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Is China the Crony Capitalism of East
1. IS CHINA IS THE CRONY CAPITALISM OF EAST
(China May Be Raising,But No one Really Knows Whether it Can Fly)
2. What is Crony Capitalosm ?
The term crony capitalism refers to forms of capitalism in which leading
businessmen enjoy close personal relationships with key politicians.
Crony capitalism is often associated with corruption It may be exhibited
by favoritism in the distribution of legal permits, government grants,special tax
breaks, or other forms of dirigisme, Crony capitalism is believed to arise when
political cronyism spills over into the business world; self-serving friendships and
family ties between businessmen and the government influence the economy
and society to the extent that it corrupts public-serving economic and political
ideals. In many underdeveloped countries crony capitalism may be perceived
both as corrupt and as antinational
3. Cronyism has been
an important
element of capitalism
everywhere, but the
relationship between
cronyism, business,
and politics and
cronyism’s effect on
development vary
greatly from nation
to nation.
4. CHINA IS THE NEW CRONY CAPITALIST OF THE EAST
All the Banks in China
are run by members of
Chinese Communist
Party
Investments By
Foreign Companies
Are tightly regulated
and Foreign
Companies are
Regularly Shaken
Down By Various
Means
5. The record of China’s growth over the past two decades
has proved pessimists wrong and optimists not optimistic
enough.
Data From Jan2002 to Sep 2012
The Gross Domestic Product (GDP) in China was worth
7298.10 billion US dollars in 2011, according to a report
published by the World Bank. The GDP value of China is
roughly equivalent to 11.77 percent of the world economy.
6. The only thing rising faster than China is the hype about
China.
Gross Domestic Product Exceeded that of Britain
and France Making China World’s Fourth-largest
Economy
It was announced that China replaced the United
States as the world’s largest Exporter of technology
goods
Many experts Predicts that the Chinese economy will
be second only to he United states by2020 ,and
possibly surpassitby 2050.
7. It is either a monopolist or a dominant player in the most
important sectors, including financial services, banking,
telecommunications, energy, steel, automobiles, natural
resources, and transportation.
It protects its monopoly profits in these sectors
by blocking private domestic firms and foreign
companies from entering the market
The government maintains tight control over
most investment projects through the power to
issue long-term bank credit and grant land-use
rights.
Private-sector firms have very limited access to finance or new markets.
There are only 40 private firms among the 1,520 Chinese companies listed on
domestic and foreign exchanges.
8. The most corrupt sectors in China, such as power
generation, tobacco, banking, financial services, and
infrastructure, are all state-controlled monopolies.
10. Estimates from various sources, including the World Bank
and the Chinese government, suggest that income
inequality has increased at least 50 percent since the late
1970s, making China one of the most unequal societies in
Asia. A recent study reports that less than 1 percent of
Chinese households control more than 60 percent of the
country’s wealth
China is one of the few authoritarian states
where homosexuality and cross-dressing are
permitted, but political dissent is not. Domestic
opposition groups and individuals who might
challenge the party’s authority are left isolated
and powerless.
This is what happens when crony capitalism becomes national
policy.
11. Disadvantages to Capitalism
Propaganda= You cannot escape capitalism, it’s everywhere. On every
billboard, on every TV program, you have someone telling you to buy
something. When this is done by governments in dictatorships we call it
propaganda, when companies do it, it’s called advertising. They’re both
forms of brainwashing.
12. Undemocratic= While every individual has a single vote in a
democracy, in a capitalist system, they have very little say in the
actions of government. Greater influences on government than
ideology or public opinion are the wealthy. Governments will listen to
big business and banks because they fund their election campaigns.
They will listen to big newspaper barons because they know that they
can influence public opinion.
13. Anti-Social= Under a capitalist system, the profit motive is far
greater than altruism. If people are worried about what’s in their
own pocket, they will avoid helping their fellow human beings
because they’re concentrating on looking after themselves. People
feel the need to put themselves first because they think no-one will
be there to help them if they lose all their money.
14. Inequality= The common capitalist mantra that “anyone can be
rich if they work hard enough” is a fallacy. There’s only so much
room at the top. In order to make money, first you have to take it
from someone else. This can be done through selling things,
taxation or any other means. But this means that the rich cannot
exist without the poor. Any way you look at it, there’s never going
to be equality under capitalism.
15. Defending the motion
state capitalism, in which the government offers support to "national
champions" but also lists these champions on the stockmarket and subjects
them to global competition.
State capitalists argue that the system is proving remarkably successful.
China has grown at almost 10% for the past 30 years.
State-capitalist companies such as China Telecom have come from nowhere
to become mighty global companies.
There is a view towards state capitalism yet a friend in government is always useful.
In China, state capitalism works as there is political will and a sense of "chinese pride"
16. Against the motion
The problem is capitalism itself - the gulf between rich and poor still exists.
State capitalism's critics reply that the system is riven with problems. State-
capitalist companies are not only less efficient than their private competitors.
They are also using cheap capital and political favouritism to crowd out
the entrepreneurs that are the real drivers of growth.
State capitalism inevitably degenerates into crony capitalism as
powerful politicians extend their control over the economy.
