Friday, 4 October 2019

Benevolent authoritarianism


I found an article earlier this week that is focused on the growth of China’s economy in the 70 years since the establishment of communist rule. It highlights many interesting facts, such as the changes in the economy from an agriculture based economy to one that has become increasingly industrialised over time

This reflects changes in other advanced economies around the world which in recent decades have steadily transitioned from agriculture based economies to services based economies.
A change I found more interesting however was that rise in income inequality:

It’s well known that a key issue in many advanced economies today, many of them democratic, is the rising gap between rich and poor. This has become a key issue in politics in countries such as the US where the gap is particularly pronounced. What is of interest to me is that despite the vast differences in the political systems the economic challenges that face both countries in regards to economic equality are very similar, electoral accountability seems to have little impact on the rise of the income gap in both countries.

Another point that is highlighted in the article is how the rise of China’s economy came about and it seems to primarily hinge on reforms such as lowering trade barriers, allowing market forces to determine prices and boosting investment. Joining the WTO also had a large effect on the Chinese economy. It is interesting however that these policies are not particularly unique to the authoritarian style of government. It could be argued that the Chinese economy would actually be in a better situation than it is now and may have been the largest economy in the world by this point, had it not been held back by the Chinese government’s previous decisions. This is an example to an extent of what we were discussing in class over a week ago, the “benevolent authoritarianism” (certainly economically in this case) in which it is characterised by “Reasonably open public spheres where discussion of economic policy is possible” and “Commitments to development rather than to a rigid ideology”. In the case of the latter point this is especially true, the economic explosion that China experienced occurred when China went from restricting development due to a rigid ideology to allowing more open expansion of their economy.  

3 comments:

  1. Great article, Alex. The question here is why the Chinese Communist Party elite (particularly Deng Xiaoping) felt they could risk "reform and opening"....It nearly led to their ousting in 1989.

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  2. This is a very interesting point. I think that perhaps looking at income inequality along the dimension of authoritarianism/democracy might be misguided, and that instead vast income inequality issues may instead be a byproduct of free-market capitalism. China's trajectory of political economy would support this; however, this wouldn't explain all cases, as many countries, such as in the middle east (e.g. Syria) have had large income disparities without economic liberalization.

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    1. Leo - the choice to ameliorate the consequences of market capitalism is a political choice - capitalist countries vary a lot! This choice may be affected by the political regime.

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