Xi's visit offers Labor Party chance for collaboration and planning
- By Heiko Khoo
0 Comment(s)
Print
E-mail China.org.cn, October 18, 2015
One of Corbyn's economic advisors, the Keynesian economist Joseph Stiglitz, argues that lack of clear property rights in collectively owned enterprises was essential to China's economic boom in the 80s and 90s. However this did not produce a transition towards secure and stable private property rights in China.
Rather, a significant body of recent academic research indicates China is even more dominated by State-owned-enterprises and associated State-controlled limited-liability and share-holding companies than at any time since the early 1990s. Hence, it is mainly public ownership of the decisive sectors of the economy that is driving the economy and the market is governed and shaped by long-term state planning.
In British political circles there is a common mythology that an economy in a downturn requires fiscal stimulus but, in a period of growth, government should leave investment to the private sector and cut back on State spending. China's experience directly contradicts this.
As we reach the end of the 12th Five Year Plan (2011-2015), the evidence is mounting that, in nearly every area, from employment, to green technology, to housing, to infrastructure and education etc., China has met its five-year plan targets. This includes the biggest public sector housing programme in world history, which saw 36 million apartments built for low-cost rental or for sale to the poor at a big subsidy.
The Conservative Party is keen on economic relations with China precisely because British private sector companies are reluctant to invest in long-term infrastructure projects with low rates of return, whereas Chinese State-owned enterprises are keen investors in strategic and long-term projects.
However, Jeremy Corbyn can, and should, seize the initiative from the Conservative Party and encourage Labor-led local governments in Britain to develop concrete long-term plans for development in infrastructure, housing, science, engineering, culture and the arts, in direct collaboration with Chinese cities, enterprises, towns and villages.
For example, every British school child should be able to choose to study the Chinese language, every hospital should twin with a Chinese hospital to share knowledge and skills, every city council should twin with a Chinese city and organise people to people contact at a really deep level.
Socialists like the doctor Norman Bethune and the scientist and historian Joseph Needham were drawn to China in the 20th Century - offering their unflinching support for its massive endeavour to liberate a quarter of humanity from backwardness.
Today there are hundreds of thousands of people in Britain who yearn for their chance to help make the world a better place, materially and culturally. The Labor Party should seize the initiative and develop concrete plans for collaboration and development with China to meet this need.
Heiko Khoo is a columnist with China.org.cn. For more information please visit: http://www.china.org.cn/opinion/heikokhoo.htm
Opinion articles reflect the views of their authors, not necessarily those of China.org.cn
Go to Forum >>0 Comment(s)