Question

Researchers claim that there is positive relationship between economic development and democracy in a country. Yet the case of China seems to contradict this general pattern of findings. According to this what may explain the persistence of the Communist party dictatorship in China despite the rise of its economic prosperity since the 1980s?

Answer 1

Even though there exists a Communist Party Government in China, the country rrmains as the Second largest economy in the world.This is due to the economic policies it followed since 1980s.

40 years ago,prior to the initiation of economic reforms and trade liberalization,China remained as very poor,stagnant and inefficient.The country was relatively isolated from the global world.In 1979, China opened up to foreign trade and investment and implemented free market reforms.Since then China has been among the world's fastest growing economies.

The Communist party in China is the lead player behind its success.In China, policy implementation is based on cadres.They are given clear metrics and goals for achieving things.Any change in policies are managed through this cadre system and not through laws.

The Communist Party successfully sets long term political golas,such as the modernization of industry or technology,or infrastructure planning.

It also employs experimentation , such as pilot projects in Special Economics Zones,local tests for housing reform or bankruptcy etc.

Other factors for China's success include, plentiful supply of labour,falling unemployment rate and high rate of wages,female participation in the workforce,political system which embraced Western style of free market,strong leadership,free market economy,export led growth,SEZs and FDI,private enterprises,energy supply,investment in infrastructure,economic diversification,education,location etc.