Socialism with Chinese Characteristics – the meaning and the significance of the Third Plenum

China Government buildingBelow is another link to a profound piece on this new China that is emerging. Written by Eric Li for Foreign Affairs magazine it is another valuable source. He represents Chinese thinking and explains it. But his overviews are really profound.

Read it, it is the best around, but, in my opinion, does not say clearly the following:

Agriculture will be converted to an agricultural working force by 2020 of about just 20pc of the population, and the sector will be strategic and mainly about food security i.e. providing food for the nation – with major implications for tobacco and cotton and other such non food crops.

The provinces are to be neutered into service providers and regions will represent the centre in the important areas of economic and political activity. 15 regions will arise, of which three are fairly developed already.

The market economy will be defined and scoped by the Party and Government through the new Central Reform Commission. It is the old State Planning Commission given much bigger and wider powers to address the new market economy with macro management powers over every sector.

China will be populated by a shareholding format, which has been experimented with and is about to be rolled out. Its shareholders will be subject to the values of the Chinese dream, and the anti corruption drive will intensify. The strategic shareholders will combine trusted people and structures.

It will be guided by strong regulators, of which four have been seen for the last 10 years experimenting – banking is just one example.

The welfare state will be formed, with business providing for the work forces and their families through retirement, the middle classes buying their own, and the state as the provider of last resort. The state will force costs down to prevent what they see as the abuse of politicians in the west. No millionaires created by the welfare for the people. The Welfare State will provide a global innovation, by making a percentage of state owned shares provide the funding for the Welfare State, thereby removing pressure from tax revenues. This together with business assuming the costs and responsibilities, will contain costs impacting the national budget – does our Chancellor not wish for this?

The party and government will align much more closely to provide a more seamless source of policies and regulation, and anti corruption and engaged forces will act to ensure checks and balances different from any western system.

The first target is 2021 and the second is 2049. Socialism with Chinese characteristics is not a million miles away from responsible capitalism, but the latter is always fighting for breath in the West, but this is the dominant policy in China.

How China is Reorganizing for the Future” by Eric Li

Categories: Agriculture, Econonomics, Welfare state

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