Realism vs Liberalism?

“Historically, the birth of new economic superpowers has caused great global instability”

This quote by a BBC economics editor had given me food for thought and a reminiscent to a piece that I’ve

done on why the 19^th century liberal international order was not sustainable. Before World War One, the international political economy of the Western World was a time of rapid economic development and liberalization where free trade was the at the heart of the British Empire.  However, this liberal order came to a sudden halt with the onset of World War One. One of the reasons for this was the rise of Germany as a major rival to the main powers of Europe and United States both economically and politically. In my essay, I argued it was the flaws of the Concert of Europe (equivalent to the UN today), the gold standard and irony of free trade.  With Germany absorbing the free flow of advanced skills and products from England, it was able to catch up and compete with the hegemonic status of England.  

Coming to back to present time, we see similarities in today’s economic order. With its economic reforms, China started playing along with the world on free trade and thus absorbing the skills and goods needed for it to compete. As we have seen, the catch up of China is phenomenal and has recently overtaken Japan as the second largest economy.  With the arrival of its new strength both economically and politically, will it repeat history and cause much instability as we have seen in the 19^th century?  Of course, there are many theories that China’s growth is overhyped as it was with Japan in the seventies. 

Nonetheless, my question is will China’s rise create conflict as the balance of power has been altered? Or will liberalism prevail and the world sees a win-win situation for the consumer when two economic superpowers compete. 

Was Karl Right?

A popular theme surrounding the social-political sphere in Hong Kong at present is the so called “hatred of the rich” or 仇富 in Chinese. Recently, Hong Kong society has realised the monopoly powers of real estate developers. Accumulating mass profit from the property sector, it has turned to other industries for further profiting. Today, these developers control everything from supermarkets to transport to telecommunications. Therefore, the house you live in, the internet and phone you use, the food you buy at supermarket to the transport you take to work, are all owned by real estate developers. The working class has even joked at the fact that they all work for them as every bit of their lives revolves around consuming goods and services produced and hence generating revenues for them. 

This strikes me of the similarity to Marx’s theory on class struggles and the evolution of the political economy. The phenomenon in Hong Kong has led to an increase of hatred against the rich (i.e. Bourgeois) and resembles the exploitation of the working class (i.e. the proletariats) whom are the real producers of wealth. As capitalism evolves, the rich will get richer and poor get poorer to which at the point the monopolist controls all means of production. With Hong Kong being the most capitalist economy in the world, it will be at the forefront of any political economic development and this phenomenon seems to coincide with Marx’s theory on class struggle and the evolution of capitalism. 

Embrace of Colonialism

Liu Xiaobo once said: China “would require 300 years as a colony” to transform into a modern society. Indeed Hong Kong and Singapore are one of the few cities for what some might call “colonialism gone right”. In this post I will try to explain how Hong Kong society embraces colonialism and turns it into a way of life.  (I am not advocating if colonialism is right or wrong but merely an observation of what has happened in Hong Kong’s society through 150 years of colonialism.)  

First, let’s start with the education system. Hong Kong’s education system closely reflects that of the British  and no doubt education will directly affect students’ adulthood. We can see that from the working language of major corporations in Hong Kong from private banks to governmental institutions are all conducted in English. The medium of teaching at universities are in English and people who speak in English are considered to be of “higher class”.  To some extreme, “higher class” establishments will only converse with you in English even though both parties are Chinese. 

Second, Hong Kong people have an inherit instinct to deviate themselves from mainland China. Whether it is a cultural thing or if they feel more superior, it is evident in society. Ask where they are from, Hong Kong people will always say Hong Kong and not China. (In contrast, if you ask a Beijinger or Shanghainese, he will most likely say he’s from China and not Beijing or Shanghai.) 

In my opinion, it’s the little things on how Hong Kong society functions that there seems to be some sort of “pride”, for a lack of better word, that Hong Kong was once a colony of Britain. The above observations are just but a few examples that I feel makes Hong Kong what it is today.  It is difficult to describe in words about this phenomenon but to experience it yourself when one is in Hong Kong. It has been more than a decade since China reclaimed sovereignty over Hong Kong but the feel of colonialism is still very much in the air.  

Lastly, here are some quotes on colonialism.

  

"The Cold War is gone. Colonialism is gone. Apartheid is gone. Yet remnants of past troubles remain.”  

Bill Clinton

"The liquidation of colonialism is a trend of the times which no force can hold back.”

Kim Jong Il

"I would say colonialism is a wonderful thing. It spread civilization to Africa. Before it they had no written language, no wheel as we know it, no schools, no hospitals, not even normal clothing.”

Ian Smith – First Prime Minister of Rhodesia (Zimbabwe)

IPE Must Read

China and Europe: Bear gifts for friends  

http://www.ft.com/cms/s/0/fc1f40f8-201c-11e0-a6fb-00144feab49a.html#axzz1BBAjI3JG

Would just like to share a very interesting and insightful article from the FT. Everything from panda diplomacy to  political infighting and economics all wrapped in one piece (IPE must read). The undertone of the analysis gives a good insight on the new leadership of China and highlights the infighting within the party itself.

Hopefully, a new post will be up soon as I'm quite busy recently, apologies readers..

And finally, as usual, just for laughs..

From Special Request: China's J-20 Stealth Fighter

One of the more intriguing news coming out of China recently was photos taken of a prototype stealth fighter jet.  Aimed at rivalling the US Air Force’s F—35, the dubbed J-20 sparked much debate in both government and public sphere.  

From questions about its authenticity to the timing of its release in the public eye, it certainly sparked more questions than answer. However, what is certain as some analysts point out is that China “is making faster-than-expected progress in developing a rival to Lockheed Martin's F-22 Raptor” (Reuters). One of the most interesting things to point out in all of this is its closeness to military talks between the US and China where US Defence Secretary Robert Gates will be in Beijing for. Whatever its motive is, one of the consequences of revealing such a prototype to the public is raising fears amongst other nations. From the “aircraft carrier killer” missile to the prototype of a stealth fighter, it will surely point towards more apprehension and anxiousness from neighbouring and Western countries.

Perhaps that’s exactly what China wanted from all of this?  

Happy New Year!

After taking a short break since Christmas, I'll once again start posting! Hope everyone had a good and restful holiday season and Happy New Year! If you have any topic suggestions or comments, do let me know in the comment section below! I hope you've been enjoying this blog as much as I've been writing it!

Merry Christmas!

Merry Christmas Everyone! Hope you all had a wonderful and restful holiday! And thank you for your support of this blog!  I've changed up the design of the blog, hope you guys like it!