In looking for the ideological cause of the backwardness of the Chinese economy before the revolution, some considered Confucianism to be responsible. For this they cited the following grounds:

1. Confucianism maintained a feudal, patriarchal society ruled by a despotic monarch, in which government officials extorted excessive taxes and levies while common people enjoyed no freedom.

2. The main tendency of Confucian philosophy is opposed to utilitarianism. Confucianism was not concerned with profits. The neo-Confucian tenets, "preservation of the heavenly principles and the elimination of human desires" suppressed the human quest for material interests.

3. Confucianism despised merchants. In the hierarchy of Chinese traditional society built by Confucianism merchants were placed at the bottom. Confucians regarded the merchants as selfish, always placing profit making first.

4. The economic thought of Confucianism stresses the social importance of agriculture, but depreciates the role of commerce.

5. The thinking mode of Confucianism inclines to intros-pection, self-consciousness, and intuition; it looks down on the knowledge of nature, and therefore does not promote knowledge for the development of the economy.

6. Confucianism advocates a way of life in which men feel at ease in poverty and find their delight in the pursuit of the Way; therefore, economic activities lack a strong dynamic attractiveness.

The six points above are not groundless accusations on Confucianism; to a great extend they did indeed hinder the process of Chinese economic modernization. By surmounting these obstacles, the development of modern economy and the process of modernization in China (including the Mainland and Taiwan) have been entirely renewed.

However, Confucianism is not principally an economic theory, but a spiritual and cultural tradition, a philosophical system. Viewed from this point, its effects upon economic life must be many-sided. The critique of Chinese culture, the social revo-lution and the politico-economic reform in modern China have accented negative Confucian effects on economic activities. Nevertheless, the economic prosperity of Chinese feudal society for 2000 years, and the economic miracles in contemporary Japan and "the four small dragons" of East Asia indicate that in the relation between Confucianism and economic development there is another essential aspect to which not much attention has been paid. Without a study of this aspect, some important facts in Chinese history and contemporary society cannot be explained.

Before modern times the most vast unified domestic market and the largest, most populous and most prosperous cities in the world had emerged in China. Domestic markets and cities on this scale were based on well-developed agricultural and handicraft industries. As regards agriculture, in the Song-Yuan-Ming dy-nasties Chinese villages adopted the most advanced planting technology, and reached the highest yield per hectare in the world. In the handicraft industries, before modern times Chinese craftsmen used the most advanced production tools and tech-nology. For example, coal and iron production in the Song dynasty led the world. According to a study by an American economist, the output of the Chinese manufacturing industry in 1750 amounted to about one third that of the entire world.

Though the great economic achievements of ancient China were not entirely the direct products of Confucian thought, never-theless these economic miracles came into being in a Confucian society, which took Confucianism as its official philosophy and ruling ideology. Further, these miracles were created by a culture in which Confucianism occupied a dominant position, and by a civilization developed upon Confucianism as its main basis. These important and historical facts, suggest the need for a new view of the relations between Confucianism and economic development. We must look for the elements in Confucianism which facilitate economic development.

That Confucianism which extremely despises profit never-theless helps to bring about a high development of the economy seems to be a paradox and reveals authentic contradictory pheno-mena in history. There were two complementary causes which contributed to this phenomenon: on the one hand, economic development demands social, political, spiritual, ideological, ethical, cultural and other conditions; on the other, as a philosophy and a spiritual and cultural tradition, Confucianism has played various roles in social, political, spiritual, ethical, cultural and other fields. The combination of these roles facilitated economic development in the Chinese traditional society.

Of the fundamental conditions or factors which promoted such economic growth almost all related to Confucianism. This is manifest in following eight factors:

1. From antiquity, China was in the main a vast, unified state in which communication through land and water routes extended to every corner of the country. The unified state provided favorable conditions for the interchange and spread of productive tech-nology, the circulation of commodities, and the activity of the merchants.

The unified state could mobilize enough force to resist the invasion of foreign aggressors and reduce civil war to a minimum. In human history, China enjoyed a longer peace than any other area, which provided extremely advantageous external circumstances for economic activities.

The Chinese tradition of political unity was established by the Legalist School, but was maintained and reestablished by the Confucians. Confucius said: "When the Way prevails in the Empire, the rites and music and punitive expeditions are initiated by the Emperor" (The Analects 16:2). According to him, the princes of all states must be loyal and submit to the Son of Heaven, i.e., the emperor. This is the fundamental principle of Confucian politics. The elemental goal of Confucian political theory and of all political activities is the great order throughout the land under heaven and the pacification of the world. The main aim of Chinese rulers in successive dynasties in advocating Confucianism was the maintenance of the unity of the country.

2. The population of owner-peasants, small farmers, and freemen was larger than that of Europe in ancient times and the Middle Ages. The dependent relationship of the Chinese peasant upon the landlord was looser than that of the European serf in the Middle Ages. Relatively speaking, in ancient China initiative on the part of the laborers was high, a free labor force was abundant, and the purchasing power in society was strong. As a result the capacity of the market was large.

Apart from various political, economic, social and historical causes, there was a spiritual factor which brought about this large population of owner-peasants, small farmers, and freemen, and the looser relationship of peasants to landlords. On the basis of their philosophy of benevolence the Confucians in every dynasty did their best to fight against this dependence. Works in ancient times criticizing the dependence and great disparity of wealth between the rich and the poor are beyond count.

3. In pre-modern times, the central government practiced effective administration and management throughout all China in the periods of unity. It maintained feudal order and security, and to a certain extent wiped out crimes and chaos. This afforded the necessary conditions for economic development, although it could not eliminate corruption, bribes, and perversion of the law. Some-times, however, it exercised tyranny and levied exorbitant taxes.

Confucian doctrine provided the theoretical bases of the system of civil government and elitist politics in Chinese feudal society, the rule for the practical exercise of traditional Chinese politics, the standard of behavior and the moral norm for adminis-trators.

4. The central and local governments of every dynasty in China always took measures to promote production, for example, the allotment of land to the poor peasants, the encouragement of cultivation and farming, irrigation works, and action against business monopolies, hoarding and speculation.

The economic function and role of government was sti-pulated by Confucianism. Confucius held that matters of vital importance to the state were first teaching and then the enrichment of the people. He advocated that taxes be low. The problem of the people’s livelihood is the main concern of Mencius’s theory of benevolent government. The economic thought of Confucius and Mencius developed into a tradition according to which the feudal state acquired the functions of managing, regulating, improving and developing the economic life of society, and promoting economic prosperity.

5. Economic development, especially at the higher levels, requires raising the educational and cultural standard of the entire society. A comparatively developed economy requires workers who can master, use, improve, and invent comparatively complex productive technology and tools. It demands also that those who organize production have a relatively high ability to administer the economy.

Confucianism attached the greatest importance to education. As Western Christians built innumerable churches, the Confucianists established countless schools throughout China and did their best to urge people to study. Therefore in pre-modern China, the cultural level of the entire society and the intelligence of the common people was relatively high.

6. The economic activity in traditional China was stimulated by strong spiritual motives; this was the powerful dynamic force for economic development in ancient China. Nurtured by the Confucian tradition, the Chinese in ancient times also established the notion of a "calling". They took great pains with their work all their life, and were most willing to sacrifice their private happiness for the unceasing accumulation and multiplication of their wealth, whether they succeeded or not and no matter how great the wealth they obtained. This spirit was the strong dynamic force of eco-nomic development in ancient China.

European capitalism was developed by a religious spirit which urged one to self-sacrifice for the creation and accumulation of wealth, as Max Weber pointed out. In ancient China the common people’s notion of a "calling" did not originate from the cult of God, but from a sense of responsibility to the family. To the Chinese mind in ancient times the family is not entirely secular, but also is possessed of a sacredness. In Western tradition, secularity and religiousness, worldliness and holiness, temporality and eternity are separate and antagonistic to one another. Confucians, on the contrary, try to unite these opposite polarities. They stress that holiness is not separate from worldliness; and they insist on pursuing and attaining holiness in secular life, and endowing transient life with eternity.

In the Confucian tradition, the family is not only an elementary social unit of production and life, but also a social being with which alone the life of mankind can exist and reproduce. According to Confucian philosophy, the familial relationship is the origin of ethics and moral principles; the most intimate, genuine, sincere, and precious feelings originate from family. The most sublime virtue of humankind derives from one’s love for his or her parents, and manifests itself first in familial relationships.

Besides, the Confucianists held that management of the family is the foundation of the administration of a state and the pacification of the world. Therefore, the creation of family pro-perty and the management of the family are not for constructing a cozy nest, but initiate a great cause devoted to lofty values and ideals. Innumerable Chinese accumulate and multiply their wealth without limit in order to bring honor to their ancestors and renown to their family. For this reason, they are industrious and frugal, and display an extremely assiduous and painstaking spirit in their work and life. Thus it is evident that Confucian ethics endows the Chinese in their traditional society with powerful motives to engage in, and develop, economic enterprises.

7. Although Confucius did not favor physical labor, such as cultivating land and growing vegetables, yet he and the Confucians all advocated the jingye spirit: to work cautiously, conscientiously, seriously, assiduously and diligently. This was bound to lead one to love of labor and to devotion to one’s work. Confucius stressed repeatedly: "When serving in a official capacity be reverent" (The Analects 13:19), "Be reverent when one performs one’s duties" (The Analects 16:10). This attitude was the origin of the jingye spirit of the ancient Chinese.

Confucian ethics cultivated the virtue of thriftiness among the Chinese. Even the dogma, "Preservation of the heavenly prin-ciples, and elimination of human desires", which manifested a tendency to subjugate human desires for a happy life nurtured the fine quality of thriftiness in people by opposing extreme hedonism.

8. This vocational and business ethics not only cultivated fine qualities and intelligence for those in economic activities, but also maintained the indispensable order required for economic develop-ment and prosperity. For example, sincerity, honesty and trust-worthiness are of great importance to business activities, especially in a traditional society. In ancient Chinese society, particularly in the economic field, law and regulations were not complete and per-fect. As many economic activities depended upon conventions and customary practices, the sincerity and honesty of the merchants and trust between them were important. In ancient society without modern means of communication and transportation some mag-nates set up scores of stores and workshops in many cities. Without the role of such elements of business ethics as sincerity, honesty and trustworthiness, it is inconceivable that their business empires could exist, profit and develop.

The relation to Confucian doctrine of these traditions of sincerity, honesty and trustworthiness among Chinese merchants is extremely obvious. These are essential virtues of Confucian philo-sophy and ethics. Mencius said, "Sincerity is the Way of Heaven." Thus, sincerity becomes the fundamental principle of the universe and of man; it is one of the five eternal virtues: benevolence, righteousness, rites, wisdom, and trustworthiness. Through the ages the Confucianists introduced these virtues into the minds of people, and transformed them into a long and deep tradition which has played a tremendous role in the elimination of cheating and chaos in daily life and economic activities.

Modesty, kindness, toughness, tenacity, firmness, steadiness, prudence and so on -- all these virtues advocated by the Confucianists constitute an ethics which stimulates economic development.

Six obstructions to economic development were enumerated at the beginning of this chapter, but their negative roles were counteracted to some extent by the eight positive elements listed above which stimulated economic development. Without the eight points, the economic prosperity of Confucian society would have been inconceivable. Both the six and the eight points existed simultaneously in traditional Chinese society. One should neither negate the eight points in order to affirm the six, nor vice versa. However, by and large and over the long range, traditional society Confucianism has had a philosophy most suited and advantageous for economic development. The strong evidence for this statement is that in Confucian society the economy developed to the maximum extent allowed by a traditional society.

The relation of a philosophy and spiritual tradition to eco-nomic development should be studied in the light of the main spiritual and cultural role of fundamental values, instead of the economic motives and effects created directly by its theory. There is no simple causal relationship between a philosophy with eternal values and economic development. The real significance of a philosophy and of a tradition’s perduring value manifests itself in forcefully stimulating people of all social strata to spiritual per-fection and development. Further it promotes an overall level of culture which, in a broad sense, includes the institution, theories, and all kinds of achievements in the fields of politics, economy, law, ethics, education, literature, art, religion, and other huma-nities, as well as various natural sciences, etc. The spirit and culture perfected and developed by philosophy or religion can provide fertile soil and rich nourishment for economic growth, enable it to maintain its powerful vitality and open bright prospects. This has been the economic function of Confucianism in ancient China.

However, we cannot neglect the six constraints upon eco-nomic development. Their most grave negative role was to limit the Chinese economy within the sphere of a feudal economy. Because of this limitation, the Chinese economy could not free itself from the bonds of traditional society; only upon the breakdown of these ties could the Chinese economy develop to a higher stage. The great economic progress in modern China (including the Mainland, Taiwan and Hong Kong) was achieved precisely upon getting rid of these ties.

Can Confucianism suit the needs of a modern economy? Obviously an integral traditional Confucianism cannot exist in contemporary society, nor can it facilitate economic development. Nevertheless, the economic miracles created by Japan and the Four small dragons in east Asia which emerged after the 60s have demonstrated that the Confucian tradition, criticized and remolded by history, can still play its own positive role in the development of a modern economy.

This remolded Confucianism, as combined with Western values, has been termed by some Western scholars a "Neo-Con-fucian", or "post-Confucian" culture. Its main characteristics are: a stable political structure, for instance, one party continuing in power over a long period of time; active intervention in economic life by the government; the people’s observance of discipline and obedience to law; a comparatively secure and orderly social life and a low crime rate; an important place for education in society; a relatively high cultural level of the whole society; a strong collective consciousness in the enterprises, with a multi-faceted emotional relation among all sorts of personnel inside and outside of business; concern for the well-being of staff and workers and harmonious interpersonal relationships; a strong sense of family and clan, with an important role for familial enterprises in eco-nomic life; and a thrifty life on the part of the people with a high rate of savings and investment. These characteristics, according to some Western scholars, have formed a new mode of moderni-zation, which the American sociologist Peter Berger called the Eastern mode of modernization; it is based on collectivism and group spirit, in contrast to Western individualism. The American economist Hung-Chao Tai calls this an emotional mode of modernization, in contrast to the Western rational mode.

The relation of these characteristics to Confucianism is quite obvious. The practical process of modernization in East Asia cast aside the obstructive factors to economic development in Con-fucianism, but preserved and carried forward its fine tradition of facilitating economic growth. By comparing the eight points mentioned above with the characteristics of the Eastern mode of modernization, we find that the latter is the manifestation of the former. It must be pointed out that the forms of the latter are distinct from that of the former due to the difference in the times, but the two are similar in the fundamental Confucian values from which they originated, and in the roles these have played. For example, the second of the eight points mentioned that the Confucian philosophy of benevolence restricted a vicious evolution of the dependent relationship of peasants on landlord. Now in East Asia, though the social problem has been solved, nevertheless the influence of Confucian benevolence upon contemporary economic life is manifested in another way. Some observers and scholars have noted that the disparity of wealth between the poor and the rich in East Asia is not so great as in the West. This is an important factor facilitating economic growth and obviously is related to the Confucian tradition of benevolence.

The economic function of Confucianism is always charac-terized by a duality. As regards Confucian theory itself, there is always a certain obstruction to economic development; this need not be covered over. Nevertheless, the modern economy and life have become an irresistible historical trend, which can resist, break though, and eliminate the negative influence of Confucianism upon economic development. Therefore we need not excessively blame Confucianism. The Chinese cultural tradition, with Confucianism as its principal component, is a spiritual life with a powerful vitality. That it can self-rejuvenate, self-renew, self-create and always participate in the process of historical development has been demonstrated vividly by the process of East Asian modernization.

this evaluation and at the same time explore its objectivity in order to ensure the objectivity of the evaluation.

The evaluative criterion is society as a composite of modern political, economic and cultural characteristics; simply speaking, it is modernity. Modernity is a generalized cultural category with women’s personality development. A modernized economy will enrich the female subject’s personality and open the possibilities for women to rediscover their self and improve their personality.

Almost every nation has undergone a time when they worshiped female goddesses and had beautiful legends concerning their authority. Female goddesses could not only repair heaven and make the earth, but could also create and multiply human beings. The worship of female goddesses reflects the authoritive position of female in material things and in producing human beings during primitive economic times. With respect to material production, their level then was very low. Women collected natural fruit, while men hunted for animals, but because of poor instruments men often came back with nothing, whereas the collection of fruit by women was the main source of food. In their state of group marriage, everyone knew his or her mother without knowing the father; child bearing was considered the business of women alone. In both material and human production women occupied a dominant position and were respected by everybody. With men they worked hard for the development of humankind, but did not ride roughshod over people by means of their position. Hence, their personalities were sound and beneficial. In such a time women had both position and personality, but they could not be said to have had independent individual personalities. They were conscious of a heavy dependence upon nature and human beings; there was no place for a sense of independent personality.

Progress in productive tools changed the natural division of labor. The rise of agriculture and livestock provided a new productive force. In addition, individual marriage replaced group marriage so that people knew their own parents. Child bearing was no longer a holy affair, but a burden binding women in the family. Men came to occupy the authoritive position in society originally held by women. With the establishment of the system of private property, women no longer had an independent personality, but became an exploited and oppressed part of men’s property.

The development of economy and the progress of the marriage relation need not have led to the loss of women’s personality, but the fact is just the contrary. We have seen several antinomies above: first, women invented primitive agriculture, contributed to the invention of fire and livestock farming, and helped to bring about the development of the economy and progress in history. At the same time, women showed themselves less competent than men in such productive activities as agriculture and livestock farming, which made them subordinate to men; second, women contributed to the continuation of the human race, but child bearing bound them in families and deprived them of the opportunity to take part in social activities; third, males created the culture and value system and made themselves subjects of the society, while treating females as object and tools. Although these are historical antinomies, they were inevitable for human beings in their efforts to free themselves for the bonds of nature. In a society of low productive power, it is an axiom that the weak are prey to the strong. The backwardness of production and its corresponding feudal system and culture could not provide room for an equality of both sexes. Therefore, for the progress of the economy it was unavoidable that women’s personality would be sacrificed. In the dark ages in China as well as in the West women could not participate in politics and the praiseworthy characters of the female were also distorted: women become jealous due to living together with their husband’s concubines; they became self effacing due to being subject to maltreatment; and they became narrow-minded through living for a long time in the boudoir without going out. In the meantime, the distortion of the male personality was manifested in another way. Many men were subordinate to other men due to the social system which gave primary to the father’s rights so that they had no personality of their own. In the family, marriage for the sole purpose of child bearing and expression of the sexual impulse without love alienated the human essence of males.

The industrial economy destroyed the natural sense of the family as the basic unit. Great quantities of labor were needed by large industry. This created opportunities for women to enter social life, to participate in economic activities, to earn salaries, and hence no longer to be the property of others. This provided a good basis for their positions as social subjects. In addition, the democratic system, corresponding to the industrial economy, promoted such ideas as "all are equal in terms of money"; "all are equal before the law", "all are equal before God". This gave rise to public opinion favorable to the independence of women as regards their personality. All this was helpful in awakening women’s personalities as subjects. In industrial society women actively fulfilled their obligations while seeking their legitimate rights and interests in activities which constantly improve their personality. However, the following elements in industrial society frustrated the development of women’s personality or even subjected it to certain deviations.

First, industrial production places the machine at the center; it aims at producing material objects and is determined by the investment of human power and other resources; it emphasizes physical labor and operational technology, and the proportion of physical labor is much greater than that of mental work. This situation is unfavorable to women; they suffer sexual discrimination in seeking a job, which hinders the establishment of women’s personalties as subjects.

Second, due to the backwardness of ideas in comparison to the progress of the economy, certain feudal ideas such as "the male has dignity while the female is humble" and "a woman should be subordinate to a man" still fetter women, and influence social expectations regarding their role and value. This gives rise to certain dilemmas for women in seeking their rights and fulfilling their obligations. Many women feel a tension between their role in society and in their family, and in seeking a position in social life while feeling a sense of obligation to be a good wife and mother.

Third, the male culture inclines women to be masculine: as society has long been dominated by men the behavior of successful men in social life is taken as the pattern for all people. As women have not created their own pattern of behavior, they must conform to the pattern of man’s behavior so that their role in social life will more easily be accepted. This stage cannot be surmounted until women fully participate as subjects in society. Although the slogans such as "equality for both sexes" play a great role in freeing women from the fetters of family to become subjects in society, they are harmful to the maintenance of the distinctively female personality. In China, a trend toward the masculinization of women was strong after the 1950s, and reach its height in the 1970s. The "Iron Young Woman" in the 1950s was very similar to the male physique; in the 1970s the dress, even the style of women’s hair, was masculinized. Coming into 1980s, people exclaimed with surprising that "there are no woman in this country"; they began to doubt whether the "strong woman" was perfect in personality. Women refused to be masculinized.

However, people have no answer to the question what is the ideal personality for women? They sink into puzzlement and inertia. Men are afraid of their wives being "strong women", and women themselves fear being "strong women". In order to be thought of as tender, many women do not dare to show their talent, but then they worry about being too feminine; they do not know how to mould their personalities. The solution to the problem requires further development in the economy as well as constant progress in ideology; one is complementary to the other.

The modernized economy is a great revolution over the traditional one and will bring about change in all facets of society. The female personality will be developed and improved in the process of the modernization of society and its ideal will be realized.

First, the productive mode of the modernized economy helps manifest the personality of women as subjects. In modern industry, what determines the production is no longer physical human strength, but the application of a high level of technology, which increases the proportion of mental work. Now in some developed countries, the proportion of mental work versus physical labor approximates 1:1, while the value created by the former far exceeds that created by the latter. Therefore, the application of high level technology will reduce or eliminate the physical inferiority of women in production, and enable women to give play to their superiority in patience, carefulness and nimbleness. This is obviously indicated in developed countries: in the U.K. women have more job opportunities than men.

Second, the operational mode of a modernized economy enables women to choose the job suited to them. The open, dynamic pattern of the economy enables women to find positions of their own in a wider range of social activity. In developed countries, women are exploring molding ideal personalities. They are not the traditional good mothers and wives who sacrifice themselves in a closed family context, nor are they the so-called strong women of industrial times. They develop their own standard and hope to get a valuable job with flexible hours and a good location; they hope to take account of both family and career. Some women give up work and become housewives while bring up their children, but their return to the family is for the purpose of educating their children and giving their children the natural love of a mother so that the children can grow soundly. In the meantime, they engage in further studies to give play to their potentialities or to develop their interests, so that they will be more competitive when they take up a career after their children have grown up. Such exploration is praiseworthy under the conditions of a modernized economy; it advances the civilization of the whole society.

Third, the high educational level of society, the high degree of democracy and the modernization and socialization of house work due to the modernization of the economy will enable women to elevate their quality as human beings, to demonstrate their personality, to strengthen their competitive power in social life, and to realize a sound personality. There will be a day when we need no longer emphasize that the male and the female differ and recognize that there is something common to both sexes. Then the peculiar and varied beauty of the character and personality of the female will demonstrate itself naturally in the world.

Of course, molding the female personality depends not merely on the progress of economy and is not merely a matter for women alone. It depends on the consistent efforts of the whole society; this requires theoretical work by scholars to find the incompatibilities and in time eliminate them.