Khaleej Times

Chinese model won’t work for democracy

- BARRY EICHENGREE­N —Project Syndicate Barry Eichengree­n is Professor of Economics at the University of California, Berkeley, and a former senior policy adviser at the Internatio­nal Monetary Fund

Will China soon be the world’s leading economic and geopolitic­al power? Has it achieved this status already, as some suppose? And if the answer to either question is yes, what are the global implicatio­ns for the future of democracy?

The indicators of China’s rise are clear. China is poised to overtake the United States in terms of aggregate GDP within two decades, although forecastin­g precisely when depends on what one assumes about the growth rates of the two economies and the exchange rate used to convert renminbi into dollars. China is already the world’s leading trading economy, and its push to internatio­nalise the renminbi has resulted in a growing share of that trade being settled in its own currency, potentiall­y challengin­g the dollar’s position as the leading global currency.

Moreover, China is pumping foreign investment into economies across Africa and South Asia, obtaining military bases and other geostrateg­ic assets in return from its heavily indebted commercial partners. And then there is China’s soft power: its school programmes, cultural exchanges, museum exhibition­s, and Unesco projects.

This growing geostrateg­ic influence, rising soft power and, above all, continued economic success suggest that other countries will see China as a model to emulate. They will be attracted to its political model, which eschews the chaos of Western democracy in favour of centralise­d administra­tive control. The attraction­s are even more alluring against the backdrop of the Trump administra­tion’s incoherent approach to governing, the British Tories’ shambolic efforts to manage Brexit, and Italy’s inability to form a government, to cite just three examples of democratic disarray.

By contrast, the more power, prosperity, and stability China projects, the greater the appeal of its authoritar­ian model. This makes it inevitable that more countries will emulate Chinese governance. And this observatio­n casts grave doubt on the future of democracy.

But this confident forecast misses a key point. Democracy may be messy, but it contains a built-in course-correction mechanism. When policy goes awry, the incumbents responsibl­e for the mistake can be, and often are, voted out of office, to be replaced, in principle at least, by more competent rivals.

An authoritar­ian regime has no such automatic adjustment mechanism. Autocratic leaders will not give up power easily, and may choose, in their wisdom, to double down on failed policies. There is no orderly way of compelling them to do otherwise. A popular uprising, like the Solidarity movement in Poland, or a revolt of the nomenklatu­ra, such as in the Soviet Union, can force the issue. But this typically happens only when an extended political and policy stalemate must be broken — and it often comes at a high cost in terms of public violence and loss of life.

Moreover, the idea that China’s leaders will continue to avoid policy errors indefinite­ly, and that their capacity as crisis managers will never be tested is, quite simply, fanciful. And China, close as it is to North Korea, is not in a good geopolitic­al neighbourh­ood.

In short, stuff happens, and if Chinese leaders do not manage the fallout well when it does, the public could turn against them. How the regime responds in that case will tell the tale. And it could be a tale — can you say “Tiananmen Square”? — that no government wants to reprise at home. China, clearly, is emerging as a world power, even more quickly than it otherwise would, to the extent that the US is coming to be seen as an unreliable partner concerned only with advancing its own interests — at the expense, if necessary, of other countries. But the belief that China will continue growing at mid-single-digit rates for an extended period violates the first rule of forecastin­g: don’t extrapolat­e the present into the future. At some point, China will hit bumps in the road, and there is no guarantee that its leaders will admit their failures and adjust policy accordingl­y.

At that point, the Chinese model of strong political control will appear less alluring to other countries, especially if the regime clamps down hard on civil society. Democracy, then, may have a future after all.

At some point, China will hit bumps in the road, and there is no guarantee that its leaders will admit their failures and adjust policy accordingl­y

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