justhanging said:
And why must one choose between human rights and economic prosperity? in the West, the two have gone hand in hand.
it can be argued that the granting of civil and political rights to the citizenry has actually contributed to economic growth in the West.
It can and it’s a strong argument, one that I am in favour of. The two do go hand in hand and there is only so long that China can keep attempting to control the economy with command control mechanisms. Loads of problems occur when you attempt to fix quotas, price fix et al. Subsidiaries can only last so long, it is better to abolish these aspects and let market forces dictate wages, prices, supply and demand.
But it is evident that China has prospered because it has freed up their market internally and embraced certain western liberal market reforms, abolishing a great deal of its price fixing and while certain quotas levels and financial restrictions still exist, it is allowing its citizens to lease, hold and manage property with autonomy and trade amongst themselves.
State Owned Enterprises represent only %30 with the rest private now.
However it’s facing enormous pressures, too numerous to mention. It is still fixing the Yuan and exchange rate, pegging it to the US dollar well below what it should be, in order to attract foreign demand for its cheap products and it is suffering from massive inflationary problems as Western countries continue to export their inflation into China. Their slowly learning of the outcomes of their policies with the central bank attempting to fight inflation on all fronts by changing its reserve requirement ratio up past 12.5%, excess reserve ratios and using open market operations via selling central bank bills to reign in the money supply.
I think I can hear it straining and creaking from here and am wondering if it’s going to explode somehow?
They need to a floating exchange rate and must continue to free up the market, which should in theory allow greater personal freedoms.