Monday, January 08, 2007

Strong words about China

After describing corruption in China, Will Hutton says in The Guardian:

The judicial apparatus is politicised from top to bottom. Every president and vice-president of a court is appointed by the party; and the courts are funded by provincial governments. The court bureaucracy works on the same basis as the rest of the government, with a party committee system superintending each rung of the court hierarchy. Judges often make decisions at the instruction of the committee or government independently of the legal merits of the case.
Many judges still have no formal legal training - the majority are retired army officers, only too ready to do the party's bidding.
.....
As a potential watchdog to correct any of this, the media is crippled. China now has more than 2,000 newspapers, 2,000 television channels, 9,000 magazines and 450 radio stations, but they are all under the watchful eye of the party in Beijing or provincial propaganda departments. These authorities issue daily instructions on what may and may not be reported; journalists who digress will be suspended from working or even imprisoned.
.....
In February 2006, three of China's most distinguished elders - Li Rui, a former aide to Mao Zedong, Hu Jiwei, former editor of the People's Daily, and Zhu Houze, a former party propaganda chief - published a letter condemning the approach: "History demonstrates that only a totalitarian system needs news censorship, out of the delusion that it can keep the public locked in ignorance," they wrote. Far from ensuring stability, they continued, such media repression would "sow the seeds of disaster".
....
The cumulative result of all this is economic weakness, despite the eye-catching growth figures. Innovation is poor; half of China's patents come from foreign companies. Its growth depends on huge investment, representing an unsustainable 40% or more of GDP financed by peasant savings. But China now needs $5.4 of extra investment to produce an extra $1 of output, a proportion vastly higher than that in economies such as Britain or the US. But 20 years ago, China needed just $4 to deliver the same result. In other words, an already gravely inefficient economy has become even more inefficient. China's national accounts tell the same story. Hu Angang calculates that China is now back to the Mao years in term of the inefficiency with which it uses capital to generate growth.
......
The west is unforgivably ignorant about China's shortcomings and weaknesses, which leads it vastly to exaggerate the extent of the Chinese "threat". China is certainly emerging as a leading exporter, but essentially it is a sub-contractor to the west. It has not bucked the way globalisation is heavily skewed in favour of the rich developed nations. Its productivity is poor; it lacks international champions; its innovation record is lamentable; it relies far too much on exports and investment to propel its economy. To characterise China as an unstoppable force whose economic model is unbeatable and set to swamp us - the stuff of almost every ministerial and business lobby speech - is to make a first-order mistake.


Sounds familiar?
Update: Will Hutton's article as well his book on which the article is based are discussed in The Economist blog

No comments: