Most people in the West have heard but do not understand the concept of Socialist Modernization as a fundamental policy in China. In the absence of an understanding of socialist modernization, it becomes harder, especially for Westerners, to understand the direction and scope of Chinese economic policy and its coherence.
A critical aspect of socialist modernization is the objective of ensuring the mobilization of productive forces throughout China. Socialist modernization has scientifically developed from an origin in the four cardinal principles, through the scientific development and harmonious society principles to the current emphasis on China's dream (for the latter, see, e.g., Backer, Larry Catá and Wang, Keren, 'What is China's Dream?' Hu Angang Imagines China in 2020 as the First Internationally Embedded Superpower
(February 23, 2013). Consortium for Peace & Ethics Working Paper No.
2013-2). For the greater part of the time after China's opening up in the late 1970's, the operational emphasis has been on the East coastal and Southern areas of China. But uneven growth has unbalanced prosperity and might imperil socialist modernization. The difficulties are not just environmental and demographic; it goes to the fundamental core of legitimacy of the vanguard role of the CCP. To correct that imbalance, Chinese authorities devised the "Go West" (西部大开发) policy or the more recent "revitalize the old industrial Northeast" policy (振兴东北老工业基地) and the "rise of Central China" policy (中部崛起计划) .
This post provides a more detailed summary of the genesis and current framework for the Go West Policy, prepared by one of my research assistants. It serves as a template for the others and is worth considering for its efforts to make coherent economic, political and social policy toward the long term goal of building a moderately wealth society and ultimately a communist one.
Socialist modernization aims to produce a moderately well off and harmonious society. It is focused on scientifically developing a legal and normative system that is compatible with global norms but which have distinctive Chinese characteristics. “Modernization is a comprehensive and systematic process that includes all aspects of economic and social development.” (Liu Yunshan, Working Out a Path of A Socialist Modernization with Chinese Characteristics, Quishi Journal (English edition) Vol. 3(2) April 1, 2011). Harmonious society suggests an objective of modernization. “Chinese President Hu Jintao has instructed the country's leading officials and Party cadres to place "building a harmonious society" at the top of their agenda. . . . What are the main characteristics of a harmonious society? It will put people first and make all social activities beneficial to people's subsistence, enjoyment and development. In a harmonious society, the political environment is stable, the economy is prosperous, people live in peace and work in comfort and social welfare improves.” (Harmonious Society, The 17th National Congress of the Communist Party of China, September 29, 2007).
Harmonious society has become an important element of socialist modernization, one that is operationalized "scientifically" by developing political theory to fit within the context of Chinese realities. “The idea behind the scientific development concept—but not the term itself—was endorsed by the Third Plenary Session of the 16th Central Committee, which convened in Beijing on October 11–14, 2003. The plenum decision did say that it was necessary to “take people as the main thing [yiren weiben], establish a concept of comprehensive, coordinated, sustainable development, and promote comprehensive economic, social, and human development.” This sentence has since been invoked by Chinese media as the locus classicus of the idea of scientific development.” (Joseph Fewsmith, Promoting the Scientific Development Concept, China Leadership Monitor, No. 11 (Summer 2004), pp. 1-2). Thus, Hu Jingtao stateds that “We have strived to ensure and improve the people's wellbeing, promoted social fairness and justice, worked to build a harmonious world, and strengthened the Party's governance capacity and advanced nature. We have thus upheld and developed socialism with Chinese characteristics from a new historical starting point.” (Hu Jingtao, Report to the 18th National COngerss of the Communist Party of China, Nov. 8, 2012, at II).
This post provides a more detailed summary of the genesis and current framework for the Go West Policy, prepared by one of my research assistants. It serves as a template for the others and is worth considering for its efforts to make coherent economic, political and social policy toward the long term goal of building a moderately wealth society and ultimately a communist one.
Socialist modernization aims to produce a moderately well off and harmonious society. It is focused on scientifically developing a legal and normative system that is compatible with global norms but which have distinctive Chinese characteristics. “Modernization is a comprehensive and systematic process that includes all aspects of economic and social development.” (Liu Yunshan, Working Out a Path of A Socialist Modernization with Chinese Characteristics, Quishi Journal (English edition) Vol. 3(2) April 1, 2011). Harmonious society suggests an objective of modernization. “Chinese President Hu Jintao has instructed the country's leading officials and Party cadres to place "building a harmonious society" at the top of their agenda. . . . What are the main characteristics of a harmonious society? It will put people first and make all social activities beneficial to people's subsistence, enjoyment and development. In a harmonious society, the political environment is stable, the economy is prosperous, people live in peace and work in comfort and social welfare improves.” (Harmonious Society, The 17th National Congress of the Communist Party of China, September 29, 2007).
Harmonious society has become an important element of socialist modernization, one that is operationalized "scientifically" by developing political theory to fit within the context of Chinese realities. “The idea behind the scientific development concept—but not the term itself—was endorsed by the Third Plenary Session of the 16th Central Committee, which convened in Beijing on October 11–14, 2003. The plenum decision did say that it was necessary to “take people as the main thing [yiren weiben], establish a concept of comprehensive, coordinated, sustainable development, and promote comprehensive economic, social, and human development.” This sentence has since been invoked by Chinese media as the locus classicus of the idea of scientific development.” (Joseph Fewsmith, Promoting the Scientific Development Concept, China Leadership Monitor, No. 11 (Summer 2004), pp. 1-2). Thus, Hu Jingtao stateds that “We have strived to ensure and improve the people's wellbeing, promoted social fairness and justice, worked to build a harmonious world, and strengthened the Party's governance capacity and advanced nature. We have thus upheld and developed socialism with Chinese characteristics from a new historical starting point.” (Hu Jingtao, Report to the 18th National COngerss of the Communist Party of China, Nov. 8, 2012, at II).
The best expression of the foundation of that line was made in 1984 by Deng Xiaoping: socialism is meant to create the conditions for the production of wealth sufficient to make it possible to produce the conditions when communism is attainable, a premise that requires the state, through its vanguard communist party to ensure that all socially productive forces are most efficiently deployed for the production of wealth, which is the prerequisite for communism. He famously explained:
The implications are clear. The political objective of the CCP is to build ultimately a communist society. That project requires the development of socialism. But socialism is understood not in its static and European sense, but as a dynamic process characterized by economic development that is meant to distribute the fruits of rising prosperity to all sectors of the Chinese population. Indeed, socialism is understood as the process through which so much wealth is produced and available that the Communist ideal is then achievable (in the future). Given this foundation, it follows that the primary objective of the CCP and thus of state policy, is economic prosperity and development. The principal objective, then, of all of the social, institutions, public and private, must be bent toward the great project of creating prosperity. Everything else assumes a secondary role. Unless an objective or policy can be tied to this long-term project of socialism—the elimination of poverty for everyone—it does not support socialist modernization. It follows that such objectives would be of lesser interests to officials in enterprises, especially officials in state owned enterprises.
These foundational ideological premises find modern expression in the notion of China's dream. (Backer, Larry Catá and Wang, Keren, 'What is China's Dream?' Hu Angang Imagines China in 2020 as the First Internationally Embedded Superpower (February 23, 2013). Consortium for Peace & Ethics Working Paper No. 2013-2). Hu’s Angang's most recent book, China in 2020: A New Type of Superpower (Washington, D.C.: Brookings Institution Press, 2011) nicely frames the new expression of socialist modernization in the near term.
It is a short step from the grounding policy of socialist modernization to the specifics of the regional development policies of Go West, Northeast Revitalization and Rise of Central China.
What is socialism and what is Marxism? We were not quite clear about this in the past. Marxism attaches utmost importance to developing the productive forces. We have said that socialism is the primary stage of communism and that at the advanced stage the principle of from each according to his ability and to each according to his needs will be applied. This calls for highly developed productive forces and an overwhelming abundance of material wealth. Therefore, the fundamental task for the socialist stage is to develop the productive forces. The superiority of the socialist system is demonstrated, in the final analysis, by faster and greater development of those forces than under the capitalist system. As they develop, the people's material and cultural life will constantly improve. One of our shortcomings after the founding of the People's Republic was that we didn't pay enough attention to developing the productive forces. Socialism means eliminating poverty. Pauperism is not socialism, still less communism. (Deng Xiaoping, Build Socialism With Chinese Characteristics (June 30, 1984).).
The implications are clear. The political objective of the CCP is to build ultimately a communist society. That project requires the development of socialism. But socialism is understood not in its static and European sense, but as a dynamic process characterized by economic development that is meant to distribute the fruits of rising prosperity to all sectors of the Chinese population. Indeed, socialism is understood as the process through which so much wealth is produced and available that the Communist ideal is then achievable (in the future). Given this foundation, it follows that the primary objective of the CCP and thus of state policy, is economic prosperity and development. The principal objective, then, of all of the social, institutions, public and private, must be bent toward the great project of creating prosperity. Everything else assumes a secondary role. Unless an objective or policy can be tied to this long-term project of socialism—the elimination of poverty for everyone—it does not support socialist modernization. It follows that such objectives would be of lesser interests to officials in enterprises, especially officials in state owned enterprises.
These foundational ideological premises find modern expression in the notion of China's dream. (Backer, Larry Catá and Wang, Keren, 'What is China's Dream?' Hu Angang Imagines China in 2020 as the First Internationally Embedded Superpower (February 23, 2013). Consortium for Peace & Ethics Working Paper No. 2013-2). Hu’s Angang's most recent book, China in 2020: A New Type of Superpower (Washington, D.C.: Brookings Institution Press, 2011) nicely frames the new expression of socialist modernization in the near term.
First, Hu argues that China should establish a people-centered scientific development approach. Instead of solely focusing on economic growth, this new approach would seek a more balanced development framework that emphasizes the general well-being of the people and the protection of basic human rights—which include the right to democratic elections, the right to freedom, the right to employment, the right to education, and the right to social security. Hu notes that all these rights are enumerated in China’s constitution (Hu, China in 2020, supra, 141).
Second, Hu emphasizes the need to continue to build a modern socialist society with Chinese characteristics (Ibid., 141-142). He defines a modern socialist society with Chinese characteristics as having the following key attributes. One, the elements of modernity will steadily increase; major progress will be made in modernization, giving priority to education, science and technology, and information development. Hu explains that China will soon reach mid-level in terms of modernization. Two, the factors of socialism will steadily intensify, where major progress will be made in building a socialist society commensurate with the midlevel of modernization. And three, distinctively Chinese elements will be tapped, innovations which will exert unparalleled influence on world peace, development, and cooperation. (Ibid., 141-142). . . .
Third, HU argues that China should pursue to build a well-off and harmonious socialist
society as explicated by the Sixteenth Party Congress. In addition, China should also pursue the Millennium Development Goals (MDGs) put forward by the international community (Ibid., 142). Ultimately, Hu contends that the building of a well-off, harmonious socialistic society amount to the Chinese version of the MDGs (Ibid., 143). Hu argues that the development of international consensus, like the MDGs, are compatible with internal Chinese development goals and that “[d]omestic goals and international goals are also integrated and complementary.” (Ibid., 143). . . .
Fourth, China must ensure that the above goal design fully embodies detailed views,
strategies, and policies for long-term development. For HU, the most important of these goals is to close the income gap and regional development disparities, and strive for a more evenly developed society (Ibid., 143-144). Here again HU emphasizes the seamlessness of Chinese internal and external policy. In that seamlessness lies Hu’s great insight about the foundational character of Chinese superpower status, as well as the distinguishing features of the framework within which the exercise of such superpower status must be exercised. China will not distinguish between internal and external policy or norm application—there is no division between the superpower metropolis and the periphery on which the superpower exports behavior. . . .
It is no surprise, then, that Hu’s emphasis is on the state of socialist modernization for 2020 (Ibid., 144-152), where the developing line of the CPC is emphasized and expanded. The focus is on economic growth and structural goals—full employment, industrialization, urbanization and the consolidation of what Hu calls a socialist market system. (Ibid., 144). The socialist market system echoes the great work of European unification—grounded in the advancement of free movement of goods, people, enterprises and capital, “so as to create a pattern of regional cooperation and common development.” (Ibid., 144-45). . . . (Backer, Larry Catá and Wang, Keren, 'What is China's Dream?' Hu Angang Imagines China in 2020 as the First Internationally Embedded Superpower , supra, pp. 9-10).
It is a short step from the grounding policy of socialist modernization to the specifics of the regional development policies of Go West, Northeast Revitalization and Rise of Central China.
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An Introduction of China’s “Go West” PolicyI. The Necessary Reasons for "Go West" PolicyThere are three typical characteristics determining the necessity of developing the western region. First, the lag of the western region's economic constraints the sustainable development of the entire national economy; Second, ethnic diversity, religious diversity, and special geographic attributes in the western region has special requirements for building a good environment for the development of socio-economic; Third, the fundamentality and vulnerability of ecological environment in the western region impact on the entire ecosystem. These features characterize the starting point for developing the western region, but also determine the fate of the western development that is changing these features mentioned above. Simply, the motivation of western development is to promote economic development by constructing a sustainable and beneficial interaction system among economic, society and nature in the western region. [1]II. The Governing Body and Its ResponsibilitiesIn January 2000, the State Council formed the Western Region Development Leading Group headed by Premier Zhu Rongji, deputy headed by Vice Premier Wen Jiabao and attended by 19 directors from the State Council and relevant ministries. The main responsibilities of this Leading Group are that: study and put forward to the suggestions about the strategy of developing the western region, development planning, major issues and relevant policies and regulations; promote sustained, rapid and healthy development of the economy in the western region; study and propose suggestions about rural economic development, basic infrastructure construction, ecological protection and construction, structural adjustment, resource development as well as the recommendations of major projects; organize and coordinate the implementation and implementation of returning farmland to forest (grass) plan; study and propose the suggestions about deepening reform, expanding and opening up, as well as the introduction of domestic and foreign capital , technology and personnel; coordinate economic development and the overall development of science, education and culture; undertake other tasks assigned by the Leading Group.[2]III. The Regions Applying "Go West" Policy.The regions applying "Go West" policy include 11 provinces and one municipality: Inner Mongolia, Shaanxi, Ningxia, Gansu, Xinjiang, Qinghai, Tibet, Chongqing, Sichuan, Guizhou, Yunnan, Guangxi. In addition, Xiangxi Tujia and Miao Autonomous Prefecture and Hubei Enshi Tujia and Miao Autonomous Prefecture also enjoy the "Go West" policy.IV. State Council’s Important Policies and Plannings for the "Go West"
Western industrial base is very weak. There is a certain self-development capacity for the western region after ten years of development. But this capacity is still very weak. Because economic growth rely on direct government investment too much while the role of foreign direct investment and domestic private capital investment is not strong.4. The problem of poverty has not been fundamentally resolvedThere are nearly 80 percent of the national poverty counties and the vast majority of poor people in the western region. Guizhou, Yunnan, Shaanxi, Gansu, Ningxia, Xinjiang seven provinces with only 13.4% of the population accounted for the poor more than 35%.5. The western region is in the most low-end chainThe strategic positioning of western region is the base of national energy and raw material resources. Therefore, the division of labor pattern that “developing resources in the western while manufacturing in the eastern" is gradually formed. The West-East natural gas transmission project, The West-East electricity transmission project, pipeline, transportation routes and other major projects are embodies of this strategic positioning and industrial division pattern. This strategic positioning and development division promoted the common development of the east and west, but this development model of "output" also caused that the western is always in the most low-end of interests of the industry chain and distribution pattern.Taking the State's major projects in the western region as example, that almost all of the large projects are developed by the large state-owned enterprises, 75% of the tax are paid to corporate headquarters and the country, developed resources are mainly exported to eastern to be processed, utilized and manufactured, and that the main development equipment, R & D, technology and special materials are procured and obtained from the east. The west only made a direct role in boosting the growth rate of GDP, a small amount of the tax component, sales of some raw materials and subsistence, production and processing of primary products with low value-added and labor income brought by labor employment opportunities. This pattern is not conducive to further large-scale development for the west.6. There is a lack of financial supportIn the western area, bank funds and private capital outflows is widespread. According to estimates, bank credit funds less than 20% of the country has been used to the development of the west in recent years, while the funds lost such as funds deposit, net capital split out, corporate loans to the east and some other channels is more than 10% for western banks. In addition, the western folk capital loss is also very serious. By the case study of Yulin, Chamber of Commerce data show that its private capital is more than 2000 billion at present. But most of the capital is outside and the investment reaches more than 300 billion Yuan just in Beijing.7. It is an arduous task to build the ecological environmentThe ecological environment in the western region is very fragile. With the economy expanding, the problem of insufficient of energy, fresh water, land, minerals and other strategic resources become increasing acute. The development mode with high input, high pollution, low output and low efficiency was formed in a long term and has not been fundamentally changed. Economic development caused serious pollution of water, air and soil.8. There are serious challenges of qualified personnelThe number of professional and technical personnel is low and the ability of innovation is not strong. Higher education is underdeveloped and there is a lack of high-level personnel training platform. Scientific and technological personnel's contribution to economic growth rate is relatively low and the overall quality of personnel needs to be raised. There is a serious brain drain and there is an accelerated decreasing trend in poor and backward areas.9. There is arduous social construction taskThe task of social construction in western society is still arduous, such equalization of basic public service mechanisms needs to be improved; production safety and food and drug safety management needs to be strengthened; vital interests of the people involved in education, employment, affordable housing , rural health care, income distribution, social security and other issues has not been fundamentally alleviated.
[1]刘忠，牛文涛，聊冰玲：我国“西部大开发战略”研究综述及反思，《经济学动态》2012年第6期，第77页(Liu Zhong, Niu Wentao & Liao Bingling, An General Research and Thought about China’s Go West Policy, Trends of Economics, 2012(06), P77.)[2]国务院关于成立国务院西部地区开发领导小组的决定 国发〔2000〕3号(State Council’s Decision about Setting Up Western Region Development Leading Group)[3] http://www.gov.cn/gongbao/content/2001/content_60854.htm[4] http://www.gov.cn/gongbao/content/2005/content_63349.htm
[6] http://www.sdpc.gov.cn/xwfb/t20120220_462258.htm
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