Politics in Command in the Chinese Economy

At the heart of any communist political system is the Marxist emphasis on class struggle with the apparent objective of achieving the utopia of a society of perfect equality and free from want. But the class struggle itself and attempts to either promote it or to deal with it are the result of or depend on the economic conditions obtaining in the polity. It is, therefore, not without reason that Marxists and leaders of communist nations have a constant focus on the economy or on economic conditions, never mind the effectiveness of their prescriptions. 

China’s leaders have since the end of the Maoist era at least, not only been rather more careful than their counterparts in the former Soviet bloc countries in giving economic growth its due place, but also succeeded in shaping a successful economic model that has delivered decades of high rates of growth. They have understood the consequences of economic conditions for a country’s domestic politics and its international prospects better than most. 

Continue reading Politics in Command in the Chinese Economy

China Worries in India’s RCEP Decision

India’s refusal to sign up for the Regional Comprehensive Economic Partnership (RCEP) agreement in Bangkok earlier this month says as much about the state of India’s relations with China as it does about its place in the global trading regime.

There is no doubt that India is in many way not ready for the additional challenges and pain its domestic industry and agriculture will face with accession to RCEP especially since the economy is still recovering from the self-inflicted damage of demonetisation in 2016 and a poorly-executed roll-out of the GST less than a year later.

But there is not an insubstantial argument to be made about the consequences of opening up under RCEP to a Chinese economy that still is far from being an open market economy. Continue reading China Worries in India’s RCEP Decision