IS CHINA IS THE CRONY CAPITALISM OF EAST (China May Be Raising,But No one Really Knows Whether it Can Fly)
What is Crony Capitalosm ?The term crony capitalism refers to forms of capitalism in which leadingbusinessmen enjoy close personal relationships with key politicians.Crony capitalism is often associated with corruption It may be exhibitedby favoritism in the distribution of legal permits, government grants,special taxbreaks, or other forms of dirigisme, Crony capitalism is believed to arise whenpolitical cronyism spills over into the business world; self-serving friendships and family ties between businessmen and the government influence the economyand society to the extent that it corrupts public-serving economic and politicalideals. In many underdeveloped countries crony capitalism may be perceivedboth as corrupt and as antinational
Cronyism has beenan importantelement of capitalismeverywhere, but therelationship betweencronyism, business,and politics andcronyism’s effect ondevelopment varygreatly from nationto nation.
CHINA IS THE NEW CRONY CAPITALIST OF THE EASTAll the Banks in Chinaare run by members ofChinese CommunistPartyInvestments ByForeign CompaniesAre tightly regulatedand ForeignCompanies areRegularly ShakenDown By VariousMeans
The record of China’s growth over the past two decadeshas proved pessimists wrong and optimists not optimisticenough. Data From Jan2002 to Sep 2012The Gross Domestic Product (GDP) in China was worth7298.10 billion US dollars in 2011, according to a reportpublished by the World Bank. The GDP value of China isroughly equivalent to 11.77 percent of the world economy.
The only thing rising faster than China is the hype aboutChina.Gross Domestic Product Exceeded that of Britainand France Making China World’s Fourth-largestEconomyIt was announced that China replaced the UnitedStates as the world’s largest Exporter of technologygoodsMany experts Predicts that the Chinese economy willbe second only to he United states by2020 ,andpossibly surpassitby 2050.
It is either a monopolist or a dominant player in the mostimportant sectors, including financial services, banking,telecommunications, energy, steel, automobiles, naturalresources, and transportation.It protects its monopoly profits in these sectorsby blocking private domestic firms and foreigncompanies from entering the marketThe government maintains tight control overmost investment projects through the power toissue long-term bank credit and grant land-userights.Private-sector firms have very limited access to finance or new markets.There are only 40 private firms among the 1,520 Chinese companies listed ondomestic and foreign exchanges.
The most corrupt sectors in China, such as powergeneration, tobacco, banking, financial services, andinfrastructure, are all state-controlled monopolies.
Estimates from various sources, including the World Bank and the Chinese government, suggest that income inequality has increased at least 50 percent since the late 1970s, making China one of the most unequal societies in Asia. A recent study reports that less than 1 percent of Chinese households control more than 60 percent of the country’s wealth China is one of the few authoritarian states where homosexuality and cross-dressing are permitted, but political dissent is not. Domestic opposition groups and individuals who might challenge the party’s authority are left isolated and powerless.This is what happens when crony capitalism becomes nationalpolicy.
Disadvantages to CapitalismPropaganda= You cannot escape capitalism, it’s everywhere. On everybillboard, on every TV program, you have someone telling you to buysomething. When this is done by governments in dictatorships we call itpropaganda, when companies do it, it’s called advertising. They’re bothforms of brainwashing.
Undemocratic= While every individual has a single vote in ademocracy, in a capitalist system, they have very little say in theactions of government. Greater influences on government thanideology or public opinion are the wealthy. Governments will listen tobig business and banks because they fund their election campaigns.They will listen to big newspaper barons because they know that theycan influence public opinion.
Anti-Social= Under a capitalist system, the profit motive is fargreater than altruism. If people are worried about what’s in theirown pocket, they will avoid helping their fellow human beingsbecause they’re concentrating on looking after themselves. Peoplefeel the need to put themselves first because they think no-one willbe there to help them if they lose all their money.
Inequality= The common capitalist mantra that “anyone can berich if they work hard enough” is a fallacy. There’s only so muchroom at the top. In order to make money, first you have to take itfrom someone else. This can be done through selling things,taxation or any other means. But this means that the rich cannotexist without the poor. Any way you look at it, there’s never goingto be equality under capitalism.
Defending the motion state capitalism, in which the government offers support to "nationalchampions" but also lists these champions on the stockmarket and subjectsthem to global competition.State capitalists argue that the system is proving remarkably successful.China has grown at almost 10% for the past 30 years.State-capitalist companies such as China Telecom have come from nowhereto become mighty global companies.There is a view towards state capitalism yet a friend in government is always useful.In China, state capitalism works as there is political will and a sense of "chinese pride"
Against the motion The problem is capitalism itself - the gulf between rich and poor still exists. State capitalisms critics reply that the system is riven with problems. State- capitalist companies are not only less efficient than their private competitors. They are also using cheap capital and political favouritism to crowd out the entrepreneurs that are the real drivers of growth. State capitalism inevitably degenerates into crony capitalism as powerful politicians extend their control over the economy.