This chapter examines the effects of market penetration on social stratification in local economies, by which I refer to townships with the lowest market penetration level in the province, located in mountain areas of rural Guangdong. Chan Township, which is located in the western mountain areas of Guangdong Province, is selected as being representative of local economies. Two characteristics of the local economy will be highlighted in this chapter. First, cash-starved local governments tend to create many ways to collect money from rural people, even though the central government has issued policies to relieve the burden on peasants. Second, the low level of market penetration in the local areas limits sources of the earnings of peasants. Migrant wages and businesses are the main support of the peasants’ lives.
Even though Indonesia's CO2 emissions are dominated by deforestation while China's are dominated by industry, Indonesia has much to learn from China's industrial energy saving programs. To begin with, it is only a matter of time before Indonesia's emissions from fossil fuels overtake those from deforestation. Given the long technological lock-in effects of energy systems and industries, Indonesia needs to think now about how it will tackle this problem. There are other reasons for believing that Indonesia might learn something from China – the CO2 intensities of GDP, of industry and of cement production have been rising in Indonesia, while they are falling in China. China's better intensity performance is due to policies that Indonesia would do well to follow – adopting a technological catch-up industrial development strategy; raising energy prices to scarcity values; liberalising domestic markets and opening the economy to trade and investment; and mounting a massive energy saving program.