Email of the day
Comment of the Day

July 12 2013

Commentary by Eoin Treacy

Email of the day

on two different political systems
“I like to share this with the collective if you find it of interest. TED talk. " Alternatives exist. Different strokes for different folks."

“A sad episode of the recent problems in the world have been constantly changing Governments/coalitions with few leaders strong enough to think of the long term collective good of their people.”

Eoin Treacy's view

My comment – Thank you for sharing this interesting talk lauding the Chinese system of governance.

Every political system has its positives and negatives but almost everyone can agree that hubris and narcissism are the enemy of improving governance. China's development in the last few decades has been nothing short of an economic miracle and its rulers can take great pride in the progress made to date. However, as GDP per capita increases, the demands put on those who seek to govern become more pressing. The need to sustain the momentum of improving governance is a greater challenge since control often must be relinquished in order to boost productivity.

One of democracy's greatest strengths is that it is normally associated with a free press and independent judiciary. This at least ensures that questioning of the ruling elite takes place and that mechanisms exist to bring lawbreakers to justice. The fact that I can write this column with impunity or without the threat that it will be removed by the government is a testament to the benefits of living in a mostly free society in my opinion. I would be most interested in seeing some of the historical comparisons between countries that promote a free press and independent judiciary and those that do not.

What is reasonably clear is that standards of governance tend to be cyclical. They improve until hubris and laziness exert too powerful an influence, then deteriorate until demand for reform becomes overwhelming. Deteriorating standards of governance have been a serious issue for many major developed economies over the last decade or two but it would be enormously pessimistic to think that they are totally incapable of reform. One of mature democracy's greatest strengths is its longevity. We have ample examples of both deteriorating and improving governance.

China's “meritocratic mandarin” system of public administration definitely has merit just as most bureaucracies do before they become overburdened by the demands of the bureaucrats to protect their own position.

The challenges facing the country cannot simply be distilled down to pollution and corruption. The Reformation period of European history provides us with a useful lexicon that helps to describe the abuses of what was then a seemingly all powerful entity. Nepotism, simony, pluralism absenteeism, inquisition, persecution, bribery and the great wealth of party officials and their families are all relevant considerations that will need to be dealt with effectively. I am optimistic about China's ability to meet these challenges but let's not underestimate just how large the challenges are.

Meanwhile, China's stock market is not expensive and the CSI300 has found at least short-term support in the region of the 2012 lows. A sustained move below 2000 would be required to question current scope for an additional rebound.

Back to top