Local before national

A liberalistic China?

China is not a country that we normally would link together with words such as liberalism and minimal state. However, if efforts at reform in Chinese Hainan had been successful, we might have been able to see a very different China today. These are the words of Professor Kjeld Erik Brødsgaard, Director of Asia Research Centre, in his new book "Hainan – State, Society and Business in a Chinese Province".

The Chinese reform process is characterised by gradual progress. Reforms are very often tested locally before they are going national. Kjeld Erik Brødsgaard brings such an experiment into focus in his new book.

- It is important to study these initiatives. You will get much better insight into Chinese reform development. The Hainan experiment in particular was very exciting as it created possibilities for private financial enterprise and a civil society with less government interference, says Kjeld Erik Brødsgaard.

Central government

In 1988, China tried to implement a reform in Hainan and focus less on the state and the party.

- The reform slogan was: ”Small government, large society”. The reform resulted in the establishment of independent organisations and associations concurrently with a liberalisation in terms of economy. A door to partnering with other countries opened as well. Now it was possible for foreign companies and investors to rent land for up to 70 years in the Yangpu Economic Development Zone in Hainan, explains Kjeld Erik Brødsgaard.

Nevertheless, the reform development lost momentum after the Tiananmen Square Massacre in June 1989. The crisis resulted in yet another centralisation of the Chinese Communist Party. The party removed the reform-oriented General Secretary Zhao Ziyang and his symphatisers in the province of Hainan.

According to Kjeld Erik Brødsgaard, it was impossible to continue the development without political support from Beijing: - When all is said and done, China still has a central government.

During the 90’es, there were several persistent attempts to revive the reforms in Hainan. These attempts were not supported by the government in Beijing, which had turned its attention to the development in Pudong, a special economic zone, and the Shanghai area.

Increased interest in the Danish welfare model

Today, China is faced with new challenges in the form of welfare, a new healthcare sector, pension, education, etc.

- China has a new slogan: ”Harmonious society”. In the past, the aim was to slim down the party-state and retract from direct interference in the economy. Today, the focus is on improving the state and its ability to rule. A high-ranking delegation from the Central Party School in Beijing has recently paid a visit to CBS. They wished to know more about the development of the Danish welfare state. They find the Scandinavian welfare model very interesting as an alternative to the Anglo-Saxon model, which is characterised by market liberalism and traditionally weak government control. I think that we will experience an increased interest in the Danish welfare model in the near future, says Kjeld Erik Brødsgaard.

Read more about “Hainan – State, Society and Business in a Chinese Province” here