Managed Chaos reads into the resounding events of Chinese politics and economy, ending the schizophrenia that the readers have lived with. It delves deep into both elements: the economic narrative that China has sustained a near 10 percent growth rate for 30 years and the political narrative that China is an increasingly fragile state, trapped in an incomplete transition from a totalitarian to a democratic market economy. For the first time, in his reading of China, the author consolidates this paradox by inferring that the cause behind both the growth and the political discontent is the politics of China.
Chapter 6: Why Purely Economic Remedies Have Not Worked
Why Purely Economic Remedies Have Not Worked
‘Why is China so prodigal in its use of scarce raw materials? If the need to adopt a less material-intensive pattern of development, is so well understood, then why has the government in Beijing not taken steps to redress the balance already?’ More pertinent still, why did China drift back into capital and materials intensive growth in the early 1990s, after having got away from it in the 1980s?
The generally accepted explanation is China's inability to break with its socialist–dirigiste past and the consequent incompleteness of its reforms, given by Carsten Holz and Tian Zhu of the Hong Kong University of Science and Technology. China's decision to ‘ford the river by feeling ...