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The dictatorship of the economists

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Success is all about timing, and Zhang Weiying’s was perfect. He graduated with a degree in economics in 1982 – just as Deng Xiaoping’s opening and reform process was gathering momentum. It is hard for Westerners, used to life in a fissiparous open society, to understand a purposeful state like Deng’s China. Zhang Weiying frequently uses the word ‘missionary’ to describe the determination with which China pursued economic growth. In a similar way, Franz Kafka, the pre-eminent chronicler of life in the closed society, conjures up the singleness of purpose of the Chinese authorities in a different period in his essay on the Great Wall of China: ‘Fifty years before the building was begun, throughout the whole area of China that was to be walled around, architecture, and masonry in particular, had been declared the most important branch of knowledge, all others being recognized only in so far as they had some connection with it.’ When Zhang Weiying graduated in 1982, there was a new wall to build: China’s market economy. The Communist Party had declared that economic growth was ‘the central task’, and suddenly everyone wanted to be an economist. ‘Economics,’ as Wang Hui puts it, ‘acquired the force of an ethics.’ As the economy grew, so did the influence and wealth of the economists. They populated government taskforces, wrote plans for privatization and filled the boards of the newly privatized companies (131 of 274 independent directors in today’s listed enterprises are academic economists). They became the new high priests of China whose arguments increasingly trumped those of Maoist refuseniks (who were derisively known as fanshipai or ‘whateverists’ because they supported whatever policy decisions Chairman Mao made).

Deng Xiaoping’s ‘dictatorship of the economists’, as disgruntled political scientists, philosophers and sociologists called it, produced startling results. An average of 9 per cent growth over three decades made China the world’s third biggest economy by 2007. Three hundred million people rose from absolute poverty, while 200 million left their farms to work in industry. One hundred million joined the so-called middle class and 500,000 became millionaires. And a new generation of Chinese companies such as the computer giant Lenovo that bought IBM and the Nanjing car company that bought MG Rover entered the global corporate league.

Like Zhang Weiying’s own success, China’s economic miracle owed much to its timing. Unlike his Russian and Latin American counterparts who rapidly implemented measures to liberalize and privatize their economies – known as ‘economic shock therapy’ – the Chinese leader Deng Xiaoping did not have a mandate for radical reform. Many leading Communist Party officials such as Chen Yun, Li Xiannian and Deng Liqun were against market reforms. They continued to believe that China’s problems could be fixed by modernizing the planned economy and making it ‘more scientific’, like its Soviet counterpart. Deng Xiaoping and his allies were, therefore, unable to set a blueprint or timetable for China’s economic transformation. Instead, they opted famously to ‘grope for stones to cross the river’ – implementing incremental changes, one step at a time, without ever talking about the final destination. To his country’s lasting benefit, Deng Xiaoping heeded Bertolt Brecht’s advice that when there are obstacles, the shortest distance between two points can be a crooked line.

What Does China Think?

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