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China Economics Foreign Policy

The Beijing Consensus

Gordon G. Chang, for World Affairs, explains his argument for why the Beijing consensus cannot last and its power will soon begin to wane. He acknowledges that many do not share this view:

Some scholars and China watchers nonetheless believe that Chinese authoritarianism, in the words of Andrew J. Nathan, may be “a viable regime form even under conditions of advanced modernization and integration with the global economy.” Recent Beijing leaders, Nathan tells us, have institutionalized themselves. “Regime theory holds that authoritarian systems are inherently fragile because of weak legitimacy, over-reliance on coercion, over-centralization of decision making, and the predominance of personal power over institutional norms. This particular authoritarian system, however, has proven resilient.”

As many have pointed out, the projections of China’s growth into the world’s largest economy presume it’s current pace of growth continues despite serious environmental, demographic, and other challenges. But, Chang argues, even the regime’s success at creating prosperity undermines it:

Senior Beijing officials now face the dilemma of all reform-minded authoritarians: the economic progress that legitimates their leadership endangers their continued control. As Samuel Huntington taught us, sustained modernization is the enemy of one-party systems. Revolutions occur under many conditions, but especially when political institutions do not keep up with the social forces unleashed by economic change.

Beijing’s policies are widening the gap between the people, who are making a “kinetic dash into the future,” and their government, thereby ensuring greater instability. So it should come as no surprise that as China has grown more prosperous in recent years, it has also become less stable. As a people, the Chinese are not particularly obedient these days; they incite as many as 127,000 disturbances a year—perhaps more. Whatever the exact number, the political system is obviously having increasing difficulty channeling discontent as the Chinese people, believing in their rights and fearing their leaders less and less, wrestle for control of their future. As a prominent businessman told me last spring—smiling broadly as he sat in his spacious office in a Shanghai skyscraper—“No one fears the government anymore.”

If prosperity undermines one-party rule, then the only thing that undermines it more is when rising expectations of more prosperity can no longer be met. And in Chang’s view, China’s leadership made a major miscalculation in basing their economy so heavily on exports:

China’s economic model, which allowed the Chinese to take maximum advantage of boom times, is particularly ill suited to current global conditions [of declining exports].

Chang concludes:

We may…soon witness in China revolution by spontaneous combustion. Despite his belief that revolutions must be minutely organized, Lenin’s own state was eventually brought down not by a network of plotters but by an impromptu crowd. What we witnessed in Moscow—the disintegration of a state in a matter of days—later replayed itself in Manila, Lima, Belgrade, Kiev, and Tbilisi. Chinese people today may not have revolutionary intentions, yet their acts of protest at this unsettling time have revolutionary implications nonetheless.

This is a similar argument to the one made by Yang Yao several weeks ago.

[Image by Stuck in Customs licensed under Creative Commons.]

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Must-Reads of the Week: A history lesson, Reconciling Chart, Theism, Starbucks, the New Global Middle Class, the Beijing Consensus, and the Traitorous Supreme Court

A history lesson in ramming through one piece of legislation. Ezra Klein gives a short history lesson describing the tactics used by Republicans to “ram through” the Medicare Prescription Drug Benefit.

Reconciling chart. The New York Times provides a chart of all the times reconciliation has been used.

Theism. Andrew Sullivan provides a beautiful quote from David Foster Wallace making what may be the best case for theism generally that I’ve seen.

Starbucks. Greg Beato for Reason has an interesting if annoying skewed take on Starbucks and its attempts to stay hip. His history and overall point is interesting, but the point of view he injects, his contempt for his less capitalist brethren, is irritating.

The New Global Middle Class. Rana Foroohar and Marc Margolis in Newsweek describe the new “global middle class” which “is more unstable and less liberal than we thought.” The examples they give are rather frustrating though. Brazil’s middle class is described as “more unstable and less liberal” because they applaud “more state control of the oil industry to keep out greedy foreign firms” and that “they don’t need outside advice on how to structure their societies, thank you.” The Russian middle class’s support for Putin and the Chinese support of the Beijing consensus are also cited and are much better examples proving their point. An interesting article, that touches on some gradually evolving issues in a way that most articles do not – but it seems to harness facts to reach their end rather than allow the facts to dictate the result.

The Beijing Consensus. Yang Yao in Foreign Affairs speculates that the Beijing Consensus – “a combination of mixed ownership, basic property rights, and heavy government intervention” – may be eroding. And as “the Chinese Communist Party (CCP) lacks legitimacy in the classic democratic sense,” and “has been forced to seek performance-based legitimacy instead, by continuously improving the living standards of Chinese citizens,” the end of this consensus would lead to “greater democratization.”

The Traitorous Supreme Court. Orin Kerr at the Volokh Conspiracy takes on the Andrew McCarthy/Liz Cheney line of attack calling those attorneys currently in the Justice Department who represented some of those branded terrorists by the Bush administration asking this question:

Does McCarthy think the Justices of the Supreme Court are guilty of aiding the enemy, and that (if we treat them like everybody else) they should be “indicted for coming to the enemy’s aid during wartime”?

[Image by me.]