A capitalist journalist on China


‘Why the Chinese are cheerful about the future’, Peter Hartcher, The Sydney Morning Herald, 26.02.18

In survey after survey, China’s people are full of bounce. In comparisons with the people of other countries, the Chinese show an optimism and a confidence that puts them among the most positive on the planet.

Chinese consumers are brimful of confidence, outdone by only those in India, Indonesia and Iceland. China’s people are the most optimistic in the world that they will have better living conditions in the future.

And among the world’s young people, it’s the Chinese and the Indians who feel most positive that the world is becoming a better place. One reason is that their economies are booming, But they also have great faith in the power of technology to do good.

And, surprisingly perhaps in a dictatorship, Chinese have confidence in their government. This is not just a piece of Communist Party propaganda. It’s a consistent result from surveys by credible international organisations.

A survey of people in 34 countries by the Washington-based Pew Research Centre five years ago found that 66 per cent of Chinese citizens expressed “confidence” in their government. That was the fifth highest in the world, almost double the level in America and equal to that in Norway. Interestingly, Indonesia also had a very high rating on this measure.

And in the annual Edelman Trust Barometer published last month measuring sentiment internationally, a whopping 84 per cent of respondents in China said that they had “trust” in government. That was an increase of 8 percentage points over the course of a year. And it was the highest among the 28 countries surveyed.

Should we be suspicious of polls conducted in a one-party state where criticism of the national leaders is rigorously censored and where dissidents are arrested? Yes, we should be.

And yet there are clues that it’s probably broadly true that the Chinese have high trust in government. One reason is that, again, India and Indonesia, democracies both, show similarly high levels. There seems to be a correlation of broad confidence among the three big, thrusting, emerging countries, all headed by leaders with a sense of purpose and a rockstar aura.

And another is the consistency of findings across different areas of Chinese life, measured by different outfits. The country is on the rise, its ordinary people are better off than they’ve been in centuries, and their government is waging a vigorous campaign against the problem that Chinese have long nominated as their biggest concern – corruption.

As the BBC’s Beijing correspondent Stephen McDonell commented a year and a half ago: “Elsewhere there is fear and uncertainty. Here optimism trumps all.”

And if the people’s trust is earned, above all else, by sheer results, then the Chinese people’s trust in government is no surprise. A new World Bank report, which went online without fanfare a few days ago, sets out some remarkable results. Here are just three.

The world has a rough grasp of the fact that China has made great inroads on its poverty problem. But the World Bank report makes an extraordinary finding. Using the international poverty line adopted in 2011 of income of $US1.90 ($2.40) a person a day, adjusted for a country’s cost of living, it says: “The share of the population living in poverty fell from 88.3 per cent in 1981 to 66.6 per cent in 1990 and 1.9 per cent in 2013.”

The number of people lifted out of poverty in that span? A total of 850 million. That’s two-and-a-half times the population of the US.

It’s the equivalent of the entire number of humans on the planet until the 19th century. The World Bank observes that of all the people in the world who managed to escape poverty in the last four decades, seven of every 10 were Chinese. It describes the scale and speed of this achievement as “unprecedented in scope and scale”. Undeniably.

China has about 25 million citizens still living under the poverty line, and the bank predicts that it will make further progress.

China’s breakneck economic growth made this transformation possible, but while it was necessary it was not sufficient. Many countries in history have managed bursts of rapid growth; very few have lifted such a broad swath of its people out of poverty. Because it’s not just how much money a country makes but how it’s used to the benefit of its people that’s crucial.

And this is point two. China has leapfrogged other wealthier countries in offering a social safety net to its people. “Since the 1990s, China has introduced an array of social protection programs at a speed that is unprecedented internationally,” the World Bank remarks.

Among its reforms are pension and health insurance programs, unemployment benefits, sickness and workplace injury assistance, and maternity insurance for women working in formal job sectors in the cities.

Weaving such a broad safety net so quickly “is a feat that took decades to achieve in OECD countries, and one that many middle-income countries have not realised” the bank observes. Health and education services have been much improved.

China still has shocking inequality and rural areas suffer most. But while it was worsening for decades and became as severe as US experience, the inequality gap has started gradually to close since 2008, according to the World Bank.

Point three helps explain how China managed to deliver so much growth with such broad benefit so quickly. The World Bank assesses China’s institutions as well-functioning. Interestingly, it finds that Communist Party political loyalties among officialdom has not corroded the effectiveness of its institutions.

It says that the party has shaped the “core of a high-performing bureaucracy by integrating features of party loyalty with professionalisation of the civil service in a unique way”. It has “provided incentives through promotion and rewards to bureaucrats and local officials in return for their attainment of growth and job creation targets”.

And instead of finding a deadening political oppressiveness in government departments, the World Bank reports that “the cadre management system and the broader political systems in China have facilitated vigorous contest ability of policy ideas, which promoted policy effectiveness”. The success and durability of the one-party state point to China as a standing challenge to democratic countries.

The World Bank report, with the delightfully evocative title Systematic Country Diagnostic, is not, however, a portrait of a socialist Utopia. The bank finds huge problems. Environmental collapse beckons. Pollution is “an all-encompassing challenge” and climate change is wreaking havoc. Similarly, the levels of debt in the economy pose the danger of acute financial crisis. And the ageing of the population, set to accelerate, will pose new problems of national solvency.

But China’s successes and its people’s surging confidence help explain why President Xi Jinping feels that he can now do what no Chinese leader since Mao has done, something even the autocratic Vladimir Putin has not attempted – rewrite the constitution to make himself emperor for life, as Hong Kong University’s Willy Lam has described it.

There is confidence. And then there is hubris.



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