Saturday, May 01, 2010

cHindu criticizes aggressive Chinese development

We have been critical of cHindu for being a Chinese party organ newsletter for long. However a recent article by Ananth Krishnan has subtly stated the price of Chinese development.
The context is the dichotomous development of China with the Western provinces left out of the overall growth of the Chinese economy and how China's attempting to get the people in those region involved in the new economy. What is different is Ananth's balanced coverage of the problems faced by the farmers in the development process.
But the rapid development push is bringing with it a host of new problems too. Large-scale infrastructure projects, which the government says are crucial to development, are dislocating thousands of farmers. Rising inflation is threatening to squeeze out an ever-growing section of the populace from the benefits of growth.

Is there a financial meltdown which is about to happen in China?
But rising incomes are only one part of the development story. The massive pumping in of money may have left impressive growth statistics, but it has also left local governments with spiralling debt. To make up for the shortfall, they are swallowing up farmers' lands with increasing vigour, looking to promote expansive real estate developments to attract big industry and Chengdu's rich. Central laws limiting the acquiring of farming land are often violated, with developments loosely characterised as being “in the public interest.”

Communism is alive and well, as a mask on capitalism.

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