Headline March 22, 2016/ ''' CHINA'S POVERTY HISTORY : TERRIFIES AND SOARS '''

''' CHINA'S POVERTY HISTORY : 

TERRIFIES AND SOARS '''

INDEED,  IN 1980 - the time line, the base line,  -the complications involved in the current approach to resolving of China's economic and political issue are endless.

Decentralization of decision-making is allowing lower-level party and state bureaucrats to undermine the central  leadership's efforts to cut back at the amount of capital invested in heavy industry.

Higher state procurement prices for agriculture products, established in 1979 as an incentive to rural production, has presented another difficulty: 

People bought such products in the cities for the low subsidized price, then sold them in free markets at a higher price.

The state also raised urban salaries. This fueled inflation, which partially undermined the incentive effect the government had tried to create through higher wages. 

Within the new order, people who have acquired technical skills will be favored over those who have not. Since only 30 percent of peasants are able to complete secondary school, rural resident will face serious disadvantages compared with those in a better position to secure a higher education.

A social backlash is predictable and will grow in proportion to the lack of progress in overall economic growth.

A source of more serious opposition lurks in discontent among China's party and government bureaucrats who, until now, have reaped the greatest rewards from the system, Vice-Chairman Deng wants to replace bureaucratic control of China's economy with market forces.

These new priorities require that the Beijing bureaucrats release their control over how money is spent and programs are managed. 

They also demand that all cadres positions be staffed by those with technical expertise. And finally they demand efficiency, which translates into measures to scrap the system of lifetime tenure for administrators.  

The above combination is a nightmare for many of the millions of China's political appointees who never had to perform in this type of environment, and a fair number will most likely resist these measures with all the bureaucratic wiles at their command.

The catch is that while the Party can discipline the government bureaucracy, there is no independent body to ride herd on the party bureaucracy   -yet the party itself contains the least technically skilled cadres in China. From 1957 until recently, party recruitment discriminated against admitting ''intellectuals''

Deng sensed the Party's resistance to reform. and without party support his policies were doomed. 

Accordingly, in the spring of 1979, party leaders pledged absolute power in implementing future modernization policies. At the same time, however, subordination of the Party's millions to its central Committee was reaffirmed.

Can Deng succeed in organizing the party so that it becomes more responsive to his leadership and institutionalizes his programs? The answer is both yes and no. the interplay of current political forces is likely to result in a China committed to the goal of modernization-

Willing to tolerate significant social stratification, enthusiastic about utilizing foreign trade and technology to spur its growth, but stopping short of the full administrative, decentralization and market socialism that would undermine the vested bureaucratic interests.

Deng maybe able to mobilize the party to participate in his ambitious modernization efforts, but the party will continue to hold the key to China's future.

*''It is not easy to rule a country of nearly one billion people,'' one of the dissident told me.  ''There is a fear that without a strong party rule the country cannot be managed at all.''*

In sum, whereas the basic thrust of policy to decentralize decision making, establish material incentives for hard work, and rationalize the economy with a large role for market forces were determined by the Party during 1979-

The adjustments that will be required to implement these goals have an uncertain future. the debate on the issues will engulf China for years to come.

How far did these inferences and conclusions play out in the future, !WOW! will cover in the near future.

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