Hindustan Times (Delhi)

Xi Jinping’s ‘new option’ is centralise­d and opaque

China’s model of developmen­t is delivering, but it is autocratic and cannot be replicated in other countries

- Pranab Bardhan is author and professor, University of California, Berkeley Project Syndicate, 2017 The views expressed are personal (Inner Voice comprises contributi­ons from our readers) The views expressed are personal Innervoice@hindustant­imes.com

It seems that China’s leaders have now forsaken Deng Xiaoping’s advice to tao guang yang hui (keep a low profile). In declaring a ‘new era’ for China during October’s 19th National Congress in Beijing, President Xi Jinping presented the Chinese system of governance as a model for other countries to emulate. Leaders who “want to speed up their developmen­t while preserving their independen­ce,” Xi said, should look to China as “a new option”.

Developing countries, particular­ly in Southeast Asia and Sub-saharan Africa, seem awestruck by this possibilit­y.

What is the Chinese model of economic and political developmen­t, and is it preferable to the alternativ­es?

China’s model comprises a number of key characteri­stics, including authoritar­ian governance buttressed by the perception of stability; State-guided industrial policy; massive infrastruc­ture investment­s; rural industrial­isation backed by small-scale agricultur­e; and openness to foreign trade and technology. This model has, no doubt, produced rapid economic growth in China.

But the implicatio­n that authoritar­ianism is necessary for rapid developmen­t misses the mark. In fact, it is this characteri­stic of the Chinese system that should give other countries the greatest pause.

Democracy is exasperati­ngly slow and often contentiou­s. But its deliberati­ve and electoral processes help mitigate conflicts, especially in heterogene­ous and conflictri­dden societies. Even in a more homogeneou­s country like China, the absence of open public discourse does the opposite, as evidenced by the State’s mishandlin­g of ethnic unrest among Tibetans and Uighurs.

Without a strong civil society or an independen­t judiciary to check government power, Chinese leaders have, on many occasions, made catastroph­ic errors in judgment. Look no further than Mao Zedong’s

Going the extra mile, you earn the goodwill of friends, colleagues, relatives, and people in general, as the latter shopkeeper did. Going beyond his normal task of selling merchandis­e, the shopkeeper created potential customers who would prefer this shop in future. “One of the most important principles of success is developing the habit of going the extra mile,” said Napoleon Hill. No wonder, the second shopkeeper is likely to fare far better profession­ally than the former because he contribute­d to Nature’s plan of sharing with others what they Great Leap Forward or the Cultural Revolution. Xi, too, has blundered. For example, his decision to order China’s State-owned enterprise­s (SOES) to prop up China’s falling stock market in 2015 was an epic miscalcula­tion.

The absence of political checks and institutio­nal mechanisms for public scrutiny has also encouraged abuse of power and high levels of corruption, contributi­ng to high inequality, arbitrary land grabs, unsafe working conditions, food safety scares, and toxic pollution, among other problems.

As China’s economy becomes more complex, the absence of transparen­t and accountabl­e governance processes, combined with frequent crackdowns on civil society and efforts to enforce conformity and discipline, will ultimately stifle entreprene­urship and innovation. If the SOES remain too-big-to-fail, this will create a further drag on innovation.

The lack of openness and transparen­cy could also test political stability. In the face of crisis, China’s leaders often overreact by repressing dissent. Xi’s consolidat­ion of power, and the cult of personalit­y surroundin­g him, could exacerbate instabilit­y.

Democratic government­s, for all their messiness, are less fragile, as they draw their legitimacy from pluralism and political contestati­on, rather than from high economic growth or nationalis­t appeals.

Despite the official narrative, most of the features of the Chinese system of governance that Xi has championed have little to do with him. They are vestiges of China’s imperial or early communist government­s: A performanc­e-based meritocrat­ic promotion system; an organisati­onal framework that ensures top-down loyalty without compromisi­ng the quality of local governance; and a unique system of political centralisa­tion combined with economic and administra­tive decentrali­sation.

In other words, for all its allure, the Chinese model is deficient in some basic respects, and not easily reproducib­le in others. Any country that takes to heart Xi’s invitation to emulate China but does not have a similar organisati­onal history will likely be unsatisfie­d. Not only is China politicall­y unique, but it also possesses a large and increasing­ly prosperous domestic market that enables it to lure foreign investment on its own terms.

So, no matter what the Middle Kingdom’s newest emperor might claim, developmen­t with Chinese characteri­stics is really only for China.

DEMOCRATIC GOVERNMENT­S, FOR ALL THEIR MESSINESS, ARE LESS FRAGILE, BECAUSE THEY DRAW THEIR LEGITIMACY FROM PLURALISM AND POLITICAL CONTESTATI­ON, RATHER THAN FROM HIGH ECONOMIC GROWTH

required. Further, the plateau at extra mile is always less crowded, there is hardly any competitio­n. It offers an inner peace not known to people confined to short-term desires.yet, partaking of the bliss available requires shrugging off the many comforts. As Roy T. Bennett said, “Life always begins with one step outside of your comfort zone

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