Posted 2/13/2012

CHINA’S GUANGDONG PROVINCE STUMBLES

Guangdong is China’s richest province, contributing 12 percent of the country’s GDP.  It was the province that pioneered and profited from capitalism.  Now exporting shoes, toys, clothing and ceramics all over the world, Guangdong was originally the factory to Hong Kong’s world shop.

But the province is now very unhappy and Secretary Wang has a world of problems.

Recession in Europe has curbed high-profit exports.

Manufacturing continues to grow, but business profits have collapsed from 30 percent down to a little over two percent as global companies move production to cheaper labor markets in Southeast Asia.

Rising labor costs are driving some Chinese companies away from coastal Guangdong to cheaper inland provinces.

Inflation, ineffective tax policies, and land grabs have created a huge income gap between the rich and the poor.  This imbalance has created enormous unrest throughout the province.

Rapidly rising inflation is hurting teachers and others on fixed incomes.  An email from a teacher to Secretary Wang asked, “Do you have any idea how we are living?”

Air pollution is choking the people, exacerbating their unhappiness.

Polluted water, contaminated with industrial metals, is causing cancer and strange muscular diseases.

More than 30 million migrant workers are without health care, education and other services enjoyed by permanent residents.

The government’s attempt to move production up the “value ladder” has produced only mixed results.  Services have not grown and high-tech manufacturing lags.

What is Communist Party Secretary Wang going to do?

With his mind on a seat on the party’s permanent committee of nine in Beijing, Mr. Wang has decided on a potentially brilliant political plan.

Because he can’t solve Guangdong’s serious problems in a short period of time, he has decided to change the criteria of Communist Party success.  He has decided that no longer will growth and profits be Guangdong’s targets.  Instead, he has announced a five-year plan to make the people happy.

The people’s happiness will come from consideration of an index of four factors – fairness, justice, wealth and freedom.  Like American politicians, he has not indicated how he will bring all this about.

He’d better hurry.  Speeches are no longer working.

Uprisings are taking place all over the province.  And the city of Wukan has revolted against the party and successfully expelled its leaders and police.  For the first time since the revolution, ordinary people will elect their party leader.

As this news speeds around the internet, other cities and villages will be motivated to protest more strongly.

Last year there were over 150,000 reported uprisings in China – up from 60,000 reported four years ago.  The internal security police now have a larger budget than China’s military.

If a rich province is in this much trouble, think of what’s happening in the poor provinces.

It appears that bigger and better uprisings are on the way.

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