Julianne Malveaux On Business and Economics

 

PRICING OUR PRINCIPLES

BY JULIANNE MALVEAUX

 

            The day after Beijing was chosen to host the 2008 Olympics, China arrested a veteran dissident, Yan Peng, on suspicion of illegal emigration.  He had been in Vietnam on a group tour, and had traveled on proper documents, but he was detained on the Chinese side of the border.  His computer and other property were confiscated.

 

            Yan Pen’s arrest is the tip of the iceberg of China’s harrowing set of human rights violations.  A Chinese American scholar, Goa Zhan, has not yet been released, despite the fact that she has a faculty appointment in Washington, DC and is a permanent resident of the United States.  Her child was held for 28 days before his father was able to have him returned here.

 

            Goa Zan is not the only scholar who is being held in china.  Wu Jainmin, a United States citizen, is being held, as is Tan Guangguang.  Wu is a US citizen, and his release is being discussed in diplomatic circles.  Still, the conditions of his detention seem to be a human rights violation. These kinds of human rights violations might have deterred a different International Olympics Committee from awarding China the 2008 games.  Or, a different set of circumstances might have inspired human rights activists in the United States and in other parts of the world to protest the possibility of China’s selection more vigorously.  But many in the United States think that awarding the Olympics to China provides them with an incentive to clean up their human rights act.  A first step might be to stop harassing activists, and to release the scholars they are unnecessarily detaining.

 

            Secretary of State Colin Powell has said that China will experience increased scrutiny because they were awarded the Olympics.  While some in the House of Representatives were prepared to ask the IOC not to give China the games, President Bush asked them to refrain from voting on such a resolution, and they did.  From a distance, this seems a benign attempt to bring china to the world table, with its entry into the World Trade Organization (WTO) and its preparation for the Olympics.

 

            But recent economic data from China may suggest the real reason the United States has been so courtly to the country that we described as a foe just a few months ago.  China’s economy grew by 7.8 percent in the second quarter of this year, dwarfing the growth rates of the United States and the rest of much of the world.  In the Asian-Pacific region, growth rates as high as those in China are largely unheard of.  Much of East Asia, including Japan, is either experiencing economic contraction now, or is expected to experience a slowdown in the future.

 

            China’s rapid growth is a function of domestic demand.  They can’t get enough of that consumer stuff, and some of it comes from the United States.  They can’t get enough of development, either, even if they have to run a budget deficit to pay for public works.  And, they can’t get enough of the involvement of US companies in the development of their economy.  It’s a win-win from an economic perspective.   Companies that are experiencing sluggish demand in the United States can pick up the slack by their involvement in China.  Let’s be clear, though, that our neutrality on China getting the Olympics was more pragmatic than anything else.  We shut up about human rights because we cared more about ways China’s economic growth affects our own.

 

            Secretary of State Powell says that economic democracy will force political democracy.  His statements, and those of others in this country, seem to suggest that China, grateful for the Olympics, will change their ways to conform more closely to world standards and world opinion about their human rights practices.  I don’t think so, and would have prepared to impose the stick, not the carrot on China.  I’d have prepared to tell the Chinese government that they could have the Olympics if, and only if, they released the scholars they are holding and cleaned up their human rights violations.  The Chinese government is aware that they are a highly sought after market, and that one in four consumers, with increasing income, live in China.

 

            Still, estimates from the Chinese State Statistics Bureau suggest that the 2008 Olympics Games will add to China’s growth rate by at least three-tenths of a percentage point.  Additionally the games will attract international involvement and investment, and pull hundreds of thousands of tourists and athletes to China.  There ought to be some conditions attached to the economic development China will experience as a result of the Olympics.  Too many in the United Sates have been reluctant to impose conditions on China because it is such an economic powerhouse.  It’s too bad that we’ve put a price on our principles.


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