Good news for 600 million Chinese peasants: the corruption party is over

The minimum winning coalition in China has collapsed. In the wake of the forced resignation of Bo Xilai, and a suppressed coup d’etat in Beijing, a new coalition currently is under negotiation. Of course, democracy is not remotely on the horizon, but the significant expansion in coalition size, and major changes in its composition, auger well for the most repressed of China’s population – the 600 million peasants whose lifestyles have been worsened by the self-seeking autocrats who have enriched themselves through illegal land-grabs and corrupt real estate deals across China’s villages.

The Chongqing Model is the archtypical corruption model organized and manipulated by Bo Xilai as the basis for his multi-billion dollar fortune laundered out of China by Neil Heywood and his old- Harrovian peers. ‘White Gloves’ they were referred to, a perfect moniker for those who launder dirty money across national borders.

The Chongqing model worked wonders for Bo Xilai and his henchmen. It threatened to throttle the China market miracle well before it had lifted per capita incomes in China to second world status. Bo Xilai represented a very particular kind of Chinese power and a very specific notion of how China should grow its economy: hyper-development around real estate and state-owned enterprises.

Under Bo’s dictatorship, Chongqing grew at a rate in excess of 16 per cent per annum.  But this growth was old-style growth, rife with vested interests, driven by corruption, contemptuous of environmental issues and openly hostile to the rule of law. Property rights are meaningless in such a system. Might is right. And Bo Xilai was Superman in his division of the Middle Kingdom.

Chongqing growth basically is unsustainable within the broader environment of a global world economy. It is Dodds-Frank, Fannie Mae and Freddie Mac  corruption-based growth writ large. If the Chongqing model had been adopted across the nation by the ruling political coalition, China’s eventual financial and economic crisis would have towered over America’s September 2008 financial crisis by orders of magnitude similar to detonating a hydrogen bomb rather than an atomic bomb over Hiroshima in 1945.

So if Wen Jiabao and Xi Jinping hold firm to their reformist promises, the Chongqing economic model will join Mao Zedong’s Great Leap Forward on the ash-heap of history. A second Cultural Revolution will be averted, 600 million peasants will be assimilated into full citizenship in China, and the world will be an infinitely safer place.

President Barack Obama perhaps should say a prayer for Neil Heywood, whose potassium cyanide murder by Gu Kailai has sealed the coffin of Bo Xilai and like-minded thieves across the real selectorate in China, thus paving the way for China to join the list of civilized nations.

The composition of the minimum winning coalition under conditions of autocracy matters greatly; and we should all be thankful for the disgrace and hopefully the early elimination of Bo Xilai and his fellow-conspirators by the essentials in the selectorate who now control the destiny of the Middle Kingdom.

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2 Responses to “Good news for 600 million Chinese peasants: the corruption party is over”

  1. Should we feed the malnourished North Koreans? — Take Two | danmillerinpanama Says:

    […] faced by the current regime, during its period of transition, are getting worse. According to this article, The minimum winning coalition in China has collapsed. In the wake of the forced resignation of Bo […]

  2. Sundry Curmudgeonly Notes « 36 Chambers – The Legendary Journeys: Execution to the max! Says:

    […] the last several thousand years, or check out voluntaryXchange and Charles Rowley (also here and here) for the current version of this. Like this:LikeBe the first to like this post. Leave a […]

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