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By Kumar Rajesh Worm Verner

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China’s old system of landlord ownership of farmland and tenant peasants was replaced with a distribution system in favor of poor and landless peasants. Mao laid heavy emphasis on class struggle and in 1953 began various campaigns to persecute former landlords and merchants, including the execution of the most powerful landlords. Drug trafficking in the country, as well as foreign investment, were largely wiped out. Many buildings of historical and cultural significance as well as artifacts were destroyed by the Maoist regime, since they were considered reminders of the ‘feudal’ past.

The original desire of the maharajah was to seek independence and to stay outside of the union altogether. 28 He decided to accede to India even though his state had a Muslim majority. This decision was not accepted by Pakistan and it led to hostilities between the two countries. The United Nations played a role in arranging a truce but the underlying dispute remained unresolved. Jammu and Kashmir are now divided into two, with a line of control separating the two countries. Neither of the two countries recognizes the Line of Control (LOC) as an international border and both continue to claim the entire region as belonging to them.

In large part this is due to the newer politicians who ‘consider politics a business of making a fortune through acts of corruption and not a calling to a public service. 38 Jenkins (2006), citing the work of Pratap Mehta, suggests that corruption has a perverse sort of legitimacy in that it has become a way of enhancing social mobility in a country that remains socially stratified. ‘Democracy, Development, and India’s Struggle against Corruption’, Public Policy Research. 4 The Institutional Environment in China The regulatory environment The regulatory dimension is an important component of the environment within which business firms operate.

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