The unprecedented development under the Song Dynasty…

The unprecedented development under the Song Dynasty of large estates, whose owners manage to evade paying their share of taxes, has resulted in an increasingly heavy burden of taxation on the peasantry.

The drop in state revenues, a succession of budget deficits, and widespread inflation prompts the Emperor Shenzong of Song to seek advice from Wang Anshi.

Though Wang is from southern China, he comes from a family of imperial scholars (Jìnshì) and had placed fourth in the imperial exam of 1042.

He had passed the first twenty years of his career in the regional government of the lower Yangtze region, gaining practical experience in local governance., which guides his analysis in formulating solutions to revitalize the ailing Song society.

Wang believes 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."

(Nourse, Mary A.

1944.

A Short History of the Chinese, 3rd edition.

P.136) Wang had come to power as second privy councilor in 1069.

It is here that he has introduced and promulgated his reform policy (xin fa).

There are 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 includes paying cash for labor in place of corvée 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 believes that foundation of the state rests on the well being of the common people.

To limit speculation and eliminate private monopolies, he initiates price control and regulates wages and sets up pensions for the aged and unemployed.

The state also begins to institute public orphanages, hospitals, dispensaries, hospices, cemeteries, and reserve granaries.

The military reform centers on a new institution of the baojia system or organized households.

This is done to ensure collective responsibility in society and will later be used to strengthen local defense.

He also proposes 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 seeks to break down the barrier between clerical and official careers as well as improving their supervision to prevent connections being used for personal gain.