Monday, April 11, 2011
China's looming revolution
Everyone, especially those who have visited China, is impressed by the economic activity going on in that country as well as the apparent affluence of the people in the major cities. It seems like a disconnect that this kind of development can be going on in a communist run state where party apparatchiks are in charge. One has to understand that the apparatchiks have allowed capitalism to work its magic by staying out of the way except to make sure the state credit machinery works for the benefit of entrepreneurs. What we have seen is 30 years of 10% GDP growth and the creation of mountains of wealth and more millionaires than exist in the U.S. What's missing in this equation is political freedom and all the associated values we associate with that important condition in the west. Consequently many observers believe China is one big powder keg that one day will blow sky high, as soon as people demand their rights as free citizens. This article by Guy Sorman articulates the dilemma facing the communist leadership and predicts an unhappy ending at some point in time.
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