31
Oct

 

Xi Jinping’s Tiger Hunt and the Politics of Corruption

By Andrew Wedeman

ChinaCenter.net

The Communist Party of China has been grappling with corruption almost from its birth. Corruption was one of the major issues during the 1989 anti-government demonstrations.

The leadership, in fact, responded to public anger over corruption and what was then known as “official profiteering” by launching a major campaign, in the course of which the number of individuals charged with corruption jumped from 33,000 in 1988 to 77,000 in 1989, and 72,000 in 1990.

Since the 1989 campaign, the leadership has waged an ongoing “war” against corruption and routinely prosecutes substantial numbers of officials. Between 1997 and 2012 the Supreme People’s Procuratorate reported that it indicted 550,000 individuals on either corruption or dereliction of duty charges, including three members of the powerful Politburo (Chen Xitong in 1997, Chen Liangyu in 2006, and Bo Xilai in 2012).

These prior efforts notwithstanding, upon assuming the office of General Secretary of the party in November 2012, Xi Jinping announced yet another campaign, which was formally approved by the Third Plenum of the Eighteen Party Congress in early November 2013. At first, the campaign appeared to be a repeat of the same old song and dance. Many of the steely toned slogans about the necessity to fight a life-and-death struggle against corruption and the need to put an end to extravagant spending by officials and cadres had been raised many times before.

Announcements of new regulations mandating fewer dishes at official banquets, banning the purchase of luxury sedans and their use for unofficial business, and the construction of lavish government buildings all reiterated orders issued in past years. Eighteen months on, however, it appears that far from a smoke and mirrors attempt to create the impression of action, Xi Jinping’s anti-corruption campaign may well be the most sustained and intensive drive against corruption since the start of the reform era.

By the Numbers

Measuring the intensity of an anti-corruption campaign is, admittedly, a tricky business given that we cannot even roughly estimate the true extent of corruption. Instead, we can at best guess at the extent by asking experts for their impressions of how bad things are or tracking changes in the number of officials who suddenly stop being corrupt because they get caught. Indices such as the popular Corruption Perceptions Index (CPI) published by Transparency International would have us believe that rather than getting worse, corruption in China has actually been on the decline for at least a decade, with its score falling from 7.6 (out of a maximum of 10, where 10 is the most corrupt and 1 the least corrupt) in 1995 to 6.0 in 2013, which would put China just below the 75th percentile and hence not among the worst of the worse.1

Data on prosecutions tell a different story. The number of criminal indictments was up 9.4 percent in 2013, with the total number of corruption and dereliction cases increasing from 34,326 in 2012 to 37,551 in 2013 (see Figure 1). The number of officials holding position at the county and departmental levels who were indicted rose from 2,390 to 2,618, a 9.5 percent increase. The number of officials the prefectural and bureau levels who were indicted shot up more dramatically, from 179 in 2012 to 253 in 2013, a 41.4 percent jump. Although nine percent increases in the total number of cases and in the number of county and department officials indicted may seem modest for a highly trumpeted campaign, these increases followed a decade in which the total number of indictments had been slowly decreasing. Increases in 2013, moreover, follow more modest increases in 2012. As a result, the total number of indictments in 2013 was 16.2 percent more than in 2011, and the number of country and department officials indicted was up 12.6 percent compared to 2011. More critically, the 41 percent increase in prefectural and bureau level officials indicted is the largest such increase since 2004, and represents a 27.8 percent rise over 2011. Finally, eight officials at the provincial and ministry levels were indicted, compared to five in 2012. The party’s Discipline Inspection Commission (DIC) also reported a 13.3 percent increase in the number of party members who faced disciplinary action.

Indices

Sources: Zhongguo Jiancha Nianjian [Procuratorial Yearbook of China], (Beijing: Zhongguo Jiancha Chubanshi, various years) and Zuigao Renmin Jiancha Yuan Gongzuo Baogao [Work report of the Supreme People’s Procuratorate], 3/18/2014, available at http://www.spp.gov.cn/tt/201403/t20140318_69216.shtml, accessed 6/12/2014.

Note: To provide a long-term perspective, I have transformed the raw data on cases filed into an index anchored on the years 1997-8. I do this because the 1997 revision of the criminal code decriminalized a large number of low-level offenses. The dramatic drop in cases filed thus creates the misleading impression that either corruption fell dramatically, which it did not, or that enforcement suddenly slacked off, which it did not either.

Targeting

It is also possible to look at the type of corruption a campaign is targeting and who is getting caught to get a more nuanced sense of whether Xi’s roar is that of a paper or a real tiger.

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Category : China | Socialism
29
Oct

 

By Christopher Alessi

MarketWatch.com

Oct. 27, 2014 – AMBERG, Germany–The next front in Germany’s effort to keep up with the digital revolution lies in a factory in this sleepy industrial town.

At stake isn’t what the Siemens AG plant produces–in this case, automated machines to be used in other industrial factories–but how its 1,000 manufacturing units communicate through the Web.

As a result, most units in this 100,000-plus square-foot factory are able to fetch and assemble components without further human input.

The Amberg plant is an early-stage example of a concerted effort by the German government, companies, universities and research institutions to develop fully automated, Internet-based "smart" factories.

Such factories would make products fully customizable while on the shop floor: An incomplete product on the assembly line would tell "the machine itself what services it needs" and the final product would immediately be put together, said Wolfgang Wahlster, a co-chairman of Industrie 4.0, as the collective project is known.

The initiative seeks to help German industrial manufacturing–the backbone of Europe’s largest economy–keep its competitive edge against the labor-cost advantages of developing countries and a resurgence in U.S. manufacturing.

Underpinning the effort is the Internet of Things, where the Web meets real-world equipment. Google Inc. made a big push on the consumer front this year with its $3.2 billion purchase of Nest Labs Inc., which makes thermostats that can be remotely controlled by smartphones and other connected devices.

Full-fledged smart manufacturing is still in the pilot phase. But the German Research Center for Artificial Intelligence has worked with German industrial companies to engineer some of the most advanced demonstrations in the field.

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Category : Capitalism | Socialism | Technology
25
Oct

By Robert Ware
Philosophy Dept
University of Calgary

Posted on April 5, 2014
Socialism and Democracy Online / sdonline.org   

Few outside China would think of China as a socialist, or Marxist, society. Inside China the views vary widely, but few would say, without qualifiers, as the Constitution does, that China is socialist. No one – anywhere – now sees China as a model for socialism. Nevertheless, socialism is a strong force in China and Marxism a subject of continuing investigation. Just how significant a role socialism and Marxism play is not easily determined, but the importance of that role and some of its complexity is well worth considering.

Recently I have taught Marxism in Beijing and have had occasion to see some of the strengths and weaknesses of the theory and its application. After some remarks on my experiences there, I will discuss my observations about the nature of Marxism in China in theory and practice. Whatever one says about China’s problems and about how Marxism is discussed there, a large role for studying, developing, and applying Marxism in China remains.

I argue here that the significance of Marxism in China can be compared to that of democracy in the west, especially in North America. In both settings, the relevant practices are dysfunctional in significant ways, but both Marxism and democracy give a rationale and a tissue of support – and, consequently, a locus of struggle – for efforts to improve life for the majority. Their actual influence can be depressingly weak, but both are worthy of investigation, for political as well as intellectual reasons. I will consider some questions about the kinds of socialism and Marxism that prevail in China, but also, importantly, what topics are rejected or simply ignored.

Visits, courses, and socialists

Teaching Marxism in China is fascinating, although the same can probably be said for teaching most other subjects there, primarily because of China’s great development and energy, as well as its complexity and chaos. My observations here come largely from recent visits to China, including three weeks in the fall of 2007 (accompanied by my wife, Dr. Diana Hodson), a month at Renmin University in Beijing in July 2010, and two months at Peking University (again with my wife) in September-November 2011. I have also learned much from many helpful correspondents and subsequent contacts, both inside China and out.

In 2007, I visited five academic institutions in Beijing and Shanghai, lecturing on analytical Marxism and libertarian socialism and discussing Marxism and democratic theory, in China and abroad. (I was revisiting universities, where I had taught analytical philosophy in 1984-85 [Fudan University in Shanghai] and 1986-87 [Peking University and the Institute of Philosophy in Beijing]. In the 1980s, I also lectured on analytical Marxism at a variety of universities and institutes throughout the country.) I also participated in a conference in 2007, at a Communist Party university in Shanghai, celebrating the 140th anniversary of Marx’s Capital with over a hundred economists, mostly Chinese, and a few theorists from other disciplines. In 2010, I taught a summer course at Renmin University of China (RUC) in Beijing and served as a commentator at a conference at the Central Compilation and Translation Bureau (CCTB) celebrating the 150th anniversary of the Grundrisse.1

At Peking University in the fall of 2011, I taught a small undergraduate philosophy course on analytical Marxism and a graduate philosophy seminar on Marxism and radical politics. G.A. Cohen’s philosophically acute and influential studies were the central texts for the seminar. We looked at new approaches to historical materialism, the core of Marxist studies in China, and at equality and freedom, which are generally not discussed as Marxist topics.

The first reading assignment I gave for my summer course in 2010 on analytical Marxism at RUC2 was Albert Einstein’s “Why I am a Socialist” and two introductions to analytical Marxism. The first short writing assignment was to answer the question “Why I am a socialist,” or alternatively “Why I am not a socialist.”3 From the start, I had a good opportunity to learn about young people’s views in contemporary China through this small group of university students in Beijing. Of the thirty students, twenty gave reasons for why they were socialists and ten gave reasons for why they were not. In the twenty, I include one who became socialist later, after reading the Communist Manifesto (I assume again) in English. I also include two who said they were not socialists because they were communists.

Given what I had heard previously in China, I was surprised that two-thirds of my students were socialist, but of course I could not conclude anything in general about young people from that exercise. Certainly, that the course was on Marxism would be a factor, although there were students in the course who were there for the credits, out of curiosity, and for the opportunity to develop their English. After the assignment was handed in, we talked about what young people in universities and in the country generally think about socialism. Before telling them the results, I asked them to guess the division of the class in the exercise. There was a fair amount of variation about the class and greater variation for figures about the views of other groups. Afterwards, I learned, through quizzing many friends and contacts, that there is little idea of how many people, young or old, are socialists.

I know of no good studies of the number of Chinese who are socialists, but it is also difficult to know what a good study would be. Much depends on how the question is asked and what the meaning of socialism is in the relevant context. The same is true for understanding what significance to give to the 2009 Rasmussen poll that ‘found’ that one third of US young people under 30 believe that socialism is superior to capitalism. What do the people polled think socialism is? In the case of the Chinese, young people would naturally think of Marxist-Leninist-Mao Zedong thought or socialism with Chinese characteristics.

The reasons that people give, however, tell something about what they mean when they think of socialism. Quite a few of my students explained their allegiance in terms of their beliefs about human nature. Several said that they were socialists because it is human nature to be altruistic or collectivist, and a similar number were not socialists because, they said, people are self-interested by nature. Of course, this was a good topic for discussion in the class on a topic that is usually given short shrift in Chinese Marxist studies.

Many students were socialists because of parents or grandparents who were members of the Communist Party or had fought in Korea or the War of Liberation. And there were a variety of personal reasons, including moral reasons. An interesting rhetorical question was: if not a socialist, what would you be? The suggestion was that capitalism is not a viable alternative. The dominant question is what kind of socialism should there be.

With even cursory contact, it is obvious that there are millions of socialists in China. There were twenty in my class, and if two thirds of the adult population were socialists, China would have about 500 million socialists. That surely wildly overestimates the numbers, even for a country with a constitution that proclaims its socialism. For a more plausible estimate, consider first that the Communist Party of China has about 80 million members. There is certainly a lot of opportunism and cynicism amongst them, but on the basis of my private queries of many members, I cannot imagine that more than a quarter of them would actually reject socialism, even in their hearts.4 That leaves at least 60 million socialists in the Party.

Then there are surely several million socialists outside the Party. Many people are principled Maoists – some who see positive aspects of the Cultural Revolution – for example those involved with the Utopian Bookstore in Beijing, which has a wide variety of socialist and anarchist books in translation, where lectures are given, and with a widely followed Chinese website – until early 2012 when it was closed down after the detention of Bo Xilai. Bo, the former mayor of the megacity, Chongqing, is thought to have had millions of socialist followers because of popular social policies with Maoist trappings. These days there are also many “Marxologists” and other socialist theorists who do not want to be Party members. Some committed Marxists reject membership for principled reasons. Some socialists prefer not to undergo the strictures and discipline of the Party. Many lack the enthusiasm and happily go on with their own private lives. I would add another 10 million socialists outside the Party.

Thus, my very rough guess is that there are at least 70 million socialists in China. This should not come as a surprise to anyone who observes the intellectual scene in universities, institutes, and the media. Socialism is a known ideology that many take seriously and many more are curious about. (I also heard of many who scoffed at fellow students studying Marxism and socialism.5 There is a lively diversity of opinion.)

This is not to deny that there is also strong interest in capitalism and ideas of neoliberalism in some circles, although there are ways in which such interests are against the grain, historically and politically. Economic decisions might favor private ownership and individual entrepreneurs, but rarely would they be justified on the basis of capitalist ideology or neoliberal theory. Occasionally, ideas are drawn from western “capitalist” thinkers, but almost always in support of socialism with Chinese characteristics.

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Category : China | Marxism | Philosophy
30
Sep

Part of the CCDS team at the conference: Kathy Sykes, Janet Tucker, Harry Targ, Paul Krehbiel

By Paul Krehbiel
Committees of Correspondence for Democracy and Socialism

"The capitalist class is in a serious crisis without solution," said David Schweikart at the Moving Beyond Capitalism conference held in San Miguel de Allende, Mexico from July 30-August 5, 2014.  "But there is a solution," he said, "economic democracy, democratic socialism." Over 200 people from 15 countries discussed how to make this happen, organized by the Center for Global Justice.

Chronic high unemployment, depression of wages and benefits, cuts in social services, and growing inequality and repression, and social and political resistance are endemic to nearly all capitalist countries, said Schweikart, a Philosophy professor at Loyola University in Chicago, and author of After Capitalism. 

Schweikart’s model of democratic socialism calls for a regulated competitive market economy, socialized means of production and democratic workplaces (he advocates worker-run cooperatives as an example), non-profit public banks to finance projects, full employment, and a guarantee that human needs will be meet for everyone. 

Cliff DuRand, a conference organizer, said people are creating alternatives to capitalism today all over the world.  "If we’ve built these alternative institutions, the next time the capitalist system collapses…we will be able to survive without it."

Gustavo Esteva, a former Mexican government official, founder of the University of the Land in Oxaca, and an advisor to the Zapatistas in Chiapas in southern Mexico, gave a good account of how the indigenous people of this region are creating a new democratic and socialist-oriented society that they control, within the borders of a capitalist Mexico.  The Zapatistas launched an armed uprising in the mid-1990′s to stop NAFTA and the Mexican government from allowing multi-national corporations to come into Chiapas to extract minerals to enrich the corporations and destroy their lives and their local economy. 

Ana Maldonado of the Venezuelan Ministry of Communal Economy could not attend, so University of Utah Professor Al Campbell filled in for her.  Campbell has worked in Venezuelan with the Community Councils, a new form of grassroots democracy and socialism.  Created in 2006 by the late socialist president Hugo Chavez, there are 20,000 Community Councils today, each holding meetings in neighborhoods where all residents can attend, discuss, and vote on decisions for their community. 

Private, for-profit banks came under sharp attack for causing the 2008 Great Recession, and for ripping off billions of dollars from people world-wide, primarily through charging high interest rates.  Ellen Brown, founder of the Public Banking Institute based in California, declared, "Without interest payments, there would be no national debt," which now stands at over $15 trillion.  Politicians use the debt as an excuse to cut funds for education, health care and other social programs.  An example of local bank rip-offs is a bank loan for the purchase of a house, where the homeowner pays the bank 2-3 times or more than the cost of the house due to interest payments. 

Brown said the solution is to set up not-for-profit public or state banks — like the Bank of North Dakota.  She describes how to do it in her book Democratizing Money: The Public Bank Solution.  Since the 2008 economic crash, 20 other states including California have introduced bills to study or establish publicly-owned state banks.

"The US controls third world countries," Brown explained, "by putting them in debt and then forcing repayment with high interest rates," which they can’t afford to pay.  Brown said the book, Confessions of an Economic Hitman, by John Perkins, explains how devastating this is. 

Coops in Cuba

Camila Pineiro Harnecker, a leader of the cooperative movement in socialist Cuba, explained that her country is giving much more attention to the development of worker-run cooperatives as a way to help workers create jobs for themselves, and learn how to become masters of their work and work lives. The state socialist sector dominates the economy, but coops now comprise 12% of the workforce and are expected to increase in number.

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Category : Capitalism | Education | Marxism | Socialism | Solidarity Economy
27
Sep
 

Occupy Wall Street protest, two days after dismantling of Zuccotti Park camp (Christopher Smith)

By Mark Engler and Paul Engler

Dissent Magazine, September 4, 2014

Cross-posted from Waging Nonviolence.

Those who get involved in social movements share a common experience: sometimes, when an issue captures the public eye or an unexpected event triggers a wave of mass protest, there can be periods of intense activity, when new members rush to join the cause and movement energy swells. But these extraordinary times are often followed by long, fallow stretches when activists’ numbers dwindle and advocates struggle to draw any attention at all.

During these lulls, those who have tasted the euphoria of a peak moment feel discouraged and pessimistic. The ups and downs of social movements can be hard to take.

Certainly, activists fighting around issues of inequality and economic justice have seen this pattern in the wake of Occupy Wall Street. Many working to combat climate change have encountered their own periods of dejection after large protests in recent years. And even members of movements that have been very successful—such as the immigrant students who compelled the Obama administration to implement a de facto version of the Dream Act—have gone through periods of deflation despite making great advances. Further back in history, a sense of failure and frustration could be seen among civil rights activists following the landmark 1964 Freedom Summer campaign.

After intensive uprisings have cooled, many participants simply give up and move on to other pursuits. Even those committed to ongoing activism wonder how they can keep more people involved over the long haul.

Unfortunately, the fluctuating cycles of popular movements cannot be avoided. Unlike community organizing, which focuses on the slow and steady building of organizational structures, a boom-and-bust pattern is inherent in mass protest movements. Wide-scale uprisings can make a major impact on public consciousness, but they can never be sustained for long. The fact that they fade from view does not mean they lack value—the civil rights movement, for one, scored many of its biggest wins as a result of mass mobilization and the innovative use of nonviolent direct action. But it does present a challenge: Without an understanding of movement cycles, it is difficult to combat despondency.

So how, then, do we know when movements have died—and when are they primed to revive? And how do activists translate periods of peak activity into substantive and enduring social change?

For Bill Moyer, a trainer and strategist who experienced first hand some of the landmark movement cycles of the 1960s and ’70s, grappling with these questions became a life’s work. Moyer’s legacy is an eight-stage model for how movements can overcome despair and marginality to change society—a framework known as the Movement Action Plan, or MAP. Nearly three decades after it was first developed, the MAP continues to offer insights into problems that, while new to fresh generations of activists, in fact have a long lineage.

The Moyer map

Moyer was born in 1933 and grew up as the son of a TV repairman in northeast Philadelphia. As a child, he aspired to one day become a Presbyterian missionary in Africa. But a trouble-making spirit would ultimately get in the way. As he told it, “In March 1959 I was voted out of the Presbyterian Church because I invited a Catholic and a Jew to talk to the youth group.”

The expulsion led him into the arms of the Quakers. At the time, Moyer was just three years out of Penn State, working as a management systems engineer and searching for more “meaning.” Through Philadelphia’s active Quaker meetinghouse, Moyer came in contact with a vibrant circle of socially engaged peers, and an elder couple tutored him in theories of nonviolence. These encounters forever altered his life. “I had no idea that it was the start of ‘the sixties,’” Moyer later wrote, “and never suspected that I was beginning my new profession as a full-time activist.”

Without models that looked at the long arc of protest movements, Moyer contended, activists became stuck in their thinking, repeating past tactics and failing to strategize for how to effectively move their campaigns forward.

In the 1960s, Moyer would take a job with the American Friends Service Committee in Chicago, helping to convince Martin Luther King to launch an open housing campaign in the city. Moyer then worked on King’s last drive, the 1968 Poor People’s Campaign in Washington, D.C. In the decade that followed, he spent his energies protesting the Vietnam War, supporting American Indian Movement activists at Wounded Knee, and promoting the newly emerging movement against nuclear power.

As he increasingly began training other activists, Moyer saw a gap. “How-to-do-it models and manuals provide step-by-step guidelines for most human activity,” he wrote in 1987, “from baking a cake and playing tennis to having a relationship and winning a war.” Within the world of activism, however, such material was harder to come by.

Saul Alinsky and his followers had created training manuals for their specific brand of community organizing. Likewise, materials drawing from Gandhi and King were available for instructing people in how to create individual nonviolent confrontations. But Moyer believed that there was a lack of models that looked at the long arc of protest movements, materials that accounted for the highs and lows experienced by participants. The result, he contended, was that activists became stuck in their thinking, always repeating the past tactics and failing to strategize for how to effectively move their campaigns forward.

Moyer’s MAP aimed to address this need. It was initially printed in 1986 in the movement journal Dandelion, with twelve-thousand newsprint copies distributed through grassroots channels. Subsequently, it became an underground hit. The plan would continue to be circulated by hand, translated into other languages, and shared at trainings for well over a decade, before taking its final form in the 2002 book Doing Democracy, published shortly before Moyer’s death.

Every good movement”

Of course, creating social change is a lot trickier than baking a cake. And Moyer was not the only person to propose that movements progress in stages.

Within the academic field of social movement theory, which experienced significant growth in the 1970s and ’80s, scholars were increasingly appreciating how social change happens through what sociologist Sidney Tarrow calls “cycles of contention.” Drawing on the work of theorists including Herbert Blumer and Charles Tilly, the standard academic account holds that movements pass through four stages: emergence, coalescence, bureaucratization, and decline. The last stage is not necessarily negative: movements sometimes are defeated or repressed, but other times they fade away because they have won their key demands.

Outside of academia, a variety of activists have offered thoughts of their own. In the March 9, 1921 edition of Young India, Mohandas Gandhi wrote, “Every good movement passes through five stages: indifference, ridicule, abuse, repression, and respect.” Because Gandhi’s take highlights the likelihood that resistance will be met with a crackdown by authorities, the prospect of progressing through his stages seems less inviting than riding out the academics’ model. But Gandhi believed that dissidents are strengthened by the trials they endure. “Every movement that survives repression, mild or severe, invariably commands respect,” he contended, “which is another name for success.”

In recent years British author and activist Tim Gee has gone so far to propose a four-stage model based on a popular maxim that mirrors Gandhi’s sentiment (and is often misattributed to him): “First they ignore you, then they laugh at you, then they fight you, then you win.”

All of these different models have some value, but they also present problems.

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Category : Organizing | Strategy and Tactics
25
Sep

By Liu Zhenying

CHINESE SOCIAL SCIENCES TODAY

September 24, 2014

     

The Chinese version of Capital in the Twenty-First Century (2014) by French economist Thomas Piketty hasn’t been published for good reason. It is inappropriate for Piketty to associate his book with Das Kapital, the 1887 critical analysis of political economy by German philosopher Karl Marx.

Difference in political tendency

The political leaning of Capital in the Twenty-First Century can be classified as left-wing. It suggests imposing a progressive tax each year ranging from 0.1 percent to 10 percent on returns on capital, or 80 percent of punitive capital holding tax on the revenue of over $5oo,ooo. This has led US right-wing pundits to label Piketty a Marxist. But Piketty isn’t a Marxist in the conventional sense, which can be seen from his proposition of not scrapping the capitalist system.

Capital in the Twenty-First Century examines the relations between rate of returns on capital and rate of economic growth, explaining the former is higher than the latter with existing materials. This indicates an analytical framework of confrontation between capital gain and labor income, whereby the increased portion must be the reduced portion of workers’ labor income. It is the same as Das Kapital, which is based on confrontation between labor and capital, specifically paid employment. This doesn’t prove Piketty is a Marxist, however, because classical political economics are also based on labor-capital conflicts.

Conflicts between labor and capital are common in classical political economics. Based on these conflicts, Piketty pivots from the stance of contemporary Western mainstream economics to classical political economics. He doesn’t draw such a conclusion from self-contradiction of the capitalist mode of production as Marx did in Das Kapital, which urged the overthrowing of the capitalist system and establishment of capital public ownership.

Piketty once asserted that he has returned to the stance of classical economics due to his dissatisfaction with mainstream economics. However, it is a big leap to go from classical economics to Marxist economics.

Piketty imagines solving the problems caused by capitalist fundamentalism without solving core contradictions, which indicates he hasn’t realized the gap. Commentators accuse him of being a “utopian.” Indeed, Piketty makes the case that the bourgeoisie would rather see the collapse of capitalism than adopt his proposed tax reforms.

Difference in research methods

Capital in the Twenty-First Century shouldn’t be considered a modern Das Kapital. Both books differ in research subjects. More importantly, they have different research methods and both therefore draw inevitably different conclusions. Capital in the Twenty-First Century explains “polarization” with data, strongly refuting theories that distort so-called facts.

No matter how reasonable Piketty’s ideas are, the bourgeoisie will never acknowledge he is right nor accept his proposed policies.

Piketty’s proposed policies have historically been adopted and are even being implemented in some North European countries. However, whether these proposals will be adopted on a greater scale doesn’t depend on whether the ruling classes are clear that the rate of return on capital must conform to economic growth rate. It instead depends on whether their interests can be guaranteed. The capitalist system defines human nature as individualistic and selfish, with the bourgeoisie only caring about their own interests without considering greater mankind.

Without attempting to persuade the bourgeoisie to become reasonable, Das Kapital proposes not having any illusions about them. For this reason, Das Kapital presents an insurmountable critique without comparison.

This isn’t to say that Das Kapital, as a 19th-century book, can explain all phenomena in the 21st century. Marxist theorist Ernest Mandel thought Das Kapital was more suitable for the 20th century. Based on the inherent negativity of capitalism, however, it is in the 21st century that the logic of Das Kapital has been actually realized.

Marx researched virtual capital, but there was no virtual economy in his era. Marx realized the self-denial of capital would inevitably result in socialism, but he didn’t seesocialism which would have the same level of productivity under capitalism and even has lower level of productivity than developed countries . If a 21st-century adaptation of Das Kapital is written, its logic should follow Marxist theory.

 The author is a teacher at the Shanghai Party Institute First Branch School at the Communist Party of China’s Shanghai Administration Institute.

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Category : Capitalism | China | Marxism | Socialism
4
Sep

The Chinese Path: An Answer to a Series of Problems Developing Countries Face in Modernization

Employees of the Sanli Engine Company, a privately-owned company based in Jinjiang, Fujian Province, assemble lawnmowers for sale outside of China(Photograph taken on August 10, 2009). More than three decades of reform and opening up have fueled considerable advances in China’s state-owned and private sectors, enabling various forms of ownership to develop side by side in a mutually-complementary fashion. / Photo by Xinhua reporter Zhang Guojun

From:English Edition of Qiushi Journal

Journal of the CC of the Chinese Communist Party

Vol. 6 No.3 July 1, 2014

Modernization is the dream of all developing countries. While many countries have pursued dreams of modernization, pushing themselves forwards to achieve development and progress, none have overcome as many difficulties and obstacles as China, which has succeeded in putting an economically and culturally backward country of 1.3 billion people on the fast track to modernization. In light of this fact, we may say that the Chinese path represents a successful attempt to overcome difficulties that developing countries commonly face in modernization.

I. The success of the Chinese path indicates that developing countries no longer have to rely on Western approaches to modernization

All developing countries, including China, face the challenge of identifying a path of development. Following the Second World War, the majority of the world’s developing countries—with the exception of socialist countries, as represented by the Soviet Union—opted to emulate the Western model of modernization.

The path that Western countries have guided developing countries towards takes its roots in neoliberalism—an economic philosophy that emerged in the 1920s-30s, the core ideas of which are marketization, liberalization, and privatization. In 1989, the US government and the Western financial world formulated a set of ten policy prescriptions aimed at guiding economic reforms in Latin America. Later dubbed the “Washington Consensus,” these proposals were essentially a continuation of neoliberal thinking. However, with the introduction of this so-called “consensus” into Latin America in the 1990s, Latin American countries began to experience a phase of continued economic and financial crisis, and have since been confronted with serious economic recessions, polarization, and intense social conflicts. Moreover, following the drastic changes that occurred in the Soviet Union and Eastern European countries, the “shock therapy” of neoliberalism was at one point the cause of serious economic recession in Eastern Europe. Therefore, it is fair to say that the global spread of neoliberalism has been the cause of bitter suffering in many developing countries.

As an approach to modernization that has been developed outside the capitalist system, the Chinese path represents a fundamental departure from the Western model of modernization that has previously been relied upon. Through its glorious achievements, China has shown the world a path of development that differs completely from the one predetermined by Western countries. As a result, the world has begun to shift its gaze to the East.

The Chinese path differs fundamentally from neoliberalism and the “Washington Consensus” in several regards. Firstly, the differences between the two can be seen from an institutional perspective. The socialist system with Chinese characteristics is founded on the fundamental political system of people’s congresses. This fundamental political system serves as the basis for China’s basic political systems, which include multi-party cooperation and political consultation. The socialist system with Chinese characteristics also comprises a basic economic system whereby public ownership is the mainstay while various forms of ownership are able to develop side by side. Secondly, the differences between the two are evident from the guiding principles they follow. China’s socialist market economy attaches great importance to the role of macro control, laying emphasis on exerting the strengths of both planning and market forces. Thirdly, the differences between the two are evident from the role of the government in economic activities. A great deal of research, including research by Western scholars, has argued that the success of the Chinese path is attributable to the fact that China not only boasts a “big government,” but also a “good government.” These features fundamentally distinguish the Chinese path from neoliberalism, which takes the capitalist political system and private ownership as its basic political and economic foundations, and which advocates “small government” that is governments that do not intervene in the economy. Other distinctive features of the Chinese path include export-oriented policies, high savings and investment rates, and an emphasis on education and human resource development. Together, the aforementioned features constitute the main aspects of the Chinese path.

Fact has demonstrated that the Chinese path—a path that differs from the developmental models advocated by the West—has been the strongest driving force behind China’s development. This path has enabled the Chinese nation to proudly reassert itself among the nations of the world. Moreover, it will guarantee that the Chinese dream of national rejuvenation will eventually come true. The Chinese path has delivered the message that every country should choose its own path of development in accordance with its own national conditions. It has demonstrated that the socialist system, a strong government, a mixed economy, and macro control are equally capable of becoming factors for successful modernization. In the future, the Chinese model will continue to shatter the myth that surrounds neoliberalism and the “Washington Consensus.”

II. The Chinese path has effectively overcome the “late starter’s disadvantage” that developing countries face in modernization

It is a widely-held view that developing countries enjoy a number of advantages as they are attempting to modernize: advanced scientific and technological achievements that can be borrowed from developed countries; a wealth of existing knowledge and experience with regard to modernization; open international markets; and abundant demographic and natural resource dividends. Capitalizing on these “late starter’s advantages,” some developing countries have formulated “catch-up” strategies, which have been successful in certain cases. However, in most circumstances, the “late starter’s advantage” is only seen during the early stages of modernization. Once a country has reached a certain level of economic and social development, this advantage will begin to diminish, being increasingly replaced by a “late starter’s disadvantage,” which severely obstructs the modernization process in that country. The “late starter’s disadvantage” is demonstrated in the following aspects.

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Category : Capitalism | China | Socialism