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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
Part III: Lessons of the
Soviet Experience
Part IV: The Situation in China
This article appeared in AToL
on November 17, 2009
In the political chaos of the early years of the bourgeois Republic
of China, provincial warlord military governors and regional military
groups emerged
based on residual Qing dynasty connections and personal loyalties. To
establish
central control by the government of the new republic, the regime of
warlords
who had seized control of much of Northern China
since
the collapse of the Qing Dynasty had to be defeated.
Kuomintang leader Sun Yat-sen (1866-1925), assisted by his able comrade
Liao Zhong-kai (1877-1925), realized that the Western imperialist
powers, in
order to continue their plundering of China,
would maintain a divided China
by supporting the warlords engaged in internecine power struggles. Thus
in 1921,
Sun turned to the new Soviet Union and
communism, the
only anti-imperialist force. The Western democracies were proving
themselves to
be happy heirs to overseas empires whose imperial governments they had
overthrown
at home after World War I.
In 1923, a joint statement by Sun and a Soviet representative in Shanghai
pledged Soviet support and assistance for China’s
national unification. The Comintern sent Soviet advisers such as
Mikhail
Borodin to China
to aid in the reorganization and consolidation of the KMT along the
lines of
the Communist Party of the Soviet Union.
Communist Party of China (CPC)
members
were encouraged to join the KMT as individuals, forming the First
United Front
between the two parties. The CPC was still small at the time, having a
membership of only 300 in 1922 and only 1,500 by 1925. The KMT in 1922
already
had 150,000 members and well financed by US based protestant churches,
as both
Sun and Chiang Kaishek converted to Christianity out of geopolitical
expediency.
Soviet advisers also helped the KMT set up a political
institute to train propagandists in mass mobilization techniques, and
in 1923,
Chiang Kai-shek, one of Sun’s lieutenants from pre-revolution Tongmeng
Hui days
while in exile in Japan, was sent for several months’ military and
political
study in Moscow. After Chiang’s return in late 1923, he participated in
the
establishment of the Whampoa
Military Academy
(Huangpu Junxiao) as
its commandant, with Liao Zhong-kai as political commissar for the KMT
and Zhou
En-lai of the CPC as the deputy commissar. The
military academy was founded with a Soviet
gift of 2.7 million yuan supplemented with a monthly stipend of 100,000
yuan. Soviet
weapons were supplied including 23,000 rifles, machine guns and
artillery.
In 1923 when Sun Yat-sen started to reorganize the KMT and installed a
provisional
government in Guangzhou,
Soviet
advisers A A Yoffe and M M Borodin proposed that the KMT and the CPC
form a
united front (Guo Gong Hezuo) against the Beiyang warlord
regime. Dual
membership in both parties was common for communists at this time. Sun
Yat-sen
had lost faith in the will of the Western imperialist powers to
cooperate with China’s
anti-imperialism aims and leaned more and more toward the Soviet
Union for support.
In 1924, Sun held the first national congress (Guomindang diyici
quanguo
daibiao dahui), during which he stressed the Three People’s
Principle (sanmin
zhuyi - nationalism, democracy, people's livelihood - minzu
zhuyi,
minquan zhuyi, minsheng zhuyi) as a doctrine against imperialism.
Within
the KMT-CPC united front, Sun adopted three major policies (sanda
zhengce):
alliance with the Soviet Union (lian Su),
alliance with the communism (lian gong), and supporting peasants
and
workers (fuzhu nonggong).
Five months after Sun’s death from cancer on March 12, 1925, Liao Zhongkai, leader
of the left wing
of the KMT, was assassinated on August 20 of the same year at age 48 at
the
behest of the right-wing leaders of KMT. Chiang, as commander-in-chief
of the
National Revolutionary Army, with communist help, set out on the
long-delayed
Northern Expedition against the northern warlords to unite China
under KMT control. By 1926, the KMT had divided into left-wing and
right-wing
factions. Neither wing had any use for Western democracy, which openly
presented
itself as an agent of Western imperialism. The left turned toward
communism
while the right turned toward fascism.
Later, the KMT did put up a facade of democracy after the US
got involved in Chinese domestic politics during World War II. If the
United
States is really serious about spreading democracy around the world,
its
leadership needs to realize that the world will not accept Western
democracy
unless and until it rids itself of its pugnacious role as an agent for
Western neo-imperialism.
By 1926, communist influence within the KMT was growing fast. In March
1926,
Chiang abruptly imposed restrictions on CPC member participation in the
top
leadership, and emerged as the pre-eminent KMT leader on an
anti-communist
platform. By early 1927, the KMT-CPC rivalry led to an open split in
the
revolutionary ranks. The CPC and the left wing of the KMT moved the
seat of the
Nationalist government from Guangzhou
to Wuhan.
After Chiang Kaishek seized control of the KMT and achieved initial
successes
in the Northern Expedition with communist help, all communists were
expelled
from the KMT. On April 12,
1927,
a workers’ movement in Shanghai
was
brutally suppressed by Chiang (Si-yi-er zhengbian), and he
became one of the leaders of the KMT with
Wang Jingwei, who later were to form a traitorous puppet government in Nanjing
under Japanese tutelage.
Chiang then launched an anti-communist purification program
within the KMT (qingdang qugong) and drove out all communists as
well as
leftist KMT members such as Song Qingling, the widow of Sun Yat-sen,
and He
Xiangning, the widow of Liao Zhong-kai, ending the first alliance
between the
KMT and the CPC. After the end of World War II, the two great ladies
formed the
Revolutionary Committee of the KMT and joined in the founding of the
People’s
Republic as vice chairmen of the PRC.
Chiang Kaishek, riding on the bipartisan success of the Northern
Expedition, turned
his elite forces to destroy the Shanghai CPC apparatus. Chiang, with
the aid of
Western imperialists and the Shanghai
underworld criminals, arguing that communist activities were socially
and
economically disruptive, turned on communists and unionists in Shanghai,
arresting and summarily executing hundreds without trial on April 12, 1927 for
activities that were legal
prior to the date of arrest. The purge obliterated the urban base of
the CPC
that laid the ground for the rise of Mao Zedong with his strategy of a
rural peasant
revolution.
Chiang, expelled from the KMT for his reactionary moves,
formed a rival reactionary government in Nanjing.
Three political capitals now emerged in China:
the foreign imperialist-recognized Beiyang warlord regime in Beijing;
the communist and left-wing Kuomintang coalition government at Wuhan;
and the right-wing reactionary military regime at Nanjing,
which would remain the Nationalist capital for the next decade, until
Japanese
occupation in 1937.
The CPC adopted a strategy of armed insurrections in urban centers in
preparation for an anticipated rising tide of revolution. Unsuccessful
attempts
were made by communists to take cities such as Nancang, Changsha,
Shantou
and Guangzhou.
All failed.
A successful armed rural uprising, known in history as the
Autumn Harvest Uprising was staged by peasants in Hunan
province, led by Mao Zedong. But in mid-1927, the CPC was at the low
ebb of its
history. Their left-wing KMT allies in Wuhan
were toppled by a militarist regime led by Wang Jingwei.
The KMT resumed the campaign against the warlords and
captured Beijing in June
1928,
after which most of eastern China
came under Chiang's control, and the Nanjing
government received prompt international recognition as the sole
legitimate
government of China.
The Nationalist government announced that in conformity with Sun
Yat-sen's
formula for the three stages of revolution - military unification,
political
tutelage, and constitutional democracy - China
had reached the end of the first phase and would embark on the second,
which
would be under KMT political tutelage. After Adolf Hitler came to power
in Germany
in 1933, the KMT turned to the Nazis as a model both in political
organization
and in military modernization.
During the Japanese invasion and occupation of the northeast (Manchuria),
Chiang still saw the CPC as the greatest threat, and refused to ally
with the CPC
to fight against the Japanese invasion. On December 12, 1936, two young
Kuomintang
generals Yang Hucheng and, Zhang Xueliang, son of warlord Zhang Zuolin
who had been
earlier
assassinated by the Japanese for opposing Japan’s plan to set up a
puppet
government in Manchuria headed by Pu Yi, kidnapped Chiang Kaishek while
he was
visiting Xian and forced him to enter into a truce with the CPC to form
an united
front against Japan. The event became known as the Xian Incident in
history. Zhang Zuolin was the warlord who ordered the execution of CPC
founder Li Dazhao in 1927.
Both political parties agreed to suspend inter-party fighting
and form a Second United Front to focus their efforts against the
Japanese.
However, the alliance existed in name only. The level of actual
cooperation and
coordination between the CPC and KMT during World War II was minimal.
While CPC
forces were fighting the Japanese, Chiang was reserving his best troops
for
dealing with the CPC after the war.
US
General Joseph Stillwell, commander of US forces in the Burma Theater,
was
openly critical of the KMT leader and was advocating US
assistance to the People’s Liberation Army (PLA), which was prosecuting
a guerrilla
war against Japanese in earnest with inadequate supplies and equipment.
The
situation came to a head in late 1940 and early 1941 when KMT forces
attacked the
PLA.
In December 1940, Chiang Kaishek demanded that the CPC New
Fourth Army evacuate Anhui
and Jiangsu
provinces, promising safe conduct. When the New Fourth Army commanders
complied
in order to preserve inter-party coalition, their forces were ambushed
by
Nationalist troops and suffered great losses in January 1941. This
treachery,
known as the New Fourth Army Incident, weakened the CPC position in Central
China and in effect ended any substantive cooperation
between the
KMT and CPC.
The use of two atomic bombs in short order by the US
caused Japan
to
surrender much more quickly than anyone in China
had imagined. As insurance in the event that the bomb might not work, US
president Harry Truman had pressured the Soviet Union
to
open an eastern front against Japan.
Under the terms of unconditional Japanese surrender dictated by the United
States, Japanese troops were ordered
to
surrender to KMT troops and not to the PLA which actually had done most
of the
fighting.
Days before the sudden end of the war in East Asia,
the Soviet Union was persuaded by
President Truman to enter the war against Japan.
After the dropping of two atomic bombs on Hiroshima
and Nagasaki, Soviet
forces flooded
into the northeastern provinces to seize Japanese positions and to
accept the
surrender of the 700,000 Japanese troops stationed in the region.
Later in the year, Chiang Kaishek came to the awkward
realization that he lacked the needed military resources to prevent a
CPC
takeover of the northeast after the scheduled Soviet departure. He
therefore
made a deal with the Soviets to delay their withdrawal until he had
moved
enough of his best-trained men and modern arms into the region. The
Soviets
spent the extra time systematically dismantling the entire Manchurian
industrial plant built by Japan
with Chinese slave labor and shipping it back to their war-ravaged
motherland.
The civil war in China
ultimately ended with CPC victory and the People’s Republic of China
was established on October 1,
1949
under the leadership of CPC headed by Mao Zedong, after which socialist
construction of the war-torn, imperialism-ravaged nation began.
Socialist Construction in the People’s Republic
Mao understood that Confucianism (Ru Jia) had
permeated Chinese society perniciously and hindered its advancement in
modern
times; so he tried to combat it by launching mass movements,
culminating in the
Great Proletarian Cultural Revolution in 1966.
But even after a decade of enormous social upheaval, tragic
personal sufferings, fundamental economic dislocation and unparalleled
diplomatic isolation, Confucianism stood its ground in Chinese societal
mentality. The Cultural Revolution failed to achieve its spiritual goal
even
with serious damage to the nation’s physical and socio-economic
infrastructure
and to the prestige of the Communist Party of China (CPC), not to
mention the
decline of popular support and near total bankruptcy of revolutionary
zeal among
even loyal party cadres. Confucianism will have to wait for many future
cultural revolutions to restrain its negative influence on the Chinese
civilization and to revive its positive elements. A
culture that took two millennia to develop
cannot be changed in just one century.
Realistically, nostalgia aside, the feudal system under imperial
monarchy
cannot be restored in modern China.
Once a political institution is overthrown, all the king’s men cannot
put it
back together again. Nor would that be desirable. Yet the modern
political
system in China,
despite its revolutionary clothing and radical rhetoric, is still
fundamentally
feudal, both in the manner in which power is distributed and in its
administrative structure. This is why cultural revolutions are
necessary and
will be necessary to move Chinese civilization forward.
However, violent revolutions cannot be regular events
without destroying the very purpose that justifies them. China
needs a continuous non-violent cultural revolution to ensure that its
revolutionary path toward national revival through socialism is not
reversed.
But it does not need destructive factional political violence in the
name of
ideological vaccination that ends up disrupting the national purpose.
In Chinese politics, loyalty is traditionally preferred over
competence. The
ideal is to have both in a minister. Failing that, loyalty without
competence
is preferred as being less dangerous than competence without loyalty -
the
stuff of which successful insurrection and revolts are made. Therein
lays the
seed of systemic corruption in Chinese politics.
For socialist China,
loyalty is to the socialist cause, not personal relations. It is
imperative
that leaders remain loyal to socialist ideals. Yet loyalty to socialist
ideals
alone is not enough. It must be augmented by competence. Confucianism,
by
placing blind faith in a causal connection between virtue and power,
has
remained the main cultural obstacle to modern China’s
attempt to evolve from a society governed by men into a society
governed by
socialist legalism, which should not be confused with the Western
bourgeois
concept of rule of law. The danger of Confucianism lies not in its aim
to endow
the virtuous with power, but in its tendency to label the powerful as
virtuous.
In order to change Chinese feudal society toward a communist social
order,
which is understood by all communists as a necessary goal of human
development,
Mao Zedong developed out of abstract Leninist concepts specific
operational
methods that took on special characteristics necessary for Chinese
civilization
and historical-cultural conditions, its strengths and shortcomings.
These
methods, above all the system of organized mass movements to achieve
the
advancement of the mass interest, stress the change of socio-political
consciousness,
i.e., the creation of new men for a new cooperative society, as the
basis for
changing reality, i.e., the replacement of private ownership of the
mode
of
production by collective ownership. The concept of mass politics,
relevant in
Chinese political thought from ancient time, is implemented by an elite
cadre
corps within the party which is the political instrument of the people.
Mao’s mass line
Mass movement as an instrument of political communication from above to
below
is unique to Chinese communist organization. This phenomenon is of
utmost
importance in understanding the nature and dynamics of the governance
structure
of the CPC as the ruling party. The theoretical foundation of mass
movement as
a means of mediation between the leadership and the will of the people
pre-supposes that nothing is impossible for the masses, quantitatively
understood as a collective subject, if their power is concentrated in
annd represented by a
political party of correct thought and responsive actions. This concept
comes
out of Mao’s romantic yet well-placed faith in the great strength the
masses
who are capable of developing the nation in the interest of their own
well-being.
So the
“will of the masses” has to be articulated with the help of the party
but by
the masses and within the masses, which the CPC calls the “mass line”.
Mao’s mass-line theory requires that the leadership elite be close to
the
people, that it is continuously informed about the people’s will and
that it
transforms this will into concrete actions by the masses. “From the
masses back
to the masses” is more than just a slogan. This means: take the
scattered and
unorganized ideas of the masses and, through study, turn them into
focused and
systemic programs, then go back to the masses and propagate and explain
these
ideals until the masses embrace them as their own.
Thus mass movements are initiated at the highest level – the
polibureau,
announced to party cadres at central and regional work conferences,
subject to
cadre criticism and modification, after which starts the first phase of
mass
movement. Mass organizations are held to provoke the “people’s will”,
through
readers’ letters to newspapers and rallies at which these letters are
read and
debated. In modern times, expressions on the Internet have augmented
the role
of the print media. The results are then officially discussed by the
staff of
leading organs of the state and the party, after which the systematized
“people's will” is clarified into acts of law or resolutions, and then
the mass
movement spreads to the whole nation.
The history of Chinese socialist politics is a history of mass
movements. Mass
movements successfully implemented Land Reform (1950-53); Marriage
Reform
(1950-52); Collectivization (1953) - the General Line of Socialist
Transformation
(from national bourgeois democratic revolution to proletarian socialist
revolution); and Nationalization (1955 - from private ownership of
industrial
means of production into state ownership). The method used against
opposition
was thought reform through “brainwashing” (without derogatory
connotation since
given in the anticommunist West), which is a principle of preferring
the
changing of the political consciousness of political opponents instead
of
physically liquidating them. All this despite the enormous cost imposed
on the
national economy by the the Chinese voluntary forces in the Korean War.
The opening ceremony of the Beijing
Olympics that television audiences saw around the world was a
manifestation of
Chinese socialist mass movement. It had the legacy of Mao Zedong
written all over
it.
Before 1949, the Chinese peasant had been deprived of basic
health services for over a century. One of the Party's first steps in
medical
reform called for mass campaigns against endemic infectious diseases.
Ten of
thousands of health workers were trained with basic hygienic and
medical skills and
sent
out into the countryside to examine and treat peasants, and organize
sanitation
campaigns with mass movement techniques.
Health teams examined 2.8 million peasants in 1958, the
first year of the schistosomiasis program. One team claimed to have
examined
1,200 patients in a single day. Some 67 million latrines were
reportedly built
or repaired, and over the next few years, hundreds of thousands of
peasants
were set to work day and night, drying out swamps and building drainage
ditches
to get rid of the snail's habitat. Party workers claimed
schistosomiasis cure
rates of 85 to 95 percent in some areas, and that the disease had been
wiped
out in more than half of previously endemic areas along the Yangtze
River.
Mao's mass movements succeeded until
1957
The Hundred Flower Movement of 1957 was launched on February 27 by Mao
with his
famous four-hour speech, “On the Correct Handling of Contradictions
among the
People”, before 1,800 leading cadres. In it, Mao distinguished
“contradiction
between the enemy and ourselves” from “contradiction among the people”,
which
should not be resolved by dictatorship, i.e., by force, but by open
discussion
with criticism and counter criticism. Up until 1957, the mass-movement
policies
of Mao achieved spectacular success in both social and economic
construction.
Land reform was completed, the struggle for women’s emancipation was
progressing well, and collectivization and nationalization were leading
the
nation towards socialism. Health services were a model of socialist
construction in both cities and the countryside. The party’s
revolutionary
leadership was accepted enthusiastically by society generally and the
peasants
specifically. By 1958, agricultural production almost doubled from 1949
(108
million tons to 185 million tons), coal production quadrupled to 123
million
tons, and steel production grew from 100,000 tons to 5.3 million tons.
The only problem came from bourgeois intellectual rebellion. On May 25, 1957, Mao expressed
his
anxiety at a session of the Standing Committee of the Politburo, and
gave his
approval to those who warned against too much reactionary bourgeois
liberty.
That afternoon, Mao told cadres at a Conference of Communist Youth
League that
“all words and deeds which deviate from socialism are basically wrong.”
At the
opening session of the People’s Congress on June 26, Zhou Enlai
initiated the
“counter criticism” against the critics. Mao’s call for open criticism
was
serious and genuine, but the discussion he had conceived as a safety
valve
reached a degree of intensity he had not anticipated. Mao overestimated
the
stability of the political climate and underestimated the residual
influence of
Confucianism.
Crossroads: Soviet model or
independent
path
Against this background, the CPC stood at the crossroads of choosing
the Soviet
model of development or an independent path. Economy development was
based on
three elements:
· Build up
heavy industry at the expense
of agriculture.
· Establish
an extensive system of
individual incentives by means of which productive forces could be
developed
from a conviction that the superiority of socialist modes of production
would
be vindicated by a visible rise in living standards.
· The
acceleration of the socialist transformation
of society in order to create the precondition required by the CPC for
establishing a socialist order.
Two paths were opened to the CPC leadership in 1958:
Consolidation or,
Pushing forward toward permanent revolution
Mao was forced by geopolitical conditions (the abrupt withdrawal of
Soviet aid
in 1960 and the US Cold War embargo from 1951 to 1973) to overcome the
lack of
capital and technology through mobilization of China’s vast labor
reservoir.
The strategy was to connect political campaigns to production
campaigns. Under
pressure from orthodox Leninists within the party apparatus, with the
surprise
failure of the “Hundred Flower Movement”, Mao concluded it was
impossible to
create a socialist consciousness through a gradual improvement of
material
living conditions; that consciousness and reality had to be changed
concurrently and in conjunction through gigantic new efforts at
mobilization.
There was no real alternative open if new socialist China
was to survive.
This led to the Anti-Rightist Campaign of 1957-58, followed by "Three
Red
Banners" in the spring of 1958, initiating simultaneous development of
industry and agriculture through the use of both modern and traditional
methods
of production under the “General Line of Building Socialism.” It was to
be
implemented through a labor-intensive development policy by a “Great
Leap
Forward” and by establishing a comprehensive collectivization by
establishing
“People's Communes”. (Please see my April1, 2004 article on The Great Leap Forward)
While Mao headed the CPC, leadership was based on mass support; and it
is
still, the chairmanship of the CPC is analogous to the position of Pope
in the
Roman Catholic Church, powerful in moral authority but highly
circumscribed in
operational power. The Great Leap Forward was the product of mass
movement, not
of a single person. Mao’s leadership extended to the organization of
the party
and its policy-formulation procedures, not the dictation of particular
programs.
Western accusation of Mao as being a dictator merely reflects an
ignorance of
the true workings of the Communist Party of China. The failures of the
Great
Leap Forward and the People's Communes were caused more by
implementation flaws
than by conceptual error. Bad luck with weather and relentless US
embargo had also much to do with it. These programs resulted in much
suffering,
but the claim that 30 million people were murdered by Mao with evil
intent was
mere hostile Western propaganda.
Without Mao’s leadership, the Communist Party of China would not have
survived
the extermination campaign by the Nationalists under Chiang Kaishek. It
was Mao
who recognized the invincible potential of the Chinese peasant as the
fountainhead of revolution. It is proper that the fourth-generation
leaders of
the PRC are again focusing on priority promotion of the welfare of the
peasants.
In Europe, the failure of the democratic
revolutions of
1848 led eventually to World War I, which destroyed all the competing
monarchal
regimes that had collaborated to successfully suppress the democratic
revolutions six decades earlier. The full impact of Mao’s revolutionary
spirit
is yet to be released on Chinese society. A century from now, Mao’s
high-minded
principles of mass politics will outshine all his anti-communist and
neo-liberal critics.
The People’s Republic of China,
established in 1949 under the leadership of the Communist Party of
China headed
by Mao Zedong, is today a rapidly developing nation of over 1.3 billion
people
with the world’s highest growth rate. The
Chinese economy is on track to be the
largest in the world. Yet
until China
moves expeditiously toward policies that put equality as a goal, China’s
road toward achieving the highest per capita income for its economy
will be
agonizingly long.
The dissolution of the USSR
in 1991 led to a precipitous socio-economic decline for Russia
since 1990 as it went through shock treatment to rush headlong into
market
capitalism as advised by US neo-liberal economists.
In contrast, China’s
economic reform since 1978 has produced spectacular growth, albeit
along with a
host of unsustainable socio-economic penalties and problems. In
comparison with
the poor results in Russia,
the question inevitably arises on why reform towards a socialist market
economy
by world’s largest remaining socialist state has produced comparatively
positive results. What are the “Chinese characteristics” that Deng
Xiaoping had
identified that led to the impressive economic growth of the past three
decades
since 1979?
The answer leads directly to the revolutionary policies
launched by Mao Zedong during the three decades between 1949 and 1979
acting
as a principle that had provided a potent spiritual platform, without
which Deng’s
reform
policies would not and could not have succeeded.
Without the strong and broad basis for China’s revolutionary
socio-economic development laid in the three decades before 1979, as
part of
Mao’s strategy of building essential institutional prerequisites based
on a revolutionary
collective awareness of the power of an organized masses and carried
out
through mass movement programs such as comprehensive land reforms
followed by
the formation of agricultural co-operatives and later peoples communes,
the
reform policies after 1979 could have not been implemented
successfully.
Despite all the neo-liberal hyperboles about efficient asset
allocation through the market mechanism and all the capitalist
ideological
anathema against egalitarianism, the solid and rational contribution by
“Mao
Zedong Thought” on China’s
national collective consciousness of confidence in the people and self
reliance
remains the
light source of the historic revival of the four-millennia-old Chinese
civilization.
It was Mao who taught a discouraged China, despite having
been reduced to abject poverty materially, hopeless bankruptcy
spiritually and
total deprivation of confidence, to not be intimidated by temporary
foreign
imperialist dominance and to struggle for national revival through
self-reliance by placing faith in the invincible power of the masses.
Yet despite Mao’s indispensable contribution to the Chinese
collective consciousness of the dormant prowess of the masses and to
the
methodology of achieving economic and social development through mass
movements
that had enabled the economic miracle of new China, his contributions
continues
to be insufficiently appreciated by many Chinese revisionist social
scientists,
particularly free market economists, who once again are falling into
the
heinous propaganda spell of Western cultural imperialism in the name of
neo-liberal market fundamentalism.
For example, an important element of innovation in Mao’s
revolutionary strategy is the capturing of the full economic advantages
of
abundant labor in the Chinese economy for nation-wide socialist
construction on
a scale never attempted in modern history. Mao aimed to eliminate
surplus labor
in the Chinese socialist economy by banishing unemployment.
Unfortunately, this
strategy has been distorted since 1979 to turn into a policy of
bringing into
existence a new laboring class of exploited, poorly paid migrant
workers from
rural regions to overcrowded urban centers that are dependant on
foreign
capital to finance the overblown export sector, leaving rural regions
underdeveloped
for lack of domestic capital despite, or because of, a national trade
surplus
denominated in fiat dollars that cannot be used domestically in China.
Inequality of income and wealth has deterred China
from its effort to increase the rate of domestic capital formation
without
undue restriction on the rate of rise in mass consumption. China
today is faced with a serious unemployment and underemployment problem.
The
most serious underemployment comes in the form of low wages on all
levels.
November 13, 2009
Next:
Economic
Surplus and Capital Formation
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