Occupy Wukan Moves On
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  • steve

    “the practice of forced land sales is a bug not a feature of the Chinese government system.”

    Actually it is a feature not a bug – if you follow the thread, forced land sales are a critical part of funding local governments, allowing them to spend on infrastructure projects to keep the gdp growing and workers employed and quiet, providing contracts to companies, and so flowing through to support the (increasingly insolvent) banking system.

    Forced land sales provide a key input to keep the system running, and are actually escalating as the entire edifice gets creakier.

    But broadly, your narrative is quite correct.

  • Luke Lea

    So,is a complex industrial market economy even possible in a society that lacks basic property rights and the rule of law?

    I’ve always read that these were pre-requisites, certainly in the West. It’s one thing to develop special export zones manufacturing foreign products with an assured market overseas. But three-quarters of the Chinese population doesn’t live in these zones.

    All, or almost all, of China’s heavy industry is state owned, and half the GDP growth for the last couple of years reportedly was in the form of new state-owned infrastructure (freeways) and vast apartment complexes, many of which stand empty, and few of which can generate enough income to pay back the state-owned banks that financed them.

    It appears there is very little market price-information in China to coordinate an efficient allocation of capital resources. Which is a lot like the old Soviet Union. Can the Chinese miracle last? Is it wishful thinking to think so?

    I don’t know the answers to these questions, I frankly admit, because the information coming out of China is so sketchy. How can anyone speak with assurance? Have we bet the farm on a black box?

  • Kris

    Susette Kelo liked this article.

  • Soul

    When looking at the news, you ever get the sense that we’re not in Kansas anymore? I’m often finding myself surprised learning of who reads many of these writings, even sometimes what appears to be foreign leaders. A military bit the other day was a bit concerning.

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