Unequal Knowledge, Unequal Opportunities Differentiation of Small Producers in China’s Transitioning Economy

• In Event: 4255 - Section on Economic Sociology Roundtables (1 hour)
  In Refereed Roundtable 60min: 10. Networks

Abstract

Abstract:
The role of social networks in increasing inequality through transferring resources has been discussed intensively in sociology. These theories focus mainly on the structure and quantity of social ties, but leave the question of how people make sense of ties, or resources available through them, open. In this article, I argue that the embodied knowledge of how resources are defined and transacted is an essential element in the exchange process, and it varies across different types of networks. This knowledge is embodied because it can only be learned through active participation and is ingrained physically and emotionally. Through the qualitative case study of a group of small corn producers in Northeast China, I show that people’s understanding of resources and how they are obtained are shaped by the ways they participate in the economy. While corn producers rely on the state authority to obtain resources, those who participate in liberalized markets rely on business network started from scratch. Transition to market economy therefore also means a transformation of the embodied knowledge of what makes market and participation. The differential in this embodied knowledge eventually leads to differentiation in market opportunities for small producers.

Author

• Shumeng Li, Cornell University