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The Socialist Revolution started
90 years ago in China
By
Henry C.K. Liu
Part I: The Beginning
Part II: Lessons of Other Revolutions
This article appeared in AToL
on Novemebr 13, 2009
The French Revolution (1789-1799) was not a peasant revolt
against the landed aristocracy. It was a violent process by which the
bourgeoisie used the disenchanted peasantry to gain control of the
power levers
of the state from the aristocracy. The
rise of the bourgeoisie as the middlemen to carry out trade in a
expanding
market economy forced the aristocracy to transform from its traditional
role as
a benign, even benevolent feudal ruling class to an increasingly
exploitative
class to make up for the lost wealth siphoned off by the trading
bourgeoisie.
The accumulation of wealth by the bourgeoisie came from the backs of
the
peasant class through the escalating oppression by the aristocracy.
This
transfer of wealth from the peasants to a new bourgeois class was
misleadingly
credited to the superiority of market capitalism.
Had the French monarchy during the revolution sided with the
bourgeoisie against the aristocracy as its British counterpart had
done, France
could well be a capitalist constitutional monarchy today. Louis XVI
failed to
understand that the political raison d’être
for monarchism rests in its mandate of exercising state power to
maintain
socio-economic equity in the nation by protecting the French peasants
from the
aristocrats.
As the French bourgeoisie gained control of state power
after the French Revolution, much of Europe
gradually adopted
economic and political systems in which the bourgeoisie lorded over the
peasantry
with a new exploitative capitalistic regime to replace the previous
relatively
benign, symbiotic arrangement between the landed aristocracy and the
tenant
peasantry under agricultural feudalism. As a result, the emergence of a
universal
class struggle between workers and capitalists in industrialized Europe
was a historical inevitability.
But much of the world outside of Western Europe
was still operating on agricultural feudalism which soon became ripe
targets
for Western imperialism born of the rise of European capitalism. The
landlord
class of these feudal agricultural countries, in order to resist the
encroachment of Western imperialism as an advance stage of industrial
capitalism, was forced to shift from the traditional symbiotic
relationship
with their landless peasants that had produced prosperity, as it had
been in
the Tang dynasty in the 8th century, to a new relationship
of
ruthless exploitation to make up for the lost wealth being siphoned off
by
Western imperialism, and to form alliance with an emerging national
bourgeoisie
to oppress a small growing working class in newly established national
industries. The ruthless exploitation of labor in early European
industrial
capitalism was exported to the victim countries of European imperialism.
In China,
as in many other Asian societies, including Japan,
the disappearance of a harmonious symbiotic socio-economic structure
caused
Confucian feudalism to collapse from its cracked foundation, heralding
a
spiritual vacuum of two centuries of cultural decline that pushed a
once
glorious civilization into temporary, relative backwardness in
comparison to
the advanced Western world. In Japan,
after the Meiji Reform, which ended the Tokugawa era and restored
imperial rule
as an icon to support industrialization, nationalists sought solution
to
underdevelopment in fascist militarism in the first half of the 20th
century. In China,
liberation came in 1949 the form of socialist revolution after a
protracted
six-decade-long struggle of nation rebuilding.
Today, the leadership in the ruling Communist Party of China
seeks to construct a harmonious society out of a socialist market
economy. It
is a highly problematic endeavor, because market economies, socialist
or not,
are inherently not harmonious, because markets operate with
confrontational
competition, not harmonious cooperation.
Lenin’s Misplaced Expectation
Lenin, up to his death in 1924, believed that the Russian
Revolution was only a local phase of a Europe-wide revolutionary trend,
albeit
he did not connect the revolution with the underdeveloped non-European
feudal
societies which formed the majority of the world’s population, except
indirectly through the resultant demise of Western imperialism after
the
eventual collapse of capitalism in the core countries.
After the October Revolution, Lenin had expected follow-up
proletariat uprisings in Germany, Poland and the minor industrial
states in the
Danube valley from the ashes of the failed democratic revolutions of
1848 that
inspired Marx to write the Communist Manifesto, which was issued as a
propaganda pamphlet by the Communist League, renamed from the “League
of the
Just” after Marx and Engels joined it.
The internationalist communist movement was a European event
until the founding of the Communist Party of China (CPC) in 1921, even
though
three years earlier Chinese nationalism had been seminally influenced
by
Marxist ideology in the May Fourth Student Movement of 1919, two years
after of
October Revolution of 1917.
Revolution and Counter Revolution in Germany
The Communist League was created in London
in June 1847 out of a merger of the League of the Just and of the
fifteen-man
Communist Correspondence Committee of Brusselles, headed by Karl Marx.
Friedrich Engels convinced the League to change its motto to Marx’s
call for Working
Men of All Countries, Unite! It had
branches in Paris, London,
Geneva, Berlin
and several other major European cities. In 1848, the Communist League
issued a
set of “Demands of the Communist Party of Germany”, renamed from the
Spartacist
Party, urging a unified German Republic, democratic suffrage, universal
free
education, arming of the people, a progressive income tax, limitations
on
inheritance, state ownership of banks and public utilities,
transportation,
mining and collectivization and modernization of agriculture. But the
program
was too radical for the liberal Frankfort Assembly.
Marx was asked in the summer of 1851 by Charles Anderson
Dana, managing editor of the New York Tribune, the most
influential
paper in the US
at the time, founded in 1842 by Horace Greeley, later a founder of the
Republican Party in 1854, to write a series of articles on the German
Democratic
Revolution of 1848. These articles, written by Engels and edited by
Marx who had
not yet attained fluency in English, appeared under Marx’s name with
the title: Revolution and Counter-revolution in
Germany.
In these articles, Marx described how in April 1848, the
revolutionary torrent in Europe was suppressed
by those
classes of society that had profited by the early victory who then
immediately
formed counterrevolutionary alliances with the vanquished
reactionaries.
Marx wrote: “In France,
the petty trading class and the Republican faction of the bourgeoisie
had
combined with the Monarchist bourgeoisie against the proletarians; in Germany
and Italy,
the
victorious bourgeoisie had eagerly courted the support of the feudal
nobility,
the official bureaucracy, and the army, against the mass of the people
and the
petty traders.” Yet “every inch of
ground lost by the Revolutionary parties in the different countries
only tended
to close their ranks more and more for the decisive action,” which
could be
fought in France only.
Marx continued that as Germany
remained not unified, France,
by its national independence, civilization, and centralization, was the
only
country to impart the impulse of a mighty convulsion to the surrounding
countries. Accordingly, when, on the June 23, 1848, “the bloody
struggle began
in Paris between the mass of the working people on the one hand, and
all the
other classes of the Parisian population, supported by the army, on the
other;
when the fighting went on for several days with an exasperation
unequalled in
the history of modern civil warfare, but without any apparent advantage
for
either side -- then it became evident to everyone that this was the
great
decisive battle which would, if the insurrection were victorious,
deluge the
whole continent with renewed revolutions, or, if it was suppressed,
bring about
an at least momentary restoration of counterrevolutionary rule.”
Republican France was the fountainhead of early modern
socialism. While not all republicans were socialists, most socialists
were
republicans against monarchism. The economic system of monarchism had
degenerated into chaotic aimlessness with systemic injustice brought
about by
the advent of the aggressive bourgeoisie. All felt moral indignation
against a
system where wealth was concentrated in the hands of an idle minority
who
enjoyed hereditary privileges sustained by unrestricted socio-economic
and
political power.
Yet this wealth was being siphoned off to the pockets of the
bourgeoisie who plied their luxury goods and services on the idle
aristocrats.
Entrepreneurs and merchants began to gain power to give or deny work to
workers
and to set wages and working hours in their private enterprises to
maximize
private profit derived from the conspicuous consumption of the
aristocrats.
French socialists rejected the social value of private enterprise
in a market economy. They worked to organize society along principles
of
harmony, coordination, cooperation and free association, believing that
beyond
the civil and legal equality promoted by the French Revolution, a
further step
toward socio-economic equality had yet to be taken. They were
dissatisfied with
the incomplete human rights declared by the French Enlightenment for
glaringly
lacking in economic rights. French
citizens won the right to vote, but not the right to employment with
living wages.
As reactionary policies entrenched themselves all over
Europe in the years following the post-Napoleonic peace, socialism
spread
rapidly among the working classes after 1830. In France,
it blended with revolutionary republicanism. There was a revival of
revisionist
interest in Robespierre who was rehabilitated as a new hero of the
masses. in
1839 Socialist Louis Blanc, published his Organization
of Work.
Marx reported that “the proletarians of Paris
were defeated, decimated and crushed with such an effect that even now
[1851]
they have not yet recovered from the blow. And immediately, all over Europe,
the new and old Conservatives and Counter-Revolutionists raised their
heads
with an effrontery that showed how well they understood the importance
of the
event. The Press was everywhere attacked, the rights of meeting and
association
were interfered with, every little event in every small provincial town
was
taken profit of to disarm the people to declare a state of siege, to
drill the
troops in the new manoeuvres and artifices that [Louis-Eugène]
Cavaignac,
prime minister of France (June 28-December 28, 1848) had taught them.
Besides,
for the first time since February, the invincibility of a popular
insurrection
in a large town had been proved to be a delusion; the honor of the
armies had
been restored; the troops hitherto always defeated in street battles of
importance regained confidence in their efficiency even in this kind of
struggle.”
Later under Napoleon III (president 1848-1852, Emperor 1852-1870), whom
historians saw as the prototype
of the modern dictator, and labeled the bourgeois emperor by royalists,
Baron
Haussmann’s baroque
city planning was also dominated by the political and security purpose
of
clearing the rebel-infested urban quartiers in the old city, of
easing
troop deployment on the new, broad boulevards against much-feared
popular
uprisings, and of preventing the easy erection of revolutionary
barricades on
narrow streets that had once frustrated government authority in the
"Bloody June Days" of the proletariat uprisings of 1848.
Marx linked this defeat of the ouvriers of Paris
to definite plans of the old feudal bureaucratic party in Germany
to get rid of even their momentary allies, the middle classes, and to
restore Germany
to the state she was in before the revolutionary events of March
(Märzrevolution). The army, loyal to its institutional mandate,
again was the
decisive power in the state. The vanquished nobles and bureaucrats
exploited
the solidarity of the an army fresh from victories against Napoleonic
France,
jealous of the great success the French soldiers (whom the German army
had
defeated in war) had just attained in domestic civil conflict what it
failed to
achieve in foreign war, by putting down insurrection in Paris to crush
the
revolutionists, and blushing aside the presumptions of the bourgeois
parliamentarians. Could the glorious German Army do less?
Marx reported that “by the beginning of autumn [1848] the
relative position of the different parties had become exasperated and
critical
enough to make a decisive battle inevitable. The first engagements in
this
domestic war between the democratic and revolutionary masses and the
army took
place at Frankfort. Though
a mere
secondary engagement, it was the first advantage of any note the troops
acquired over the insurrection, and had a great moral effect. The fancy
Government established by the Frankfort National Assembly had been
allowed by
Prussia, for very obvious reasons, to conclude an armistice with
Denmark, which
not only surrendered to Danish vengeance the Germans of Schleswig, but
which
also entirely disclaimed the more or less revolutionary principles
which were
generally supposed in the Danish war. This armistice was, by a majority
of two
or three, rejected in the Frankfort Assembly. A sham ministerial crisis
followed this vote, but three days later the Assembly reconsidered its
vote,
and was actually induced to cancel it and acknowledge the armistice.
This
disgraceful proceeding roused the indignation of the people. Barricades
were
erected, but already sufficient troops had been drawn to Frankfort,
and after six hours' fighting, the insurrection was suppressed.
Similar, but
less important, movements connected with this event took place in other
parts
of Germany
(Baden, Cologne),
but were equally defeated.”
Marx observed that “this preliminary engagement gave to the
Counterrevolutionary Party the one great advantage, that now the only
government which had entirely -- at least in semblance -- originated
with
popular election, the Imperial Government of Frankfort, as well as the
National
Assembly, was ruined in the eyes of the people. This Government and
this
Assembly had been obliged to appeal to the bayonets of the troops
against the
manifestation of the popular will. They were compromised, and what
little
regard they might have been hitherto enabled to claim, this repudiation
of
their origin, the dependency upon the anti-popular governments and
their
troops, made both the Lieutenant of the Empire, his ministers and his
deputies,
henceforth to be complete nullities. We shall soon see how first
Austria, then
Prussia, and later on the smaller states too, treated with contempt
every
order, every request, every deputation they received from this body of
impotent
dreamers.”
Marx reported that “we now come to the great counter-stroke
in Germany,
of
the French battle of June, to that event which was as decisive for Germany
as the proletarian struggle of Paris
had been for France;
we mean the revolution and subsequent storming of Vienna,
October, 1848. But the importance of this battle is such, and the
explanation
of the different circumstances that more immediately contributed to its
issue
will take up such a portion of The Tribune’s columns, as to
necessitate its being treated in a separate letter.”
Liberals, with middle class backing, called for the many
German states to send representatives to the Frankfort Assembly for the
purpose
of uniting Germany.
The Assembly decided to offer the crown of emperor to Frederick William
IV of Prussia.
This was to be a limited constitutional monarchy. To their horror, he
turned it
down saying that he would not “pick up a crown from the gutter.” The
Prussian
king thus undermined the liberal movement and caused it to fail. Like Italy
and Hungary,
German unification failed.
That was Marx analysis of the 1848 Revolutions in Europe.
On September 30, 1862,
Otto von Bismarck made his famous speech to the Budget
Committee of the Prussian Chamber of Deputies: “The great questions of
the time
will not be resolved by speeches and majority decisions--that was the
great
mistake of 1848 and 1849--but by iron and blood.”
Still, notwithstanding the political failure of liberalism,
1848 liberal proposals such as social insurance, public education,
and expanded
suffrage were incorporated into Bismarck’s
social programs after German unification.
In Britain,
early socialist ideas had given new energy to further parliamentary
reform. The
working-class anti-capitalist Chartists, deriving its name from the
People’s
Charter of 1838, a full decade before the democratic revolutions of
1848, circulated
in 1848 a petition signed by half of the adult males in the population
in Britain
calling for electoral reform to allow working class representation in
parliament. It was rejected by the House of Common by a vote of 287 to
49,
fearing that political democracy would threaten property rights.
Liberal
democracy was not considered a safe institution until a property-owning
middle
class became the majority class in Europe. In America,
representative democracy has always been the political instrument of
the
propertied class.
Lenin’s Dashed Hope for European Revolution
Lenin declared himself as not being a “socialist
chauvinist”. Lenin and the Bolsheviks
sent all possible aid to the radical leftist fringes in Germany,
Sweden
and Italy
to combat reactionary obstacles. The Soviet Party even considered
sending
troops to help Hungarian Bolshevik Bela Kun. The
Second International had failed to rally
socialist parties in
European states to oppose participation in the First World War. The
Third
International (Comintern) after the war accepted the Bolshevik
Revolution as
the true fruition of Marxism and declared itself as a weapon for world
revolution. But the revolution never came. Reaction
in the advanced countries to
international Bolshevik “menace”
gave rise to fascism in post-war Europe.
Lenin’s Neglect of Non-European Agricultural Societies
The Russian Bolsheviks did not consider non-European
agricultural societies ripe targets for revolution. Lenin’s
anti-imperialism thesis
was administered by the Comintern as a anti-longevity drug for European
capitalism,
not directed at national or personal liberation for the non-European
peasant
victims of European imperialism. The
revolutionary target was clearly and decisively European capitalism,
not
non-European agricultural feudalism nor European imperialism. The
segment of
the population deemed ripe for liberation was the industrial factory
worker in
cities, not the farm peasants even inside Europe,
let
alone the colonies outside.
The Communist Party of China (CPC) under Li Lisan, who had
joined the communist party as a student in France
before returning to China,
followed this predisposed line of organizing urban workers for armed
uprisings
in cities. This line was met with repeated failure that almost
destroyed the
CPC until Mao Zedong turned the party into a revolutionary political
instrument
of the Chinese peasants.
The October Revolution
The October Revolution was an unexpected metamorphic anomaly
in the metabolism of revolution because geopolitical circumstances of
the First
World War caused it to take place in Russia, a pre-industrial country
on the
fringe of Europe, the majority population of which was rural peasants
rather
than urban factory workers, and the main socio-economic conflict was
between
feudal landlord class and landless peasant class rather than between
capitalist
class and the worker class.
It was then a revolutionary task after the revolution to
create a proletariat class in Russia
and the other Socialist Republics
within the USSR
as quickly as possible through rapid industrialization, not merely to
catch up
with the more industrialized West, but to hasten revolutionary
dialectics of
transition from feudalism to capitalism to socialism. Socialism was
recast from
an ideological social movement to a venue for post-WWI nationalism.
After WWII,
socialism was transformed by Cold War superpower geopolitics as a
nemesis of
capitalistic liberal democracy.
Thus the early modernization strategies of the Soviet
revolutionary government were fundamentally different from the
imperialist
Westernization strategies of Tsar Peter the Great of Russia. It is wrong to see Soviet industrialization
as inter-imperialist rivalry the way the Western anti-communist left
does. Social engineering had to be speeded
up
through revolution to accelerate historical dialectics. This new
post-revolution proletariat class, not having existed before the
revolution,
had not had the experience of being oppressed by capitalists. In fact
there was
a shortage of capitalists against whom to mount a triumphant class
struggle
that was supposed to be the victorious outcome of the revolution.
Yet it was problematic for the new proletariat class to be a
new antithesis against a nonexistence thesis of capitalism. The revolution provided the solution by
creating a class of state bureaucrats, known as party cadres, which
liberal
democratic opponents immediately named the New Class.
The task of the party cadres was to build a
transitional capitalist system designed to give way to socialism
voluntarily.
This was essentially the same problem faced by Deng Xiaoping’s open and
reform
policy which aimed to direct China
towards a transitional market economy without abandoning the socialist
path of
the Chinese revolution.
Notwithstanding that the ideological role of the party cadre
is to guide the revolution toward socialism, this New Class acted
essentially
as management against labor in the new industries to facilitate a
controlled
class struggle toward socialism. The newly created socialist
proletariat, in
the absence of a capitalist class, mistook the bureaucratic management
class as
the target of class struggle and played into the hands of
reactionaries. This
eventually culminated in the Solidarity Movement that began in Poland,
a broad anti-communist social movement that united the Catholic Church
with the
anti-communist left. After the dissolution of the Soviet
Union,
the Solidarity Movement transformed itself into the color revolutions
of the
former Soviet Republics.
The net result was a broad retreat from socialist revolution.
Leon Trotsky, in
his book The Revolution Betrayed,
refers to the rise of Stalin and the accompanying post-revolutionary
bureaucracy as the Soviet Thermidor. Trotsky and the
adventurist
left described the process of “bureaucratic counterrevolution” with
French
Revolution term “Thermidorian Reaction” that followed Robespierre’s
fall on the
9th of Thermidor in the
French Revolutionary calendar (July 27, 1794) that ended the Reign of
Terror
and the Paris Commune of 1792, and the purging of radical Jacobin
clubs, later
becoming pejorative labels for
left-wing revolutionary politics and extremist centralist views.
Social
and political life became freer, more extravagant, and more personally
corrupt
and cynical. During the “Thermidorian
Reaction”, a splurge of mannered fashion and conspicuous
consumption of
bourgeois wealth came forth while the poor suffered from harsh economic
conditions amid a world of plenty. Trotsky’s reference to Thermidor
was meant to show that the “counterrevolution” was not a
restoration, a return to the ancient regime, but a
counterrevolution
against the path toward socialism. In reality, the Thermidorian
Reaction was an official reversion to a regime of
structural socio-economic inequality.
Trotsky attacked the trend of revolutionary aspirations shifting
from the bottom to the top, with the consolidation of a new order of
rule by the
Party on behalf of the proletariat class for the purpose of sustaining
the
revolution. Trotsky failed to understand that revolutions, different
for
popular uprisings, have always been from directed from the top
(Bolsheviks) and
that the idea that it should have been from the bottom (the
proletariat) was
fantasy, particularly because the bottom (industrial workers) did not
exit in Russia. And where the bottom existed in Europe,
there was no revolution or uprising.
In 1949, the Chinese socialist revolution also succeeded in
seizing state power without a significant class struggle between urban
industrial
workers and national capitalists. The
revolution was a broad based united front of anti-imperialist forces
within China.
After three decades of open and reform policy introduced by Deng
Xiaoping since
1978, a sizable industrial worker class, officially estimated to be 140
million, with untold millions not counted officially, has come into
being, many
members of which are migrant workers from rural region to urban
centers, a
majority of whom are exploitatively employed by enterprises financed
and owned
by foreign capital or in significant joint venture with foreign
capital. There
is no evidence that this new worker class in China,
larger than the entire labor force of the United
States (150 million), has been
properly
represented by, let alone gaining control of, the party or the
government.
However, some movement is observable. In February 2008, the
National People’s Congress (NPC) accredited the qualification of three
rural migrant
workers as newly-elected deputies, making them the first group of
“spokespersons” for migrant laborers all over the country in the
national
legislature. This development is a historic breakthrough that will help
normalize the gap between urban and rural development and the
oppression of
migrant workers by unsavory employers, domestic and foreign.
Chinese government and trade unions at all levels had
helped workers
recover more than 66.54 billion yuan ($9.7 billion)in wage arrears by
the end of 2008, according to a report delivered Friday to China's top
legislature. The recovered wages, of which some were up to four years
old, were
paid to some 1.67 million workers, mostly migrant workers, said the
report to the bi-monthly session of the Standing Committee of the 11th
National People's Congress (NPC).
Historically, the policy of opening to the outside was first
instituted by Mao Zedong who invited Richard Nixon, president of the
United
States, to visit China
in 1972. Deng’s policy of 1978 was merely a continuation of Mao’s
initiative,
without the foundation of which Deng would not have been able to
implement his
policy in 1978. Chinese economic autarky was never voluntary policy but
was
imposed on China
by US
anticommunist policy of containment by total embargo. Mao was merely
making the
best of an impossible geopolitical situation in order to preserve the
socialist
revolution. Without Mao immovable confidence in socialism as the
correct path
of national revival and his faith in the invincible power of the
masses, the
CPC might well have gone the same failed path as the KMT by yielding to
misguided US
pressure on how to rule China.
There is undeniable evidence that since 2002 the Communist
Party of China (CPC) has de-emphasized class struggle as a
revolutionary
process. The final bell was rung in 2002 with the admission of
capitalists into
Communist Party membership. This is perhaps due to the fact that both
the industrial
working class and the capitalist class are really new groups in the
Chinese
economy, coming into existence only after 1978. The rationalization of
this
ideological metamorphosis was to prevent the Party being marginalized
by the
market economy.
Still, the proletariat in Chinese political nomenclature is
the property-less class, historically mainly rural farming peasants.
Many
Chinese farmers today are no longer property-less. They are the new
Kulaks of
the modern Chinese market economy. In fact, the new proletariat class
today
appears to be made up of mostly migrant workers, numbering between
150-200
million, approaching the size of the US population.
The issue of the abuse of migrant worker
rights has become a festering cancer in recent Chinese economic policy,
presumably designed to promote a harmonious society, not to mention a
ticking
time bomb guaranteed to be the epicenter of a massive ideological
earthquake in
socialist orthodoxy.
Since 1978, revolution momentum has been preempted by
economic reform while socialist construction has been pre-empted by
material
construction in a socialist market economy. For all practical purposes,
the CPC
has transformed itself from a revolutionary party to a ruling party
that is only
perfunctorily obligated to socialist principles while Chinese economic
growth
is achieved at the expense of economic equality and on excessive
dependence on
foreign capital and markets. The CPC has
not yet transformed itself by crossing the line to become a
counterrevolutionary
party because it has managed to resist political reform toward
bourgeois
liberal democracy as some misguided reformers have been pushing for in
the name
of economic necessity.
Yet, after 30 years of reform, the Chinese economy is
visibly infested with glaring inequality in income and wealth, and the
means of
production have been increasingly privatized under the control of a
minority
financial elite for its own benefit. The CPC now officially represents
all the
peoples, including capitalists, rather than the dictatorship of the
proletariat. All this is officially accepted in the name of
modernization and
following global neoliberal trends. Yet in 1919, the anti-imperialist
socialist
revolutionary
movement in China
had been launched to reverse global imperialist trends, not to follow
them. At any
rate, these
global trends of capitalist free market fundamentalism had been halted
abruptly
since 2007 with the global collapse of finance capitalism.
The options available to the world now are
whether state capitalism or socialism will end up as the legitimate
replacement
of finance capitalism.
The revolutionary momentum of the Communist Party of China
(CPC) has been put on hold since 1978 as socialist market economy was
promoted
by the Party leadership as a deliberate policy of ideological
compromise,
presumably to allow evolutionary dialectics towards socialism to work
itself
out in due time. There is a rising danger that even the normal pace of
dialectic evolution from capitalism toward socialism has been
deliberately
slowed down by this compromised policy. Deng’s famous dictum of letting
some
people get rich first along the path
to national prosperity had gradually been changed by quietly dropping
the word
“first”. China
is now a country in which some people can get super rich before others
permanently. Forbes Magazine annually publishes a list of China’s
richest.
Ironically, the socialist revolution that had been started
by the 1911 May Fourth student movement had been torpedoed by a
misguided
counterrevolutionary interpretation of the student demonstration of
1989, both
having taken place at Tiananmen but 78 years apart. Since 1987, Deng’s
open and
reform policy has forced by geopolitics to take a turn from a NEP-type
transitional
economic policy to kick-start modernization, to a permanent policy
contaminated
with dubious neo-liberal dimensions to appease geopolitical pressure
from the US
whose markets were deemed indispensable for an overgrown Chinese export
sector
financed mostly by foreign capital.
Yet with the outbreak of the global financial crisis of
2007, ample evidence now exists to show that the economic achievements
in China
came not from unregulated markets opened to neo-imperialism, but from
the fact
that Communist Party of China has wisely and fortunately retained
essential
control of the socialist market economy by limiting the actual opening
up of
the economy to foreign capital and by slowing the privatization of
state-owned
enterprises, in contrast to what Russia had done following US shock
treatment
advice. Most
importantly, China
has managed to insulate its financial sector from the wild turmoil of
global
markets since 2007 because it resisted both internal and external
pressure to
fully open and deregulate its own financial sector and to make its
currency free
floating and fully convertible.
October 31, 2009
Next: Lessons of the
Soviet Experience
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