The Chinese Miracle
Some are already wondering if this will all speak Chinese. From a distance, China seems a rather nice hybrid with unique, effective in any case, the political centralism and economic well-controlled relaxation. How to explain the Chinese miracle? What happens with dust under the carpet but beautiful embroidered picture of a skyscraper and China astronauts? The Chinese reach the moon, or the darkness of the moon invisible in national realities will limit its rise?
Appeared on the market relatively recently special leashes for pets. Give a feeling of freedom for the length of leashes are adjusted by a margin that wants to leave his master. Prospects and horizons are expanded, but there is a limit to the freedom and control over movement. About the same adjustment device you have handy and the Chinese Communist Party’s economic planners. Obviously, they cannot control everything, the freedom of firms to make decisions based on the idea of capitalist profits and profitability is not completely fenced, but actually encouraged. Chinese state firms do a great job in generating dividends. Much of the increase with 21% of budget revenues last year is due. Some of these companies are joint partnerships with foreign companies, and borrowed – in fact it is said that the Chinese can copy anything – how to do business in the West, and a State having such control over what they do foreign companies territory. Not all decisions but they are responsible.
Many Chinese state companies are listed on exchanges in Shanghai or Hong Kong, but an undetermined part of their shares are owned mainly by workers collectively. Privatization has begun: three of the largest Chinese state banks are in the process of privatization by the end. Chinese officials have announced the gradual liberalization of the exchange rate of the yen. China is undoubtedly a giant demographic and geographic, two important characteristics to be a great power. Since 1953, China doubled its population, now reaching 1.3 billion of the 6.4 billion inhabitants of planet. China has a population of more than 200 years ago the entire world. A simple look at the economic indicators shows that there is a colossus with feet of clay. Solidify economic pillars. Over 60% of microwaves, DVDs, copiers, toys, lighters, frames for glasses and shoes in the world are produced in China. Comparative advantage is cheap labor and labor power of the Chinese.
Economic reforms started in 1979, after the Chinese Communist Party Congress in December 1978, when President Deng Xiaoping delivered a historic speech, announcing that “no matter what color cat can be black or white, it is important to catch mice.” Thus began the modernization of China, under the sign of pragmatism. Collapse of communism in Eastern Europe and the USSR was caused and economic immobility and inability to adapt and generate prosperity for ordinary people. China has succeeded in giving effect to raise the standard of living, if not of most Chinese, at least of a majority and gave others hope for better prospects.
Last year China overtook the U.S. in terms of attracted foreign investments. Chinese products have invaded all markets and are the cheapest in the world. Growth over the past 10 years averaged 10%. Since 1970, when it launched its first satellite into space, China has strengthened its capacity in 2003 and managed to send into space on their own first Chinese astronaut from the Jiuquan.
To complete the picture greatness of China, the middle, as the Chinese call this will hold the 2008 Olympics, an opportunity to show the world switch to the front. Certainly will be a demonstration of economic power and organizational strengths of two of the Chinese.
As The Economist reminds us of the 24 members of the Chinese Communist Party’s Central Committee, only Premier Wen Jiabao meets the press in China once a year. President Hu Jintao did not participate in any press conference in China when he was named party boss in 2002 and then chairman the next year. The transfer of power from Jiang Zemin to Hu Jintao held without noise or excitement. In fact, the key word seems to be wisdom.
Party sees its own business, planning long-term rise of China, the people must see their incumbent of activities and companies need to produce money for the expansion of the central budget. Peace, order and labor.
There is no question of political competition. Communist Party has no political competition. Opponents are discouraged by radical deterrent means, is evidence of the events in Tienanmen Square in 1989. Opening it sees politics and, frankly, nobody can predict what would happen if it would cause such harm and present blend system.
One country, two systems
China has increased in recent demographic and geographic six years. Hong Kong, the former British colony until 1997, and Macau, the former Portuguese colony until 1999, were recovered by China. These provinces were granted a wide autonomy except in foreign policy and defense and were given the right to keep their institutions and practices. He left Taiwan.
Taiwan is credited by many analysts as a casus skin. And if Taiwan would declare independence, China would be forced to intervene militarily. Nobody is interested in seeing done such a scenario, and the Chinese know they have time. Furthermore, I know that a conflict would stop economic growth and would isolate the political, with little chance of winning. On the other hand, Americans are focused on fighting terrorism, it has absorbed only in Afghanistan and Iraq, almost 165 billion dollars between 2002-2004 (i.e. 226 million daily). Japan, Australia and South Korea would certainly react if China would exacerbate tendencies and hegemony in the region, and exchanges in Shanghai and Hong Kong would soon feel the consequences.
Chinese Parliament, composed of 3,000 “comrades” playing the role of Communist Party delegates from all regions of the country, voted on March 14, a law antirecession trying to block Taiwan’s intentions to declare independence. All the effects of the law were not considered, going to threaten a military invasion if the declaration of independence. Americans and Japanese have taken the position immediately; protest demonstrations in Taipei have strengthened the position of pro-independence camp, while the EU announced that it postponed lifting of arms sales embargo to China. Chinese began to give back, although it is clear that the Taiwan issue will remain their main concern and only political song that keeps in check. Provincial incorporation would mean a major policy victory, but also an economic gain, the island of 23 million people are economically prosperous and integrated international financial flows. Panda diplomacy is back in operation.
Two pandas have taken the direction of Taiwan, as in 1972, when they were emissaries of a new era of cooperation between China and the U.S. allies during the Cold War against the USSR. Taiwanese President Chen Shui-bian told Newsweek reporters but that if his people will want unification with China, it can be done in 50 or 100 years, when China will organize free elections and freedom expression will be curtailed. Thus, suggesting that the Chinese were unified slogan should be: a country if we have the same system. And the system must be pluralistic, democratic and not communist. But the idea of unification is not rejected a priori.
Dust under the carpet
Technological revolution and economic paradigm shift, but we know who to use! Life has not improved visible to all Chinese. Not everyone is computer or business. The 2.3 million cars were sold in China last year have found buyers in general in some areas of the country. Skyscrapers in Shanghai and Beijing sad they have a correspondent in rural areas are living as a century ago. The 800 million Chinese peasants are the main beneficiaries of transformation.
These realities can we escape the enthusiasm for the Chinese miracle. Immersion in the social and economic statistics we could do but to lose sight of the central idea. As elsewhere, some win and some lose from change. However, it must be said that 300 million Chinese were taken out of poverty over the past 25 years since reforms began, the average individual earnings increasing fourfold.
The ancient Greeks had free time for debate on Agora and philosophizing and that on average ten owned slaves who were dealing with hard work. Similarly, in keeping the Roman Empire had an important role and slave labor. In China, a backbone peasant was free, but over-charged. Chinese Dynasties, lasting some four centuries, have either collapsed under foreign attack or internal machinations or, most often due to poor peasants’ revolt.
Last autumn, the central leadership of the Communist Party announced a policy to achieve “harmonious society” will be the priority next year. This means that Chinese leaders recognize a smart move, the current policy shortcomings. Solutions aimed at reducing taxation and investment projects and create jobs in less developed areas: investment in infrastructure in rural areas, removing, starting in 2006, duties on agricultural products, and abolishing school fees for children of peasants. Trying to self-regulating system, not all effects of a mixed system of political centralism and economic relaxation can be controlled early.
And on Sept 6th, Shenzhen celebrated 30 years of prosperous economy.
With a string of events being sponsored to celebrate Shenzhen’s 30th anniversary as a special economic zone (SEZ), it is necessary for China’s earliest SEZ to look back at the special initiatives it has taken over the past three decades to spearhead the country’s economic boom and explore new ones to lead the city and the whole nation to a larger economic miracle.
During an inspection tour of the prosperous southern city from Aug 20-21, Premier Wen Jiabao urged local officials to adhere to the SEZ’s accumulated spirit and experiences in its explorations for special and new initiatives to boost local economic and social development.
The anniversary comes at a time when a number of other cities, especially those in coastal regions, have also achieved significant economic progress over the past years.
Shenzhen, as the earliest window of China’s reform and opening-up to the world, should rely on much-needed, sober recognition and judgment among its people toward the direction of its future development, to keep its leading position in national economic development.11