Wednesday, November 14, 2007

Red Alert: The China Model

Rowan Callick examines the potential danger of China's strategy, which is perestroika without the glasnost. An excerpt:


From Vietnam to Syria, from Burma to Venezuela, and all across Africa, leaders of developing countries are admiring and emulating what might be called the China Model. It has two components. The first is to copy successful elements of liberal economic policy by opening up much of the economy to foreign and domestic investment, allowing labor flexibility, keeping the tax and regulatory burden low, and creating a first-class infrastructure through a combination of private sector and state spending. The second part is to permit the ruling party to retain a firm grip on government, the courts, the army, the internal security apparatus, and the free flow of information. A shorthand way to describe the model is: economic freedom plus political repression.

The system’s advantage over the standard authoritarian or totalitarian approach is obvious: it produces economic growth, which keeps people happy. Under communism and its variations on the right and left, highly centralized state-run economies have performed poorly. The China Model introduces, at least in significant part, the proven success of free-market economics. As citizens get richer, the expectation is that a nondemocratic regime can retain and even enhance its power and authority. There is no doubt that the model has worked in China and may work as well elsewhere, but can it be sustained over the long run?

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