To continue: Excerpts from Jiang Zemin's report delivered at the 15th National Congress of the Communist Party of China (CPC) on September 12, 1997.
"In the primary stage of socialism, focusing on the fundamental task of developing the productive forces, we should take reform as the motive force for promoting all the work in building socialism with Chinese characteristics. Ours is a comprehensive reform which means, on the premise of upholding the basic system of socialism, we conscientiously readjust all the aspects and links of the relations of production and the superstructure so as to suit them to the level of development of the productive forces in the primary stage and the historical requirement of modernization. It is a great pioneering undertaking to combine socialism with the market economy. To do this, it is necessary to make active explorations and bold experiments and respect the pioneering initiative of the masses. It is necessary to deepen the reform and resolve the deep-rooted contradictions and crucial problems that may arise during structural transformation. It is necessary to open China wider to the outside world and absorb and use for reference the advanced technology and managerial expertise of foreign countries including developed capitalist countries."
It is necessary to make active explorations and bold experiments and respect the pioneering initiative of the masses. This is the black cat, white cat argument.
"In the primary stage of socialism, it is of the utmost importance to balance reform, development and stability and to maintain a stable political environment and public order. Without stability, nothing could be achieved. We must uphold the leadership by the Party and the people's democratic dictatorship. We should promote material progress and cultural and ethical progress, attaching equal importance to both. We must eliminate all factors jeopardizing stability, oppose bourgeois liberalization and guard against the infiltrative, subversive and splittist activities of the international and domestic hostile forces. We must balance the intensity of reform, the speed of development and people's ability to sustain them, promoting reform and development amid social and political stability and securing social and political stability through reform and development."
Oppose bourgeois liberalization and guard against the infiltrative, subversive and splittist activities of the international and domestic hostile forces. This is not Washington's idea of reform, nor the Heritage Foundation's.
"At this historical moment when we are advancing our cause to the 21st century in an all-round way, we must solemnly point out that the whole Party must firmly adhere to the Party's basic line for the primary stage of socialism and, in the great practice of building socialism with Chinese characteristics, combine the central task of economic development with the two basic points -- adherence to the Four Cardinal Principles [keeping to the socialist road and upholding the people's democratic dictatorship, leadership by the Communist Party, and Marxism-Leninism and Mao Zedong Thought -- Tr.], and the reform and opening up. This is the most valuable experience our Party has gained in the recent period of nearly 20 years and the most reliable guarantee for the victorious advance of our cause. We should maintain vigilance against the Right tendencies, but primarily against the "Left". We should remain sober-minded, overcome all interference and firmly adhere to Deng Xiaoping Theory and the basic line. In accordance with this theory and the basic line and with the focus on the goal of building a prosperous, strong, democratic, culturally advanced and modern socialist country, it is necessary to acquire a better understanding of what the socialist economy, politics and culture with Chinese characteristics in the primary stage of socialism are and how to build them."
Maintain vigilance against the Right tendencies, but primarily against the "Left".
"Building a socialist economy with Chinese characteristics means developing a market economy under socialism and constantly emancipating and developing the productive forces. To do this, we should uphold and improve the basic economic system in which the socialist public ownership is dominant and diverse forms of ownership develop side by side; we should uphold and improve the socialist market economy so that the market will play a basic role in the allocation of resources under state macro-control; we should uphold and improve different modes of distribution with distribution according to work remaining dominant, allowing some people and some areas to become prosperous first so that they can help others to get well-off and achieving common prosperity step by step; and we should uphold and improve opening up and take an active part in international economic cooperation and competition. We should ensure that the national economy will develop in a sustained, rapid and sound way and that the people will share the fruits of economic prosperity."
Once more, the socialist public ownership is dominant
"Building socialist politics with Chinese characteristics means ruling the country by law and developing socialist democracy under the leadership of the Communist Party of China and with the people as the masters of the country. To do this, we should uphold and improve the people's democratic dictatorship led by the working class and based on the worker-peasant alliance; we should uphold and improve the system of people's congresses, the system of multi-party cooperation and political consultation under the leadership of the Communist Party and the system of regional national autonomy; and we should promote democracy, improve the legal system and build a socialist country ruled by law. We should create a political situation in which we have social stability, a clean and efficient government and unity, harmony and liveliness among the people of all our nationalities."
The CCP will uphold and improve the people's democratic dictatorship led by the working class and based on the worker-peasant alliance. There is no sell-out.
"Building a socialist culture with Chinese characteristics means taking Marxism as the guidance, aiming at training citizens so that they have high ideals, moral integrity, a good education and a strong sense of discipline, and developing a national, scientific and popular socialist culture geared to the needs of modernization, of the world and of the future. To do this, we should persist in arming the whole Party and educating the people with Deng Xiaoping Theory; we should strive to raise the ideological and ethical standards and the educational, scientific and cultural levels of the whole nation; and we should adhere to the orientation of serving the people and socialism and the principle of "letting a hundred flowers blossom and a hundred schools of thought contend", laying emphasis on progress and boosting academic activities, art and literature. We should foster socialist ideology and ethics by basing ourselves on China's reality, carrying on the fine cultural traditions handed down from history and assimilating the advances of foreign cultures. The aforementioned basic targets and policies for building a socialist economy, politics and culture with Chinese characteristics are well integrated and inseparable. They constitute the basic program of the Party for the primary stage of socialism. This program is an important part of Deng Xiaoping Theory, an elaboration of the Party's basic line in the economic, political and cultural fields and a summary of the major experience gained over the years."
A basic program of the Party for the primary stage of socialism. And below, clarifications on ownership.
"Readjust and improve the ownership structure. It is China's basic economic system for the primary stage of socialism to keep public ownership in a dominant position and to have diverse forms of ownership develop side by side. The establishment of such a system is determined by the socialist nature and the reality of China in the primary stage of socialism: First, being a socialist country, China must keep public ownership as the foundation of its socialist economic system; second, being in the primary stage of socialism, China needs to develop diverse forms of ownership with public ownership in the dominant position; and third, any form of ownership that meets the criterion of the "three favorables" can and should be utilized to serve socialism."
"Since the Third Plenary Session of the Eleventh Central Committee, our Party has earnestly reviewed its past experience and lessons with regard to the ownership issue, formulated the principle of keeping public ownership in a dominant position and having diverse economic sectors develop side by side, gradually removing the fetters of the irrational ownership structure on the productive forces and bringing about a situation featuring multiple forms in the realization of public ownership with all sectors of the economy developing side by side. It remains a major task in the economic restructuring to continue readjusting and improving the ownership structure so as to further release and develop the productive forces."
Below, Louis, you will see that you view of China's intention of privatization has not been accurately reported by the Western press.
"We should have an all-round understanding of the meaning of the public sector of the economy. The public sector includes not only the state- and collectively-owned sectors, but also the state- and collectively-owned elements in the sector of mixed ownership. The dominant position of public ownership should manifest itself mainly as follows: Public assets dominate in the total assets in society; the state-owned sector controls the life-blood of the national economy and plays a leading role in economic development. This is the case for the country as a whole. There may be differences in some localities and industries. Dominance of the public assets should feature in quantitative terms, but more so in terms of improved quality. The leading role of the state-owned sector should manifest itself mainly in its control capability. We should make a strategic readjustment of the layout of the state-owned sector of the economy. The state-owned sector must be in a dominant position in major industries and key areas that concern the life-blood of the national economy. But in other areas, efforts should be made to reorganize assets and readjust the structure so as to strengthen the focal points and improve the quality of the state assets as a whole. On the premise that we keep public ownership in the dominant position, that the state controls the life-blood of the national economy and that the state-owned sector has stronger control capability and is more competitive, even if the state-owned sector accounts for a smaller proportion of the economy, this will not affect the socialist nature of our country."
Once again: public ownership in the dominant position.
"The collectively-owned sector is an important component of the public sector of the economy. The collective economy is able to reflect the principle of common prosperity, extensively absorb funds that are scattered in society, ease employment pressure and help increase public accumulation and state tax revenue. We should support, encourage and help diverse forms of collective economy in the urban and rural areas in their development. This will be of great significance to the public sector of the economy in playing its dominant role."
"Public ownership can and should take multiple forms in its realization. All governance methods and organizational forms that reflect the laws relating to socialized production may be utilized boldly. We should strive to seek various forms for realizing public ownership that can greatly promote the growth of the productive forces. The joint stock system is a form of capital organization of modern enterprises, which is favorable to separating ownership from management and raising the efficiency of the operation of enterprises and capital. It can be used both under capitalism and under socialism. We cannot say in general terms that the joint stock system is public or private, for the key lies in who holds the controlling share. If the state or a collective holds the controlling share, it obviously shows the characteristics of public ownership, which is favorable to expanding the area of control by public capital and enhancing the dominant role of public ownership. Now there have appeared a large number of diverse forms of joint stock cooperative ventures in the urban and rural areas. They are new things arising in the process of reform. We should support them, give them guidance, constantly sum up their experience and improve them. What should be specially advocated and encouraged is the kind of collective economy that features, in the main, the association of laborers in labor and their association in capital."
As for the private sector, China looks to it mainly for flexibility and diversity that central planning is not at it best.
"The non-public sector is an important component part of our socialist market economy. We should continue to encourage and guide the non-public sector comprising self-employed and private businesses to facilitate its sound development. This is of great importance to satisfying the diverse needs of the people, creating new jobs and promoting the development of the national economy."
Now, Louis, one may argue that saying so does not make it so. But this is an officially adopted policy statement. It serves as a reference point to the complex debate of thousands of detail decisions faced daily by managers and officials. Most importantly, it lays out the socialist objectives of the CCP.
I don't think Castro will find much fault with this document. If you have contacts in Cuba, why do you ask him?
Henry C.K. Liu