When in India, I observe that people gasp with disbelief when I tell them about China. Indians and people in other countries too judge China by the cheap goods they see in China towns. Cheap bulbs, cheap lamps, cheap fabric, cheap almost everything. What is it that impresses the outsider. China is quite comparable with India. It is huge, the population is large, much of the economy is dependant on the agricultural sector. Perhaps a few decades ago, China too was dirty, lacked clean sanitation systems, waste handling was primitive, roads were few, airports were not well developed, industry was not modernized. Then came the Deng Xiao Ping era. The four modernization program was implemented. Modernization of agriculture, of industry, of Science and Technology and of National Defence. In practical terms this meant “electricity in the rural areas, industrial automation, a new economic outlook, and greatly enhanced defense strength.”
- Changes toward capitalism began under the leadership of Deng Xiaoping (1979-1997), when China opened its doors to international trade and economic reform.
- Socialism was blended with a free-market economy and agricultural collectives were disbanded, allowing peasants to profit from the portion of their production that was designated as surplus.
- Regions were selected as special economic zones to encourage foreign investment and technology and to increase Chinese exports.
- The economic reforms of China have been seen as an entrepreneurial revolution paradoxically created by a communist government.
- However, progress in state-owned enterprises has not been as fast as the government would like. On Sept. 12, 1997, President Jiang Zemin opened the 15th Party Congress with the announcement that there still are thousands of unprofitable state industries.
- President Jiang Zemin proposed eliminating state companies that were not making a profit within three years. His goal was to convert most of China’s 305,000 state companies into shareholder-owned corporations
To make money is glorious said the new icon of modern China. In less than 2 decades, there were phenomenal changes. Phenomenal because, the red curtain of the yesteryears did not make it possible for China to have the true exposure to modern countries and its infra-structure. With its communist Government, no loans were availed from the World Bank and it was certainly not dependant on grants or funding. The entire task of rebuilding and constructing China was incubated and launched as the brilliant task that Deng undertook along with his comrades. Foreign investors were roped in. Consortium loans were sought successfully. Hong Kong, the most brilliant and free of economies reverted back to China. Today any visitor to China can see the results. That it has been such a thoroughgoing exercise is obvious to any viewer.As one drives along the expressways, one sees the landscape designed in a professional manner. Roadsides are concreted to avoid land slides. There are well manicured lawns and flower beds dotting the roadsides. This dominates 100s of miles at a stretch. The toll booths are immaculate constructions with well groomed staff to offer services. There are motels and inns that meet the tourists through their journey on the expressways. Neat and well maintained rest rooms and clean cafeterias meet the demand for travel facilities.
There are disparities between the standard of living between the new executive communities found in plenty in the corporate centers like Shanghai, Qingdao, Beijing, Tianjin, Hangzhou etc. The development in the coastal cities does not spread to the hinterland. However, millions flock to the cities for jobs. The Government still controls residence by insisting on residency permits. Without the permits, the citizens cannot receive social security.
The economic achievements of the Chinese will remain a model for study. Amartya Sen calls it an admirable model. The economy is the second largest in the world and also the fastest growing. The way forward is an uphill task. It has miles to go before catching up with the USA. However, it has thrust Asia to a foremost position.
As for me, I am unaware of the nuances of the Chinese language and neither am I familiar with the culture of the people. But I am most comfortable here. This is first and foremost a safe country. No terrorism, a stable family based society, a Government which places enforcement as a condition for law and order. Action taken against wrong doers is swift and result oriented. The life style and standards are affordable and comfortable, The roads are clean and are maintained by the local government. The buildings are high rise and match up to international standards. The average man on the street has a smile on his face.
The cultural and economic implication of an overheated economy is another subject. Consumerism is a disease that can infect society. Can this society hold out? After all despite the communist onslaught on religions and philosophical stream, the country has a history of a few thousands of years. Will it stand the test of prosperity and a dominant position in the world? We have to wait and watch.