China's reopening chaos: What has happened to the Chinese Communist Party’s organizational and planning capabilities of which its leaders are so proud and keep reminding the world?
China's reopening chaos: What has happened to the Chinese Communist Party’s organizational and planning capabilities of which its leaders are so proud and keep reminding the world?
As you write, there indeed seems to have been no planning whatsoever for coping with the follow-on effects of the new 'lay flat' (躺平) policy. But:
(1) Does this non-existent and/or ineffectual planning really depart from the norm?
And (2) Is masterful planning something which China even advertises? And if so, what exactly?
Sure, we understand that devoted fans of central planning need heroes, but is central planning what made China great? Was this allegedly admirable planning 'successful' over the past year? How about over the past ten years, during which the government deficits have grown to enormous levels, and all this freshly printed cash has left China with a home price to income ratio which is over eight times the level in the United States? Even if we judge them by their own standards, this doesn't sound very impressive.
If famed economist Steven Cheung (张五常) is correct, the opposite was the case: reform-era China succeeded precisely because it promoted competition among regions, allowing the towns and regions offering the most attractive conditions to reap the financial benefits of investment and economic expansion. To put it another way, China succeeded by NOT planning things centrally. This is of course also the Austrian School of Economics perspective. Judging them by their latest slogans, it would appear that the leadership has now been reminded of the charms of this wisdom. Let's hope it lasts.
As you write, there indeed seems to have been no planning whatsoever for coping with the follow-on effects of the new 'lay flat' (躺平) policy. But:
(1) Does this non-existent and/or ineffectual planning really depart from the norm?
And (2) Is masterful planning something which China even advertises? And if so, what exactly?
Sure, we understand that devoted fans of central planning need heroes, but is central planning what made China great? Was this allegedly admirable planning 'successful' over the past year? How about over the past ten years, during which the government deficits have grown to enormous levels, and all this freshly printed cash has left China with a home price to income ratio which is over eight times the level in the United States? Even if we judge them by their own standards, this doesn't sound very impressive.
If famed economist Steven Cheung (张五常) is correct, the opposite was the case: reform-era China succeeded precisely because it promoted competition among regions, allowing the towns and regions offering the most attractive conditions to reap the financial benefits of investment and economic expansion. To put it another way, China succeeded by NOT planning things centrally. This is of course also the Austrian School of Economics perspective. Judging them by their latest slogans, it would appear that the leadership has now been reminded of the charms of this wisdom. Let's hope it lasts.