Chinese Capitalism (Part 2)

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The status of the post-Mao socio-political situation has been of great help in the economical developing and constitutes a regime that could be called “bureaucratic capitalism,” where political power is used to accrue private wealth by capitalist methods of economic activity. This method is not new, because it is similar to obtain benefits in the capitalist economy, where are included the most advanced countries are leaders of “free market” and often a governmental career is a background of other more lucrative career in a capitalist enterprise which is usually related to State apparatus. The same thing happens with mercenary companies sponsored by the Pentagon with the Soviet Union arms manufacturers and transnational businessmen of most nations of the world.

Even without understanding the main cause, the current China’s bureaucratic capitalism is related to higher growth rate, so that they have transformed that Country into an economic laboratory of the world, similar to that generated in England in 19th century. Nowadays, it is hardly surprised the rate and scale of China’s economic progress, considering that its electric network progresses each year more than electricity production across England. In the most recent People’s International Congress in Beijing, Chinese Prime Minister announced a modernization program of the steel industry, and indicating that old plants which will replaced by news will have more production capacity than all the steel companies of Germany together.

So far it does not understand why nationalist period of bureaucratic capitalism caused an economic standstill, while socio-political system similar to post-Mao China has achieved unprecedented economic growth. According to most economists around the world, the analysis of this phenomenon should focus on the differences between pre and post-communist revolution Chinese societies. Bourgeoisie revolution of 1949 should be taken into account as well.

The nationalist regime of Chiang Kai-Sheng, besides its particular internal defects, he has found an unfavorable historical context of feudal system of landowners who wasted the capital, also had an archaic political system had been checked by separatist warlords. Then, China was a country fragmented by foreign imperialism and weak bourgeoisie depended on foreign capital. So that nationalist efforts of the regime and its media were very limited and therefore very weak to deal with the problem of economic growth.

On the other hand, paradoxically during the 50’s the Chinese communist regime carried out the essential tasks of a bourgeois revolution, although without democratic component, because the communist unified a country which had been disintegrated during long time, the imperialist forces were liberated and established a hard but very effective government, creating the basis for an autonomous nation-state with national market.

Then, with the agrarian reform occurred between 1950 and 1952, parasitic class of feudal aristocrats was destroyed, while the excess agrarian capital was channeled to finance a program of rapid industrialization promoted by the State. Also incredible progress in literacy, health care and education was achieved, creating a modern and capable work force. In summary, Mao government created in its first decade the essential conditions of a process of rapid capitalist development which during the last three decades has been reaffirmed. The incredible phenomenon of China’s economic increase, it is not just the result of market reforms made by Deng Xiaoping and his current successors, but also it is greatly to the achievement of the bourgeoisie in the revolution of 1949. It could conclude that socialism was not the real heritage of that revolutionthat still celebrated in Beijing, but the ultramodern nationalist objective to transmit to the nation-state all the power and wealth.

This overwhelming political process and without edges has been able to be performed because in the high levels of political bureaucracy of China has been predominant a moral conscience and patriotism facilitating the development of an autocracy which has all possible mythological, ideological and cultures hints, where messianic, xenophobic and violence characteristics which have characterized the human society of all time are disappearing. A new era of society is experienced where digital world I moderating emotions and most dangerous feelings of the human being and leading to peaceful and joyful coexistence.

Addendum: To give an idea regarding to rejection of violence in this new era, I just want to mention about the devaluation of Chinese currency in recent days. Although some countries – as Japan, England, and Germany- tried to draw up a type of financial apocalypse, Ben Bernanke, former president of U.S. Treasury Department, only said that the devaluation of yuan process was necessary because China wants to use its currency as an instrument of exchange all over the world, consequently it has to accept the regulations imposed by IMF. So in any case, could happen that Treasury Department delays an increase in interest rates for next year.