Linkage of Economic and Political Reform

Based on the Chinese example, it is fairly clear that economic and political liberalization do not necessarily go hand in hand. It is the reason for this decoupling of political and economic liberalization that Mary Gallagher and to a lesser degree Robyn Meredith discuss in their respective works. In her "Reform and Openness," Gallagher attributed the lack of democratization to the effects of foreign direct investment on the Chinese economy. The massive influx of foreign direct investment (the only country receiving more FDI than China is the United States) blocked the creation of a domestic capitalist class and the privatization of state industries. This, and other effects of FDI, led to fragmentation of groups like the urban working class that stood to lose from increased economic liberalization. With no united opposition to its policies, the government did not face much widespread protest or even instability, making it much easier for the Chinese Communist Party to resist relinquishing any of its power.

According to Robyn Meredith, "China's government established a Singapore-style quid pro quo with the Chinese people: the Communist Party would allow economic freedom, but not political reform" (27). I think this is a good, if slightly simplified explanation of the economic liberalization without democratization currently occurring in China. With the incredible rapidity of development that has occurred over the past few decades, all the people of China have gained economically albeit some far more than others. With the authoritarian government run by the Communist Party able to deliver a better standard of living to everyone, the Chinese have little incentive to push for political reform. It is incredibly risky to stand up for reform in any government, but it could be lethal to stand up to the Chinese state, especially in light of what happened in Tiananmen Square in 1989. When the economic situation is improving the quality of life for the Chinese people, what incentive do they have to organize an incredibly risky opposition movement? And, as Gallagher points out, the phenomenon of FDI has managed to split up the biggest potential opposition group, the urban working class.

One final explanation the lack of democratization in China is that China has never had any experience with democracy in the past. Before they were ruled by the iron fist of the Chinese Communist Party, the Chinese were ruled by local warlords and before that, by the dynastic emperors. The institution of representative democracy is completely foreign to China. This is not to say that China is incapable of having and sustaining a democratic government, it is just not a tendency arising from China's history and culture. While historical and cultural tendencies are obviously not obligatory for the creation of democracy, they do make its creation easier. While western nations has a middle class, strong civil society and fairly individualistic societies immediately prior to the development of their democracies, China has a history of very strong government, community-oriented values and, especially under communism, virtually no civil society. These factors certainly will not help China democratize.