Conclusion : capitalism in the dragon's lair

Abstract

If we step back and consider China's rapid international ascent within the confines of the world's past 300 years of history, some intriguing parallels emerge. China's rise appears in many ways to be propelled by the same historical forces associated with the climb to international prominence of other great powers. Although each of these industrial powers charted its own course, buffeted by different historical and social currents, they all undertook a form of capitalist development. China today is undoubtedly in the midst of such capitalist development. As noted in Chapter 2, this process is most fundamentally driven by the inherent human tendency to seek gain and accumulate capital. While this tendency exposes capitalism's less savory facets, from avarice to crass materialism, it also motivates diligence, thrift, and, perhaps most profoundly, human creativity. Of course, capitalism is in general distinguished by the rise of market institutions to organize the supply of our basic (and not-so-basic) livelihoods. Ultimately, though, a political vantage point is perhaps the least understood and yet the most salient for developing countries. The unique historical process of capitalism is characterized by the rise of capital-owning social strata to economic, social, and political prominence. At first these social groups avoid, then cooperate, engage, and compete with state elites. If a capitalist transition proceeds, the increasing power of capital can balance the state's coercive means, establishing constitutional limits that assure the security of property rights and the predictability of economic rules. While China is in the midst of a capitalist transition, the specific processes unfolding are often unmatched in speed and scale. In comparison to earlier instances of capitalist accumulation, China seems to be doing everything simultaneously in a much more condensed time frame.