The Social Cost of China's Economic Growth: Messages from China's 2012 Parliamentary Session

Abstract

The fifth and final session of China's Eleventh National People's Congress (NPC), or parliament, was held in Beijing from March 5 to March 14, 2012. Several episodes stand out in this year's session. One is the abrupt dismissal immediately after the session of Bo Xilai, party chief of a major Chinese municipality and Politburo member. That has been arguably linked to the political and economic model he championed, which incorporated redistributive social policies and proactive government intervention. Also worthy of note is that nearly all NPC delegate seats are occupied by the country's elites, while working people are overwhelmingly under-represented, if not unrepresented. Last but not least, although neoliberalism has been widely discredited since the global economic crisis, the government work report delivered at this year's NPC session signals further embracement of private investment--not only domestic, but also foreign--in key industries and social services controlled by the state. These episodes merit reflection as they send important messages about the challenges facing the country's political economy now and in the future.