How Chinese Communist Party’s economics and governance failed in China in 70 years

Introduction

China is a world’s second largest about 13 trillion dollar economy having population of about 1400 million. Evaluation of social-economic parameters indicates that Chinese economy has become a deep hollow from inside, very similar like USA, British, Japanese, German, French, Italy, Spanish economy. This blog has documented major socio-economic evidences. So Chinese government should focus to plan policy and programs accordingly. 

Major socio-economic evidences

1. In 2000 China has about 1 trillion dollar size economy. In 2019 its GDP size increases to about 13 trillion dollar.

2. China adopted one child policy in 1979 but failed to provide its advantage to the nation and their households.

3. The Chinese minimum living standard guarantee (Dibao program), which has been in place since the 1990s, is one of the most important social assistance programs implemented by Chinese Communist Party. In 2000 the total Dibao program participants were about 3.2 million which increased to about 66.5 million in 2015. This clearly indicates that with time more Chinese citizens became poor even with multiple increase in size of GDP.

4. At present about 600 million people’s monthly income is about 1000 Yuan. With such low income how such mass will create domestic demand and will support economy is itself a question mark.

5. Total debt more than 200% of the GDP.

6. China also excessively dependent on artificial liquidity to support economy like USA, British, Japanese, German, French, Italy, Spanish economy. China failed to learn from historical fiscal and monetary mistakes of these countries. China managed its currency value with respect to dollar but failed to manage it domestically which made their citizens life economically more miserable with time.

7. In 2000 the Chinese exports were of $253 billion which increased to about $2600 billion in 2019. Even such increase in exports not benefited its larger mass as can be observed from above data.

8. Manifold increase of size of Chinese economy coupled with one child policy does not benefited to its larger mass.

9. Overall the major benefit of Chinese economy went towards their corporates and China government remained poor with ever increasing debt burden due to policy of Chinese Communist Party.

10. China should implement MEPLRF Model of Economic Governance which will pay monthly income to all households without any debt, subsidy or tax burden on China. For implementing MEPLRF Model of Economic Governance program in China contact Dr. Vinay K Sahay.

Conclusions

Overall evaluation of socioeconomic data of China indicates that even with growth and development majority of citizens are economically stressed along with Chinese government. Chinese government has invested whatever capital till now the majority of those capital went to few. So Chinese economy requires fundamental reforms which will enhance more capital flow towards their majority of population. China can adopt MEPLRF's monthly income model.       

Benefits of MEPLRF’s monthly income model

1. Each household family will earn a monthly income.

2. This will be an additional monthly income than whatever they may be earning by their own means.

3. Due to this regular income of families will increase and their purchasing capacity will also increase.

4. This regular income will not have any burden in the form of subsidy, loans, grants or compensation on a country.

5. Due to this all citizens, companies and country will be economically efficient and stable.

6. Do not require to increase tax on companies or citizens.

7. Migration from village to city region will decrease.

8. Monthly income will increase with growth of country periodically.