China: Politics Reform. Economics: Chinese-politics-reform

 

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China-Politics-reform


Reform is a domestic political process which create coalitions who see reform as serving their interests.

All western writers about China have praised Gorbachev’s strategy of doing everything at once, and attack Deng’s strategy of carefully sequencing reform, whereas historically those reformers who have tackled the whole range of reform at once, have mobilized oppositions and seen their reforms defeated.

Deng’s initial farm reform doubled the incomes of China’s farmers, winning the support of a group that comprises over eight hundred millions people.

He then facilitated the rise of a class of small scale entrepreneurs and stimulated the take off of light and medium industry, thereby gaining the support of tens of millions more workers and managers.

After the Tiananmen Square incident Deng lost the support of intellectuals and students.

Deng Xiaoping even managed to obtain the support of majority of the military leadership for economic reform despite the necessity of severely constricting military budgets in order to finance rapid economic advancement.


Coincidentally 1979 was the year when China clashed with Vietnam over the latter’s involvement in Cambodia. While China achieved its objectives, its army was unacceptably bloodied by Vietnam. Deng convinced much of the leadership that the army’s only salvation lay in access to Western weaponry. This requires economic success to finance the trade, accommodation with Western countries to obtain access to weapons and drastic cuts in the army’s budget and manpower in order to fund domestic economic process.

Likewise, top leadership of the government and the Communist Party became advocates of reform. After the tragedies of the Great Leap Forward (1958-61) and the Cultural Revolution (1966-76) the radical ideologues were completely discredited and the top party leaders knew that it had to try something drastically different in order to save both the country and themselves.

Meanwhile, the families of both groups (top leader’s liberals and conservative) and the families of senior army officers were bought for reform by the special advantages of their situation: they could use socialist connections to get special advantages at making money in the marketplace.

Thus, through a combination of idealism, expedience and corruption, the nation’s power elite was enlisted in the reform.

In contrast, GORBACHEV quickly lost the support of virtually all important social groups for economic reform.

Farmers remained as neglected and alienated as they had been since Lenin’s time.

Workers faced stern demands of harder work as their wages collapsed and their vodka was curtailed.

The managerial class found its power and perks curtailed while its real income fell and the overall strategy of industrial revival failed.

The Communist Party leadership was told to run for election after nearly three generations of alienating the population.The principal beneficiaries of Gorbachev’s were intellectuals and foreigners.

The former because freedom of speech was so overwhelmingly important to them.The latter, because of the Gorbachev’s historic statesmanship in ending the cold war peacefully.

China was the beneficiary of successful Asian’s Models.

Whereas the USSR and the Eastern Europe were the victims of inexperience and ideology. (This time western democratic capitalist ideology, but ideology nonetheless).

The notion that one can have democracy and all forms of economical liberalizations instantly and simultaneously has proved to be an ideological assumption in the strictest sense: a deeply held belief that has no grounding in practical historical experience.

There is a literature on the prerequisites of democracy that dates back to the Greeks (and likewise on the institutional structures in capitalists economics) that have not been present in Eastern Europe and take time to build. alphaconcept ltd    info@nokia-hk.net




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