By Herman Tiu Laurel

 

There are two lessons for Filipinos and the Philippines from the Third Plenum of the 20th CPC Central Committee, the first is how serious national econ-political-social is properly done. This includes the requisite political system that guarantees its effectiveness and success.

Second, the insights, prospects and actionable responses for the Philippines in the coming five years, to take advantage of the World’s emerging top economy for the rest of the 21st Century, to benefit from its technological-market developments and opportunities.

                The 3rd Plenum of the CPCCC meetings have become legendary ever since the People’s Republic of China (PRoC) demonstrated the effectiveness and success of its wholistic democratic system in the 75 Years of China’s socialist revolution.

China transitioned to the socialist-market economy since the 3rd plenum of its 11th CPC Central Committee in 1978. All of forty-six years later every quinquennial third plenum is eagerly awaited by the world to read what China has in store for the global developments.

This year’s third plenum holds even more meaning as China ushers in changes “not seen in a hundred years” and the world community transitions from the Western dominated unipolar world to the truly global multipolar world.

Wholistic or whole process democracy

                China’s wholistic democratic system is at the core of its success, consisting of an ideologically-intellectually guided political party and leadership. It is unlike the Western electoral-liberal model with parties that are moved primordially by the profit motive and uses liberal ideological-intellectualism as fig leaf.

The spirit of China’s democracy is genuinely dedicated to the People while the Western democracies have the anima solely for financial gain of a plutocracy. This fundamental difference is the reason for the China’s effectiveness in achieving People’s Prosperity vs. the failure of the Western liberal-electoral system.

                China’s success in achieving its People’s Prosperity in the historically unprecedented short span of 75-years may be expected to be replicated on the global scale in a similarly short period of time if lessons from China can applied in a Multipolar world of democracies allowed to evolve freely.

3rd Plenum, 20th CPCCC

                Focusing on the just concluded 3rd Plenum of the 20th CPCCC we note that its four-day discussion centers on key reforms and goal setting in internal and economic governance and development.

                The resounding words from the 3rd Plenum of the 20th CPC CC are “further deepen reform.” “high-quality economic development,” “All-around innovation,” and “New Era.” But it concluding output, its communique, contains a myriad of details that makes it a truly practical program of action.

It focuses on policy directions and implementing program for the next five years to be completed by 2029 when the PRoC marks the 80th anniversary of its founding. It calls for improving the management and supervision of state-owned enterprises to enhance core functions.

It promotes private economy with laws boosting the private economy, reduce market access barriers and open major national projects to private sector participation, and support private initiative that can lead in technological breakthroughs.

Push “revolutionary technological breakthroughs” in strategic industries such as artificial intelligence, aerospace, new energy, new materials, biomedicine and quantum technology. Encourage venture capital and private equity funds to these sectors.

Encourage talent-attraction policies, including more open immigration, and developing domestic scientists, engineers and innovators with a focus on scientific research. This is something the Philippines should study closely given the potential for our growing young talent pool in the country.

Foreign investors rights protection and expanded list of industries open to foreign investment, in telecommunications, education and healthcare. Loosen restrictions on foreign investment access in the manufacturing sector.

It deals with local tax issues, expanding local tax sources and granting greater authority for local tax management. It sets its goals for the housing system that promotes both renting and purchasing, and boost the construction and supply of affordable housing.

It calls for improving the country’s income distribution system and wealth accumulation mechanism. This is something our country should be spending more effort in reforming to emulate the good points of China’s wealth distribution initiatives.

The Anxious West

                Looking at the reactions of the West as expressed by its mainstream media, the anxieties are obvious as China is taking the right path to greater self-sufficiency in technology and innovation. Hardly reassuring for the Western competitive impulse seeking to impose trade wars.

                China’s stronger internally and, thereby, preparing for whatever external shock the West may be seeking to impose on it. On the other hand, this is good news for the for the Global Majority for China serves as the counterbalance to Western pressures on the emerging economies.

Philippines’ prospects in “de-escalation” mode.

                The past one-and-a-half years of deteriorating Philippine-China relations may have finally turned the corner and the recent “2nd de-escalation” may indeed have a longer life and hopes for permanence. If that is so then, prospects of the Philippines restoring its economic future with the engine of growth of the 21st Century is restored.

                There is still a great deal of struggle to do to shake off the yoke of US domination of the country but we should now begin, and the first goal after the de-escalation holds firm is the revival of the H-China Oil and Gas Joint Venture in the Reed, or Recto, Bank.

                Other vital infrastructure projects must be resumed, such as the revival of the Bicol Express and the launching of the 1,100 Km. Mindanao Circumferential Railway. Current projects such as the Kaliwa Dam should be facilitated and accelerated. These are just examples of hundreds of major infrastructure, industrial and economic projects that must be revived.

   

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