Monday, December 07, 2009

Peace & politics – oxymoron

The rise of red dragon with a stupendous economic growth has resulted in elimination of the largest number of people from the clutches of poverty ever. That’s the achievement of modern China even under the clinch of autocracy. Autocracy, in short, means when the key groups of people select a leader (the phenomenon is known as “selectorate” as opposed to “electorate” in democracy) and will support his policies. For example, Communist Party Politburo consisting of 20 members is the selectorate of the premier who heads the Chinese government. However, China proved how progress can be achieved under the reign of monarchy. It set example by removing Jiang Zemin from power in 2002, because of rising inequalities in income of its population threatening to undermine the very economic success of China — the cornerstone of accountability to the politburo. There are more examples of powerful selectorate who could not be purged by the leader, and is responsible for his accountability. General Castelo Branco was the military dictator of Brazil from 1964 to 1967, when he was removed from his chair by the armed forces (the selectorate in this case) to be replaced by General Emilio Medici, in spite of the best effort by his predecessor to forestall that. Emilio’s economic policies were responsible for Brazil’s economic miracle in late 1960s and early 1970s. Another success story of autocracy (in this case monarchy) is the resounding economic success of the Gulf States. The superlatives of UAE can only evoke awe from even the developed West. The tallest skyscraper, the best luxury hotel, the largest shopping mall, and the artificial island are some of the awe-inspiring achievements of this desert state. The Dubai Model, as they choose to call it, is an absolute belter; accomplished by the dynasty who rules the nation. Still they are not satisfied with their achievements, as they hanker for higher and bigger projects that include Dubailand (an amusement park with three times in size of Manhattan in an estimated area of 3 billion square feet), an exact of Eiffel Tower and a large stadium. In case of dynasty like in UAE, when the ruler dies; he is succeeded by the member of the same family. But the dynamics is more complicated when a military dictator supported by his selectorate expires. The military dictator of Portugal, Salazar (who brought expansive economic growth for his country) was replaced by Marcello Caetano in 1968 after his demise, who continued the good work and remained in power; thus maintaining stability. A similar example in Asia, as recalled is when the Thai military ruler (responsible for rapid progress) Sarit Thanarat died in 1963; his successor maintained the stability and growth.

This article is not in favour of autocracies. Although all autocracies are not successful, but still it can be heralded that if there is accountability of a ruler supported by institutional arrangement and pressure groups. So, are we advocating that we should go back to monarchy? Well, definitely not!

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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative