In Pursuit of Liberty in China Kate Zhou University of Hawaii Grass Root Institute

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In Pursuit of Liberty in ChinaKate
ZhouUniversity of HawaiiGrass Root Institute

• International Seminar
• Challenges For A Free Society In The 21 Century
• June 3, 2005, Santiago, Chile . Marriott Hotel

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Theme

• Liberalization at the grass root level is the
  most effective way to reduce the authoritarian
  party state control.

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Grass-roots Liberalization movements in China

• Baochan daohu decollectivization
• The right to be left alone
• The right to move freely
• 250 million to 100 million people
• Religious freedom
• Local market institutional building
• internet publication
• Grass root legal liberalization

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the growth rate of goods in the market
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Economic Transformation

• the ownership structure
• State 30, nonstate 40, private 25, foreign 5
• the rise of free labor market
• the end of the state export monopoly
• 100 million cellular/80 mi net users
• more industrial production than agricultural
  production in rural China

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Popular Support for Liberalization and
Globalization

• the highest among all East Asian nations (Japan,
  South Korea, Taiwan, Thailand, and China)
• second in favorable attitudes (Singapore is the
  first) toward open markets in nine nations
  (Japan, Korea, China, Taiwan, Singapore,
  Malaysia, Indonesia, Thailand, Philippines)
• third in overall support for open markets and for
  deregulation
• (92) in the survey support competition in the
  global economy

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The increasing Use of English

• 400 million English students
• 130 million in elementary schools
• 85 million in junior high schools
• 20 million in high schools
• 30 million in postsecondary institutions
• 100 million via adult education
• 250 million ordinary people learn on their own

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Liberal values

• a more liberal society encourages pragmatism
  instead of ideology
• no strong sentiment for anti-West ideologies
• lack of will and power for the Communist state to
  enforce conformity
• Private ownership and cosmopolitan values
• public tolerance of differences and "unhealthy"
  behavior (homosexuality, prostitution, drug use,
  openness, religious practice)
• Respect for privacy and other different life
  styles reduce the voice of radical
  fundamentalists.

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Global Trade

• Trade with the US
• the number one trading partner with Japan in 2004
• The trade benefit is a good motivation for China
  to work with the U.S. and its alliance hand in
  hand despite the political conflicts
• China has replaced Japan and becomes the engine
  of growth in Southeast Asia.

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Open door policies and export growth

• the role of overseas Chinese
• foreign investment
• international division of labor comparative
  advantage labor Intensive.
• Stock market

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People have more freedom

• More than 80 of Chinese people own their own
  houses or apartments (higher than US)
• More people work outside the state
• Relative freedom of information
• Most Chinese people have school choices
• Most urban residents have private medical account

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Continued State Control

• Failure of the Banking System
• 50, or 3 trillion renminbi are non-performing
  loans.
• Control over birth
• Political control
• One party domination

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Lessons from China

• Freedom is the foundation for growth
• Globalization benefits the late comers to
  modernization (Russia/ China)
• China is the leader in the global trade.
• Private Property is the most important
  institution for the poor.
• China completely destroyed the dependency theory
  and sets up a role model for developing countries
  in Latin America, Africa and South Asia.

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• Pursuit of liberties was linked to market
  breakthrough.
• Global linkage provided a new source of power
  (human, capital, services, information, and
  technology)to reduce the state control.

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The Lesson from China

• Liberalization must come from below.