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Communism, Capitalism, and Democracy in China

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Communism, Capitalism, and Democracy in China CONSTITUTIONAL RIGHTS FOUNDATION SPRING 200B8 ILL OF RIGHT SINACVOLUTME 2I4 ONUMBN ER 1 Communism, Capitalism, and Democracy in China In recent decades, China’s Communist Party has increasingly adopted capitalist models for its economy, and its economy has boomed. Will the surprising success of capitalism in China eventually lead to democracy? ollowing World War I, China entered a long period of civil war. Fighting on one side were tFhe communists. Led by Mao Zedong, they sup - ported adapting the economic ideas of Karl Marx to China’s mainly rural peasant society. On the oth - er side were the nationalists led by Chiang Kai- shek. He favored a capitalist economic system. When the Japanese invaded China in World War II, Modern high-rise buildings dot the skyline of the Pudong district in Shanghai, W Mao and Chiang agreed to an uneasy truce. China’s financial center. (iStockphoto.com/David Pedre) (Mao and Chiang are family names. Unlike W Western names, Chinese family names Mao wanted to eliminate capitalism and its emphasis on come before given names.) property rights, profits, and free-market competition. He O After the defeat of Japan, the Chinese civil war followed the ideas of Karl Marx, who envisioned a com - resumed. Mao’s experienced peasant fighters final - munist society where all would equally share in prosperity. R ly defeated the nationalist forces under Chiang, Most Chinese were peasants, poor farmers who worked on who fled with them to the large island of Taiwan. land owned by wealthy landlords. Mao confiscated these L On October 1, 1949, Mao declared victory for the Communist Revolution and proclaimed the (Continued on next page) D People’s Republic of China. Reform Mao Zedong and Communism This edition of Bill of Rights in Action looks at issues relat - Mao Zedong concentrated all political power in the ed to reform. The first article examines modern China and H Chinese Communist Party. He set up a regime sim - questions whether its reform of its economy will lead to I ilar to that established by Vladimir Lenin in the democratic reforms. The second article looks at Uptown Soviet Union, following the Russian Communist Sinclair’s groundbreaking work The Jungle and its impact S Revolution. on the meat-packing industry at the beginning of the 20th century. The last article explores the pragmatic T Under Mao, China’s Communist Party ruled as a philosophy of John Dewey and looks at his attempts to “democratic dictatorship” in the name of the work - reform education and American democracy. O ers, peasants, and small merchants. Communist World History: Communism, Capitalism, and R Party leaders decided China’s laws and policies. Democracy in China They also chose government officials and nominat - U.S. History: Upton Sinclair’s The Jungle Y ed those who ran unopposed for seats in China’s Government: John Dewey and the Reconstruction of legislature, the National People’s Congress. American Democracy © 2008, Constitutional Rights Foundation, Los Angeles. All Constitutional Rights Foundation materials and publications, including Bill of Rights in Action , are protected by copyright. However, we hereby grant to all recipients a license to reproduce all material contained herein for distribution to students, other school site personnel, and district administrators. ( ISSN: 1534-9799 ) lands and executed thousands of Five years later, Mao decided that landlords who resisted. During the too many were betraying the 1950s, Mao formed “collective Communist Revolution by leading farms,” each worked by over 100 China back down the road to capi - families. The income of the fami - talism. He launched the Cultural lies was in theory equal. But since Revolution. This mass movement the peasants worked for the collec - attacked anyone who failed to sup - tive rather than on their own port Mao’s ideas about creating an farms, there was little incentive to ideal communist society. work hard. Farm production fell Mao unleashed millions of young under this system. people, called Red Guards, to Deng Xiaoping (1904–1997), who led China from In the cities, Mao began to put fac - 1978 until his death, adopted capitalist methods to enforce communist revolutionary tories and other businesses under reform China’s economy. (Wikimedia Commons) purity. Carrying the Little Red state (government) ownership. Book of Mao’s sayings, they zeal - The state set production goals, ously denounced anyone suspected wages, and prices. Most city workers became employ - of “capitalist leanings.” (Red is the traditional color of ees of these state-owned enterprises. The state guaran - revolutionary communism.) teed workers a job along with benefits like health care For nearly 10 years, a reign of terror gripped China. The for life. Chinese workers called this the “iron rice Red Guards assaulted, tortured, persecuted, and forced bowl.” But again workers had little incentive to be effi - millions from their jobs. With so many people’s lives cient, productive, or even care about the amount or disrupted, the economy suffered severe declines in food quality of their work. Consequently, industrial produc - and industrial production. tion declined. The Cultural Revolution ended when Mao died in 1976. By the late 1950s, Mao had banned free markets in rural China’s economy was again in crisis. But even more China, where peasants used to sell farm products from troubling to Mao’s successors, many Chinese had lost little household plots. In the cities, the state owned and faith in the Communist Party. operated most factories and other businesses. Only a few remnants of private enterprise, what communists Deng Xiaoping and Capitalism called the “rattail of capitalism,” still existed in China. The death of Mao set off a power struggle within the Dissatisfied with the progress of the economy toward a Communist Party. Reformers wanted to change the par - fully Marxist system, Mao turned to a more intensive ty. Hardliners sought to continue on Mao’s path to com - approach he called the Great Leap Forward. In 1958, Mao munism. While this struggle in Beijing was going on, abolished household farm plots and reorganized collec - however, people in many parts of the country were tak - tive farms into “communes,” each with about 5,000 fami - ing matters into their own hands. lies. The government sent young people from the cities to Even before Mao died, peasants were abandoning col - the communes to learn farm skills. The communes not lective farming and producing food on their own to sell only operated huge farms but also factories, trade net - at rural free markets. Throughout China, many became works, banks, schools, and militias. People lived in dormi - peddlers, bike repairers, shoemakers, and other private tories and ate meals in common mess halls. entrepreneurs, working for a profit. Private moneylen - The Great Leap Forward ended in disaster in 1961. ders offered loans to these budding capitalists to finance Crop and industrial production plummeted and a famine their businesses. Wherever private enterprises emerged, resulted, causing millions of deaths. (Estimates of the they seemed to flourish. number of deaths have ranged from 2 million to 50 mil - None of this activity was legal. But local officials usual - lion.) Finally, the worsening situation forced the gov - ly ignored the lawbreakers. The Beijing government ernment to reduce the size of the communes, restore judged local officials on how well they ran their towns family farm plots, and put into place work bonuses and and cities. These officials discovered that privately other incentives. owned businesses reduced unemployment, cut prices, Bill of Rights in Action (24:1) 2 © 2008, Constitutional Rights Foundation provided better consumer goods and services, increased In another radical break with the past, Deng created tax revenues, and tamped down social unrest. Special Economic Zones. Located in the east-coast provinces of China, these zones attracted foreign invest - Thus, local officials were motivated, with an occasional ment by offering low-cost labor and tax breaks. bribe thrown in, to bend or even break government reg - Foreigners invested in manufacturing exports such as ulations and laws. Sometimes they even registered a clothing, shoes, and toys. The economic boom drew private enterprise as a collective or state-owned busi - huge numbers of migrant workers from all parts of ness. Thus, a private entrepreneur seemingly (but not China, seeking jobs and higher wages. literally) wore a “red hat.” There were an estimated Results of Capitalist Reforms half-million “red hat” capitalists, including even Communist Party officials, operating private enterpris - When Deng Xiaoping died in 1997, Jiang Zemin es in China by the mid-1980s. replaced him and continued Deng’s capitalist reforms. He introduced amendments to China’s Constitution that The success of this grass-roots capitalism persuaded declared private enterprise a “major component” of the reform-minded leaders, anxious to restore confidence in “socialist market economy.” Under Jiang, the the Communist Party, to adopt capitalist methods to stimu - Communist Party also began to recruit Chinese capital - late economic growth. Deng Xiaoping, a veteran ists as members. Communist Party leader, headed this economic reform effort after he emerged as the main leader of China in 1978. By 2006, private enterprises accounted for half of China’s economic output (Gross Domestic Product or GDP) and Deng broke up the communes and permitted families to two-thirds of industrial production. Private enterprises, lease, but not own, farmland. The families had to sell a owned by Chinese and foreign capitalists, continue to mul - set amount of their farm production to the state at a tiply and fuel China’s rapid GDP growth rate, which more fixed price. The rest they could sell on the free market than doubled the U.S.’s growth rate in 2007. for whatever price they could get. In addition, rural industries, owned collectively by a village, sold their China is struggling, however, with many economic products on the free market as well.
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