ABSTRACT
The previous chapter described two different development patterns and explained why the two regions developed so differently. This chapter discusses how power relations between local government and the people, or between officials and the people, changed in the two regions. The critical factor shaping power relations is who controls resources and opportunities. Not surprisingly, the development of TVEs and prohibition of private business in Sunan strengthened the power of local governments. As elite groups, officials and TVE managers together wielded great power in the local economy and politics, and the majority of the people (the masses) became passive participants of rural industrialization. Power concentration in the hands of the elite characterized power relations in Sunan.
