Advertisement

Pulling on the reins

Reading Time:2 minutes
Why you can trust SCMP
0

FOR an authoritarian state, China's willingness to accept debate about the goals of economic policy has been surprising and refreshing. It has admitted to uncertainty about the speed of economic growth, to fundamental economic difficulties, such as high inflation, and to problems that have gone hand-in-hand with development, such as corruption.

All this has been surprising because sound management of the economy, and the improvement in people's living standards, go to the heart of the legitimacy of Communist Party rule - and the stability which it needs to keep it in power. It has been refreshing because the debate was one sign that economic liberalisation had brought with it a degree of freedom of speech.

The debate, however, was tolerated for two reasons. One was that the orthodox view favouring fast growth seemed established. The other was that Beijing's rulers were confident that China could handle whatever problems it faced. Discussion was acceptable.

Now Beijing seems to be changing its attitude. Debate about the most sensitive aspect of economic policy - the national growth rate - is being discouraged.

One reason is that a new orthodox line has emerged, via the Politburo. It stresses a cautious view on growth, putting a high value on social, economic (and political) stability. It is aimed at keeping China on a level course between the peaks and troughsof a stop-go economic policy. This is at odds with the go-for-it attitude espoused by the patriarch Deng Xiaoping. Debate has been quelled so as not to give the appearance of disunity.

The other possible interpretation is that Beijing now sees China's economic problems as serious - serious enough to make the rulers worried that debate might promote uncertainty and opposition.

Advertisement