Saturday, 7 May 2016

China’s Iron Rice Bowl – Part 3


Original article on Samirsinh Dattopadhye's Blog www.aniruddhafriend-samirsinh.com
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In 1970s China accepted concept of ‘Iron Rice Bowl’. It meant lifetime guaranteed job security, and confirmed steady income and benefits. The doing away of ‘Iron Rice Bowl’ was an important policy during the 1980s of Deng Xiaoping when labour reforms were started to usher the industrial growth. Under ‘Iron Rice Bowl’ people working in army, civil services and SOEs had security of future. But this promise was under iron-fist control of government and ruling Communist Party of China which extended in every sphere of their lives, may it be economic or social. They were made cadres of the all-powerful and the only political party, the Communist Party of China which has always ruled the Chinese government.

Removing of ‘Iron Rice Bowl’ policy was prerequisite for China to become member of WTO (World Trade Organization). In 2012 government introduced performance based contract labour policy in Guangdong province which was an attempt to de-regularize three decade of ‘Iron Rice Bowl’ policy. But ironically during 2008 economic crisis government had to bailout many SOEs and in doing so the government ended up disbursing huge loans. Those debts are now impacting the economy. In fact due to burden of ‘Iron Rice Bowl’ policy, SOEs are now forced to reduce their manpower.

Considering this in totality the current recession is expected to start a new era of labour problems in coming times. But today the irony is that private sectors is also badly affected by the economic crisis. Many MNCs (multi-national companies) are winding up their businesses from China due to heavy losses which are making job cuts invertible. Recently China has busted illegal underground banking system. Due to recession and uncertainty in stock markets, many industrialists were using this nexus to divert their wealth to ‘offshore tax havens’, a picture clearly indicating panic gripping the Chinese businesses.
Also with changing political scenario in the US, the US administration will have to counter its growing trade deficit with China which may further result in job losses and choking of Chinese economy. 
The Chinese job loss is fuelling unrest against government which is one of its biggest challenges. And China’s new law to punish officials who fail to stop it is underlining the seriousness of this issue. 
 – The End – 
                                                              Hari Om | Shreeram | Ambadnya

Friday, 6 May 2016

China’s Iron Rice Bowl – Part 2

Original article on Samirsinh Dattopadhye's Blog www.aniruddhafriend-samirsinh.com
Samirsinh Dattopadhye's FB page , Google Plus


Part – 1 Part – 3
China’s Iron Rice BowlIn last one and half years Chinese government has tried to sustain its economy by reducing interest rates and by giving out bailout packages to state-owned enterprises (SOEs). China has been regularly devaluing its currency to stabilize its exports-dependent economy. But still, all these efforts are falling short with decline in manufacturing, reduction in exports and bankruptcy of SOEs. To come out of this mess Chinese government has further taken up urgent reforms and also proposed new economic blueprint.

But what is most striking is, China is forced to cut down its industrial output in some sectors and also cut industry costs for economic sustenance. These decisions are mainly causing unrest in the masses. China has indicated to cut approximately 6 million jobs. In month of March this year, China cut 1.8 million jobs in steel and coal industry. This is biggest job cuts till date. Though government has announced that further job cuts will gradual but ultimately in two year time 2 million workers are slated to lose their jobs. And when other sectors and industries follow on job cuts the job loss figure is expected to reach 6 million. SOEs have historically played crucial role in growth of China. They are spread across globe. But now many of these companies have been declared bankrupt. Few weeks back in Guangdong province of south China, thousands of coal workers protested against job cuts. These workers were not paid for months and ultimately sacked.

China’s Iron Rice Bowl – Part 2

What has made the Chinese government concerned is the scale of the protests which is unseen in last 25 years. Since June 2015 there has been a 200% rise in protest and agitation in China. It was during 1990s that China had last seen such protests due to the very same reason of job cuts in addition to forced retirements. But recent anti-government protests are much bigger than of those of the 90s. Also, the economic growth of the 90s can’t be compared with the current levels.
And hence to divert attention and to instil false national pride China is racking up issues like ‘South China Sea dispute’ and ‘East China Sea dispute’ involving with it Brunei, Taiwan, Malaysia, Philippines, Japan, South Korea, Vietnam, United States, etc. and ‘Arunachal Pradesh border and visa dispute’, ‘illegal construction inside Pakistan Occupied Kashmir’ with India.

To be continued…..
                                          Hari Om | Shreeram | Ambadnya


China’s Iron Rice Bowl – Part 1

Original article on Samirsinh Dattopadhye's Blog www.aniruddhafriend-samirsinh.com
Samirsinh Dattopadhye's FB page , Google Plus



China is a country known to exist behind a veil of secrecy and iron curtain. Most of the happening in this single-party ruled nation goes unreported by the world media. But recently media reported of an ‘order’ of Politburo of Communist Party of China that oversees affairs of this ruling party. The order was given to party functionaries and government officials, which says that if they fail to stop any anti-government sloganeering, unrests and protests, they would lose their jobs and authority. Such a specific and panic order clearly indicates the possibility and reality of unrest against the ruling communist establishment.

China’s Iron Rice Bowl


Collapse of China’s economy is possible crisis that the world now faces. Experts say that the world economy is going through turmoil due to sharp decline in China’s growth indicators. It shows significance of China in global economy. China contributes almost 15% to world GDP. China alone gobbles 50% of global consumption for aluminium, copper and coal. Alternately China is also a leader in food consumption. On one hand China exports to many developed nations but on the other its imports from them which eventually fuels growth to these nations. But due to current economic problems, China has significantly reduced its import from the developed nations, which is hugely impacting their economies.

China’s Iron Rice Bowl
It is difficult to predict when China’s growth would be back on track. In fact, its feared that in the coming days China is likely to face recession which would make global economy further gloomy and uncertain. These economic problems are significantly fuelling unrests in China which have never been seen in the last 20 years. Protest marches and agitation drives against government have become a common day to day affair. With economic crisis and undemocratic decisions, public unrest is rapidly growing which the Chinese government is finding difficult to control. In China the dictatorial but so called communist establishment has always brutally suppressed all anti-government voices and protests. But now unrests in the age of social media the unrests in this iron-curtained society are getting exposed to the outside world.
China’s Iron Rice Bowl
Courtesy: thesocialmediamonthly.com

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Courtsey : telegraph.co.uk



To be continued…..