According to the conventional wisdom, China is the miracle nation. It is proof that an authoritarian government is consistent with or even necessary for economic development. As is often the case the CW gets the facts wrong, and misinterprets them. There is a brilliant article by Yasheng Huang in the current issue of Foreign Policy, comparing the recent histories of China and India. Unfortunately, it is not available online to non-subscribers. But here is the gist:
In the 1980's, the Chinese government experimented with political and economic liberalism. That means more than a relaxed business environment and a relatively free press. It means that the government subjected itself, or at least its local creatures, to some measure of real accountability. Dramatic failures of policy led to public hearings, reported on by newspapers that felt free enough to tell the people what was going on. But in the 90's, the government began to march backwards. Today no newspaper or TV anchorperson dares report honestly on the government's failings. As a result, the Chinese economic miracle has been somewhat less than miraculous. To mention but one indicator, illteracy in the rural provinces is increasing. India went the opposite direction with opposite results: today India is the great success story.
There is no great mystery in this. Accountability alone puts pressure on government to deliver. Coupled with democracy, government is forced to deliver. That is the story India and China are telling.
Recent Comments