Wang Anshi - Major Reform

Major Reform

Wang believed that the state has the responsibility to provide for its people the essentials for a decent living standard: "The state should take the entire management of commerce, industry, and agriculture into its own hands, with a view to succoring the working classes and preventing them from being ground into the dust by the rich."

Wang came to power as 2nd privy councilor in 1069. It was there that he introduced and promulgated his reform policy (xin fa 新法). There were three main components to this policy: 1) state finance and trade, 2) defense and social order, and 3) education and improving of governance. Some of the finance reforms included paying cash for labor in place of corvee labor, increase the supply of copper coins, improve management of trade, direct government loan to farmers during planting seasons and to be repaid at harvest. He believed that foundation of the state rests on the well being of the common people. To limit speculation and eliminate private monopolies, he initiated price control and regulated wages and set up pensions for the aged and unemployed. The state also began to institute public orphanages, hospitals, dispensaries, hospices, cemeteries, and reserve granaries.

The military reform centered on a new institution of the baojia system or organized households. This was done to ensure collective responsibility in society and was later used to strengthen local defense. He also proposed the creation of systems to breed military horses, the more efficient manufacture of weapons and training of the militia.

To improve education and government, he sought to break down the barrier between clerical and official careers as well as improving their supervision to prevent connections being used for personal gain. Tests in law, military affairs and medicine were added to the examination system, with mathematics added in 1104. The National Academy was transformed into a real school rather than simply a holding place for officials waiting for appointments. However, there was deep-seated resistance to the education reforms as it hurt bureaucrats coming in under the old system.

Modern observers have noted how remarkably close his theories were to modern concepts of the welfare state and planned economy.