By Stanley Crossick
BEIJING, March 19 -- By now, China's economic success over the last 30 years is an accepted fact and does not need the citing of statistics. But what are the main characteristics of the Chinese development model, and is it sustainable?
It is not possible to define the Chinese development model in simple terms. It is really a process rather than a clear policy statement. Its origins lie with Deng Xiaoping, who famously said that one must "seek truth from facts" (and not from dogma) and that "It doesn't matter if a cat is black or white, so long as it catches mice."
The model is unique, and has been developed in a country with a long history of civilization, a very difficult modernization experience and the largest population in the world.
The key features are pragmatism, trial and error and gradual reform. The model is not based on ideology but practical steps, first testing the effectiveness of policies and then, when proven, implementing at a fast rate.
However, overall the reforms are in fact gradual without any "big bangs."
First came the easy reforms and rural reforms; difficult reforms and urban reforms followed. Experiences in implementing the first reforms helped create the necessary conditions for further reform.
Labels do not help satisfactorily describe the model, which the Chinese say is based on socialism with Chinese characteristics. It can be described as a mixed economy with socialist and capitalist features or, less flatteringly, autocratic capitalism.
The model has a number of key characteristics. The State controls the strategic direction of the economy and therefore its strategic sectors. The State-owned enterprises still dominate industry. The government can thus set and direct its eco-nomic priorities.
