Thomas P.M. Barnett takes a look at China’s evolution by crisis:
The best crises are the ones you hear about, because that means the international press got ahold of them. That’s important for several reasons.
First, those already affected or at risk get the information they need to protect themselves.
Second, once the problem is tracked back to China, Beijing’s put on public notice that whatever rule laxness exists over there simply cannot be tolerated anymore. In effect, China’s connectivity to the global economy is put at risk by threats of quarantine, bans on exports, cessation of investment flows and so on.
A generation ago, such threats would elicit yawns from China’s ruling elite, but now, with the Communist Party’s entire legitimacy riding on continuous economic expansion, they’re taken with utmost seriousness. For example, when SARS struck five years ago, Beijing’s initial reaction was the classic Soviet-style stonewalling, but when that posture backfired, unprecedented, transparency resulted.
With each crisis since, China’s transparency grows little by little, coupled with faster appropriate responses by the government.
I think there’s some basic competitive instinct that resists transparency which is unfortunate given it’s power to transform relationships and fuel innovation. When you close a system, usually out of habit rather than necessity, you’re probably not gaining the competitive advantage you seek. You may even cripple it although that my not be apparent until you’re faced with competition from someone who understands that openness usually wins.
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Thomas P.M. Barnett
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