Wednesday, February 3, 2016

That old Mandate of Heaven thing. "Behind China's woes, myth of competent autocrats."

Like receding tides that expose naked swimmers, decelerating growth in the Middle Kingdom today reveals the incompetence of its economic policymakers -- and the deeper causes of managerial incompetence throughout the system. Among the systemic causes of bad policies, the most obvious culprit is the dominance of politicians in economic policymaking. While there is no shortage of capable technocrats inside the party-state, those who have the final say, from members of the Standing Committee of the Politburo all the way down to the humble county party chiefs, are typical politicians who are more influenced by considerations of their personal political gains than those of economic efficiency.

1 comment:

Chiu ChunLing said...

Somehow the myth of a CCP deeply invested in peaceful economic development manages to survive every indication to the contrary. It's the Chinese Communist Party. I have no idea how they managed to make the entire world forget that rather important characteristic. Or rather, I can see some of the things that they did which people point to as evidence that somehow or other this meant Beijing was committed to the stability and freedom of the global market...I just don't see how anyone interprets them that way.

Xi focused his anti-corruption campaign on purging the military of wasteful incompetence and graft. It wasn't a laser-focus, there were also anti-corruption purges of economic planning commissions and so forth, but it was a very clearly defined priority to reform the military rather than the economy. Talking about the anti-corruption reforms while ignoring their salient objective is just the kind of delusional architecture that looks at massive currency manipulation and the insane levels of trade imbalance and see a commitment to stabilizing the global market economy.

The recent crash of the Chinese economy wasn't some kind of accident, it was deliberately engineered, and the anger of the Chinese people over their renewed impoverishment is being deftly directed towards "capitalists". Who looks at that and sees "incompetence"?

"Never ascribe to malice that which can be explained by incompetence." But the corollary is that some things cannot be explained by incompetence, they can only be malice.

Communism is malice. And Chinese Communism may be the most malicious kind.