Book Reviews on Global Economy and Geopolitical Readings
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Book reviews on global economy and geopolitical readings ESADEgeo, under the supervision of Professor Javier Solana and Professor Javier Santiso. 1 The China Wave: Rise of a Civilizational State Weiwei, Zhang (2011). World Century Publishing Corporation. “According to the estimate of Angus Maddison in March 2009, the economic growth gap between China and the United States narrowed from 4.4 times in 1978 to 1.17 times in 2006.” “China has entered the “Golden age” in the growth of its middle class, which has reached 23% of the total population, about 300 million people, and is still expanding at 1% per year. It is generally held that 40% of the population in Beijing and Shanghai should be considered as middle‐class.” “The current crisis is a penalty for those who believe in market fundamentalism and democratic fundamentalism.” Basic Idea and Opinion With one fifth of the world’s population and an annual growth rate of 7.7%, China is set to become the world’s largest economy within ten to twenty years. This prospect, together with economic and political crisis in the West, makes it vital to re‐examine our ideas of the Asian colossus. Zhang Weiwei sets the book’s point of departure with the contention that China’s rise is not that of a run‐of‐the‐mill nation but is rather that of one that is unique in the world. This is because China is a ‘Civilizational State’ rather than a Nation State. China is a very large, populous country whose cultural traditions and history have marked its economic and political development. It constitutes a model that competes with the West in a future that Zhang sees as an even playing field, with the West at one extreme and China at the other. For the author, this bi‐polarity does not imply a clash but rather co‐existence and mutual enrichment. If, on the contrary, China, were to adopt the Western democratic model, the country would fall into chaos and split apart, as happened with The Soviet Union. Here, Zhang warns against U.S. ‘fundamentalism’ on democracy, arguing the need to review concepts such as democracy, human rights and good government. These concepts should be defined by consensus in a way that takes the most varied cultural paradigms into account. This fast‐rising Civilizational State reveals that other economic, developmental and political models are possible. Zhang argues, moreover, that the Chinese model (based as it is on strong philosophical roots and traditional beliefs) is proving itself more efficient than the Western model in the 21st century. 2 As a Chinese government advisor and an expert on the lightning rise of the Asian superpower, Zhang Weiwei’s book draws attention to the West’s preconceived views of China. The Asian giant already powers the world economy and the West needs to learn from this in the same way that the Chinese have harnessed Western knowledge to achieve rapid growth. Perhaps, suggests Zhang, the West could begin learning from China and adopt some of the models and methods that have proven so successful there. Here, Zhang analyses the new paradigms China is developing on old political and cultural foundations. Zhang admits that economic development has not led to political reforms on the same scale. He does not rule the latter out, but notes that their complexity means they will have to wait. Even so, political changes will not include the adoption of the kind of Western‐style democracy many demand. In other words, according to Zhang, another model of the world is possible. China’s model could well be the most efficient and successful one at present, showing the way forward for other nations. The book, which topped the 2011 Shanghai Book Fair's List of the "most influential new books in China”, is an interesting approach to the Asian colossus from a Chinese point of view, written by a thinker who has his finger on the country’s pulse and who has defended the steps taken since China set out on its new path in 1978. Many of the author’s statements may seem over‐confident and his criticism of the Western model destructive. However, the data and ideas he puts before Western readers are surprising and support his arguments more often than the reader might care for. It sheds a great deal of light on the Chinese ‘message’ and views that get little coverage in the West. One might take issue with Zhang’s excessive comparison with what he loosely terms ‘the West’. This label turns out to mean the United States. In short, he over‐ generalises, lumping together all ‘Western’ countries despite their multitude of cultural differences. Even so, the author’s willingness to tackle controversial subjects such as human rights, poverty and press freedom in China are laudable. That said, he always justifies his country’s approach to such issues from the perspective of orthodox Chinese doctrine. Zhang even includes a full transcript of a discussion with Francis Fukuyama (the author of ‘The End of History’), in which each marshals compelling arguments for the Chinese and Western models, respectively. The book makes a valuable contribution in revealing, ultimately, what Chinese researchers and analysts think about China’s dizzying rise. The author Zhang Weiwei worked in the mid‐eighties as a senior English interpreter for Deng Xiaoping and other leaders. He is now Professor of International Relations at Fudan University (China) and a researcher at Chunqiu Institute (China). He is also a guest 3 researcher at The Centre for Asian Studies (Geneva, Switzerland) and visiting professor at The Geneva School of Diplomacy and International Relations. Zhang is the author of various books in English and Chinese on China’s rapid rise and its economic and development model. Avoiding misguided interpretations The modern state of China uniquely enshrines an age‐old civilisation ‐ in fact, the longest continuous one in the world. This is an astonishing feat that demonstrates the nature of China’s Civilizational State and the complexity of its current reality. Moreover, this explains why the country must not try to change its spots and adopt the Western model but rather learn from it and create its own model for achieving growth and progress. China’s status of Civilizational State provides it with an economic independence which frees the country from the reciprocal duties and liabilities many states uphold. According to the author, China’s economic, political and development model will change the world for ever. In 2010, three out of the world’s five biggest banks were Chinese, making the country the engine driving the world economy. China was also the first nation to emerge from the global economic crisis. Its cities vie with one another to outstrip the economic growth of places like New York and London. However, the gap between cities and rural China is an issue the central government needs to tackle. China owes its economic development to what Deng Xiaoping termed “a low‐key approach”. This allowed slow reform without a loss of confidence in the system. China accounts for no less than 70% of the world poverty eradicated over the last 20 years. Agrarian reform, urbanisation and greater access to the property market have all helped in this respect. China is well on its way to overtaking the United States as the strongest superpower and the world’s biggest market. One plus one makes more than two China falls into two broad regional groupings — developed or nearly developed regions and emerging ones. This poses a challenge but is also something the country has exploited to good effect. The interaction between the two redefines the concept of modernisation and has helped China’s major cities to push development of rural areas and narrow the gap. This will spur the growth of China’s burgeoning middle class, which already makes up 23% of the population — some 300 million people (40% in Shanghai and Peking) – and which is rising by 1% a year. There are also sectors such as tourism, luxury goods and the car industry, where China already leads the world. These sectors rest not on a handful of millionaires but on a large middle class. All this has been achieved without emulating the credit splurge in the U.S. and its appalling consequences. The author notes that 80% of China’s wealth is produced in 20% of the 4 country. China’s wealthier parts are now planning to develop the rest of the country through new infrastructure, education and poverty eradication policies. The rise of the Civilizational State China is different and would fall into chaos if it were to adopt the Western model. The Civilizational State is both modern and traditional at the same time. At least eight features can be distilled from the ‘Civilization State’. These are: (1) a super‐large population, (2) a super‐vast territory, (3) super‐long traditions, (4) a super‐rich culture, (5) a unique language, (6) unique politics, (7) a unique society and (8) a unique economy, or simply the ‘four supers’ and the ‘four uniques’. China’s political legitimacy is based on two culturally‐rooted concepts: (1) winning (or losing) people’s hearts and minds; (2) a meritocracy in which no one can rise to power without being groomed for the job. A “unique society” refers to a family and community‐based structure that serves common interests, not individual ones. Finally, China defines itself as a Socialist Market Economy that blends Western economics and China’s humanist traditions. The development model’s success Given China’s vast size, implementation of the country’s development plans will change the face of the world for ever.