Mr Karat, the Chinese are moving on

In terms of trade, it is the Americans who have more reason to be concerned: balance of trade between the two countries is overwhelming in China’s favour. The Chinese have successfully flooded the US markets with their cheaper manufactured goods.

Karat may be sentimental about the bonds of the international communist brotherhood, but in reality our jholawallah brigade has little in common with its slick Chinese counterparts. The former are frozen in time, the latter have pragmatically made a major course correction. The Chinese communists, smartly attired in natty suits, are less concerned about socialist principles and equal opportunities than about getting rich fast. Two years ago even full-time businesspersons were permitted to join the Communist Party. Government administrations are run likes smart corporate offices.

Since China opened up its economy three decades ago, the Chinese communists have reframed the rules with an unabashedly capitalist slant. Today the private sector accounts for two-thirds of the GDP, and the old, lumbering public sector — seen as a burden on the economy — is being slowly phased out. Controls are constantly being relaxed to facilitate the creation of private wealth. Technically, no one owns land in China — property is given only on lease — but the reality is different. A guide in Shanghai confessed to me that thanks to Shanghai’s rising real estate prices, his parents could easily sell their flat for one million dollars. This year the party is finally enacting new property laws to make it legally permissible for people to pass on their property to their offspring.

Ma Xuejie, deputy director of the Press and Information Office for the Pudong government, whom I met earlier this year in Shanghai, symbolises this new spirit of communism. Shanghai’s special economic zone, Pudong, was just a bog until 1990, when the Chinese government invited foreign capital to purchase land and set up industries here. Today it has 15,000 foreign companies, including many major American corporations, which together have invested $33 billion. ‘Choose Pudong and you will make it’ is the city’s catchy slogan to attract the best talent. The catch is that non-residents are allowed to get a blue card to stay on only if they manage to secure a job within three months of registering. Unlike India, squatters do not have the luxury to set up base wherever they see an open space.

Ma’s office is in a towering 21-storey structure of chrome, glass and granite.The building has a series of plush conference rooms and offices decorated with gilded furniture and chandeliers. The aam aadmi is nowhere to be seen. Ma explains that people with problems are expected to go to the 33 citizens centres around and not clutter up government offices with petitions.

The income disparities in this socialist haven of Karat’s dreams are glaring. Pudong’s per capita GDP is $15,000 as against Shanghai’s $7,000 and China’s $2,000. Ma explains bluntly, “You cannot avoid disparities in development.” His goal is that his city’s GDP catches up with Korea and Singapore in the next ten years. In contrast to the prosperous east coast provinces, interior and western China lag far behind.

Questioned as to whether his government was constrained by the human suffering inevitable in relocating people to make room for SEZs, Ma replied, “You cannot ignore the rules of social development. Only by development can you offer jobs. I cannot advise in the Indian context, but I say in general. Change your mind with the times or be thrown out.” Is Comrade Karat listening?