To what extent are greater political reforms required to counter challenges to
Chinas economic growth?
Grater political reforms mean changing the policies or even the modus operandi of the Chinese government. The absence of which would imply that the CCP regime retains its highly authoritarian and opaque form of governance. Greater political reforms are largely required to solve economic challenges that are caused by the obscurity, inflexibility and corruptibility of parts or whole of the Chinese bureaucracy. Meanwhile, the current system given its arbitrary nature is suited to resolve problems that necessitate the mobilization of vast resources, allowing also for swift and decisive actions. Great economic success has been made by the incremental political reforms form the CCPs government since 1978. Ideological transformation from a strictly Maoist theory of socialist egalitarianism to Dengs advocacy of enhancing socialism with capitalist methodology heralded the beginning of Chinas opening up. Promotion of officials is now based on meritocracy which could either be their education level and experiences at facilitating local economic growth, rather than their avowed loyalty to communism. Jiangs Three Represents has allowed for more private entrepreneurs to join the government, thus enhancing the relevance and efficacy of policy-making regarding Chinese economics. Much of the Chinese bureaucracy has been streamlined to reduce wastage, facilitate a more business-friendly environment for investors and to ensure flexibility at dealing with economic problems. Albeit its flexibility at managing and adapting to the demands of Chinas economic opening up, the CCP regime has remained authoritarian and its intolerant of political opposition. Subsequently, reforms that allow for greater public participation in governments policy-making can result in the solution of challenges that are socially related. The regime should learn to tolerate voices of public dissent and protests, so that social grievances that impede continued high economic growth could be resolved quickly and effectively. Unfavorable demographics, meaning Chinas graying population and gender disparity in the near future, are results of the inflexible One Child Policy. This long-term economic challenge could be ameliorated if the government is willing to listen to public concerns and aspirations on birth issues. NGO and civic groups should be allowed greater freedom. These people could help the government monitor and remedy problems such as environmental degradation, labor rights and corruption. By making officials more accountable to the people, rather than being loyal solely to their reporting superiors in the bureaucracy, many challenges regarding local misgovernance could be resolved effectively. This could help solve agrarian and environmental problems that are threatening the sustainability of Chinas growth. Mass migration to the cities, which has
resulted in shortage of labour in the countryside and social problems in the
coastal provinces are often spurred by peasants intolerance of malpractices by local officials. Environmental degradation in the inland provinces, which hurt the well-being of their inhabitants, is often the undoing of officials who are the major reasons for social unrests in China, which in turn threaten the sustainability of its economic growth. These problems could be dealt with if the officials influence is circumscribed by the mandate of the people. Greater bureaucratic transparence is also needed for effective measures to be taken on economic problems. This could solve many problems, such as the recent spate of food-poisoning incidents, which are often hidden from the public until they have compounded into catastrophic proportions. Chinas credibility as the worlds manufacturing hub is therefore at stake. Chinas dysfunctional state banking system, largely caused by bad loans and poor investment portfolio, can also be remedied to some extent as its financial dealings are opened to public scrutiny. More state transparency could also expose the existence, hence probable subsequent elimination of the various SOEs and SIEs that are making losses yet are subsidized using public funds. Rule of law must be instituted and observed by all to ensure the eradication of many economic challenges. This could help prevent the abuse of power and corruption, ensure strict observance of laws and regulations that are beneficial for Chinas economic growth. Adhering to the Intellectual Property Rights/ Law could promote creativity within the country and improve foreign investors confidence at transferring their technology to China. Law of Property rights if given due respect, could enhance social stability and private business initiatives that are vital for Chinas development. Instances of defective Chinese manufactures and poisoned food products would be checked if regulations on quality control are strictly observed by all industries. The authoritarian nature of the CCP regime however, is suited to solve problems that require drastic solutions. Long-term solutions to Chinas dire energy shortages can only be undertaken by a decisive and powerful government. These include the construction of the Three Gorges Dam and diplomatic maneuvers to purchase resources from foreign countries. Drastic environmental policies such as the ban on manufacturing thinned plastic bags, limiting daily car usage in Beijing to lessen air pollution, can only be carried out be an arbitrary state. Purchase of farmlands in Africa to solve Chinas food woes could not have been possible without the vast resources of the government. Development of the western provinces and the massive subsidies given to the underprivileged peasants are possible only with determined governmental actions. Meanwhile, certain challenges, which are inevitable by-products of Chinese industrialization and trade practices, cannot be solved by political reforms.
Hyperinflation pressure caused by the twin surpluses incurred in Chinas
current and capital accounts, is a systemic problem that would require economic solutions. The undervalued yuan that involved great domestic and international sensitivities is an issue that could not be simply solved through reforms. The challenge of imbalanced regional development is predetermined by Chinas differing geographical endowments and the governments prerogative to Let some get rich first. This could hardly be solved by any political reforms. In conclusion, greater political reforms are indeed useful at resolving those economic challenges that require more responsive and responsible governmental reactions. However given the immensity and complexity of the Chinese economy, one could not on the other hand discount the utility of CCPs authoritarianism.