour)

Start of Question

We will finish this section by reviewing the relationship between efficiency and sufficiency. For this you are asked to read an extract from a paper by Tim Cooper (2005) titled Slower Consumption. Reflections on product life spans and the ‘Throwaway Society’, published in the Journal of Industrial Ecology.

(Note that the author references throughout and builds up the narrative with a good use of a diagram. These are things to take on board when you write for the TMAs and EMA on this module. Remember if you want to catch up on referencing style, the Library homepage points you to good resources – please use them if in doubt.)

Cooper draws out a relationship between efficiency and sufficiency, which is illustrated in Figure 1 of the extract. Look at this figure and read the accompanying text. Then answer the following questions.

  1. How does Tim Cooper suggest we can slow down the rate of product consumption?
  2. Name a problem with efficiency driven ‘green growth’.
  3. What are the potential threats associated with sufficiency?
  4. What are the benefits of a mixed efficiency /sufficiency approach to sustainable consumption?

Start of Extract

Slower Consumption. Reflections on product life spans and the ‘Throwaway Society’

A New Model

The potential contribution of longer product life spans to the complementary roles of eco-efficiency and slow consumption in enabling progress toward sustainable consumption is demonstrated in a model presented below in preliminary form (Figure 1). The slow consumption concept, it is recognised, requires further development; in the present context it means slowing the rate at which products are consumed (literally, ‘used up’) by increasing their intrinsic durability and providing careful maintenance.

The model’s starting point is that sustainable development needs to be driven by both efficiency and sufficiency (McLaren et al. 1998; Reish 2001). The case for eco-efficiency – increased resource productivity that enables simultaneous progress toward economic and environmental goals – is increasingly accepted as a political imperative and widely supported by industry (Holliday et al. 2002). It may not adequately reduce the environmental impact of consumption however, as noted above, and thus there is a need to reduce the throughput of products and services. Indeed, reference in the Brundtland report’s definition of sustainable development to meeting people’s “needs” is an implicit recognition that environmental constraints require a parameter of sufficiency (WCED 1987).

Start of Figure

Figure 1  Product life spans and sustainable consumption

View description – Figure 1  Product life spans and sustainable consumption

End of Figure

As the model indicates, eco-efficiency, by itself, leads to ‘green growth’. This is problematic if the environmental benefits gained from increased efficiency are offset by increased consumption through the rebound effect (Binswanger 2001). The prospect of slow consumption will be similarly unappealing if reduced purchasing of short-life products by consumers raises a threat of unemployment and recession.

Increased product life spans, whether through greater intrinsic durability or better care and maintenance, may enable such problems to be overcome by providing for both efficiency and sufficiency. They are a means by which materials are used more productively (i.e. the same quantity provides a longer service) and throughput is slowed (i.e. products are replaced less frequently). Meanwhile a shift to more highly skilled, craft-based production methods and increased repair and maintenance work would provide employment opportunities to offset the effect of reduced demand for new products.

The model thus indicates that longer product life spans provide a route to sustainable consumption whereby reduced materials and energy throughput arising from eco-efficiency is not offset by increased consumption, and the economy remains healthy because products are carefully manufactured and maintained and there is less dependence on rising consumption for economic stability. In summary, this preliminary model, which simplifies a complex reality, suggests that longer-lasting products are a prerequisite for sustainable consumption.

  • Binswanger, M. (2001) ‘Technological progress and sustainable development: What about the rebound effect?’ Ecological Economics, 36(1): 119–132.
  • Holliday, C.O., Schmidheiny, S. and Watts, P. (2002) Walking the talk: The business case for sustainable development Sheffield, UK:Greenleaf.
  • WCED (World Commission on Environment and Development) 1987 Our common future Oxford, UK: Oxford University Press.

(Journal of Industrial Ecology, vol. 9, nos. 1–2, 2005, pp. 51–67 (extract from pages 54–55))

End of Extract

End of Question

Provide your answer…

View answer – Activity 2.3 Slower consumption

End of Activity

 

3  The designer-maker

Start of Figure

Figure 2.9  Designer-maker, Amy Twigger Holroyd

View description – Figure 2.9  Designer-maker, Amy Twigger Holroyd

End of Figure

Amy Twigger Holroyd is a small-scale designer-maker and entrepreneur who incorporates a range of sustainable values within her work. Her story is one that particularly focuses on the concept of sufficiency, for example, by making things that last for a long time, and that can be maintained and repaired. This is the story of how she integrates these sustainable values within her design thinking and practice.

Start of Figure

Figure 2.10  ‘Keep and Share’ knitwear label

View description – Figure 2.10  ‘Keep and Share’ knitwear label

End of Figure

I went to meet Amy in her Hereford-based studio to discuss her passion for design and making and to understand how she links this to sustainability values in the context of her business practice.

The core concepts of Amy’s work are versatility and longevity. These connect to the concepts of efficiency and sufficiency and are represented in the title of her hand-made knitwear business Keep and Share.

Start of SAQ

Questions

(1 hour)

Start of Question

Watch Video 2.2 in which Amy explains the origins of her business concept and explains how Keep and Share connects to sustainability. Think about the following questions as you’re watching the film and then respond to them.

  1. What interested Amy about the concept of sustainability?
  2. How did she begin to embody the concept of sufficiency in her work?
  3. What does Keep and Share stand for and how does it connect to the principles of efficiency and sufficiency?

Start of Media Content

Video content is not available in this format.

Video 2.2  Keep and Share

View transcript – Video 2.2  Keep and Share

End of Media Content

End of Question

Provide your answer…

View answer – Questions

End of SAQ

Start of Figure

Figure 2.11  Keep and Share knitwear

View description – Figure 2.11  Keep and Share knitwear

End of Figure

3.1  Design narratives

Start of Figure

Figure 2.12  Keep and Share knitwear

View description – Figure 2.12  Keep and Share knitwear

End of Figure

In this section we look at a couple of short videos reflecting different design narratives from Keep and Share. The first film describes how Amy approaches her design process, how she seeks inspiration for her knitwear design and how she works with her customers in meeting their needs. The second explores material choices and the larger sustainability context for design decision-making.

These films highlight Amy’s approach to her designer-maker practice in the context of sustainability. Consider this approach as you view the films as this is the focus of Activity 2.4 at the end of this section.

Design, process, people

Start of Figure

Figure 2.13  (a) The Gladys Cardigan (b) A page from Amy’s design book

View description – Figure 2.13  (a) The Gladys Cardigan (b) A page from Amy’s design book

End of Figure

Amy’s first knitted piece in the Keep and Share range, and her signature piece, is the Gladys cardigan named after her grandmother who taught her to knit. In Video 2.3, we asked Amy to explain why this is a classic piece and how the cardigan embodies the values of Keep and Share. Amy also discusses how she develops and records her design ideas, where inspiration can come from and describes the close working relationship she has with her customers.

Start of Media Content

Video content is not available in this format.

Video 2.3  Design, process, people

View transcript – Video 2.3  Design, process, people

End of Media Content

Amy aims to design for how people feel about their clothes, to try to encompass narratives into her designs that provide people with suggestions for how to wear her designs, and for them to develop their own stories of use. As her business has evolved, she has had increasing opportunities to talk to people about their own experiences of living with their clothes; it is these dialogues that provide inspiration for thinking about her maker practice and developing design responses to people’s needs.

Material talk

In this second short video, Amy describes how she selects her materials and the trade-offs that she has made from a sustainability perspective, during her time in practice.

Start of Media Content

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Video 2.4  Materials and sustainability

View transcript – Video 2.4  Materials and sustainability

End of Media Content

Hearing Amy talk about her design practice and the integration of sustainability principles highlights the complexity of implementing these concepts when you approach sustainability holistically. For example, Amy discussed the difficulty of sourcing materials. Historically – and today – the primary environmental focus of the textile sector is on the nature of the materials: whether they are organic or not, whether or not they contain recycled materials. The point she makes is that it’s pointless to specify organic materials if you’re not thinking systemically about the design system; for example, transporting organically grown materials from faraway places has a serious environmental impact. In terms of her small-scale business, the practicalities of finding a supplier who was willing to supply her with small amounts of quality yarn was paramount, over and above the environmental credentials of the yarn. She chose an Italian supplier of good quality yarn that aligned with her vision of long-term use and maintenance. This point illustrates the trade-offs to be made in implementing sustainability in practice: organic versus reliable sources; organic (international) versus local; pragmatism versus environmental criteria, etc.

Over the years, she has managed to source more UK-grown yarn and built up good relationships with her suppliers of cashmere and alpaca wool, so she can pass on to her customers clear and traceable stories, from fibre to garment. Amy has been pragmatic in her choices and kept her focus on the core vision of the business: that clothes can be designed for multi-functional use and for use over a long period of time because of the emotional values people build with their clothes.

Start of Activity

Activity 2.4 Design narratives

(1 hour)

Start of Question

What are the key features of Amy’s design approach to sustainability? Try and list at least three points and detail how you think each point links to efficiency and/or sufficiency.

You can represent these as a map or a bullet point list – be creative! Upload to ODS and comment on at least two other students’ responses.

End of Question

View answer – Activity 2.4 Design narratives

End of Activity

3.2  Product to service

Start of Figure

Figure 2.14  Riot and Return: a business service concept for leasing children’s knitwear

View description – Figure 2.14  Riot and Return: a business service concept for leasing children’s …

End of Figure

In Video 2.5, in the following activity, Amy explains how she tried to innovate at the level of the business model with a spin-off business called Riot and Return. The key concept of this was children – because, as she says, children literally don’t get the full wear out of clothes as they grow so quickly, so it made sense to think of a business model that encouraged the sharing of good quality knitwear for children. Parents would pay a monthly subscription for this ‘knitwear service’ where they would access a number of garments at any one period, returning one or more in exchange for others. This business proposition aimed to provide a useful service to accommodate childhood growth and reduce unwanted clothing that no longer fits.

A key design consideration was to design clothes that would wear well and that could be maintained and repaired while maintaining the qualities of the knitwear. Amy likened this idea of material wear to an old leather jacket that looks much better worn than when it’s shiny and new, because in its worn state it shows stories of wear. This is what she aimed to achieve with her Riot and Return clothing range (hence its name): to embrace play and wear while at the same time maintaining wearability.

In this business model, the business retains the ownership of the garments while selling the use of them, similar to the processes of user–product engagement we find in a traditional library, an online film library or in a car or bike share scheme as discussed in Block 1. The return of garments to the business allows for necessary repairs and maintenance to be carried out and for subsequent users to experience good quality, well cared for products while acknowledging that the ‘newness’ of the item will fade and be replaced with the signs of stories of others’ use.

This story (of a failed attempt at introducing a service-based model) highlights the need for a better understanding of how to effectively introduce new service-based initiatives that challenge current norms in terms of values and expectations . In this instance we have a culture of not sharing clothes (although, in the case of children’s clothes, there is an emerging culture of ‘preloved’ clothes via services such as eBay or shared wardrobes via the school playground). Amy’s business concept may have fared better today compared to 2008, at the height of economic uncertainty. However, key questions remain.

  • How does a business model based on non-ownership and sufficiency compete with cheap supermarket clothing for example?
  • What cultural changes are required for clothes exchange services to be embraced?
  • Will increases in the costs of raw materials reprioritise opportunities for reuse and remaking?
  • Will such changes force the global textile sector to reprioritise agendas and improve working conditions, ensure fair pay and eliminate child labour in global garment production?

The story of shifting from product to service is rarely simple; it connects issues across levels of innovation, across geographical locations, across cultures and technologies.

Start of Activity

Activity 2.5 Product to service

(1 hour)

Start of Question

Watch Video 2.5, which illustrates that thinking about service innovation is complex. Answer the following questions and describe three characteristics of Riot and Return that would help to create a successful service innovation today. List these and upload to ODS to share with others.

  1. What were Amy’s aims for Riot and Return as a service design concept?
  2. What challenges do you think the concept of Riot and Return faced?
  3. What would you do today to develop Riot and Return as a successful service innovation?

End of Question

Start of Media Content

Video content is not available in this format.

Video 2.5  Product to service

View transcript – Video 2.5  Product to service

End of Media Content

Provide your answer…

View answer – Activity 2.5 Product to service

End of Activity

3.3  Making and remaking

Start of Figure

Figure 2.15  The Keep and Share knitting tent

View description – Figure 2.15  The Keep and Share knitting tent

End of Figure

The idea of ‘working with people’ to develop skills comes through in the concept of ‘share’. Amy explores knitting with people at festivals and craft shows, and in education contexts. She has run other educational projects, at festivals for example, that aim to engage people in making and specifically in the co-creation of knitted and crocheted installations. These represent a series of engagement activities that are supporting opportunities for people to reconnect, or connect for the first time.

Start of Figure

Figure 2.16  Making activities and outcomes

View description – Figure 2.16  Making activities and outcomes

End of Figure

Video 2.6 reflects on ideas of making and adapting garments, bringing personality and personal meanings into existing pieces. It focuses on developing new skills and understanding that allows individuals to embrace their own making and remaking challenges. Before watching the video read the following short sections describing key elements within it.

Adaptation: linking cuffs

Amy, through her doctoral research, has focused on understanding the technical skills to adapt and remake existing garments: for example, adapting a jumper to become a cardigan. This technical understanding manifests as a series of options for knitting ‘into’ garments, new collars, cuffs, openings, and adornments. Amy has developed a typology of techniques that allow the reworking and remaking of knitted garments. In Video 2.6, Amy explains the different options for linking cuffs to an existing garment. This technical knowledge opens opportunities to take mass produced knitwear and hack into it, producing unique garments with individual value.

Remaking skills

Amy created a knitting group to help with her doctoral research. It meets once a month to share knowledge about making and adapting knitted garments. Through discussion the group help each other to explore new ideas and skills by recreating garments, guided by Amy’s knowledge and technical expertise. The video illustrates the way in which the knitting group have evolved their thinking in relation to making and adapting garments. They discuss being more aware of their clothing choices and feeling more empowered to consider design choices that might even involve something quite radical like cutting into knitted garments! New knowledge and experiences open up new questions for people and in this instance this is demonstrated through the knitting group’s enthusiasm for a knitting /adaptation challenge.

In a broader context perhaps these types of experience can help us to reflect on our consumption behaviour and to question our motivations for consuming and create new opportunities to meet different types of need.

Start of Media Content

Video content is not available in this format.

Video 2.6  Making and re-making

End of Media Content

Start of SAQ

Questions

(30 minutes)

Start of Question

Reflecting on the broader context, do you feel that experiences of making can help us to reflect on our own consumption behaviour and question our own motivations for consuming? Do you think ‘remaking’ opens up new opportunities to meet needs in different ways? Do you have a personal example to share? You could discuss this with your tutor group or post a response on the forum.

End of Question

End of SAQ

3.4  Reflecting on Keep and Share

The story of Keep and Share is obviously small in scale, both in terms of the business but also in terms of the impact Amy’s products have on the global problems of sustainability. Nonetheless it is a story of vision and of values that particularly highlights an emerging practice of sufficiency that hasn’t, to date, been part of the sustainability narratives of large organisations or Governments and policy makers.

Amy’s story helps position the role of the designer-maker as educator, communicator and facilitator of change. Amy considers her work to be a form of design activism, in the sense that she is opening up new views on, and ways of living with, knitted garments. Given that change is required at all levels of society, from the top down redesign of economic systems to the bottom up change in individual behaviour, all our practices will input, favourably or not, to this journey of transition. In the 1990s there was a television advert about switching the lights off to reduce electricity consumption – the picture zoomed back from a single light switch in a room to a picture showing a cityscape – with lights turning off, one by one. Of course our single action to turn off a light doesn’t do much when it’s viewed in isolation. But collectively the scope for large improvements in energy efficiency is there.

Amy’s work illustrates a step forward in thinking about, and articulating in practice, the idea of remaking, repairing, creating – not as something removed from us but as something we can all engage with through the clothes we wear everyday.

The idea of crafting and remaking the material world is a powerful one and promotes the concept that there is potential to form things to meet our needs in ways that are meaningful to us. Ideas of remaking are briefly explored in the next section, in a totally different context – consumer electronic products.

 

4  Technology crafts

For many of you it will come as no surprise that you can adapt, alter, repair a cardigan – even though the technicalities of doing so are complex as the Keep and Share case has shown with, for example, over 450 ways to link cuffs to cardigans! If adaptation is a technical process in a cardigan, which seems a simple product, how does this idea of adaptation link to other more complex products like consumer electronics? What happens if we take this traditional view of ‘craft’ and apply it to an area less commonly associated with it, like electronic software and hardware?

Start of Figure

Figure 2.17  Adapting innovation – rebuilding technologies

View description – Figure 2.17  Adapting innovation – rebuilding technologies

End of Figure

Increasingly we are finding that the adaptation and ‘hacking’ of existing hi-tech products is a growth industry in technologically deprived areas of the world (Figure 2.17). Each product is viewed for its component and functional potential rather than as a complete product to sell on. Like the Keep and Share concept of encouraging greater utility through the durability of the garment, Technology crafts encourage the remoulding of existing products and their components in new versions of a product with similar functions or in completely different products with very different functions. These practices challenge and begin to unravel the process of industrialisation as we currently know it. Technology crafters view products not as end products but as raw materials for new products that meet different (local) needs.

Vinay Venkatraman, winner of the 2013 Victor Pananek Social Design Award explains his work in ‘technology crafts’, through which a mobile phone, a lunchbox and a torch can become a digital projector for a village school, or an alarm clock and a mouse can be melded into a medical device for local triage. This is a great story describing a new and emerging ‘silicon cottage industry’ (small-scale, home-based technology businesses) based on the capacity of individuals to reconfigure everyday objects. This happens at the local level, supporting local knowledge capacities whilst avoiding large costs, distribution distances and reliance on large-scale production. This vision of a digitally inclusive society is illustrated through two projects described by Vinay Venkatraman in the video below.

Start of Quote

Video 2.7 TED Talks: Technology crafts for the digitally undeserved

(Vinay Venkatraman: Technology crafts for the digitally undeserved, 2012, http://creativecommons.org/licenses/by-nc-nd/3.0/)

End of Quote

Start of Figure

Figure 2.18  Technology crafts: The multi-media lunchbox and the medi-meter

View description – Figure 2.18  Technology crafts: The multi-media lunchbox and the medi-meter

End of Figure

Start of SAQ

Questions

(1 hour)

Start of Question

  1. What are the characteristics of technology crafts described in Video 2.7?
  2. What were the multimedia platforms for single teacher schools made from?
  3. Why do fieldwork to test ideas? What did they find in this case and how did they adapt the product?
  4. What were the key problems with the remote healthcare system?
  5. What was the purpose of designing the health screening tool (medi-meter)?
  6. What is the medi-meter and what do you think is required to scale up the use of this product?
  7. What is the potential for service innovation in each of these examples of technology crafts?

End of Question

Provide your answer…

View answer – Questions

End of SAQ

Do these ideas provide you with inspiration for new innovations? Perhaps the idea of creating new products out of a process of adapting existing or worn out products (Interface’s ‘life after life’ concept), or reframing the functions of a product in a service concept (like Amy’s Riot and Return business idea) may provide you with useful stimulus for your own project work later in the module.

 

5  Comparing stories of innovation

This week we’ve focused on two very different stories of design and innovation in textiles: one at the scale of an international organisation; the other at the scale of a lone designer-maker. Both stories show that the landscape supporting sustainable innovation is both diverse and interconnected, with many opportunities to reframe innovation.

Start of Activity

Activity 2.6 Comparing innovation in practice

(1 hour)

Start of Question

Reflect on the stories of Interface and Keep and Share. Consider each of the points presented in the table below and summarise how each point is addressed in the different stories we’ve presented to you.

Start of Table

Interface Designer-maker
Underpinning values
Design strategies used
Connection to efficiency
Connection to sufficiency
Opportunities for services
Linear or circular resource flows
Product, service or system

End of Table

Upload your completed table to ODS to share and discuss with other students.

End of Question

View answer – Activity 2.6 Comparing innovation in practice

End of Activity

 

6  Summary

This week we’ve looked at two stories of design-led innovation . Each tells us something about driving forth a vision for change. In the case of Amy Twigger Holroyd, the designer-maker behind the Keep and Share knitwear label, we see her values connected to sustainability and her desire to deliver alternative solutions to wearing and living through clothing over time. As a sole designer-maker she has found ways to share her enthusiasm and skills for adapting and remaking knitwear with a range of makers and customers. This idea of adaptation and remaking our material world is also evident in the case of Technology Crafts. While is may seem ‘obvious’ to think about adapting our clothing, deconstructing existing consumer electronics and repurposing components and casings to meet completely different needs is probably a less familiar idea. These processes that challenge normal responses to products and product use and that innovate through adaptation, offer interesting opportunities for new types of sustainable innovation.

In the case of Interface, the world’s largest producer of carpet tiles, we see how the driving vision of founding CEO, Ray Anderson, turned the organisation from a traditional business focused solely on the financial bottom line to one driven by principles of ecology. This vision was created through asking experts what and how to achieve the seemingly impossible feat of becoming a ‘Mission Zero’ organisation. Interface wanted to understand how to develop a circular economy; how to make product-leasing (services) work; how to integrate biomimicry and ecodesign as central design strategies. Essentially they want to understand how to turn a big ship around to face a new direction. We see from their story that Interface continue that journey of ‘Mission Zero’ today.

Amongst stories of design and innovation this week we also discussed sufficiency in more depth. We linked this concept to ‘meeting human needs’ and explored what constitutes fundamental human needs and how these can be satisfied in many different ways (Max-Neef, 1991). We also considered the issue of product obsolescence and the challenge this poses to reducing the degree to which we rely on resource flow through the economy. Strategies that extend product lifetimes through design for durability will be discussed in more detail in Unit 3.

Reflecting on Units 1 and 2 of Block 2, we see that sustainability and sustainable production and consumption rely on big changes in our social, economic and technical direction. Ideas like efficiency and sufficiency, when teamed together offer a new landscape of visions for innovation based around circular economies of resource flow (discussed in Unit 3), product durability and adaptability, meeting real needs and collectively developing a new language of novelty based on less consumption. Sometimes these developments may only be small steps but as we begin to see the collective responses to often complex challenges, new types of design and innovation begin to emerge to inform the organisational landscape, the sociocultural landscape and the landscape of governance and policy. Design and innovation can help shift thinking towards sustainability in and across each of these landscapes.

 

References

Anderson, R. (1999) Mid-Course Correction: Toward a Sustainable Enterprise: The Interface Model, Atlanta, GA, The Peregrinzilla Press.

Cooper, T. (2005) ‘Slower Consumption. Reflections on product life spans and the “Throwaway Society”’, Journal of Industrial Ecology, vol. 9, no. 1–2, pp. 51–67.

Cooper, T. and Mayers, K. (2002) ‘Discarded household appliances – what destiny?’, Greening of Industry Network Conference [Online], Göteborg, Sweden, June. Available from www.academia.edu/528519/Discarded_household_appliances_what_destiny (Accessed 10 January 2014).

European Economic and Social Committee (2013) ‘CCMI/112 Product lifetimes and consumer information’, Towards more Sustainable Consumption: Industrial Product Lifetimes and Restoring Trust Through Consumer Information, Brussels, EESC.

Hawken, P., Amory, L. and Hunter, L. (1999) Natural Capitalism: Creating the Next Industrial Revolution, USA, Little, Brown and Company.

Max-Neef, M. (1991), Human Scale Development – Conception, Application and Further Reflections, London, The Apex Press.

Mundil, H.E. (2012) Interface bags International Green Awards [Online]. Available at: www.greenawards.com/press/2011-media-coverage/interface-bags-international-green-awards (Accessed 13 December 2013).

National Institute for Health and Care Excellence (NICE) (2014) Lipid modification: cardiovascular risk assessment and the modification of blood lipids for the primary and secondary prevention of cardiovascular disease [Online], NICE guidelines [CG181], July. Available from www.nice.org.uk/guidance/CG181 (Accessed 28 July 2014).

Packard, V. (1960) The Waste Makers, New York, D. McKay Co.

Princen, T. (2005) The Logic of Sufficiency, Cambridge MA, The MIT Press.

Rolls Royce (2012) Rolls Royce celebrates 50th Anniversary of Power-by-the-Hour, Press Release, 30 October. Available at www.rolls-royce.com/news/press_releases/2012/121030_the_Hour.jsp (Accessed on 3 July 2014).

 

Acknowledgements

Grateful acknowledgement is made to the following sources:

Figure 2.1: Interface Global

Figure 2.2: Interface Global

Figure 2.3: Interface Global

Figure 2.4: (top) Mark Penny / Dreamstime.com

Figure 2.4: (middle) Interface Global

Figure 2.4: (bottom) Aivolie / Dreamstime.com

Figure 2.5: Interface Global

Figure 2.6: Gwendolen Tee / www.flickr.com. This file is licensed under the Creative Commons Attribution-Noncommercial-ShareAlike Licence http://creativecommons.org/licenses/by-nc-sa/3.0/

Figure 2.8: Clarkland Company / www.istockphoto.com

Figure 2.9: Courtesy Amy Twigger Holroyd / www.keepandshare.co.uk

Figure 2.10: Courtesy Amy Twigger Holroyd / www.keepandshare.co.uk

Figure 2.15: Courtesy Amy Twigger Holroyd / www.keepandshare.co.uk

Figure 2.17: Gaianet Foundation

Figure 2.18(a) and (b): www.ted.com

Every effort has been made to contact copyright holders. If any have been inadvertently overlooked the publishers will be pleased to make the necessary arrangements at the first opportunity.

 

Question

Answer

I think the first five Fronts of Mount Sustainability have been explicitly addressed here:

  1. Eliminate waste (reducing waste to landfill, reducing waste water, reducing waste in energy production).
  2. Benign emissions (reducing Green House Gas (GHG) emissions, reducing overall emissions from energy (renewables, reducing energy consumption)).
  3. Renewable energy (95% use of renewable energy, use of locally generated bio-gas).
  4. Close the loop (redesign of supply / production to eliminate waste to landfill).
  5. Resource efficient transport (reducing energy consumption, reducing GHG emissions).

I also think Fronts 6 (Sensitise stakeholders) and 7 (Redesign commerce) will have been utilised in developing mechanisms to reduce waste to landfill and achieve greater lifecycle efficiencies, not only in production but also in use and end of life (e.g. ‘Entropy’ carpet tile service, product take-back business model, recycling of used product in production of new product).

How to eliminate waste to landfill:

  • Eliminate non-reusable (e.g. toxic) resources in production processes.
  • Reduce production waste (closing loops, waste recovery).
  • Use biodegradable resources in production processes.
  • Use recycled content in products.
  • Reuse and recycle products from Use phase.
  • Develop take-back business models (e.g. flooring services rather than selling carpet tiles).
  • Explain closed loop resource principles to supply chain, customers, sector and relate to business strategies and goals.

Back to Session 1 SAQ 1

 

Activity 2.1 Innovation and design

Answer

European Sustainability Director, Ramon Arratia raises lots of design-related issues:

From an operations and product efficiency perspective he highlights:

  • Reducing carbon emissions – target zero (connects to Fronts 1 and 2).
  • As an organisation, aiming to use 100% renewable energy (connects to Front 3).
  • Recycling wastes – developing strategies to deal with post-consumer waste too (connects to Fronts 1 and 4).
  • Products into products – he calls it life after life – this constant cycle of old products being returned and separated and every element reused in new products – a circular flow of resources than aims for 0% waste in the future (connects to Front 4).
  • Reducing impacts of transport – shifting from road to rail, barge and other less impacting forms of transport (connects to Front 5).
  • He highlights the value measurement in product design and uses the example of life cycle assessment (LCA). They have done LCAs for all of their products to determine the actions they need to take in reducing sustainability impacts. They found the biggest impact of their products was the raw materials (the yarn) – this accounted for 71% of the overall impact; production and transport each accounted for 8% of the overall impact; 6% of impact was found to be associated with the use and maintenance stage of the product’s life. Interface has therefore focused on reducing the impact of the raw material – the yarn – in the following ways:
    • reducing the amount of yarn required in the product, and
    • increasing the recycled content of their products. An example of this is a micro tufted yarn that contains over 40% post-consumer waste.

Back to Session 1 Activity 1

 

Question

Answer

Factors that influenced the (lack of) success of the Evergreen scheme include:

  • Lack of customer familiarity, and therefore the benefits of, the concept of leasing flooring
  • Long-term, inflexible leasing contract
  • Economic viability – unfavourable comparison of costs and benefits between leasing and purchase

The effectiveness of the scheme would have been improved by addressing the pricing of the service in relation to the dominant ‘short term’ pricing strategies of current marketplace:

  1. to either reduce costs of service to demonstrate resource effectiveness of take-back to company and benefits of service to customers over time.
  2. to make the life-cycle costs of service more transparent and to deliver additional service to customers, integrated as part of Evergreen leasing charge.

Back to Session 1 SAQ 2

 

Activity 2.2 Satisfiers

Answer

  1. Watching TV meets the need of leisure but it can be an inhibitor satisfier as too much can over satisfy a need for leisure and inhibit the meeting of other needs such as participation, understanding and creation.
  2. Belonging to a cycling club is a synergistic satisfier. It simultaneously meets the needs of subsistence (health), affection, participation, leisure and identity.

Product: Coffee machine

It is designed to meet the need of subsistence (it does) and possibly the need for identity in the context of owning a particular experience – relating to others with that experience – and it possibly does that too.

Because of the convenience of making coffee, perhaps the machine inhibits meeting my needs of participation, leisure and creation that may have been achieved by meeting people face-to-face for a cup of coffee in a café and experiencing different types of interactions.

Back to Session 2 Activity 1

 

Question

Answer

  • iPhone – obsolescence of desirability. The phone was still fully functional but the person wanted the latest model. (It probably wouldn’t be disposed of in terms of being ‘thrown away’, but would more likely have been traded in or kept as a spare phone.)
  • Kettle – functional obsolescence. The element on the kettle broke and because of the way it had been designed and manufactured, the element unit could not be replaced.

Back to Session 2 SAQ 1

 

Activity 2.3 Slower consumption

Answer

  1. Tim Cooper suggests we can slow down the rate of product consumption by increasing product lifespans through increasing their durability and increasing opportunities for maintenance.
  2. A problem with efficiency-driven approaches to sustainability is that the benefits of environmental improvements can be offset by increased consumption through the rebound effect.
  3. The potential threats associated with sufficiency are slow consumption, which can lead to recession and unemployment (if the economic system is not redesigned!).
  4. The benefits of a mixed efficiency/sufficiency approach to sustainable consumption is that longer product lifespans reduce material and energy consumption, they are not offset by increased consumption, and the economy remains healthy because there is less dependence on rising consumption (products last longer) and there are additional trades (employment) required to service longer life products.

Back to Session 2 Activity 2

 

Questions

Answer

  1. Amy was first interested in sustainability through the ideas of efficiency and sufficiency and the differences between them. She describes how she felt most of the commentary about sustainability was, and is, basically related to efficiency – perhaps, she felt, because it was an easier target for business to address as it linked directly to cost-saving. She became more interested in what she perceived as the more complex issue of sufficiency and how she, as a designer could relate to that in terms of getting more satisfaction of need out of less material stuff – developing design responses to what we really need.
  2. One of the first projects Amy undertook reflected the idea of sufficiency was her Masters project, ‘cuff in a blanket’. She describes a large piece of knitwear (like a cosy blanket that someone would wrap themselves up in and wear in different ways) anchored at a point by a ‘cuff’ (a wrist, an ankle) and that fits any size or shape of person. It is unisex and versatile in that the user determines how it is worn. It is a multifunctional piece of clothing in that the nature of its wearability is flexible and not prescribed in ‘one way’ by its design. Cuff in a blanket reflects ideas of sufficiency through ‘sharing’. It is designed to be shared by multiple users, being one size and unisex. Sharing products results in a greater level of utility from the resources across the lifespan of the garment.
  3. Keep reflects longevity, efficiency and sufficiency by promoting a vision of long-term clothing that transcends fashion trends and remains a valuable wardrobe item over the years. Keep and Share garments are more expensive than mainstream high street and supermarket offerings. The business philosophy represents bespoke handmade and classically designed knitwear constructed from carefully sourced materials. In addition Amy provides information and support regarding lifetime use and care. This involves advice and services on maintenance, clothing care and repair. Good quality materials and carefully made products result in garments that can weather the wear and tear of everyday life. Her business model requires people to invest in pieces of clothing for the long term and evokes the need to cherish and care for these items over time. Keep embodies her vision of longevity.

Share reflects versatility and sufficiency as a response to demand-side issues of over-consumption in industrialised countries. Her business concept aims to encourage people to build emotional connections to their clothing and to explore ways of using, adapting and sharing their clothing with friends and family. Her garments are designed with this in mind and aim to promote versatility in the use phase of the life cycle – different people using the garment and different uses of that garment in terms of using it in many different contexts. Sufficiency is a challenging idea to base a business model on as its logic suggests less consumption and, as a consequence, less business. Amy discussed these issues and considered that because of the small scale of her business it would not really be affected by less consumption as people buy into the idea of keeping and understand this in terms of why there is a price premium to pay on handmade, well-made clothing.

Back to Session 3 SAQ 1

 

Activity 2.4 Design narratives

Answer

These are some possible points to draw out from Amy’s designer-maker practice:

  • Quality and longevity of resources (efficiency and sufficiency – using less resources, minimising resource waste, encouraging long-term relationships with clothing)
  • User-centred design approach (sufficiency – designing for people, with people – designing in meanings, creating memories, encouraging durability)
  • Re-creating – (efficiency and sufficiency – working from her design archive, redesigning components, adapting archive for commissions – people developing relationships with their garments overtime)
  • Building relationships with suppliers (efficiency and sufficiency – flexibility for small-scale maker (less waste), reliability of small-scale supply (less waste; building strong partnerships and trust))
  • Building relationships with customers (efficiency and sufficiency – strong customer relationships = repeat custom, positive feedback, word of mouth marketing, longevity of garment use through repair and maintenance services, commissions of new work, customisation, training new skills)
  • A holistic view of sustainable design (efficiency and sufficiency – developing an understanding of the sustainable issues and connections associated with different elements of garment production and consumption).

Back to Session 3 Activity 1

 

Activity 2.5 Product to service

Answer

  1. Amy aimed to question the need to sell more and more stuff in a business model (sufficiency). She explored the idea of a subscription service for children’s clothing because children grow so quickly and wouldn’t get the wear or cost value out of the clothes through buying them (she realised she couldn’t sell clothes for children at the price her knitwear needed to be sold at).

From a design perspective the aim was to make a feature out of ‘wear’. Her idea was for kids to have fun, to ruin things (riot) and when those clothes are returned back to the knitwear library they would be cared for and regenerated. What excited her was the prospect of seeing how the same clothing would alter over time. The same garments would be worn differently, and repaired differently and over time, garments that had begun life ‘the same’ would be uniquely fashioned through wear and repair processes. This idea of narratives of wear seem to be a key feature of her design inspiration for the service.

  • Cheaply available kids’ clothing
  • A culture of ‘new’
  • A culture of ownership
  • The concept of ‘aging uniquely’ is not currently valued
  • Cost of subscription service (perhaps – details are not provided – but would be similar to Interface’s Evergreen lease story if this were the case)
  • Economic downturn
  • Lone designer-maker already running one business.
  • Research current subscription business models to price service appropriately
  • Talk to organisations and networks such as M&S Plan A, Oxfam and Netmums, to gauge market appeal and scope of second hand clothing
  • Develop catalogue of core versatile garments
  • Develop communications that clearly link sustainability principles with values of wear
  • Consider developing a connected service that develops repair, maintenance and remaking skills for people to apply to their own clothing.

Back to Session 3 Activity 2

 

Questions

Answer

  • Emerging
  • Informal education
  • Non-institutional
  • Local ‘fix it’ culture
  • Local knowledge
  • Cheap fabrication
  • Low cost
  • Quick
  • Entrepreneurial
  1. Multimedia platforms made from a projector mobile phone, a torch (LED plus batteries), a lunch box (housing) and some speakers.
  2. Fieldwork allows you to test the product in situ. In this example they found that often schoolrooms let in a lot of light (broken roofs, etc.), children were noisy, that there were unreliable sources of power and problems downloading data. So this information fed into a number of iterations of the product’s development. In this instance they adapted the box from a lunchbox to a wooden, sturdy box with a photovoltaic panel and also the ability to charge from a car battery (ubiquitous kit in remote areas) and also to run off a USB key as a more reliable form of downloading data.
  3. The remote healthcare system was under-resourced. There are 250,000 ASHA health workers providing healthcare in remote areas of India. They act as a conduit for referring people to medical centres that are again under-resourced and over-subscribed. There was no way of differentiating the more critical patients and everyone queued equally for long periods of time to be seen by the few medical professionals.
  4. Medi-meter was an idea to help prioritise cases of ill-health in order for them to be fast-tracked to the medical centres. The rationale was that if you can have a basic diagnostic tool to measure basic health statistics you can make better judgements on who to send for treatment at the medical centres.
  5. Medi-meter is constructed from an alarm clock, a sensor from a TV remote control, some components from a computer mouse, a few (cheap) parts that need to be pre-programmed and some local tinkering. These simple parts are easily accessible so what is needed is building up local ‘fix-it’ knowledge and awareness, and building a relationship between the large healthcare system and the localities that it serves – for example through distributing guidance re product adaptation.
  6. Service opportunities:
    • Lunchbox – service of remote education. Teaming up remote schools to work together on projects and to share their limited resources and teacher expertise. The Lunch-box ‘curricula’ provides a connected platform for single teacher schools. Offers opportunities to link to other organisations and schools in different regions and countries.
    • Medi-meter – service of care – local communities develop capacities to build and use these and other simple healthcare tools, incorporating healthcare education. Local community centres act as distribution points for more basic healthcare needs and education, which takes the pressure off the main medical centres. Think back to the Koska K1 auto-disposable syringe innovation described in Block 1 – a relationship between a mass-manufactured product and the needs of developing countries. In contrast, technology crafts encourage local people to feel empowered to use simple technology to meet their needs.

Back to Session 4 SAQ 1

 

Activity 2.6 Comparing innovation in practice

Answer

Start of Table

Interface Designer-maker
Underpinning values ecological limits longevity, product relationships
Design strategies used LCA, biomimicry, minimisation, reuse, recycle durability, adaptation, repair, participation
Connection to efficiency mission zero goals using less across lifetime
Connection to sufficiency dematerialisation (services) product empathy, versatility, ability to be repaired, adaptation (bespoke design)
Opportunities for services raising profile of ecological values makes economy of services more economically viable (as costs of natural capital rise)

tried product leasing scheme – too early for market/new business model

tried product leasing scheme – too early for market/new business model

opportunities for adaptation learning services

Linear or circular resource flows moving from linear to circular (life after life model) linear but encouraging behaviour change of customers to consider longevity of use.
Product, service or system product, service and system of ecological business model product and services of repair and adaptation and learning

End of Table

Back to Session 5 Activity 1

 

Figure 2.1  Founder and CEO of Interface, Ray Anderson

Description

A picture of Ray Anderson, founder and CEO of Interface.

Back to Session 1 Figure 1

 

Figure 2.2  Interface flooring

Description

A picture of Interface carpet tiles in shades and patterns of blue.

Back to Session 1 Figure 2

 

Figure 2.3  Our progress to Zero

Description

Figure 2.3 is an infographic of Interface’s progress to mission zero over a period from 1996 to 2014. It shows renewable energy usage has gone from 0% in 1996 to 95% in 2014; a reduction in water usage of 87% from 1996 to 2013; waste to landfill now at zero; 40% less gas used in production and energy used per unit of production is reduced by 50%. Greenhouse gas emissions are reduced by 90% between 1996 and 2014.

Back to Session 1 Figure 3

 

Figure 2.4  Interface designers inspired by the random pattern of the forest floor

Description

A montage of images showing fallen autumn leaves in all colours spread across the ground.

Back to Session 1 Figure 4

 

Figure 2.5  Entropy carpet tiles … design inspired by the random pattern of the forest floor

Description

Interface ‘Entropy’ carpet tiles in an office environment – illustrating random nature of colour and pattern.

Back to Session 1 Figure 5

 

Figure 2.6  A cherished teddy bear

Description

A picture of an old-fashioned, worn and well used teddy bear sitting on an old leather chair.

Back to Session 2 Figure 1

 

Figure 2.7  Maslow’s Hierarchy of human needs

Description

Maslow’s hierarchy of human needs represented as a pyramid, moving from physiological needs (food, warmth, shelter, water) at the base; to the next level of the pyramid which focuses on needs of safety (security, stability, freedom from fear); moving further up the pyramid to needs of belonging and love (friends, family spouse lover); to near the top of the pyramid, meeting needs of self esteem (achievement, mastery, recognition, respect); and at the very top of the pyramid, the needs of self-actualisation (pursue inner talent, creativity, fulfilment).

Back to Session 2 Figure 2

 

Figure 2.8  Discarded consumer appliances

Description

Discarded white goods and domestic electronic products piled high in landfill.

Back to Session 2 Figure 3

 

Figure 1  Product life spans and sustainable consumption

Description

Cooper’s model of longer product lifetimes that shows the drivers for longer lifetimes on the left hand side (efficiency and sufficiency); the reasons for increased product lifetimes in the middle (eco-efficiency through more productive use of material and energy, and slower consumption through reduced throughput of products and services; and the outcomes of increased product lifetimes on the right hand side (sustainable consumption through green growth (as a result of eco-efficiency initiatives), and recession (as a result of slower consumption).

Back to Session 2 Figure 4

 

Figure 2.9  Designer-maker, Amy Twigger Holroyd

Description

A picture of designer-maker Amy Twigger Holroyd.

Back to Session 3 Figure 1

 

Figure 2.10  ‘Keep and Share’ knitwear label

Description

The Keep and Share knitwear label.

Back to Session 3 Figure 2

 

Figure 2.11  Keep and Share knitwear

Description

Examples of Keep and Share knitwear – shown hanging together on a rack.

Back to Session 3 Figure 3

 

Figure 2.12  Keep and Share knitwear

Description

Examples of Keep and Share knitwear

Back to Session 3 Figure 4

 

Figure 2.13  (a) The Gladys Cardigan (b) A page from Amy’s design book

Description

As caption.

Back to Session 3 Figure 5

 

Figure 2.14  Riot and Return: a business service concept for leasing children’s knitwear

Description

Example of childen’s knitwear from the label Riot and Return.

Back to Session 3 Figure 6

 

Figure 2.15  The Keep and Share knitting tent

Description

The Keep and Share knitting tent at a festival, inviting different people to have a go at knitting.

Back to Session 3 Figure 7

 

Figure 2.16  Making activities and outcomes

Description

People sitting outside Amy’s tent knitting onto a long string of knitting, collectively constructed and hanging from a collection of chairs.

Back to Session 3 Figure 8

 

Figure 2.17  Adapting innovation – rebuilding technologies

Description

A consumer electronic product laid out on a workbench, dismantled to its core components.

Back to Session 4 Figure 1

 

Figure 2.18  Technology crafts: The multi-media lunchbox and the medi-meter

Description

Outcomes of adapting existing technologies for new purposes – shows the image of the multi-media lunchbox and the diagnostic medi-meter discussed in Video 2.7.

Back to Session 4 Figure 2

 

Video 2.1  Interview with Ramon Arratia

Transcript

RAMON ARRATIA:

Ramon Arratia, European Sustainability Director at Interface Flor. And our 2020 Vision is to eliminate all negative environmental impacts by the year 2020. This was set up in 1994. The interesting bit about Interface is that we set up this company challenge in 1994, before this whole carbon and climate-change hype. And this was our founder, Ray Anderson, realised about the opportunity and also the risks of businesses operating as they were. And he challenged internally all the employees to set up this challenge, and we believed in it.

It’s wider, it’s not only carbon. It goes about renewable energy or to reducing waste, about recycling products into new products. So it’s life after life. It goes to transport, but also those softer things about how to influence other stakeholders. That can be influencing your customers and trying to explain what are the product characteristics, so they can buy more of the products that have this impact. But also, it can be about the government and how you influence legislation, so they are tougher on environment. And also, you can protect your products through these actions as well, and your strategy.

And then the other thing is how you can reinvent the way you do business, which is our seventh front. And it’s about redesigning your commerce, and it’s about how you can translate products into service, and how you can have added-value services and expand to adjacent markets at the same time.

The main thing of product design which relates to sustainability is measurement. You need to have Life Cycle Analysis done for all your products to know where the impacts are. And that’s where you can take action. If you don’t have this phase solved, all the actions that you take can be meaningless, so that’s why we produce an LCA– Life Cycle Analysis– for every single product that we put on the market. And that tells us that most of the impact on our products is on the raw materials. 71% of the impact is on the raw materials, where our production is around 8%.

Transport is around 8%. Use and maintenance is about 6%, and that’s why we focus all our energy on product design to reduce the raw materials. And most of the impact is on the yarn of our products, and that’s why we really try to either reduce the amount of yarn or increase the amount of recycled content on the yarn. We came up with this concept of a product with 40% less yarn. It’s called microtufted product, which only Interface can produce. Our competitors haven’t been able to copy that.

We would like to see a company which in our direct footprint has all, 100% renewable energy. We would like to see zero waste. Everything that comes to us, in terms of raw materials, goes into the product. We would like to see that you can take an old product, separate the different components, and recycle each of those components into our product, because downcycling is, for us, counts as no recycling. So it has to be products with post-consumer waste from its old product. And we would like to see a very efficient transport, where now many companies look at road transport, and we are shifting from road to railway, to barges, to multimodal transportation.

Back to Session 1 MediaContent 1

 

Video 2.2  Keep and Share

Transcript

AMY TWIGGER HOLOROYD:

First became interested in sustainability when I was doing my MA, so that was about 10 years ago. I’d done a degree in fashion design and then specialised in knit wear for my MA. One of the principles that really appealed to me straight away was the idea of sufficiency and trying to get more satisfaction of need out of less material stuff. And so I was looking at how I could design garments that could be worn in different ways and might be kept for a long time.

So in terms of versatile pieces, I was trying to create knitted garments that could be worn by any person and worn in a whole range of ways– blanket-like pieces that had just one sort of anchor point. So this is my cuff in a blanket. It’s basically a big rectangle of knitting with one cuff at a corner, and you can wear it in different ways so versatile. So I like to wear it on my right arm and then wrap myself up in it and I can throw it over in different ways.

When I first came across the principles of design for sustainability, I was really interested in the difference between efficiency and sufficiency. So what was going on– the vast majority of what was going on at the time and still now I think– is all about efficiency, which I would, I suppose, characterise as business as usual but a little bit greener. And that tends to also be– things that are more efficient tend to also be cheaper, so that’s quite straightforward for business. I was interested in looking at sufficiency, which is a much bigger question about what we actually need.

Keep and Share is my craft fashion label. So I started it straight after my MA and it really built on the ideas that developed during that project.

The keeping is about longevity and getting more use out of garments by keeping them for longer. And the share is really about versatility. That can be directly about people sharing garments, so things that can be worn by people of different shapes, sizes, genders or by different people over time so that things could be handed down.

It’s also the idea of a garment sharing uses so that you could wear it in quite different contexts. So I had a customer once who bought a cardie, and she told me afterwards that she loved it, she wore it all the time. She could wear it to go to the theatre or she could wear it picking blackberries.

It seems sort of counterintuitive in a way to try and create a business and a growing business around encouraging people to buy less and to consume less. To be honest, it wasn’t really a practical problem because I was creating such a small scale business. But I was trying to set an example, but if it was scaled up, it would challenge quite a lot conventional ways of doing things.

Back to Session 3 MediaContent 1

 

Video 2.3  Design, process, people

Transcript

[MUSIC PLAYING]

AMY TWIGGER HOLROYD:

I have a very direct link with my customers. So I sell directly to individual people, and often have quite a lot of conversation and contact with them in the process of them acquiring an item of my knitwear. So this is a Gladys cardi. So, the same as I’m wearing. This is probably my signature piece, which I’ve made since about 2005.

Some of the secrets of it are that it’s seamlessly constructed. So sometimes when knitters look at it, they puzzle to figure out how it’s made. So I invisibly graft the centre back– the two sleeves are knitted separately– and then this is a sewn join that you can’t tell. And I used my techniques I’ve developed of joining pieces seamlessly during the knitting process. So this is a join, but it’s not sewn, and so it behaves as one really nice piece of fabric.

In a way, I feel like I’m designing, obviously, garments, but also very much trying to design how people feel about those garments, which is a bit of a weird thing to try and design, really. But from my own experience and from talking to so many people about how they feel about their clothes, people do have really strong emotions with garments. They’re very personal things. And I think a lot of the emotion often relates to kind of narratives and sense of stories. So I try to design in helping kind of stepping stones to that.

So this was from a collection where I named each of the pieces after women from my family tree. And this one was named after my nana, Gladys, who taught me to knit. I try to tell people about how I’ve made things, and where things are made, and to some extent kind of play up this nice idea of me knitting away in my studio in the countryside. It’s a nice story. I would that if I bought something that has a story from somebody else.

I also try to tell people about the story of where the ideas for that collection came from. I think that creates an ethos that I value. And I hope that the wearer will value their own narrative that they bring to the garment, as well. And that’s all part of what I’m trying to encourage and ultimately design.

It’s really nice that this one has become my best selling piece. Someone phoned me the other day having worn out– literally, actually worn out– one that she’d had for a few years because she wears it every single day. And that’s really satisfying, as a designer, to know that something has been used and worn.

[MUSIC PLAYING]

I think when I started– so when I started with these ideas when I was doing my MA– I only really had my own experience, as a wearer, to draw on. By having the opportunity to talk to people about how they like to live with their clothes gives me more perspectives to draw on and to understand how much my experience is common, but also things that might be different. For each collection that I design, I make one of these visual notebooks where I gather together ideas– images of different bits of inspiration that have kind of grabbed me.

For one collection– the collection that this book’s for– I asked my customers to send in bits of inspiration. So that was a really nice different way of doing things, and they responded really well to that. One customer is Spanish and she sent some images of some traditional pottery from the region of Spain that she’s from. And they translated really nicely to knit, so I worked for them and used them as inspiration, and then took that through into the development of the fabrics, creating this sort of geometric design– which is almost like eyes, I always think– and interpreting that in different colorways. The process of talking to people about what they want to wear and how they feel about it has– all of those conversations kind of build up into giving me a bigger picture of who my customers are and what they want and what it is about the slowness that I’m trying to offer– what it is about that that appeals to them.

So the way the business is going now is I’m moving much more to creating garments to commission for individual customers, and that’s items commissioned from my archive. So on my website, I now have an archive of over 120 designs that I’ve made in the past. So this piece is something that I’m making a commissioned version of at the moment.

So this customer has been hankering after this garment for a few years, and she’s kind of very nicely and slowly– that fits in with all my ideas– slowly come to the decision that she wants her own version of this. And she’s told me the colours that she wants, and the yarns and things. So I’m sourcing those yarns and sending them to her. So it’s quite a close conversation going on there. And I really like making things to commission and revisiting pieces from the archive, because I guess it shows that not just the garments I’m creating have a sense of longevity and slowness, but the whole business model, really, I have to have been going for 10 years or so to have this archive that I can work back into.

Back to Session 3 MediaContent 2

 

Video 2.4  Materials and sustainability

Transcript

AMY TWIGGER HOLROYD:

When I started the business, obviously, a big question was where I was going to get my materials from, and what I was going to use. The most important thing to me was that it was quality materials that would enable the garment to last for a long time. So because other people are so much just looking at efficiency and looking at maybe having a kind of slightly tick box approach to sustainability in terms of, oh, it’s organic, or it’s got a bit of recycled content or something, I focus much more on the bigger scale, I suppose– having quality materials that would last.

At that time– so this is about 10 years ago– a great restriction on that was really where I could get small enough quantities that were appropriate for the scale of business that I was working at. So I found an Italian spinner who was happy to sell to really small scale businesses, because there’s much more of that in Italy. Umm so I could buy, you know a few kilos of each colour, of each yarn.

So actually, I might have liked to also tick the organic boxes and have the bigger scale approach to what I was doing, but I was very much restricted by literally getting anything in scale that I wanted it. Things have changed now. There’s much more choice, I think.

This is my Amaranta cape that I’ve been making for several years in different yarns, different colours over time. This yarn is particularly beautiful to work with and to wear. So this is the only UK reared Kashmir. So most Kashmir, the fibre comes from the Far East.

This is fibre from a herd of goats in Devon, farmed by a very lovely farmer. And she can tell me all about where it’s processed and spun. And then it comes directly from her. She sends me pictures of the goats on the farm.

So this is an example of where there’s a really beautiful and very clear story from fibre to garment to the customer, because I pass that story on to the customer. And its beautifully soft. It’s really nice to wear.

I also make the same thing in other yarns. So this one is UK reared alpaca. So again, local and with a traceable story behind it.

And people feel like there’s a sense of value about them, as well. Kashmir and alpaca are thought of as valuable fibres, and I think that contributes to the desire and the intention to keep things for a long time– keep wearing them. The Kashmir, in particular, get softer and softer with time. And all of those things contribute to longevity, and therefore sufficiency, and then hopefully sustainability. I need to try and encourage the fact that the materials in the garments maintain their value over time, and perhaps even become more valuable emotionally– more almost treasured over time.

And so I’m trying to use materials that will age gracefully. Like we think about leather– a really nice, aged leather is nicer than a new leather. And so that’s what I aspire to. But also things that can be repaired, so when they do become degraded, they can be renewed in a way, and that means that the emotional value of the item can stay level or even, hopefully, increase.

Clothing is obviously produced and consumed within a really massive global system, which has enormous impact in terms of social issues– environmental issues. Clothing is quite a complex product to manufacture, and difficult to make ethical easily. 10 years ago when I was doing my MA, a lot of thinking was really very much still looking at manufacturing.

I think now we have moved on, and things have opened up quite a lot. And people are taking– some people are taking more of a systems view and a much more holistic view which encompasses people using things and their emotions and relationships with their garments. But there’s still, I think, too much emphasis on production and efficiency.

Back to Session 3 MediaContent 3

 

Video 2.5  Product to service

Transcript

AMY TWIGGER HOLROYD:

When I first started the business, I was really exploring these ideas of longevity and versatility through designing and making knitwear, and selling it to individual customers. As time went on and I had these conversations with customers, I found that one idea that I was really interested in exploring was how it’s actually possible to think about offering a service rather than always selling more and more and more stuff.

And the idea that I kind of developed was sort of children’s wear subscription service. I was designing and making knit wear for adults, and it makes sense to encourage people to keep things for a long time if they’re not a growing child. It didn’t– I quite liked the idea of doing children’s wear, but I didn’t feel I could sell things at the price point that my knitwear needs to be, because kids grow too fast and they literally wouldn’t get the wear out of it.

And so thinking about that issue and that problem and sustainable design ideas such as services rather than products got me thinking that it would be a really nice idea to hire garments from a library and sort of keep swapping them as the child grows. Obviously, the question of repair and maintenance is really important, so as things are worn– and the name is Riot and Return– the idea was that kids should be playing and having fun and ruining things really, but that they could be sort of cared for and regenerated when they came back into the library.

And so I was thinking about that as a designer how I could design things that could be easily repaired. If you’re a maker, then you’re good repairer as well because you use making knowledge in repair. And I quite like the idea that you would have pieces that started off the same but then as they aged and became damaged in different ways and then repaired in different ways, they would become more unique and more special.

And repair is also important in Keep and Share, so in the main knit wear label, in that I offer a repair service to customers. It’s quite nice. Occasionally, things come back in and I mend them for people and I can see how much they’ve been worn. That’s a really nice feeling.

Riot and Return was an idea that I explored and enjoyed developing the concept for, but it was pretty hard to run one business and to try and launch another one. Just as world economic conditions were becoming much more difficult, was just a step too far at that point.

Back to Session 3 MediaContent 4

How is law enforcement protocol viewed among adult female victims of sexual assault cases?

Week 3 Discussion 1 Criteria

Once you have developed your research problem, the research purpose and research question become self-evident.

What also becomes evident is your position with respect to the topic, the question, and what you hope to find. Qualitative research recognizes that the research “space” is shaped by both the participants and the researcher.

… the identities of both researcher and participants have the potential to impact the research process. Identities come into play via our perceptions, not only of others, but of the ways in which we expect others will perceive us. Our own biases shape the research process, serving as checkpoints along the way. Through recognition of our biases, we presume to gain insights into how we might approach a research setting, members of particular groups, and how we might seek to engage with participants (Bourke, 2014, p. 1).

For this Discussion, you will examine a research question based on the purpose for inquiry, a rationale for the study, and issues of positionality.

To prepare for this Discussion:

  • Consider the research topic you are developing for your Major Assignment 1.
  • Review Chapter 3 of the Ravitch and Carl text and use Table 3.1, page 69 to help you create a rationale using the questions as your guide.
  • Review Chapter 3 of the Ravitch and Carl text and specifically use pages 70–76 to create a positionality memo to reflect on your relationship to the topic.
  • Review the Fundamentals of Qualitative Research Methods: Developing a Qualitative Research Question media program as a guideline to help you create a research question.

Transform your notes from your preparation work into four paragraphs and briefly explain in your post the following:

  1. The research purpose of your inquiry
  2. The rationale
  3. Issues of positionality
  4. The research question

Research Question: ???

What is the relationship between SANE/SART intervention and convictions is the inclusion of SANE testimony at court proceedings?

How is law enforcement protocol viewed among victims of sexual assault?

Narrowing the Scope:

Research Questions:

Who dictates whether or not sexual assault victims get services?

How is law enforcement protocol viewed among adult female victims of sexual assault cases?

Hypotheses: There is a relationship between law enforcement protocol for investigating sexual assault cases and the victim’s willingness to participate in judicial proceedings.

Null Hypotheses: There is no relationship between law enforcement protocol for investigating sexual assault cases and victim’s willingness to participate in judicial proceedings.

 

How independent is the judiciary from the CCP?

CHAPTER 8

China in its institutional transition to capitalism

Introduction

The China chapter complements that on Tanzania. It illustrates transition from planning to market under a highly interventionist central and local state apparatus, which resembles to an extent the state machinery in Tanzania. But in other respects there are contrasts, both in the decentralization of the state in China and its elaborate control by the centralized Communist Party, but also in the success that China has had in enterprise creation. The scale and level of development of the two countries are of course completely different from the perspective of 2016. However, in 1980 China’s GDP per capita was $1,061, compared with Tanzania’s $601. By 2010 the gap between them was immense: $8,032 for China in GDP per capita  compared with $804 in Tanzania, a ten-fold difference, (using Maddison’s World Bank data, 1990 G-K$ see Table 1 chapter 1)  In part this chapter is about understanding China’s success story compared with Tanzania’s relative failure.

This book is about institutions underpinning capitalism. So why is China included? How capitalist is China?  There is huge controversy over this, of course. Yasheng Huang (2008) argues strongly that the growth and success of capitalism in China is attributable to liberalization of rural institutions that prompted rural entrepreneurship in the 1980s and access to western legal and financial institutions in Hong Kong, especially when it came to scaling up more capital-intensive enterprise. He also argues that the rural private sector was the motor behind growth in the 1980s and that there was more liberalization in the 1980s and less gradualism than others have argued. The contrary view is that Chinese institutions underpinning capitalism have been peculiarly ‘with Chinese characteristics’, which is to say that the Chinese state was and has been pervasive and that capitalism has been policy-driven and reflects not the strength of market institutions but the adeptness of policy choices in knowing which enterprises to support and which to allow to fail, which has been done via gradualism and experimentation. My argument straddles a middle-ground. I am interested in understanding the way in which markets have grown: not via straightforward underpinning by western-style rule of law and protective property rights, but by more roundabout routes of joint incentives to local officials and entrepreneurs; by the use of market-building incentives using the price mechanism and yardstick competition between regions; and in the role of the CCP as a sort of ‘meta-institution’ pulling the strings of economic liberalization when it suited its political aims, not uniformly or consistently but highlighting the mixed pattern across the regions and over time of legal and capitalist institution-building.

China is the one country in my sample that is a transition country, meaning that it has been shifting, since 1978, from institutions of communism and state control towards institutions of capitalism and markets (although post-colonial Tanzania was a socialist one-party state for 30 years, with strong central direction related to building up industry). How do I analyze the creation of capitalist market-building institutions coming from the direction of diminishing state planning, growing out of the plan (Naughton, 2007)?

In shifting from planning to market, from socialism to capitalism, China has been using the market and market incentives. For market incentives to work, markets have conventionally been thought to need such institutions as protection and security for private property rights and freedom from expropriation by the state. Chinese institutions do not follow western orthodox conventional wisdom of protecting private property rights, enforcing contracts, separating government from business, strong rule of law. China has none of these and yet has had fast and sustained economic growth based on quasi-private, or non-state, enterprise since the early 1980s. Formal constitutional protection of property rights did not come about until 2004; the government was and remains entwined with business; contract enforcement and the rule of law are very weak and not independent of the state (Xu, 2009); the judiciary is not independent of the executive.  Yet there has been private enterprise and investment – both domestic since the early 1980s, and foreign since the 1990s, delivering economic development and growth. How has this been done, that is the China puzzle.

The story is about market-building incentives given out by the Chinese Communist Party (CCP).  The politics of this has been more complex, with many CCP leaders in the 1980s being against economic reform and market incentives; Huang (2008) says that there was no agreement in favour of markets. Rather they were ‘context specific innovations, local knowledge and experimentation’ (Huang, 2008: 104; Naughton, 1996; Rodrik, 2007).

In building markets, there have been winners and losers in property rights with the rural sector advancing largely in the 1980s and then losing out in the 1990s to the urban and state-promoted development. There has been centralization of political control combined with decentralization of economic incentives, co-opting entrepreneurs and the middle classes into exchanging political rights for economic growth or siding with what Dickson (2003) calls the ‘non-critical realm’. The CCP has been a meta-institution (similar to Parliament’s role in England), adapting and shaping institutions including itself and its composition to achieve its aims of economic growth and to sustain itself in power. I support Huang’s (2008) argument that there was much greater institutional liberalization in the 1980s that favoured the rural enterprise sector, which was then retracted in the 1990s with greater urban development favouring the state sector and promoting foreign investment. Constraints on rural credit and greater insecurity for rural private enterprise pushed rural farmers into seeking jobs in the cities as migrants, the great migration of over 160 million migrant workers moving from rural to urban areas. My point is that, in terms of institution-building, these changes were both instrumented by the thrust of CCP policy, dependent on changes in leadership, from the leadership of Zhao Ziyang and Wan Li in the 1980s favouring rural reforms to the urban state-favouring Jiang Zemin and Zhu Rhongji era of 1989-2001, which took in the events of Tiananmen, after which policy was recalibrated against liberal and rural reforms. The post 2002 era of Hu Jintao saw more reform but the 2012 era of Xi Jinping appears to signal a resumption of the government reasserting its grip on economic levers (The Economist, January 16 2016)

As in the other case studies in this book, I am influenced by Milhaupt and Pistor (2013; 2008) in their approach to the relationship between the legal system and economic development. They argue that looking simply at the formal legal origins or formal legislation does not tell us enough about the importance of the rule of law and legal system in a country. The function of the legal system in relation to economic development and capitalist development in particular is not only to protect property rights but to perform various other functions such as coordination, signalling and credibility enhancement; different countries give more weight to some functions than others (Milhaupt and Pistor, 2013: 330 and see Chapter 2 of this volume). To recap, the coordination functions of the legal system, which are stronger also in the Continental European countries than in the liberal economies, is to give parties with a possible claim to property rights a seat at the bargaining table. As Milhaupt and Pistor argue, ‘it [the legal system] is not unprotective but places greater emphasis on participatory over individually enforceable rights and interests’ (Milhaupt and Pistor, 2013: 330). The signalling function of the legal system, which is highly significant in China, is to send out a message of policy intentions and principles that are going to be followed. By credibility enhancement, Milhaupt and Pistor mean the use of the legal system to strengthen belief in policies that are signalled by legal measures, also highly significant in China.

In tracing the ways in which property rights and relatedly the legal system or rule of law has evolved in China, I argue that property rights in China since the 1978 opening up have not conformed to individual ‘western’ common-law-based protectionist rights; but nor have they been non-existent, and the legal system has evolved in an iterative fashion under the state apparatus. Rather property rights and the legal system and rule by law, have been used by those in charge of the state – the Chinese Communist Party (CCP) and state bureaucrats at various levels, central, provincial, local – to protect certain property rights to assist economic development. The groups that have been protected have varied over time and between regions.

The settlement of property rights is always a distributional issue: Kennedy (2013) argues that where one group’s property rights are strengthened, another group’s are weakened.  In China (as with our other case studies), there are different types of property rights and different groups of people with claims to those rights: rural land rights vs enterprise property rights; rural property rights vs urban developmental rights; official-backed and run state-owned enterprise ownership rights vs private-enterprise rights. These types of rights have shifted over time: different groups have come into favour and then fallen out of favour in how far the regime has backed their rights. Below I mesh the progress of different kinds of property rights onto the evolution of the variety of capitalism that China has been building since the late 1970s.

The second but related theme of the chapter is to understand the nature of this state.  I am using North, Weingast and Wallis’ (2009) Limited Access Order (LAO) framework to think about the issues of elites, and the nature of the state in the context of an elite Communist Party.  What is the relationship between the Chinese Communist Party (CCP) and state cadres and how has the composition of the CCP changed over time? What are the incentive structures used to control local officials’ behaviour and tie them in to market expansion? It explores how the CCP has maintained control using a combination of decentralization over economic incentives for local officials and centralization of control over political careers, dependent on yardstick competition in economic results. CCP and local official backing for local non-state enterprises have been the source of economic growth, first in the 1980s through the Household Responsibility System (HRS) and rural non-state (largely private) Township and Village Enterprises (TVEs), as well as through the accommodation of official-backed private enterprises, both domestic and foreign.

The development of the market means non-state activity, private sector, so including TVEs and the HRS. But it means more than the enterprise forms: it includes the use of the price mechanism, competition and economic incentives which includes career incentives, such as promotions and pay within the state career ladder. Use of these ‘price mechanisms’ are market-supporting in the sense that they harness the use of individual knowledge of capabilities, demands, energies which are or were only available at the local level to individuals knowing the context of their own capacities (Hayek, 1945). The paradox has been that these types of incentives have been heavily used within the CCP and state apparatus to give ‘high-powered incentives’ to cadres to use initiatives in the promotion of economic development, set as a local target post 1978.

State policy towards enterprises has provided relational ‘good enough’ property rights (Coase and Wang, 2013), security of the proprietor (Huang, 2008) rather than secure individual private property rights per se, to foster spectacular growth of those enterprises, initially coming out of poorer inland provinces. The CCP has adapted and shifted through ‘gradualism and experimentation’, like the meta-institution that the seventeenth century English Parliament was, both in its policies towards fostering markets and in its own composition, replacing ideologically Communist Party members with more technical expertise, ensuring that the ‘non-critical’ realm of new property owners, managers, growing numbers of middle classes would stay supportive of the regime, in their own interests. It has eschewed the ‘double balance’ espoused by North, Weingast and Wallis (2009) that argues that markets and capitalism in the economic sphere need to be accompanied by a move towards representative democratic politics.

The third set of themes that is explored in this chapter relates to corporate governance, China’s Variety of Capitalism. It examines the corporatization of both State-Owned Enterprises (SOE) in the interests of raising equity and access to broader sources of finance coming through listing on the newly created stock markets of Shanghai and Shenzhen. Relatively strong state control of management of these listed firms has been maintained by the state, continuing to hold block ownership of the bulk of shares in those companies and controlling who the top management of these firms were. There has been an absence of independent legal enforcement of discipline on managerial behaviour – very poor financial disclosure, few market-driven takeovers and little legal punishment against misappropriation. To counter this lack of institutions, and to provide some information flows, the quota system of local officials choosing which companies can be listed, with ranking of companies for listing based on their performance, has mitigated to some extent the lack of an effective legal framework, argue Pistor and Xu (2005). Although it is argued that more viable companies become listed, there is then an incentive not to reveal their weaknesses, resulting in misappropriation, tunnelling, and asset stripping by managers with relatively little in the way of state will to detect and punish these crimes. Workers’ rights in this erstwhile socialist regime have been disregarded, as capitalist market growth has let rip, with labour surpluses kept in check only mildly by the hukou registration system, which in turn has served to create a dualization in the labour market around more privileged urban workers on the one hand and rural migrants on the other, lacking official status and welfare support. The combination of lack of either market or state discipline over management combined with lack of worker rights has promoted a political capitalism, without the market checks and legal protections afforded by decentralized individualised property rights backed by the legal system of the Liberal Market Economy, and without the labour protections and coordination mechanisms of the Coordinated Market Economy.

The rest of the chapter is organized as follows. The next sections on primary institutions look at the nature of property rights in China and their relationship to the legal system; and explore the nature of the state, the dominant coalition of elites, examining the relationship between the CCP and the state apparatus, the CCP’s relation to institutional development and its changing composition. I then look at the meta-institutions of organizational forms of enterprise and corporate governance, focusing on the corporatization of SOEs, the launching of stock markets in the early 1990s and the governance relationships between the state as owners, managers and employees. I conclude with thoughts about China’s Variety of Capitalism.

Primary Institutions: Property rights and the legal system

As in previous chapters, I am building on Milhaupt and Pistor’s (2008) framework (see chapter 2) analyzing the relationship between property rights and legal systems. There are three main dimensions of differentiation of property rights systems: according to how centralized or decentralized the legal system is, meaning whether law emanates from the centre with strong state influence or is created in a more dispersed fashion – both geographically and in terms of power structures. This is aligned  with how contestable  property rights are, meaning whether individuals or groups can bring cases through the courts, can challenge decisions, bring class actions, whether they have access to lawyers and the influence that lawyers and judges have on the system (in turn related to their numbers, their status, their education and therefore influence).  The third dimension is assessing the various different functions that property rights systems provide, distinguishing between their protective function, their coordinative function giving different groups a place at the bargaining table, and their signalling function to provide a lead on the direction that policy is taking.  I add to this a fourth dimension which I have been highlighting in previous chapters, concerning the type of assets that are being protected through the legal system: tradable assets of investors based around ensuring fair market trading and protection of minority investors (in the liberal Britain and United States); protection of strategic assets of more closely held firms with a strong coordinative function to property rights and the state as regulator (in Continental Europe); or where the legal system and property rights supports the state/Party elites’ interests with a stronger role for the state as coordinator, and in the maintenance of order (in Tanzania and China). Which assets are protected bears a strong relation to which groups form the elites in each society.

This chimes with David Kennedy’s (2013) arguments outlined in chapter 2, that legal systems of property rights always have distributional implications; property rights – whether they are private or public legal regimes, or playing off formal rules against discretionary standards – are always decided or clarified in favour of particular groups and in doing so harm other groups. Identifying who those groups are at particular points in time is a theme of this chapter.

Property rights in land for small farmers, were initially strengthened between 1949-56 (Prosterman, 2013). As Prosterman says, the Chinese revolution, led by the CCP, was supported by the 60 per cent of the rural population who were poor tenants paying rents to landlords. Farmers were issued with land certificates and titles to land.  Post-1956 individual rural property rights disappeared and have remained weaker than rights accorded to urban development. With collectivization from 1956, individual rural land rights disappeared with disastrous results of falling production and famine and up to 30 million deaths between 1956-62.

From the period of opening up in the late 1970s, there are the beginnings of the use of market incentives which heralded a sort of capitalism.  There were no formal individual property rights protecting private property until the property law in 2007, although post-2004 private property rights were recognised. But this has been a process of recognition of property rights of those who will deliver economic growth through private enterprise.  Property rights have been informally recognized or tolerated rights, backed by local officials.

Given the incentives of the CCP, those groups which through enterprise development could foster economic growth and results – through GDP, exports, employment – at the local level were recognized as legitimate. They have extended – through the HRS – to giving incentives to rural farming households. But in any contest between rural farm and urban enterprise development, it is the latter that has won out.

In China both clarity of property rights and the notion of individual liberty are not concepts that have the same resonance as in the west. The United States enshrines liberty to include property rights. Zhang quotes Western jurisprudence on liberty and property: ‘you can’t give up one without losing the other’ with property rights as the cornerstone of liberty, the right to own private property being an essential human right as well as the basis for economic growth (Zhang, 2008). Western ideas of liberty means both right to private property and freedom from government interference, (the possessive individualism talked about in chapters 4 and 6; Macpherson, 1962; Laslett, 1960) and in particular governments may not interfere with property rights without the process of law. In China it is different. The notion of inalienable individual rights is much weaker. If rights are recognized, they are deemed to have been given or granted, and can therefore be taken away as well. Having said that in 2004 the National People’s Congress (NPC) amended the constitution to protect the individual, ‘freedom of the person’ and the personal dignity of citizens as inviolable’ (Constitution of China, 2004)

Private property rights were not fully acknowledged until the 2004 amendment to the constitution. Under Article 13 of the constitution, as amended in 2004, citizens’ lawful private property was declared ‘inviolable’. This became the property law in 2007 granting legal protection to private property rights. It placed private property on equal footing with public property for first time.

What I am interested in is the period up to that point in 2007, where economic reforms and private enterprise grew up in the absence of such legal recognition and protection of private property. How secure was private property and contracting and private enterprise that produced goods for the market? And how were those property rights secured? There remained a stigma against the term ‘private’ as it was deemed to signify ‘capitalist’ in an era when official ideology remained socialist. The superiority of public ownership had been enshrined in the 1954 constitution in Article 6. The 1975 constitution added ‘socialist public property is inviolable’ and 1982 constitution read ‘sacredly inviolable’. Under the 1982 constitution, the state owned urban land whereas the collectives owned rural land, administered by local officials (Volberda et al., 2011: 673).

In the 1982 constitution there was the shift from pure public ownership to multiple ownerships – recognizing that the market, to the extent that there could be a socialist version, required a broader notion of property ownership. Getting rich, which was endorsed as legitimate at this time, required at least non-public ownership and a need to respect private rights. The 1986 civil code – General Principles of Civil Law of China – had the purpose of protection of lawful civil rights, whilst not calling them private or individual rights. The 1988 Amendment to the 1982 constitution allowed the private sector to exist as a supplement to the public economy. It protected the lawful rights and interests of the private sector and allowed the transfer of right to use land. It did not use the term private property or ownership but the term private economy as a supplement with state powers to guide, supervise and control the private economy. The 1988 amendment was a legal watershed. Private property was recognized in the 1980s, but not as strongly protected as public property.

Whose property rights? Rural agricultural land rights vs urban development

Property rights are a bundle of rights: the rights to control, the rights to derive income from property, the rights to transfer property even in the absence of full ownership (Oi and Walder, 1999). Rural land rights did not include rights to transfer ownership: in the 1990s farmers were granted 30 year leases, but could not use the land as collateral for loans nor sell it. They could rent it out but paid a fee to the local administrator for doing so (Volberda et al., 2011: 669). This compares with urban residential leases, which were for between 40 and 70 years. Farmers’ land was not secure from seizure by the state; compensation to farmers was for its agricultural value, a tenth of its market value, with the village administration taking a cut. The government did not want a free market in rural land, with farmers selling holdings. This compares with urban private property, which individuals have used as collateral for loans and have been able to trade, creating huge wealth for individuals. In 1998 rural land rights were reformed somewhat: farmers were issued land-use contracts, and in 2003 there were restrictions introduced on collectives reassigning land within villages and strengthening farmers’ rights to transfer land between farmers, for farming (Volberda et al., 2011: 672-673).  This contrasts with more liberal urban rights; the urban housing market was privatized in 1998 and workers could buy their houses.

Enterprises in the 1980s, security of property rights and capitalist incentives.

The nature of property rights and contract enforcement need to be understood in the context of the growth in various forms of the private economy or non-state sector from the 1980s. The growth of these enterprises was closely related to the stimulus of market incentives allowed by the state. In other words, being allowed to keep surpluses, selling above the quotas onto a market constituted a form of private property right that had not been allowed previously, a right over resources sanctioned and protected by official dictum.

There were four forms of private enterprise: private farming and the Household Responsibility System (HRS); Town and Village Enterprises (TVE), Special Enterprise Zones (SEZ) and Geti (individual urban) enterprises (Coase and Wang, 2013). In agriculture, the institution of the HRS adopted in 1982 gave households the ability to keep the residual once their plan quotas were fulfilled. The State had formal ownership of land and controls over pricing. But households replaced team contracts and could buy means of production. Agriculture took 71 per cent of labour force in 1983.

The TVEs represented rural industrialization with non-farming jobs for peasants, coming out of old commune and brigade enterprises which employed 28 million peasants in 1978. The 1984 No. 4 resolution renamed these as TVEs, named because of their location rather than ownership. TVEs grew to employing 135m people in 1996, with the share in GDP growing from six per cent to 26 per cent of a growing GDP. 1980s saw a flourishing of rural entrepreneurship – the setting up of private businesses especially in the poorer provinces (Huang, 2008: chapter 2). This is the period when private enterprise was often disguised as red hat (Tsai, 2006). The private economy was still held in contempt: parents would not allow daughters to marry men in the private sector. There were three nos for the private sector: no promotion, no publicity and no ban. So these enterprises were tolerated for the tangible economic benefits they were bringing but had second-class status in terms of formal recognition and protection.

Property rights and contracting were not guaranteed by law but by power structures, agreements between officials and local family structures (Mann, 2013: 229).  Officials and local families reached agreements; there were mutual synergies between local governments and local economies; investments were channelled into favoured projects (Shamburgh, 2008: 17). The role of local officials was critical in the security of property rights; they had decentralized authority with incentives to obtain regional growth. This was an iterative process between experiment on the ground, delivering economic results, this being recognized as beneficial by local officials and the official line adapting to reflect and acknowledge practice. There was also corruption and rent-seeking; what Shamburgh terms ‘organized dependence’ between the Party/state apparatus and citizens (Shamburgh, 2008: 20).  So state socialism in the urban sector was counter-balanced by the more dynamic and productive household-centred small rural businesses in the rural sector, with poorer provinces in the vanguard in the 1980s (Huang, 2008).

Who owned the TVEs? Xu (2011) says the community governor was the de facto owner and that property rights were vague. Huang (2008: xiv) argues that ten million out of twelve million TVEs in 1985 were completely privately owned.  How secure were these property rights in the opening up period? Huang (2008) talks of security of the proprietor rather than the security of property; that it became less dangerous to open an enterprise, compared with the cultural revolution period. One example that Huang (2008) gives is of the watermelon seed seller, Nian Guangliu in Anhui province, who became a millionaire. But Deng had to speak out for him in 1984 and 1992 to defend him from imprisonment. Others suffered assaults on private business. In 1982 there were 16,000 cases of economic crimes, 30,000 people arrested. Many private businesses were disguised as red hat enterprises or survived by bribing state enterprises to be part of them (Tsai, 2006). ‘Rural enterprise, that’s our second treasury’ said a local official (Mann, 2013: 230).

Township governments provided infrastructure, financing land and training labour. In exchange, TVEs had access to resources. Official recognition overcame weak legal protection and weak contract enforcement. There was a mixing of enterprises with officials: in Jiangsu province, large manufacturing plants employed local village labour and were run by local officials; officials assisted in steering enterprises towards cheap state credit, how to qualify for funds, arguing for tax breaks, inflating the size of the workforce. There were tight relations between local officials and enterprises. Regional administrative measures acted as substitutes for law and law enforcement (Xu, 2011).  Pistor and Xu (2005) argue for the movement in China from de facto to de jure rights, that laws developed after business practice. The roles of the municipal governments of Taizhou and Wenzhou of Zheijiang province, where the private sectors were ahead of the legal framework, catalysed the legalization of private property rights (Du and Xu, 2008).

There was variety between regions. Prototypes were tried out in Anhui, Sichuan and Guangdong with land and output quotas contracted out from local governments to households. This was then rolled out. So in 1981 45 per cent of households participated; 80 per cent in 1982 and then 99 per cent in 1984. Households kept their residual incomes; control rights of allocation and management of land resources was kept by local officials. Jiangsu province had a long history of entrepreneurship; the Sunan model in southern Jiangsu gave a leading role to community government. The Guangdong model was linked to the SEZs and foreign direct investment (FDI) from Taiwan, Hong Kong and the diasporas. The Wengzhou model, in the poorer mountainous region, local officials were key entrepreneurs, labelled red hat with protection, with regulatory remedies for lack of property rights. Administrative provisions for registered operations gave private business in Wenzhou a legal identity. For example, there were local clusters of footwear firms with distributed but coordinated ownership, with government owning land and buildings. In Zheijiang province, 60 per cent of the province’s output was private by 2000, with local government support. (Xu and Zhang, 2009)

Huang (2008) emphasizes the upsurge in the 1980s in the creation of enterprises: Village party secretaries became capitalist bosses (Chen, 2003 in Huang, 2008); private cooperatives grew with government credit; the military set up enterprises, prison camps set up enterprises. Urban control over rural areas was abolished in the 1980s: collective production in communes was replaced by the contract responsibility system whereby farmers could market their surpluses out to nearby urban areas. Rural industrial firms were emerging as competitors to the state sector. Xu (2011) says that agricultural output increased by 61 per cent between 1978-84, with 78 per cent of the increase attributable to the institution of the HRS according to McMillan, Whalley and Zhu (1989). Coase and Wang (2013) argue that it was the poorer provinces that were in the vanguard. TVEs accounted for 4/5 of output of the non-state sector by the early 1990s. Between 1981-1990, industrial output of the TVEs grew 28 per cent per annum, compared with that of the state sector which grew at 7.7 per cent per annum.

Special Enterprise Zones were regions of private enterprise. This was part of state policy – that of having designated SEZs that were containment areas for the market economy and particularly for foreign direct investment. FDI was negligible in 1978; it was driven by the institution of the SEZ. In 1985 37 per cent of FDI was in SEZs; by 2005 this figure was 93 per cent, accounting for a similar proportion of exports. SEZs were initiated by local governments, the first four were in Shenzhen, Zhuhai and Shantou in Guangdong province, and Xiamen Fujian in 1980. In 1984 they were rolled out to 14 cities, and reached 342 cities by 2005.

Privatization of state-owned enterprises (SOEs) was gradual, carried out by regional governments at their discretion. They would not do it if it hurt growth. It was done from the mid-1990s, a de facto privatization through leasing of SOEs, whereby firms paid subnational governments a proportion of their profits. In Zhucheng in Shandong province, lossmaking SOEs were sold to employees. The policy was to retain the large (large firms in strategic industries), release the small. Privatization increased after 1997 through share issues, joint ventures, sales to outsiders (Gan, Guo, Xu, 2008). De facto ownership was turned into de jure by the mid-2000s; in 2005 regional governments still owned 31,000 SOEs, whereas central government had control of 166 firms. This was still state ownership but was on the way to privatization; regional governments sold land for development to raise revenue, taking property away from agriculture.

The flipside of property rights being at the behest of regional governments with law making and contract enforcement under their control, was that property rights of the agricultural population were weak. Regional governments favoured urbanization and urban development and they ignored the land quota system controlling the conversion of arable land to non-arable. Arable land was de jure collectively owned by the commune and village. Rights of use and income were assigned to farm households in the early 1980s. But farmers and village authorities could not alter land usage, nor transfer it; they were subject to the whims of local governments in the question of land conversion. Kung, Xu and Zhou (2013, in Stiglitz, Kennedy) argue that conflicts between local officials and farmers have been the outcome.

Rule of law in China

There are two sorts of argument put forward here in considering what role the rule of law has had in Chinese economic development. The first point of view stresses the subservience of the rule of the law to the CCP, the lack of independence of the judiciary (through low status, poor educational standards) from the political system and the CCP. The second viewpoint (Milhaupt and Pistor, 2008; Pistor and Xu, 2005) stresses the difference in functions of the legal system from its independent protective function in the west, more to do with coordination, signalling and credibility of policy than protection of investors. Again I want to tread a conciliatory middle ground: that the legal system is weak, is non-western, and is subservient to political processes and CCP policy; but it has evolved and is evolving and has grown in stature and independence. The judiciary remains however fundamentally less powerful than in western liberal systems. I deal with each argument in turn.

The legal system in China was created by the CCP which abolished the previous laws, decrees, judicial systems of the Kyomintang government in its September 1949 common program (Zou Keyuan in Brødsgaard and Yongnian, 2006). The first constitution of 1954 established the socialist legal system. The cultural revolution destroyed this legal system, smashing the structures of public security, procuratorate, courts. Post 1978 the legal system had to be rebuilt. The third plenum of the eleventh central committee of the CCP in December 1978 declared its purpose to strengthen the socialist legal system so that democracy was systematized and written into law. Formally the law was elevated and the equality of all people before the people’s laws, denying anyone the privilege of being above the law.

Rule of law, the constitution and the CCP

The Chinese system is less bounded in terms of what can be made law than the western system: the law is not independent from what the CCP can create and the constitution is used to enshrine principles and policies by which the CCP wishes to operate. The rule of law has been created by the CCP and is not independent of it. It can, therefore, be interpreted and unmade by the CCP. The rule of law was incorporated into the 1982 constitution (Zou Keyuan in Brødsgaard and Yongnian, 2006).

The Party constitution and state constitution have a close relationship; the Party directs what is to be adopted and measures made in the Party constitution are adopted into the state one. Constitutional changes follow changes in the Party constitution: amendments in the Party constitution were in 1987, 1992, 1997 and 2002; amendments in the state constitution were in 1988, 1993, 1999 and 2004.

For example, the state constitution adopted in 1982 embodied the principles of the 1954 constitution of all citizens being equal before the law, with the people’s democratic dictatorship replacing the proletarian dictatorship; it also enshrined the policies of economic reform, seeing the construction of modernization as a national task (Zou Keyuan in Brødsgaard and Yongnian, 2006).  This process has continued:  the 1988 amendment to the 1982 constitution legitimated the existence of the private economy, giving a constitutional basis of the commercial transfer of land use rights and constitutional protection to different forms of non-state ownership. The rule of law and its status therefore falls within the political sphere of power; it is seen as something political rather than as an independent institution and in the 1980s the rule of law was set as a political priority in terms of political development.

The Party decides policy and then makes the law. Any law of major principle has to be reported to the CCP central committee for approval. The Party has discretionary power to intervene, especially on economic, administrative and political laws. And it has control over appointments to the National People’s Congress, the legislature. CCP members account for over 70 per cent of NPC representatives and is, therefore, regarded as a rubber stamp for Party policy.  The chairmanship of the NPC is taken by the Party secretary general. In 2003 22 chairmanships of provincial People’s Congresses were filled like this. The CCP therefore will not allow laws in conflict with it. When Tiananmen Square protests happened, martial law was passed hastily. Zou sees this as a way for the CCP to legitimate itself, through the use of process and rule by law. For example, administrative procedural law gives the right to citizens to bring Party members or organizations to court.  But at the same time the CCP has been clear to retain control over legislation, despite using legal procedure.

The status of law has shifted in different periods according to political priorities. The early 1980s was a period of discussion of democracy and the rule of law. From 1996 Jiang Zemin at a law lecture for the CCP Committee made it an objective requirement to rule the country in accordance with law; it was seen as a symbol of civilization and guarantee of stability. Post-2001 there has been an emphasis on rule by virtue, meaning belief in communist ideals and collectivism, with legal and ethical norms going together.

The relationship between the state and the rule of law is critical to determining how China fits into the North et al. (2009) framework. They argue that Open Access Orders have a series of conditions relating to the rule of law: impersonality of the rule of law, that it does not matter who you are, you will be treated equally before the law; independence of the judiciary from the state; a legislature creating law that is independent of government; and government bound by the rule of law (North et al., 2009).

China has a different take on what is meant by the rule of law in western institutional terms. The Chinese rule of law does not match up to these western ideals. The CCP has used the rule of law to legitimate its processes: the Party is above the law but there is recognition that there is need for law.  Despite constitutional declarations, there is not equality before the law, nor stability of law; in this sense China does not fulfil the North et al., conditions to be an Open Access Order (OAO).  For example, in dealing with corruption, the Party investigates corruption ahead of the judiciary (Manion, 2004).

Milhaupt and Pistor (2008) assert that western style indicators of rule of law are not the appropriate measures to consider how the Chinese legal system has worked. This goes against La Porta et al. 1998, 2008, who argue that China’s formal legal system is weak, politicized, controlled by the CCP. The Milhaupt and Pistor, (2008) framework (see chapter 2) has two leading dimensions: how decentralized or centralized is the legal system and how contestable is the legal system. The legal system in China is a peculiar mix of centralized and decentralized: law-making has followed centralized CCP policy-making but enforcement of law has been decentralized to the regions. Formal law expanded over the thirty years since 1978. Focusing on central government law misses what is going on at the regional and local levels: for example, for the SEZs a specially designated set of rules was designed to attract foreign investment and stimulate exports. Regional company laws, securities laws, bankruptcy laws were decentralized.  The system has not been contestable in that it has been difficult for plaintiffs to mount cases. In the late 1980s laws were passed making litigation against government agencies possible; the 1989 administrative litigation law allowed individuals to sue government agencies. The legal system has not been about legal protection for investors although there have been actions taken by investors according to Milhaupt and Pistor (2008). It has not been easy to litigate and only 20 per cent of possible litigation during 2001-6 was pursued. People’s Courts have heard one million plus cases; plaintiffs win 30 per cent of them.

The point Milhaupt and Pistor are making is that the function of law has been evolving, that the legal system is a living dynamic system. The Chinese state set out to use the law to coordinate and as an instrument of state control but also to signal the direction of policy. However, the legal system takes on life of its own and the government can’t control the law entirely.

How independent is the judiciary from the CCP?

It is quite clear that the legal system in post-1978 China is not set up on a parallel basis with western liberal systems, despite officially being modelled on the civil law systems of Germany and France. As with property rights we have to distinguish between official pronouncements and practice on the ground, both of which have been changing.

First, the judicial system was not conceived as being independent from political control. President Xiao Yang in 2007 said ‘the power of the courts to adjudicate independently doesn’t mean independence from the Party. It is the embodiment of a high degree of responsibility vis-à-vis Party undertakings’ (Yang, 2007); the judiciary is not independent of the Party and its loyalty is a requirement.

The intertwining of judicial and political authority has meant that alongside the construction of the 1980 organic law of the People’s Courts and the 1982 state constitution, there were established four levels of courts and adjudication committees for courts at every level to review cases, find errors and interrogate judges. There are special courts for military, transport and forestry, which are more explicitly political, dealing with plundering, bribery, sabotage.  It is a highly centralized structure under the Supreme People’s Court having four tiers; in 2004 it had 3,500 courts and 220,000 judges (against 70,000 in 1988). If branch courts are included, there were over 10,000 courts in 2004 (Cabestan, 2005; Grimheden, 2006).

The political legal committee of the CCP was founded in 1980 and was put in charge of big issues. On it were the heads of the Supreme Court, the Supreme Procuratorate, the Ministry of Public Security and Ministry of Justice. It gave instructions to courts on the handling of cases. It could issue legal documents; it could strike hard yanda campaigns on crimes by mafia gangs, for example, 1993 yanda against kidnapping of children and women, 2000 yanda against gangs. Punishment could bypass normal legal procedures, with courts following Party instructions. The CCP Discipline Inspection Committee, whose remit is to safeguard the Party constitution and rules, interferes with judicial work and is an alternative to using the courts. For example, in 2002 the Party discipline inspection committee listed 861,917 cases for investigation and punished 846,150 persons. It handed over to the judiciary only when the cases had been through the discipline committee (Zou Keyuan in Brødsgaard and Yongnian, 2006:91).  Cheng Weigao, the Party Secretary of Hebei Province, was accused of accepting bribes and his two personal secretaries were sentenced to death. He was brought to the discipline committee and expelled from the Party, and his case did not go to the judiciary. This is an overtly politicized legal system; the Party mechanisms are seen as alternatives to the judicial system. Only 0.5 per cent of lawbreakers are punished, says Zou Keyuan, and only 0. 056 per cent are punished for corruption. The influence of the CCP over the judiciary is huge. There are certain Party documents – red-dotted documents – that are above the law. In 2003 Zhang Yinghong, a cadre in the Party organization of Hunan, published an essay on how the political legal committee hampers judicial independence; this was condemned and he was pushed out.

However, there are signs that this predominance of the CCP over the judiciary has begun to change. This attitude has in 2012 been officially softened. There have been more recent reforms – in 2011 and 2012 prohibiting self-incrimination, barring illegally obtained evidence, and speeding up trials for suspects. The 2012 state council paper on judicial reform does not mention the subordination of the judicial system to the CCP (Lubman, 2012). So things are changing. It is nevertheless a highly centralized and incontestable legal system, hard for individuals or class actions to be taken up independently against either other individuals or against the state.

Low status and poor education of Chinese judges

Judges have been seen as political animals (Wall Street Journal, 2014). Many are leaving, fed up with time wasted on political study, on transmission of attitudes, reflecting on important speeches (Liu Shibi, veteran court judge on Weibo). It is unusual for judges to speak out; but there is much discontent and many are leaving.

There has been recent attention paid to promoting the rule of law and fighting corruption under President Xi Jinping. They are not aiming to create a western legal system. They protect Party authority over politically sensitive issues. But there are many disputes, strikes and protests – over 100,000 per year. Liberation Daily (2014) reported that on average 67 judges per annum have resigned from the Shanghai courts since 2009. Making judges more independent of local officials is one aim, by transferring power over local court budgets to provincial authorities.

Compared with the western judiciary, judges’ education level is extremely basic. Judges in 2014 come to courts from law school and are on the bench after a couple of years as clerks. Ten years previously, in 2004 they had no legal training. Ai (2008) survey on judges’ educational levels stresses the poor level of training and qualifications in 2004. Their pay has been low which has made them open to corruption. They have been pushed to consider issues of social stability when deciding cases. Courts are seen to be the weakest point of Chinese government (Cohen 2014).

Primary Institutions: Nature of the state

I talked about the relationship between the state and rule of law and property rights in the previous section. I cannot consider how centralized/decentralized and how contestable property rights and rule of law are in this system without understanding the structure of the state administration. This section talks about the structure of the state: its regional decentralization and the relationship between Party and state.  It is also looking to answer the question is of who the elites in China have been and are and whether they are within the state, the Party or in civil society.

I divide this section on the nature of the state into:  regional decentralization and the relationship between the central state and provincial governments and how the centre has maintained control over the provinces despite regional autonomy over expenditure; the relationship between the state bureaucracy (cadres) and the Party in terms of administrative structures and incentives and changing composition over time.

Regional decentralization and state incentives

A key ingredient in the contribution of ‘institutions’ to Chinese development has been the structure of incentives – structure in terms of geography and organizational structure.  China has had a peculiar mix of decentralization of authority to provinces, municipalities, prefectures whilst maintaining a centralized control over careers of its state cadres. Chenggang Xu (2011) calls this a regionally decentralized authoritarian regime, with a combination of regional decentralization and political centralization. Xu argues that this structure is responsible for the success of the HRS and non-state enterprises. This is how regional economies have worked: they are self-contained in the sense that subnational governments have been responsible for initiating and coordinating reforms, providing public services, making and enforcing laws, giving these local governments huge powers over land resources. The 1958-2002 average for local government expenditure was 55 per cent of public expenditures, well above the figure for the average democracy of 25 per cent decentralization of expenditures (Landry, 2008). Xu (2011) gives a higher figure for 2006, that subnational governments have been responsible for 70 per cent of public expenditure, compared with 46 per cent in US, 40 per cent in Germany, 38 per cent in Russia (Xu, 2011). China has had one of the lowest proportions of central fiscal revenue (World Bank, 1990). Fiscal reforms of 1993-4 recentralized somewhat, with a clearer institutional separation between central and local tax bureaux. Relative to western economies, such as the US and Germany, a far higher percentage of expenditure has been devolved to the regional level.

Competition between regions has been an important incentive, with economic reform built into the incentives of officials, and a ranking between provinces, municipalities, cities according to various measures of economic performance. Regional governments have been controlled by the central state through the rotation of governors (Xu,Wang and Shu, 2007). Various forms of competition have been used as incentive mechanisms, such as performance targets with target responsibility contracts with superiors, ranking of officials by lists, for township officials, for governors of provinces, and using rotation and promotion of governors as a reward and incentive mechanism. Xu likens the governance structure of government to an M-form hierarchy: regional governments were granted autonomous powers but were controlled through appointments by the central state or CCP. Between 1978 -2005 80 per cent of provincial regions had rotation of governors imposed by central government (Xu,Wang and Shu, 2007).

Competition between the regions has had a particular structure. At each level – provinces, municipalities, counties, and townships – careers have been linked to performance, measured in terms of various types of economic growth such as GDP total or per capita, growth rate, FDI attracted and where that unit is in the rankings. The upgrading of counties to municipal levels, an advantage in terms of resources, has been based on performance. This has been helped by regional lack of specialization, with each region as a self-sufficient unit with a mix of industries. This has weakened interdependence between regions and has fostered competition.

This contrasts with the industrial structure in the USSR where there was specialization and high interdependence between regions. Xu calls this tournament competition between regional officials, where regional officials’ promotion has been related to the performance of the jurisdiction relative to the national average: if the average growth rate was higher by one standard deviation, this raised the probability of promotion by 33 per cent. If the growth rate is lower by one standard deviation, this increased the probability of termination by 30 per cent. These incentives have had an impact; provincial growth has mattered for governors and officials. The upgrading of cities, which gives municipal governors greater authority has been dependent on higher growth rates. This has created an endogenous cycle of career promotion, upgrading authority, attracting FDI and domestic investment leading to faster growth and further career promotion. Xu argues that this process has worked better with simpler non-conflicting targets such as economic growth and led to ditching more complex redistributive targets such as lessening inequality. Local officials have balanced their raising of revenues against giving incentives to non-state players through the HRS, land tenure, the SEZs and TVEs. To the extent that enterprises and private ownership brought in taxes and fulfilled economic targets – in terms of employment, numbers of enterprises, economic growth – this relationship (between officials and the private sector) has been symbiotic.

Party control over state capacity and state structure

The Chinese economy was decentralized in structure with authority for expenditure at the provincial level. But this gave rise to a fear of local elites and their independence. This was countered and controlled by the structure of the Party administration. Higher authorities had leverage over their subordinates; locally managed enterprises remitted a portion of their revenues to the county level bureaux. This created a form of control from above over local revenues (Blecher and Shue, 1996 in Landry, 2008). The political capacity of central government is not captured by the degree of fiscal centralization. Institutional control has been maintained through Party administrative incentives. The mechanism of control is through the selection of leaders by the CCP at all levels – national, intermediary and local (White, 1998 in Landry, 2008). There is a dual state structure of state cadres and CCP members and a linkage between the cadre management system and political control over the elites. There is a Party web of veto points throughout the cadre hierarchy: Party approval was and is needed for access to offices at all levels of central, provincial, municipal, county and township officialdom. No cadre was appointed without the assent of the CCP committee.

The CCP used the appointment system to get responsiveness to policy from the provinces. The one level down system of cadre management was a mechanism for decentralizing but not giving local autonomy; this was how the CCP dealt with the idea that ‘the sky is high and the emperor is far away’. Although expenditures were devolved to the local level, control over local elites was maintained, using the incentives of getting economic growth and rewarding officials for it (Yin, 2001 in Landry, 2008: 39). Personnel policy controlled by the CCP has been used as a critical intermediary variable. The cadre responsibility system meant that central government steered local leaders and held them accountable, using promotion, dismissal, transfer to enforce their authority. Performance contracts were used whereby Party secretaries and township officials signed contracts pledging to reach targets, and were held responsible for them. There was a ranking of different targets into soft, hard, priority or bottom line. If the township did not make its priority targets, this would cancel out all other work performance.

The elite, the CCP

Shamburgh (2008) talks about the changing nature of the communist party state from its mobilization phase under Mao towards its bureaucratic phase, a move from a totalitarian regime towards an authoritarian regime. The government’s rationale has been to hold onto power and to adapt itself and adjust in order to do so, what Shamburgh calls both atrophy and adaptation.  There is division over how strong or coherent the CCP is. It has relied on its capacity to deliver economic growth (Hutton, 2006). Others have emphasized the predation and corruption of the CCP, rent-seeking of officials and rural discontent, what Minxin Pei (2006) calls a trapped transition. Optimists have emphasized the benefits of economic reforms in strengthening state capacity.

What is clear from the reflections on the nature of communist states at the fall of communist parties in Eastern Europe from 1989 and with the disintegration of the Soviet Union in 1991 is the reflexivity of the process, that the CCP learned lessons from the failure of these communist parties and resolved to adapt themselves in order to hold onto power. Shamburgh (2008) talks of the CCP view that within the socialist system the market could and should be used, that there had been too little emphasis on agriculture in the USSR and too much emphasis on industrial economies of scale, on the state monopoly of property rights, there was over-centralization and too low a tax base. A Central Party School member, Zhao Yao, in criticizing Gorbachev, implicitly thought it possible to have market-like economic reforms whilst maintaining political authority and not going down the bourgeois democratizing route (Shamburgh. 2008: 170). Stability was thought to be paramount and Party leadership over the state apparatus was core. Evolutionary gradual change was thought to sustain this. This fits with the Limited Access Order framework of North et al. (2008), placing stability and lack of violence at the centre of concerns.

Who are the elites in this system?

The hub of the CCP structure was and is the Organization Department, in charge of personnel, the first department under heaven (Landry, 2008: 136; Shamburgh, 2008: 141). It was and continues to be in charge of retiring and replacing old ideological revolutionaries and recruiting younger, more technocratic and meritocratic members to the CCP. It was secretive, with no public phone number, no sign on the building near Tiananmen Square, with highly confidential and detailed dossiers, handling high level personnel decisions secretly. Its incentives were aligned with economic growth: to foster growth, create employment, attract FDI, control social unrest, achieve targets (Hoffman and Wu, 2009). In terms of incentives for local officials, if they managed to promote growth in their region, they could keep the surplus for reinvestment and would be more likely to be promoted from local to central officialdom. Shamburgh has an estimate of 70 million plus party members in 2003, with three levels of privilege: the nomenklatura system for the top 2,500 party officials at minister level and governor and party secretaries in the 31 provinces and four centrally controlled municipalities; the bianzhi system which is the system of the state bureaucracy administered by the state council and numbered 33 million personnel in 2004; and ordinary party committee assignments to the 168,000 party committees.

The Organization Department has processed several thousand cases a year to give approval to appointments, and has been in charge of the nomenklatura system since 1949 (Burns in Brødsgaard and Yongnian, 2006). There was greater openness in the 1980s about the role of the nomenklatura and then more secrecy in the 1990s following Tiananmen. Since China entered the WTO in 2001, greater openness has been required. Patronage extends to jobs, tendering, licensing requests. Economic development and the market system has been a challenge to the nomenklatura system, with individuals accumulating resources outside party control. The CCP stress on performance has been undermined by corruption and nepotism too. There have been moves to reform the bureaucracy for it to become more meritocratic, with no life tenure, to raise its education levels and to punish corruption.

State and CCP structures

How does the Party structure mesh with the state bureaucratic structure? Local government is a nested hierarchy under the state council with three tiers of provinces, counties and townships. There are some exceptions such as the autonomous prefectures responsible for the same things as municipalities, where the supervision of officials is weaker, or the central cities which are managed directly by the counties.  There are also local people’s congresses (LPCs) elected by representatives. All levels above the county have bureaucratic authority over the next level down. The strength of the LPCs and the rule of law have been limited. This structure runs in parallel with the CCP structure with the CCP replicating the states’ hierarchy at each level and asserting authority over the state via Party committees (Landry, 2008: 57). This is a highly complex administrative structure with dual accountability to both government and to the Party. Local cadres have some ability to take local decisions but the higher state hierarchy is monitoring them and Party officials above and outside the locality are monitoring the state officials.

The Party trumps state cadres. To be promoted, an official needs to be a CCP member as part of the route up. Village Chairmen and the Party Secretary are often the same people. As a snapshot in 1998, states cadres numbered 40 million, CCP members 60 million; of the 40 million state cadres, 25 million were non-Party and 15 million were Party. Of the 60 million CCP members, 15 million were state cadres and 45 million were outside the state cadres (Walder in Brødsgaard and Yongnian, 2006).  Walder estimates the CCP political elite to have been 0.5 million, with a state bureaucracy of 40 million and 45 million Party members outside the state cadres. If all groups stick together, then there is cohesion. Defections in May 1989 threatened the hold of the CCP. Challenges to the elite can come from both within and outside the state and Party membership. Underperforming cadres are not pushed out but are kept in post and in the Party, to control their opposition.

Composition of the CCP

In terms of who the elites are, I am interested in the social characteristics of Party members and composition of the Party. Hong Yung Lee (1991) talks of the change in the CCP from revolutionaries to technocrats. Dickson talks of the red versus expert debate (2003: 31). Landry (2008) says that there has been a shift from class credentials to being more educated. Dickson (2003: 31) says that post 1978 the period of class struggle was over; there were reconciliation policies with new goals of economic modernization creating new elites. They needed to include these new groups or be threatened by them. Hong Yung Lee (1991) reports on increasing proportions of college educated members, with a large peaceful elite turnover. In 2001 on the eightieth anniversary of the CCP, there were 64.5 million members, which amounted to five per cent of the population; 17 per cent were women, six per cent were ethnic minorities, 50 per cent were under 45 years old. This was a squeezing out of the proletariat. A 1990 study of 30,000 workers in 50 enterprises found 18 per cent had been Party members in 1982 which had fallen to eight per cent in 1990 (Dickson, 2003: 33). The Tiananmen period was an interlude of the party losing cohesion. From 1994 there was a renewed recruitment of workers and farmers as well as a push towards technical and entrepreneurial people and those in universities. Dickson (2003: 35) says 40 per cent of college teachers and administrators were party members in the mid-1990s. In general terms it has helped the career to be a member of the Party.

The Party has had different influences on rural and urban populations. The Party is less present in rural areas, with a declining membership. In rural areas, the Party branch committee supervises the village administration, controls the promotion of chairmen to party secretary; if there are candidates for election, it selects out anyone it sees as a troublemaker such as local activists (Landry, 2008: 234). There is more direct Party influence on urban committees with voters having less say than in villages. The relations between the CCP and enterprises have changed over the decades; Party thinking has shifted from seeing private enterprise and entrepreneurs as class enemies towards harnessing their economic benefits and recruiting them into the Party. There was a ban on entrepreneurs being in the Party from 1989-2001 which was then lifted (Dickson, 2003).

Tensions between development and democracy, market and CCP

Does economic development lead to civil society and lead to democracy?  The relationship between development and various freedoms, one of which being democracy, is not straightforward. nor is it a causal one (Robinson, 2006; Sen 1999; Lipset, 1959; Dahl 1971). The extension of markets means the dispersal of power, greater competition, choice, private citizens and firms having bargaining power, through their resources and through their position in civil society, acting as a counterweight to state power. Walder (in Brødsgaard and Yongnian, 2006) argues that the market system has eroded the institutional pillars of the communist system cutting out the mediation of the Party. Just as the legal system has had a life of its own in terms of escaping from control by the Party, so markets too have evolved beyond the reach of Party control.

China has confounded the North et al. (2009) idea of a double balance – that inclusiveness and development in the economic and political spheres necessarily go together. China has combined greater openness and market development in economic terms with no move towards democracy in political terms; the CCP has retained its hold on the political system. This process of economic liberalization without political democratization has created shared interests between middle classes and state officials (Dickson, 2003: 13). Entrepreneurs have supported the regime by and large; they have benefited from it and fear that political change would threaten their property interests.  The symbiosis between local officials and entrepreneurs, talked about above, has created joint interests; officials are partners in enterprises, they get fees for joint ventures, they tax farmers and firms.

Dickson (2003: 19) argues that civil society is not counterposed to the state in China but is embedded within the state, is not outside the state system, but rather inside it. The system is defined by the state and civil society is not antagonistic to it (White, Howell and Xiaoyuan, 1996). Dickson distinguishes between what he calls the critical and the non-critical realm. The critical realm includes outsiders to or non-beneficiaries of the system, protesters, some intellectuals; the non-critical realm includes entrepreneurs, managers, professionals who are anti-political in character and not engaged in political activities. For instance, they did not support the protesters in Tiananmen. The non-critical realm is crucial; if the critical and non-critical are not joined, the state supports the market dynamic but represses the political dynamic. State policies have been inclusive towards the non-critical realm. Entrepreneurs have not been interested in political power; they have solved issues of property rights and contract enforcement through clientelism, with a state that is sympathetic to local business views. This can be seen as a corporatist framework that binds state-society relations together. This contrasts with western civil society based on pluralism with the state as an independent actor (Dickson, 2003: 24). For example, the organization law of 1989 made every organization register with the government, supervised by the Party or government unit, creating limits to the autonomy of civil society organizations.

Has the CCP itself been changing?

As the CCP has been less in absolute control, there has been the need for it to work through other organizations (Dickson, 2003; March and Olsen, 1989) with the recognition of the need for mediation through market institutions. The CCP itself has been dependent on the growth of the private sector and the use of market forces, which themselves have undermined the status of the CCP: the working classes have become more independent of the state, there has been greater occupational and geographical mobility, challenging the Party’s ability to monitor and control. In response the CCP has moved towards co-opting businessmen, technocrats and professional classes. This has been done by ditching social goals and ditching the rural farmers. Huge inequalities have opened up – between provinces (especially coastal vs inland provinces), within provinces, and between rural and city areas (Dickson, 2003). The CCP has pushed the interests of employers over workers and of urban development over rural farmers’ interests. I turn now to how this gets worked out in terms of Chinese corporate governance.

Meta-institutions: Corporatism, organizational forms and corporate governance institutions

The Party/State (Mann, 2013) has created a corporatist framework as part of state-society relations, to bind society together (Dickson, 2003: 24). In this corporatism, unlike the west, labour side interests are not represented; it is corporatist on the business side.

The path of institutional development has been therefore very different from that taken in the liberal democracies. It is a more extreme version of the coordinated corporatism of Germany and France (to a lesser extent). The emphasis has been on institutionalizing the participation of key groups, achieving consensus and common goals (Dickson, 2003: 62). Corporatist structures have substituted for coercion, propaganda and central planning of the former era, as the state’s grip lessens. Every organization has had to register with the government and be sponsored by a state unit, with one organization for each profession or activity, so that they do not compete with each other. Leaders of such associations have been in the CCP, the Party not liking organizations to be outside its control (Dickson, 2003). Corporate groups are, therefore, not independent in the sense of acting as checks and balances on the state. Unger and Chan (1996) compare this process with that in Japan, South Korea and Taiwan which transitioned from state to societal corporatism, where groups acquired autonomy from the state as a consequence of democratization. Dickson’s (2003: 37) survey of business associations in China concludes that they are not agents of the state, but nor are they autonomous.

As to how inclusionary or exclusionary the Chinese state is, Dickson (2003: 68) argues that it is selectively inclusionary, incorporating some individuals and groups but excluding others. The CCP’s corporatism excludes the critical intelligentsia. It includes technocrats and entrepreneurs of the non-critical realm. The entrepreneurs in Xiamen disapproved of the student demands of 1989, placing stability above democracy (Wank, 1995 in Dickson, 2003: 96). In the 1990s there were ways of getting round the ban on private enterprise – through disguising them, through co-opting entrepreneurs into the Party. In the late 1990s the legality of private enterprise was established. By the 2000s there were special classes and programmes for entrepreneurs by the Party.  In return for official discretion and protection from competition, entrepreneurs were expected to contribute to the local community schools, roads and ward off jealousy of them, labelled red-eye disease. Guanxi and the corruption that went with it were diminishing; there has been greater reliance on laws and regulation. But there has not been a growth in liberal faith in parliamentary democracy; reform has been initiated by the Party rather than by society. In terms of political culture and beliefs, enterprises and beneficiaries of development would rather have those interests protected and see them and their prosperity better protected by the existing political system than through any democratizing principle.

I follow Aguilera and Jackson (2010) interpretation of corporate governance as ‘the study of power and influence over decision-making within the corporation’. As Aguilera and Jackson say, the corporation is itself an institution with the rights and responsibilities of different parties linked to law and politics.  There are diverse parties associated with the firm: owners, managers, employees, state and these have different structures and roles across countries; for example dispersed individual share ownership contrasts with concentrated blockholder ownership; the role of institutional investors varies across countries; the role of employees varies– whether formally represented on boards or having works councils within firms or representation within trades unions or very few rights and representations. And the role of the state varies – from being hands-off with very little remit to interfere except through regulation, to being involved as a coordinating agency between parties to being a blockholder owner and immersed in the politics of certain firms’ decision-making.

In making comparisons between Chinese capitalism and western capitalisms, as in the previous chapters, I look at organizational forms. Chapters 4, 5 and 6 contrasted the pre-eminence of the corporation in Britain and the US – as a legal person, backed by common law, independent of the state and held through dispersed shareholding tradable in markets – with the more closely-held, concentrated holdings, unlisted and less tradable organizational forms in Continental Europe, that had the effect of protecting the strategic assets within those firms rather than protecting investors’ rights through shareholding of those firms. Where do Chinese companies sit in this spectrum?

In addition to the non-state enterprises described earlier, there has been a transition of state-owned enterprises into enterprises listed on the newly-created stock exchanges of Shanghai and Shenzhen in the early 1990s. Liu (2006) gives data of 1400 firms having made initial public offerings between 1992-2002, raising US$100 billion, with market capitalization of US$500 billion, with 130 securities firms, 100,000 practitioners and 70 million investor accounts (CSRC website in Liu, 2006: 421).

The 1994 company law was designed for corporatization of SOEs, to impose some discipline on management despite the state retaining ownership of the majority of shares of listed companies. Thousands of companies were incorporated. 1,300 SOEs were listed on the two stock exchanges by 2004. This enabled them to raise equity finance from investors rather than relying on banks (Pistor and Xu, 2005).

Despite listing on stock markets, these firms remain heavily influenced by the government in various ways. These data show that these listed firms have concentrated ownership, and the majority have a parent company, often a SOE. Liu calculates that the controlling shareholders for over 80 per cent of listed firms are central or local governments. Listed companies are not by and large private companies (Liu, 2006). There is limited independence of Boards from political and state-controlling owners. Chen, Fan and Wong (2004) argue that 80 per cent of directors on boards have some connection with the state. There are different classes of shares – state shares, legal person shares and public shares – with only public shares being tradable; the transfer of the other two types being controlled by the government.

This is different from the publicly-owned and traded corporation of the liberal economies and also from the privately-owned and less traded GmbH-type company. I have argued that the coordinating and signalling functions have been stronger than the protective function of property rights in China, especially than protecting individual investor assets. There has been instead much stronger protection via control of state assets, restricting trading, influencing Boards, changing top management in favour of politically-approved managers. I would argue that these listed companies are not ‘private’ in the western sense.

Relation between law and corporate governance

Formal legal shareholder protection and regulatory quality for instance by the La Porta et al.  indicators show Chinese formal protection to be below the average for transition economies (Pistor and Xu, 2005). Shareholder protection has been weak and private enforcement very weak. In 2001 courts were unable to hear cases brought by investors whose rights had been infringed by misrepresentation of accounts, insider trading, asset stripping. Public enforcement was done by the China securities regulatory commission (CSRC) and the Chinese Supreme Peoples’ Court (SPC). They have vetted which litigation is permissible. Gradually more litigation has been allowed by the private securities litigation rules, issued in 2003, to allow joint litigation but only where the defendant company is registered. The Pistor and Xu data for 2001-2004 reported that no civil law case resulted in a court imposing a liability. Public enforcement has also been weak

In China corporate governance as an issue has been debated more closely in relation to the governance of listed companies, on the Shanghai and Shenzhen stock exchanges, from 1990. Between 1990 and 2005, the Chinese stock market grew to be the eighth largest in the world by number of firms and market capitalization (Liu, 2006). Listed firms nevertheless accounted for fewer than five per cent of large and medium-sized firms in China and a small fraction of GDP (Allen, Qian and Qian, 2005). Liu (2006) argues that listed firms’ governance has operated in a similar fashion to non-listed firms, under the norms of administrative governance. The listing of former SOEs was seen as a way of raising equity, rather than of distancing the state from direct control over the levers of management.  The state has maintained blockholder ownership of the majority of listed companies. Liu (2006) names the model of governance over listed firms a control-based model, where controlling shareholders – usually the state – use governance mechanisms to continue to control the firm. Thus ownership structures have remained concentrated and often linked, through pyramids, to non-listed SOEs (Sutherland and Ning, 2015). Boards have been constructed that were friendly to management, with little financial disclosure to the public and lacking an active takeover market (Liu, 2006). The careers and turnover of top management of listed firms have been influenced by the CCP and state administration. (Ning, Prevezer and Wang 2014).

This represented then a change in manner of control by the state, from direct state/Party management towards indirect control. This goes hand in hand with the continued ownership stake by the state in publicly listed companies. Around 70 per cent of shares on the Chinese stock market remain owned by the state and a controlling interest is kept in leading enterprises (Mann, 2013: 233).  Ownership structures of listed companies are not transparent: the state often has acted as a holding company structure with branches of the company listed on stock exchanges to raise capital from private and foreign sources but with the state maintaining strategic control through pyramidal ownership (Sutherland and Ning, 2015). This mirrors the kind of pyramid control structure found in other countries (Continental Europe, Latin America) where control is maintained often by a family through pyramid structures.

The CCP has less control and influence in purely private enterprises; there is weak party building in both private and foreign-owned sectors. (Dickson, 2003: 42). The enterprise law gives stockholders the authority to hire and fire board members and management; if the enterprise party committee has no shares in the firm, it cannot control hiring and firing. Party committees can influence standards for selection and approve decisions of owners and shareholders but can’t directly remove managers and others. There has been resistance in Shenzhen to taking on unproductive Party people. Instead Shenzhen has a private enterprise association, a new form of Party organization.

Status and role of workers/labour/employees in the firm

Since 1978 the status of workers in Chinese firms and in the economy in general has declined. The reforms in the SOEs have reduced the status and power of workers (Cai Yongshun, in Brødsgaard and Yongnian, 2006). Since the reform, there is greater disrespect and falling in consultation, in perks, in authority. Under Mao in the SOEs there was job security, subsidized prices for essentials, egalitarian wage policies, welfare benefits, housing. This was not a question of labour autonomy: under Mao labour was controlled through state-run unions, there were party members in each factory; workers were encouraged to join the party. But there was the iron rice bowl, a basic level of welfare provision organized by the work unit (Mann, 2013: 220). Since 1980 these worker-oriented rights have gone. With priority given to economic growth and much greater precedence given by the Party to non-state activities, the reform of inefficient SOEs has meant layoffs and diminished power of the workers. Disrespect and weak rights is reflected in things like poor treatment in cases of injury or healthcare, long working hours, flouting of labour laws. ‘We were the master but we are not now. In the 1950s when we walked in the street with uniforms, even the police would show their respect to us and we felt proud of ourselves; but now if you walk in the street with your uniform, even the salesperson is reluctant to talk with you, and we feel inferior to others’ (Cai Yongshun, in Brødsgaard and Yongnian, 2006: 174).

Lee (2007) contrasts the old SOE dominated northern city of Liaoning with the booming coastal industries. In the former there was unemployment as SOEs collapsed; in the booming areas there was low wages, abuse of migrant workers, working six sometimes seven days a week. ‘Workers and peasants appeal to the law, and the bourgeoisie – employers and officials – flout it (Lee, 2002 in Mann, 2013: 239). No-one wishes to be a worker with its low social status and widening income gap, with 70 per cent of enterprise workers having below average salary in the mid-1990s (Cai Yongshun, in Brødsgaard and Yongnian, 2006:176).

The role of trade unions (TUs) in communist states has always been difficult with the state supposed to be on the side of the worker and therefore unable to tolerate independent TUs. In the reform period, membership of TUs fell; political activists in SOEs were the first to be laid off. For example, there was a fight over forcing workers to buy shares and sacking them if they did not; the interviewee was sacked.

In terms of formal rights, workers’ councils used to have decision-making powers in enterprises but since the 1980s these have become powerless. They lack knowledge, they are threatened with punishment by management if they object to plans, they are not the legal owners and their approval for reforms is no longer sought. The Party is no longer constrained by socialist ideology in its dealings with workers. Are the Trade Unions moving towards social representation in China? Are they agents of the state or of their members? Yunqui Zhang (1997: 125) and Dickson (2013: 62) argue that they are both, having a dual role, wanting both autonomy and embeddedness.

Changing role of management

In terms of manager-worker relations, the reforms have brought increasing management autonomy, formalized in the MRS, the Management Responsibility System. This is equivalent to the HRS for agricultural households, but here allowing SOEs the freedom to dispose of surpluses over quotas. In terms of Party representation, the MICPC (Manager in charge under the leadership of the Party Committee) gave way to the MRS, starting in the early to mid-1980s. The Party committee became secondary in terms of types of decision-making in enterprises, demoted from financial affairs and key strategic decisions. The enterprise law of 1988 legalized the status of manager. In the 1990s the Party was still in control of selecting managers in theory but in practice managers were selected by higher level (Party) authorities, with the priority of economic development and generation of surpluses. Coase and Wang (2013) talk about the chaos of the MRS with managers each negotiating different prices and tax rates. The tax reform of 1994 and the contract system reform of 1993 led to a simplification of taxes with a uniform 17 per cent VAT to manufacturing. It was a centralization under a national tax administration and ended the tax negotiation between central and provincial governments. Coase and Wang argue that this fostered regional competition between regions rather than there being regional fiefdoms.

Conclusions: Nature of China’s Variety of Capitalism

China’s development has been predicated on the survival and development of the Party hierarchy, on economic expansion, on the expansion of the numbers of college educated and on slow privatization. It has legitimized capitalism. Stability has been at its core and mostly lack of violence. Walder (in Brødsgaard and Yongnian, 2006) stresses the huge expansion of college-level education, transforming the urban elites, with faster growth in college students than economic growth. From 1949-79 there were three million graduates; since 1979, 12 million. The privatization of state assets has been very slow compared with Eastern European counterparts; the private share in GNP in China in 1999 was 55 per cent compared with Poland’s 65 per cent, Russia’s 70 per cent and Hungary and Czech Republic’s 80 per cent (Walder in Brødsgaard and Yongnian, 2006: 18). Correspondingly, the elite turnover has been higher in former communist countries compared with that in China.

So what is China’s Variety of Capitalism? Does it resemble at all the Liberal Market Economy or the Coordinated Market Economy? It combines a curious mixture of highly liberal labour markets, with low employment protection and labour rights, with high coordination masterminded by the CCP, at least in the non-private areas. Even in the private sector, owners and managers require good relations with state officials and are subject to their coordinating pressures.

How far does the primacy of shareholder value of the LME hold in China? This is not a model that supports shareholder primacy. The shareholder is not king; the state is. Minority shareholders are not protected; the stock market does not accurately reflect values of companies.  How far does the autonomy of the CEO of the LME hold? The CEO of the non-private enterprises has much less autonomy than in the LME, being subjected to pressures from the state. So this in various respects is not a Liberal Market Economy. Is there coordination through the state along the lines of the CME?  The stakeholder model, enshrining rights of labour, along German/CME lines does not hold in China? This is not a classic Coordinated Market Economy with its stakeholder model of bringing all parties to the table to negotiate conditions.

I concur with Naughton and Tsai (2015), that China’s Variety is a form of state capitalism – a Political Market Economy, borrowing some features from the LME in the diminishing of worker/employee rights and protection and in increasing managerial autonomy; but very different from both LME and CME in the role of the state-management nexus. Naughton and Tsai (2015) call it state capitalism; Mann (2013) calls it a capitalist party state but demurs from calling it capitalism.  The role of the state/Party has shifted from having direct Party involvement in enterprise decision-making through having leadership positions on the board to a more indirect hands-off control through share ownership, through higher Party level monitoring of managerial careers but greater managerial autonomy and responsibility for strategic decisions in the enterprise. A politicized but not direct state control. Above all, state-owned and controlled assets are protected in a variety of means: through dominance over the legal system, over the stock market, over management and careers in enterprises. But non-state assets are also selectively protected, via the relationships cultivated between private entrepreneurs and the political class.

WORD COUNT: 14,130

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What information would you want to have in order to make sound pricing decisions?

Market Forces and Price

Scenario

You have been hired as a financial manager for N&D’s Pizzeria. In your role, you support the owners with budgeting and financial information and help them understand the impact of market forces on their business. The pizzeria owners, Nicole and Danielle, have asked you to provide some financial insight to inform their pricing strategies and other decisions.

The image depicts a row of pizzas behind glass

Company Overview

N&D’s Pizzeria operates six pizzerias in the county of Sheffield. They provide the following products and services:

Traditional pizzeria offerings: pizzas with a variety of toppings, breadsticks, and salads

Take-out option plus delivery within 10 miles

Dining-in option (each pizzeria has a small dining room with 10 to 15 tables)

N&D’s currently employs a total of 60 permanent staff as managers, cooks, servers, cashiers, bussers, dishwashers, and cleaners. It hires additional part-time and seasonal staff during peak periods. N&D’s also contracts with a local bookkeeper and another company to maintain its mechanical and IT equipment.

It leases its restaurant spaces, ovens and other equipment, furniture and fixtures, and delivery vehicles.

You can assume that the company will have a single menu for all locations, a single set of prices, and probably the same hours of operation, and it will make capital and advertising decisions for operation as a whole. When discussing the impact of market forces and pricing decisions, consider the six locations collectively.

Local Market Environment

Other pizza restaurants are opening downtown, potentially impacting Nicole and Danielle’s business. N&D’s Pizzeria also faces competition from other fast-casual restaurants and from local supermarkets that offer frozen pizzas and fresh alternatives.

A significant portion of N&D’s revenue comes from downtown businesses and catering company lunches. There is currently an initiative underway to revitalize the downtown area: It is expected to make gradual progress during the next year, adding around 50 more office spaces to accommodate approximately 1,000 employees. The project could bring more potential customers but also more potential competitors.

Current Economic Environment

In relation to the business cycle, the local economy is generally healthy. Local banks and business associations expect it to remain so for the foreseeable future.

Local interest rates for unsecured small business loans range from 7.25% to 7.75% per annum. Small businesses often use these loans to fund their operations during seasonal dips in demand. (Secured loans, used for capital investments such as the purchase of equipment, have lower interest rates.)

The regional unemployment rate is a seasonally adjusted average of about 3.5%.

Inflation rate: The regional Consumer Price Index (CPI) should continue at an annual rate of about 2.2% or slightly higher. This means minimum upward pressure on labor, materials, and fixed costs.

Relevant Market Forces

N&D’s Pizzeria is working with Success Marketing, a market research firm that helps businesses by providing data to inform management operations and decisions. Success Marketing developed the following competition analysis for the pizzeria, which contains key information about the economic environment:

N&D Pizzeria Competition Analysis

Competitors       Community Demographics          Number of nearby eateries (with and without liquor licenses)                Average price for a takeout meal from nearby eateries  Area businesses               Notes

Competing Pizzeria 1      Approximately 2,000 students Aug–Dec and Jan–May

Population of 10,000 all year, not including students        With liquor licenses: 2

Without liquor licenses: 5             $20         Nearby university            The university is planning an expansion to accommodate 500 more students in the upcoming year

Most restaurants have public parking within walking distance and are within walking distance from the university

Competing Pizzeria 2      Population of 25,000       With liquor licenses: 3

Without liquor licenses: 4             $30         Nearby arena    Most restaurants have public parking within walking distance and are within walking distance from the arena

Competing Pizzeria 3      3,000 students Aug–Dec and Jan–May

12,000 all year, not including students    With liquor licenses: 3

Without liquor licenses: 6             $25         Nearby university            Most restaurants have public parking within walking distance and are within walking distance from the university

Competing Pizzeria 4      Population of 45,000       With liquor licenses: 2

Without liquor licenses: 6             $25         Nearby office buildings One of the nearby office buildings is adding an expansion to accommodate 150 new employees

Most restaurants have public parking within walking distance and are within walking distance from downtown offices

Competing Pizzeria 5      Approximately 4,000 students Aug–Dec and Jan–May

20,000 all year, not including students    With liquor licenses: 4

Without liquor licenses: 4             $20         Nearby university            Most restaurants have public parking within walking distance and are within walking distance from the university

Competing Pizzeria 6      Population of 47,000       With liquor licenses: 2

Without liquor licenses: 3             $30         Nearby office buildings Most restaurants have public parking within walking distance and are within walking distance from downtown offices

Possible Operating-Hour Extension

N&D’s Pizzeria locations currently close at 10 p.m. and stop deliveries at 9 p.m. The local universities are expanding their populations of on-campus students. The pizzeria owners believe that staying open until 12 a.m. will increase business and help them stand out from competition. They will need 2–3 employees to work during that time (2 on Sunday through Thursday and 3 on Friday and Saturday nights). Employees are typically paid $9–$10 per hour, on average, including benefits.

Economic Policies and Trends

N&D’s Pizzeria uses cheeses, tomato sauces, and olive oil imported from Italy, which they purchase from a U.S.-based wholesale company. The government is likely to impose an import tariff, which would raise the cost of N&D’s ingredients by about 20%.

Current Pricing Information

The owners have indicated that they are willing to increase prices to address potential wage increases and increases in price for three of their main ingredients. They are concerned that if they raise prices too dramatically, they will drive their customers away. Based on their market research data, Nicole and Danielle know that, for all locations, their pizzeria is an average-priced option in terms of other similar restaurants. They generally receive high ratings for quality and service and average ratings for restaurant atmosphere.

N&D’s marketing consultants, Success Marketing, created a Demand Elasticity Spreadsheet, which shows the estimated number of meals that N&D’s pizzerias would sell at various prices. Higher prices would mean lower volume, of course. There is an average meal price that would maximize total revenue. Nicole and Danielle can use the spreadsheet to see the effect of various price levels.

Directions

Nicole and Danielle would like you to provide a financial recommendations memorandum that will inform their approach to pricing decisions. Based on the scenario, above, they would like specific guidance on the following: Should they raise, lower, or maintain average prices in response to the import tariff? With regard to expanding the pizzeria’s operating hours, should they move forward, knowing that it could raise revenue but also increase costs? They have asked that you support your recommendations with financial information from the spreadsheet and with evidence from the company scenario.

Market Forces and Trends: Nicole and Danielle would like you to describe market forces that potentially impact their business decisions.

Describe the basic market forces that are relevant to pricing and decision-making for companies. Include the following:

What information would you want to have in order to make sound pricing decisions?

With financial information, there is often some level of uncertainty and estimation. How would you explain any risk or uncertainty about information to senior management?

How would you suggest monitoring and responding to competitors’ pricing actions?

 

Discuss the overall economic ups and downs, such as business cycles, that inform financial strategies used at different times. Include the following in your response:

What trends are important for business owners to consider, and what impacts do the different phases have on financial strategies?

 

Describe the impact of local economic trends, such as interest rates, on supply and demand, equilibrium prices, and business decisions. Include the following in your response:

Describe how a major fluctuation in inflation and unemployment rates or the interest-rate outlook would affect businesses.

 

Pricing Information: Based on the financial information and information in the scenario about potential increases due to a tariff, Nicole and Danielle would like you to describe factors that influence price for determining the best strategy given the company’s current financial situation.

 

Describe factors that influence price and inform pricing decisions. Include the following:

What average price level would you recommend, and why? What is the revenue-maximizing price based on estimated demand for N&D Pizzeria’s products?

How sensitive is demand to N&D’s pricing versus competitors’ prices?

 

Determine the price impacts of resulting revenues, costs, and operating income using information from the spreadsheet. Include the following:

What would the resulting revenues, costs, and operating income be?

Define opportunity costs, and explain how those, along with budget constraints, such as acquiring more staff or equipment, might affect pricing decisions.

How do overhead and other fixed and sunk costs affect pricing decisions?

 

Explain how key takeaways from the competition analysis inform pricing strategies. For example, should N&D’s strive to be the high-price, high-quality competitor or the low-priced but probably lower-quality competitor? Include the following in your response:

Based on the information provided in the scenario, would you recommend expanding the hours of operation? Why or why not? What would be the estimated effect on revenues, costs, and profit? Provide examples from the company’s financial information to support your answer.

What further analysis would you recommend based on the information presented?

 

The federal government is considering imposing a substantial import tariff on foods from Italy, including the sauces, cheeses, and olive oil that N&D’s Pizzeria buys from a U.S. importer. Discuss how such a tariff might affect pricing and costs—for N&D’s, as well as for competitors. Include the following in your response:

Should N&D raise prices to offset some or all of the tariff?

Should they try to lower costs of raw materials or labor, possibly affecting the quality of their products and service?

Should N&D consider buying those raw materials domestically, even if the quality might suffer? Review the Income Statement spreadsheet in the Supporting Materials section. Looking at N&D’s projected income statement and margins, how much of a drop in profit and margins can the company afford.

What to Submit

Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following:

 

Financial Recommendations Business Memorandum

Your business memorandum will discuss the elements, above, and should inform the company about how market forces impact prices and decision-making, including how it should prioritize strategic initiatives based on economic factors and trends. The memorandum should be 3–5 pages in length.

 

 

 

 

 

 

 

 

 

 

How to Write a Memo

A memorandum or “memo, as it is traditionally defined, is a short written communication that is

distributed internally in some organization and which is often written on a prepared form” (Berger,

1993, p. 2). The form typically includes who the memo is for, who it is from, the date, the subject, and

the contents or body.

This following sample, taken from Techniques for Better Memo Writing, not only shows the typical

format of a memo but also provides additional tips for composing one, as well (Lewandowski, 1995).

Company

Memorandum

(flush left)

To: Name, Title

From: (initial after your typed name, title)

Subject: (be clear and specific)

Date: date of writing

(Do not indent here)

This is a memo about how to format your memos. Do not indent the first

sentence on the left. Instead, keep your paragraphs flush left.

Even if you start a new paragraph, keep it flush left—avoid the temptation to

indent!!

Resources

Learnit: Section E. Other: Memos

This section of the Business Writing tutorial provides a brief introduction to the reasons for writing a

memo and then guides you through each section of a basic memo. To access this tutorial, log in to

Atomic Learning using your SNHU credentials, then click on the link to view the materials.

Improving Writing Skills: Memos, Letters, Reports, and Proposals, Chapter 1

Chapter 1 (How to Write Better Memos) in this Shapiro Library e-book by Arthur Asa Berger includes

information concerning types of memos, proper formatting and presentation, and guidance on the

contents of memos.

Business Writing

Chapter 4 of this Shapiro Library e-book by Baden Eunson provides information on why you would write

memos, the various types of memos, and annotated examples of each. To access the information, click

on the link and then select Chapter 4 in the table of contents.

References

Berger, A. A. (1993). Improving writing skills: Memos, letters, reports, and proposals. Newbury Park, CA;

London: SAGE.

Lewandowski, C. (1995). Techniques for better memo writing. Trenton, NJ: Mercer County Community

College.

 

http://tushar-mehta.com/excel/charts/demand_elasticity/

How have these historians moved the conversation about your topic forward?

Working Title:

Witcraft: A Prosecution of Gender

This paper seeks to explore the background of witchcraft as a religion in Europe (1500s to 1600s), the eventual prosecution of those practicing or accused of practicing witchcraft, and how women were primarily targeted.  Pulling from the sources listed below, I hope to explore how historians have approached this topic through feminist and gendered methods.  I hope to determine whether utilizing a historiographical gender lens will determine a conclusive causation and interpretation of the witch hunts and trials of seventeenth-century Britain and Europe.

Book List (Must include at least 5 of the books listed):

Malleus Maleficarum, Or: The Hammer of Witches Paperback – February 8, 2011 by Heinrich Godfrey Kramer (Author), Montague Summers (Translator)  Reada Classic Publisher*

*(Only as a mention as a historical reference within the text).

Merry E. Weisner, ed., Witchcraft in Early Modern Europe (choose the most relevant 1-2 chapters)

Brian Levack, The Witch-Hunt in Early Modern Europe 

  1. Rowlands, ed., Witchcraft and Masculinities in Early Modern Europe (again, choose the most relevant 1-2 chapters)

Louise Jackson (1995) Witches, wives and mothers: witchcraft persecution and women’s confessions in seventeenth-century England, Women’s History Review, 4:1, 63-84 To link to this article: https://doi.org/10.1080/09612029500200075

Barry Reay, Popular Cultures in England, 1550-1750 (Longman, 1998). Chapter on witchcraft from.

Witchcraft in Europe, 400-1700: A Documentary History (Middle Ages Series) 2nd Edition

by Alan Charles Kors (Editor), Edward Peters (Editor).

Europe’s Inner Demons: The Demonization of Christians in Medieval Christendom 1st Edition

by Norman Cohn .Religion and the Decline of Magic: Studies in Popular Beliefs in Sixteenth and Seventeenth-Century England (Penguin History) Paperback – January 1, 2003 by Keith Thomas.

The European Witch Craze of the 14th to 17th Centuries: A Sociologist’s Perspective

Nachman Ben-Yehuda American Journal of Sociology  Vol. 86, No. 1 (Jul., 1980), pp. 1-31.

Historiography Paper Instructions:

You will write a 12-15pp historiography paper using Chicago style footnotes, Times New Roman, 12 font, double spaced, 1 inch margins. Bibliography required for references.

In this paper, you will write a scholarly review of at least five new works in a subfield of early modern or modern European history. Your goal will be to assess these books as a group and answer the following questions. How have these historians moved the conversation about European history forward? What, in your opinion, is missing from their arguments? What

new questions about European history does their work raise?

Book Requirements:

You will write about five books or an equivalent number of books and articles on a topic related to early modern or modern European history.

Formatting/Length:

12-15 pages, Times New Roman font, double-spaced, page numbers on the bottom of the page. There’s no need for a cover page, but please do be sure to include your name at the top of the first page of your paper.

Citations:

: Please use Chicago-style footnotes and include a bibliography

. For guidance on Chicago-style citations, see https://www.chicagomanualofstyle.org/home.html

Content:

Historiography is the history of history-writing so a good historiography paper does what any persuasive history paper does: it explores how and why change over time has occurred. In this case, however, what you are analyzing is how historians’ approach to a single topic has changed over time — they may ask new research questions, adopt new methods, or find new archives — and why these changes have occurred.

As the above suggests, an excellent historiography paper will make an argument. It is not simply five reading responses posted together. Rather, you need to put the books you have read in conversation with one another and trace how that conversation has evolved. The following questions are a good place to start.

How have these historians moved the conversation about your topic forward?

How have their approaches and pre-occupations changed over time?

What new questions about does their work raise?

For further information on how to write a persuasive historiography paper see

http://qcpages.qc.cuny.edu/writing/history/assignments/historiographic.html

 

 

 

Hitler and Nazi Germany:What did you learn about the Third Reich from your reading of Joachim Fest’s psychological portraits of the Nazi Leadership?

Please select ONE of the following questions and respond in a well-organized four-paged essay.

1. Can you describe the psychology of SS “desk murders” like Adolf Eichmann and Rudolf Hoss? What is the meaning of Hannah Arendt’s famous phrase, “the banality of evil?”
2. How popular was the Nazi regime? Please evaluate the degree of resistance to the Nazis on the part of ordinary Germans. What forms could resistance take? In your essay, please address the attempts on Hitler’s life and the non-violent protest of the student group known as the “White Rose.”
3. Please discuss Hitler’s foreign policy objectives. Who was Neville Chamberlain? What was the significance of the British policy of “appeasement?” Given Hitler’s man pronouncements on foreign policy, did Hitler believe he had fought the “wrong war?”
4. What did you learn about the Third Reich from your reading of Joachim Fest’s psychological portraits of the Nazi Leadership?

Texts
Joseph W. Bendersky: A Concise History of Nazi Germany (New York: Rowan & Littlefield, Third Ed, 2007) ISBN-10: 0742553639
Joachim Fest: The Face of The Third Reich: Portraits of The Nazi Leadership (Da Capo Press, 1999) ISBN-10: 1848857039
Elie Wiesel: Night (Hill & Wang, 2006) ISBN-13: 978-0374500016

Can D freely decide what to do? Is D an autonomous moral agent?

Business Ethics

Case Analysis Instrument

Who has moral responsibility for deciding what to do?
Who are the decision-makers (Ds) in this case? Consider each of them separately.

What are the likely causal consequences of D’s alternative decisions?

Can D freely decide what to do? Is D an autonomous moral agent?

Are there any conditions present that excuse D from morally accountability?

Is anyone coercing D?

Is anyone deceiving or manipulating D?

Does D have all the information that we can reasonably expect D to obtain?

What do the various ethical theories say about whether to hold D accountable for D’s decision?

Does anyone share moral responsibility with D?

Is the organization, of which D is a member, solely or partially moral responsible for the situation?

Whose interests must we consider?
Whose interests will D’s decision affect?

Should D consider the owners of the business? (shareholder view)

Should D consider employees, suppliers, customers, and the local community? Who? (stakeholder view)

Should D consider the global community, posterity, or the environment? Which? (comprehensive view)

What are the relevant ethical considerations?
Ethical theory: Considerations:
Identity-based
Virtue ethics:

– individual virtues?

 

– community?

– corporate character?

What character traits should D try to exhibit in the decision?

Should D exhibit certain virtues, such as honesty, courage, etc.?

Should D avoid vices, such as sleaziness, timidity, etc.?

How can D contribute to making D’s community/organization flourish?

Does the character of D’s organization help cooperation in a market society?

Does D’s organization have traits that prevent any parties from flourishing?

Does D’s organization need to change its structure? E.g. an ethics policy?

Ethics of care:

 

– relationships?

– responsibilities?

For which individuals should D show special care?

Should D pay particular attention to anyone’s emotional needs?

Which relationships should D help to flourish?

Does enhancing these relationships give D special responsibilities?

Principle-based
Duties:

-motivation?

 

prima facie duties?

– Kantian duties?

What are D’s motives?

Are D’s motives in accordance with justified ethical principles?

What duties should D fulfil?

Does D have any obvious duties that further reflection may override?

Can D claim that everyone can consistently fulfil these duties?

Is D treating anyone as a means rather than an end?

General rights:

 

 

– autonomy?

– deception?

– crucial interests?

 

– harm principle?

Does D have any correlative duties arising from the general rights of others?

Does D have any general rights that others must respect?

Are these rights positive or negative?

Is anyone’s ability to make informed decisions at stake?

Is there any lying or deception going on?

Will D’s decision affect anyone’s crucial interests?

Are these interests really crucial, or are they merely preferences?

Does D’s obligation not to harm others limit D’s liberty of action?

Specific rights:

– contracts?

 

 

– promises?

 

– expectations?

Does D have any correlative duties arising from the specific rights of others?

Are there any legal contracts involved?

Did the parties agree on the contract, or are the terms specified by law?

Are these legal contracts ethically free and fair?

Are there any explicit promises involved?

Do any promises arise from contracts involving offers and acceptances?

Are there any implicit promises involved?

Do any promises arise from customary expectations and practices?

Justice:

 

– retributive?

 

– compensatory?

– distributive?

Will D’s decision treat everyone with equal moral respect and consideration?

Is D deciding to treat people differently for morally arbitrary reasons?

Does anyone deserve praise or blame in the case?

Should anyone receive reward or punishment?

Does anyone deserve compensation for a harm, rights violation, or injustice?

Will D’s decision distribute benefits and burdens fairly?

Does D’s decision promote equality of opportunity?

Is sexual or racial harassment involved?

Are there institutional barriers to women or parents of small children, etc.?

Is affirmative action permitted or obligatory?

Does D’s decision respect property rights and contracts?

Does D’s decision help the least advantaged?

Consequence-based
Ethical egoism

– self-interest?

– wide self-interest?

– cooperation dilemma?

 

Should D decide based only on self-interest?

Which decision is in D’s self-interest?

Should D also consider family, friends, community, or more?

Should D consider others as psychological egoists?

Will D’s strategic decision involve a prisoner’s dilemma situation?

Sensation-based

utilitarianism

– pain/pleasure?

 

Should D consider everyone’s feelings such as suffering and enjoyment?

Whose feelings will D’s decision affect?

Can D measure the strength of these feelings and sensations?

Can D add up the quantities involved?

Can D widen the scope of this utilitarian reasoning to include everyone?

Can D see how to maximize net positive feelings?

Preference-based

utilitarianism

– wants?

– desires?

– choices?

– preferences?

Should D consider everyone’s wants, desires, and choices?

Whose preferences will D’s decision affect?

Can D measure the strength of these preferences?

Can D see how to add up the quantities involved?

Can D widen the scope of this utilitarian reasoning to include everyone?

Can D see how to maximize preference-satisfaction?

Economic utilitarianism

 

– willingness to pay?

– cost-benefit analysis?

Should D consider people’s ability to pay for what they want?

Whose financial position will D’s decision affect?

Is willingness to pay a good measure of the strength of people’s preferences?

Should D perform a cost-benefit analysis of the alternative decisions?

How wide is the scope of D’s cost-benefit analysis?

Can D widen the scope of this cost-benefit analysis to include everyone?

Will D’s decision contribute to the efficiency of the economic market?

Will D’s decision create external costs for nearby, distant, or future people?

Indirect utilitarianism

– policies?

 

– rules?

Has D’s utilitarian, case-by-case decision procedure given a useful answer?

If not, is there a policy that D could follow that will maximize well-being?

Is there a universal rule that will maximize aggregate well-being?

Should D follow a rights-based or virtue-based policy?

Should D’s organization write a good policy to cover this decision?

Absent such a policy, should D decide as if such a policy did exist?

That is, should D apply utilitarian reasoning indirectly?

Informed-preference

consequentialism

 

Are all people involved forming their preferences with full information?

If people had full information, would they have different preferences?

If D aggregated only informed preferences, would this change D’s decision?

Are any of these ethical considerations especially strong or weak?
What are the theoretical weaknesses of each of the above approaches?

Would D’s decision to promote virtue lead to rights violations or utility reductions?

Would D’s decision to care for special relationships lead to partiality and unfairness?

Would D’s decision to respect general rights lead to unjust distributions or to utility reductions?

Would D’s decision to respect special rights lead to unfairness?

Would D’s decision to promote distributive justice lead to entitlement loss or to overall utility loss?

Would D’s decision to maximize self-interest lead to vice, injustice, utility loss or rights violations?

Would D’s decision to maximize self-interest lead to problems with cooperation?

Would D be able to measure and aggregate utility in this case?

Would D’s decision to maximize aggregate utility lead to rights violations or unjust distributions?

Would D’s decision to maximize people’s aggregate financial position actually maximize their utility?

Would D’s decision to follow a utility-maximizing rule be overly harsh and authoritarian?

Do we need to know more about any relevant facts?
Which facts are most relevant from an ethical point of view?

Does our analysis of D’s ethical situation lead us to require more information about the case?

What are the alternatives?
After our analysis of D’s ethical situation, can we see alternative decisions that D should consider?

Which of the alternative decisions is the best from a business point of view?

What is the best decision?
On the balance of ethical reasons, are any of D’s alternative decisions ruled out?

Does D face an ethical dilemma where no decision is ethically permissible?

Does D have several possible decisions that are roughly equal, but better than the other alternatives?

Does D have just one decision that, on the balance of reasons, is best from an ethical point of view?