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China's efficiency beats India's democracy

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Beijing, China — An article titled, “Chinese efficiency surpasses Indian democracy” appeared Friday as the second story on the front page of the Huanqiu Shibao, or Global Times, a state-run newspaper which has both an English and a Chinese website.

The article described a debate on the topic, “The future belongs to India, not China,” at the Royal Geographical Society in London on May 12. At the end of the debate, only 261 people in the audience voted for the motion, while 421 voted against it, in effect voting for China. Moreover, the Huanqiu Shibao quoted the conclusion of the Indo-Asian News Service in its statement that “Indian democracy loses to Chinese efficiency.”

For Chinese, in spite of this delightful outcome, the conclusion by the IANS may serve as an anesthetic, uplifting the Chinese people to cloud nine, but gradually leading us to self-destruction.

I recall an encounter with the renowned U.S. economist Jeffrey Sachs, who gave a speech on China’s economic outlook while I was visiting Harvard University in the United States a few years ago. His optimistic attitude toward China’s future economy incurred the displeasure of an Indian student at the Harvard Business School who attended the speech.

The Indian student asked Professor Sachs whether India could keep up with China. Sachs smiled and took a leisurely sip of water before replying, “There is only one thing I can be sure of – India’s population will catch up with China’s before too long.” The rest of the audience burst into laughter.

Everyone was clear about Sachs’ meaning; his comment was not based on a comparison of the political systems of the two countries, but on their current and future economic performances.

Differences in economic performance between countries result from various factors. Although the system is sometimes fundamental, the samples drawn should be comparable. For example, in the cases of North and South Korea, and formerly East and West Germany, where two countries are similar with regard to race and geography, their different economic performances can be attributed to their different systems.

On the other hand, there may be other factors contributing to differences in economic performance among countries that are less similar. For instance, one cannot state that Singapore’s authoritarian regime excels the democratic regimes in other parts of the world just because of its good economic performance, which has been ranked top in terms of global competitiveness.

After all, economic performance correlates not to political systems, but to economic systems. Everyone is aware and basically in agreement that China’s rapid economic growth in the past 30 years was related to the establishment of a market economy.

However, China’s economic performance is also affected by both its political system and its ethnic characteristics. By comparison, most Latin American countries cannot build up a strong economy like China’s, whether or not they operate under a similar system, with a market economy and an authoritarian government. They cannot even be compared to democratic India.

Hence, one cannot conclude that China’s quicker economic development infers a lack of efficiency in India’s democracy. Comparisons of economic efficiency do not equal comparisons between democracy and authoritarianism.

In fact, a market economy mainly aims to solve the issue of efficiency, while democratic politics are designed to settle the issue of social equity. Therefore, if a given country attains better economic growth in the course of its development, before it transforms to a democracy, it is not strange. But this only holds true if the authoritarian leadership promotes economic development.

One of the major arguments of those who deprecate democracy is that democracy lacks efficiency. But this is actually a misunderstanding.

Certainly, democracy in itself will not yield economic or military efficiency. However, it generates desirable and expected efficiency in political and social affairs.

For instance, a recent segment on the official China Central Television program “Interview in Focus” disclosed that a factory in Hebei province, producing monosodium glutamate, polluted several thousand square kilometers of farmland with its toxic discharge. If this had occurred in a democracy, local people would merely telephone the local councilor, who would arrive at the spot immediately. If the councilor didn’t do his or her duty and investigate the matter, the media would publicize the fact. As a result, the voters might refuse to vote for that person in the next election.

Further, the councilor would question the local administration and request a solution. If the local authority failed to solve the problem in time, the councilor might move to impeach the responsible official or remove the head of the responsible agency.

But in China today, if rural villagers cannot gain the attention of the media, they will have to face the head of the local administration themselves. In the case broadcast by CCTV, the peasants went to the town head to explain that the farmland was being polluted. But the town head cut them short coldly, saying, “It’s not polluted by the town government anyway!” That was basically the end of the case.

Authoritarianism often reaches its highest efficiency in those areas that benefit the interests of the rulers. Take China’s Three Gorges Dam project, for example. If the project was discussed under a democratic system, the negotiations could take three to five years, or even longer. Possibly no agreement could be achieved. But as this project was undertaken within a totalitarian context, it only required one individual rapping the gavel.

Unfortunately, in other areas that require efficiency – like preventing officials from colluding with merchants and harming the interests of the people – 100 years would not be enough to resolve such issues.

In brief, efficiency is not an excuse for the denial of democracy.

--

(Wu Jiaxiang is a senior researcher at the China Research Center for Public Policy of the China Society of Economic Reform. He is a renowned economic and political scholar and a former visiting scholar at Harvard University's Fairbank Center for East Asian Research. His research areas include economics, domestic and international politics, business strategy and Chinese traditional strategy and thought. This article is translated and edited from the Chinese by UPI Asia.com; the original can be found at http://blog.sina.com.cn/s/blog_4c062a780100dznh.html ©Copyright Wu Jiaxiang.)



[ Flag ]
Krishna @ July 13, 2009 08:10AM HKT
I have never seen a more stupid article. If the Chinese people were given an opportunity to lynch its authoritarian government, they would. But obviously you will never know because any attempts would be meted out with a brutal military. Having said that, even though India might have a lot of faults there is an active debate. This Wu Jiaxiang is no scholar. and I am sure he wouldn't let my comments pass (Chinease mentality).

[ Flag ]
gpit @ May 22, 2009 10:28PM HKT
(continue...)

Those corrupted officials might have interwoven with other local powers in their mutual interests such that only corrupted can be nominated as candidates. It could also be that an initially uncorrupting person mutated into a bad one after being bombarded with briberies and embezzlements when in the office, due to lack of effective judiciary or weak judiciary.

Political system will of course intimately affect economical performance. If Mr. Wu is truly a scholar in China, he/she wouldn’t have known that economy is the infrastructure of a social system and politics in a superstructure. Backward or incompetent political system will only undoubtedly impede the development of economy.

I am disappointed to see a professional senior researcher from China lack such fundamental knowledge and basic research capabilities.

[ Flag ]
gpit @ May 22, 2009 10:28PM HKT
I’m afraid while the author may be quite familiar with China, he/she nonetheless hasn’t had a study of democracy in general and of India in particular, at least through some published data.

Take the pollution for example. According to Mr. Wu’s postulation, a democratic country will never have any problem of pollution, because as long as there is a series issue of pollution, the hypothetical, presumably democratically elected councilor would question the administration and would strive for his constituents to solve it.

Unfortunately, that is only true in textbook theory. In fact, India is rampant in pollution, not much better that China. How would Mr. Xu explain that?

In practice, one must consider a key factor of the real world: social interests and the interplay between the interests.

The same can be said for many other indicators. For instance, India is more corruptive than China. Do Indian constituents love corruptions so as to elect corrupted officials? No, of course not!

--to be continued

[ Flag ]
Rizvi @ May 22, 2009 05:28PM HKT

So this brings us to the basic question; Would China have been able to reach where it is today if its had not bull-dozed home to make way for highways, if fields had not been taken over for tech Parks and export gateways??

In India even the mighty Tata's had to return the land they had got back to the farmers, when the farmers carried out protest marches and fasts. The US$ 2500.00 car did finally roll out from Tata, but not from the factory it was supposed to be built in. Maybe it’s a good thing that in India even the downtrodden can raise their voice against the most powerful Corporate’s in the country.

The poor protesting in China will forever remain a mirage...

Given such a scenario, maybe India's future @ 6% GDP growth vs China's @ 10% is lower but for most of us, it is definitely lovelier !


[ Flag ]
HariSud @ May 22, 2009 02:24AM HKT

China's efficiency is born out of $800 billion FDI it has received in last 25 years. Take this money out and China is back to the middle ages.


Hari Sud








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