You may recall the people liberation army in China suppressed a peaceful democracy movement held at the Tiananmen Square in Beijing on June 4, 1989. Nobody kept track of the number of young men massacred in the crackdown. Now we are approaching the 25th anniversary. What happened to China since then?
- An unimaginable transformation took place which pushed the Chinese economy into such wealth that became the envy of others. Now, considered to be the second largest single country economy, the entire world wants to learn from their success especially in the far east who are adapting their model.
- The economy managed by the Chinese communist party skilfully adapted to the post Tiananmen challenges and created a strategy that relied on four pillars of action which are achieved namely robust growth, sophisticated repression (controlled human rights) state sponsored nationalism and co-opting of social elites.
Twenty five years of double digit growth had produced enormous wealth in China which found its way mostly to the elites (As of last count India has 81 billionaires more than that of China) who used the system to loot the country (The coal scam, 2G scam and you name it India follows the same model), Endemic corruption is the most visible sign of the decay of the regime and kleptocracy has become the way (is it not the same in India where many bureaucrats have joined the politicians to take the country to the cleaners). In the economic realm, powerful politicians, their family members and business cronies dominated lucrative sectors such as property, energy, telecommunication and natural resources (we should not have any difficulty building political relations with China since in India we have been having the same model for well over a decade).
Similarly in India, everyone is clamoring to enter the political arena and expect a share of the spoils. Such lucrative perks and opportunities for self-enrichment became the driving force. Unlike China, however, our politicians rushed to take their spoils even before the country’s economic wealth grew.
For both China and India time has arrived. The old model of monied policies, stealing the public money will be challenged as transparency and governance are improving. The government of India has already set a committee to study the black money namely who has it and its impact on the economy. To put their house in order the Chinese communist party appointed Mr. Xi Jinping as the new party chief in 2012. He is expected to stem the rot and redirect the economy towards social inclusiveness. He cannot fail and if he did there is always a possibility of another Tiananmen to recur and if it did the world economic order will be in for a deep shock.
Finally all political pundits are watching China carefully. Many things have changed in China, unemployment is increasing, GDP growth rate is dropping to 7 percent, real estate balloon is bursting in some cities and social unrest in pockets of country is taking place.
The ten years of UPA has left this country in a similar situation. The arrival of Modi to stem the rot is a great beginning for India. Hope miracles happen and India gets out of this rut. Young people in India are building new dreams and let us hope our government responds by moving the country away from corruption. When we remove corruption, the cancer that is eating away India will be destroyed.