Why There Are Limits to Capitalism With Communist Characteristics

NEW DELHI -- As U.S. President Barack Obama prepares to embark on an historic visit to Cuba, the future of the communist-ruled island is the subject of widespread speculation. Some observers are hoping that the ongoing shift toward capitalism, which has been occurring very gradually under Raúl Castro's direction, will naturally lead Cuba toward democracy. Experience suggests otherwise.
|
This post was published on the now-closed HuffPost Contributor platform. Contributors control their own work and posted freely to our site. If you need to flag this entry as abusive, send us an email.
Open Image Modal
WASHINGTON, DC - JULY 20: A supporter waves a Cuban flag in front of the country's embassy after it re-opened for the first time in 54 years July 20, 2015 in Washington, DC. The embassy was closed in 1961 when U.S. President Dwight Eisenhower severed diplomatic ties with the island nation after Fidel Castro took power in a Communist revolution. (Photo by Mark Wilson/Getty Images)

NEW DELHI -- As U.S. President Barack Obama prepares to embark on an historic visit to Cuba, the future of the communist-ruled island is the subject of widespread speculation. Some observers are hoping that the ongoing shift toward capitalism, which has been occurring very gradually under Raúl Castro's direction, will naturally lead Cuba toward democracy. Experience suggests otherwise.

In fact, economic liberalization is far from a surefire route to democracy. Nothing better illustrates this than the world's largest and oldest autocracy, China, where the Chinese Communist Party maintains its monopoly on power, even as pro-market reforms have enabled its economy to surge. A key beneficiary of this process has been the Chinese military.

The belief that capitalism automatically brings democracy implies an ideological connection between the two. But the dominance of the CCP -- which currently boasts 88 million members, more than Germany's total population -- is no longer rooted in ideology. The party, represented by a cloistered oligarchy, endures by employing a variety of instruments -- coercive, organizational and remunerative -- to preclude the emergence of organized opposition.

A 2013 party circular known as "Document No. 9" listed seven threats to the CCP's leadership that President Xi Jinping intends to eliminate. These include espousal of "Western constitutional democracy," promotion of "universal values" of human rights, encouragement of "civil society," "nihilist" criticisms of the party's past and endorsement of "Western news values."

Democracy and communism are, it seems, mutually exclusive. But capitalism and communism clearly are not -- and that could be very dangerous.

In short, communism is now focused less on what it is -- that is, its ideology -- and more on what it is not. Its representatives are committed, above all, to holding on to political power -- an effort that the economic prosperity brought by capitalism supports, by helping to stave off popular demands for change.

The story is similar in Vietnam and Laos. Both began decentralizing economic control and encouraging private enterprise in the late 1980s, and are now among Asia's fastest-growing economies. Vietnam is even a member of the incipient 12-country Trans-Pacific Partnership. But the one-party state remains entrenched, and continues to engage in considerable political repression.

Things do not seem set to change anytime soon. In Vietnam, Nguyễn Tấn Dũng, the reform-minded prime minister, recently failed in his bid to become general secretary of the Communist Party, the country's supreme leader. The 12th National Congress re-elected the incumbent, Nguyễn Phú Trọng.

Beyond providing sufficient material gains to keep the population satisfied, capitalism strengthens a communist-ruled state's capacity to increase internal repression and control information. One example is the notorious "Great Firewall of China," a government operation that screens and blocks Internet content, creating a realm of politically sanitized information for citizens. China is the only major country in the world whose official internal security budget is larger than its official national defense budget.

In the face of China's current economic turmoil, control of information has become more important than ever. In order to forestall potential challenges, China's leadership has increasingly muzzled the press, limiting, in particular, reporting or commentary that could adversely affect stock prices or the currency. Xi has asked journalists to pledge "absolute loyalty" to the CCP, and closely follow its leadership in "thought, politics, and action." A state-run newspaper, warning that "the legitimacy of the party might decline," argued that the "nation's media outlets are essential to political stability."

The marriage of capitalism and communism, spearheaded by China, has spawned a new political model that represents the first direct challenge to liberal democracy since fascism.

Clearly, where communists call the shots, the development of a free market for goods and services does not necessarily lead to the emergence of a marketplace of ideas. Even Nepal, a communist-dominated country that holds elections, has been unable to translate economic liberalization into a credible democratic transition. Instead, the country's politics remain in a state of flux, with political and constitutional crises undermining its reputation as a Shangri-La and threatening to turn it into a failed state.

Democracy and communism are, it seems, mutually exclusive. But capitalism and communism clearly are not -- and that could be very dangerous.

In fact, the marriage of capitalism and communism, spearheaded by China, has spawned a new political model that represents the first direct challenge to liberal democracy since fascism: authoritarian capitalism. With its spectacular rise to become a leading global power in little more than a single generation, China has convinced autocratic regimes everywhere that authoritarian capitalism -- or, as Chinese leaders call it, "socialism with Chinese characteristics" -- is the fastest and smoothest route to prosperity and stability, far superior to messy electoral politics. This may help to explain why the spread of democracy worldwide has lately stalled.

Obama's impending Cuba visit should be welcomed as a sign of the end of America's inapt policy of isolation -- a development that could open the way to lifting the 55-year-old trade embargo against the country. But it would be a serious mistake to assume that Cuba's economic opening, advanced by the Obama-initiated rapprochement, will necessarily usher in a new political era in Cuba.

Earlier on WorldPost:

Castro Obama Meeting
(01 of09)
Open Image Modal
US President Barack Obama, right, smiles as he looks over towards Cuban President Raul Castro, left, during their meeting at the Summit of the Americas in Panama City, Panama, April 11, 2015. (credit:AP Photo/Pablo Martinez Monsivais)
(02 of09)
Open Image Modal
President Barack Obama, right front, delivers his speech to world leaders at the VII Summit of the Americas' opening plenary, in Panama City, Panama, April 11, 2015. (credit:AP Photo/Pablo Martinez Monsivais)
(03 of09)
Open Image Modal
A worker tends bar in Havana, Cuba, April 11, 2015, next to a television tuned into the live telecast of President Barack Obama's speech at the VII Summit of the Americas. (credit:AP Photo/Desmond Boylan)
(04 of09)
Open Image Modal
US President Barack Obama and Cuban President Raul Castro shake hands during their meeting at the Summit of the Americas in Panama City, Panama, April 11, 2015. (credit:AP Photo/Pablo Martinez Monsivais)
(05 of09)
Open Image Modal
US President Barack Obama, right, leans over towards Cuban President Raul Castro during their meeting at the Summit of the Americas in Panama City, Panama, April 11, 2015. (credit:AP Photo/Pablo Martinez Monsivais)
(06 of09)
Open Image Modal
Cuban President Raul Castro speaks during his meeting with US President Barack Obama at the Summit of the Americas in Panama City, Panama, April 11, 2015. (credit:AP Photo/Pablo Martinez Monsivais)
(07 of09)
Open Image Modal
US President Barack Obama speaks during their meeting with Cuban President Raul Castro at the Summit of the Americas in Panama City, Panama, April 11, 2015. (credit:AP Photo/Pablo Martinez Monsivais)
(08 of09)
Open Image Modal
US President Barack Obama with Cuban President Raul Castro during their meeting at the Summit of the Americas in Panama City, Panama, April 11, 2015. (credit:AP Photo/Pablo Martinez Monsivais)
(09 of09)
Open Image Modal
US President Barack Obama (R) shakes hands with Cuba's President Raul Castro (L) on the sidelines of the Summit of the Americas at the ATLAPA Convention center on April 11, 2015 in Panama City. (credit:MANDEL NGAN/AFP/Getty Images)

Our 2024 Coverage Needs You

As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.

Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.

to keep our news free for all.

Support HuffPost