Pragmatism

Pragmatism is essentially an American philosophical movement that has come to prominence

during the last hundred years. Pragmatism is a method of philosophy begun by Charles Sanders
Periec (1939-1914), popularized by William James (1842-1910) and associated with two other
major early representatives and John Dewey.
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Pragmatism is also called instrumentalism or functionalism because it impacts on "learning by
doing" or experimentalism due to "learning by experience". The word "pragma" was derived
from the Greek word which means "practice" or "action". Thus, pragmatism means activity, work
done or to make or to accomplish.
pragmatism

according to John Dewey " Philosophy in order to be philosophy should have meaning and utility
in the solution of human problems. It should be practical and useful in influencing the conduct of
life and not a passive enquiry or contemplation"

Chinese growth pragmatism and communism:

China's rapid gains in its economic growth in the last three decades have not only transformed the
Middle Kingdom's trading relations with the international community, but have also reshaped the
regional security landscape in Asia and begun to influence the geopolitical dynamics of the
world.

The strategic consequences of China's ascendance may be even harder for the West to manage for
three reasons:
First and foremost, despite its enormous progress in terms of economic reform and
modernization, China has maintained a distinctly authoritarian political system and its leaders
who have vowed never to adopt "Western style" democracy. The differences in ideological values
and political systems are a serious hurdle to the formation of genuine strategic partnerships
between China and the West, which consists exclusively of democracies. Beijing may welcome
Western capital and technology, but it decidedly rejects its political values. Thus, as long as
China remains under authoritarian rule, the country will maintain an unstable relation with the
West.

The second reason is that Beijing's worldview is unalterably ingrained in realism, which sees the
world as an anarchical place where states compete for power and influence and their security can
only be enhance through acquisition of power and influence.
In practical terms, China's realist tradition in foreign policy is expressed in its government's
approach to international institutions, which it views either as ineffective in solving the world's
real problems or as mere instruments of the powerful Western states in their pursuit of power and
influence.

The third reason that a resurgent China will present a difficult challenge to the west is Chinese
nationalism. A victim of Western imperialism, china has powerful memories of its recent
humiliation at the hands of foreign powers. The rise of the CCP was also inseparably associated
with Chinese nationalism. Indeed, the CCP has successfully created a mythology of china's recent
national history in which it has portrayed itself as the true champion of Chinese nationalism and
defender of Chinese national dignity and interests.

Thus, China must constantly struggle with and contain the three "demons" - authoritarianism,
realism, and nationalism - if it wants to become a genuinely responsible internationalist world
power and a dependable partner of the West.
Socialism:
Socialism can be defined as a type of society in which, at a minimum the bulk of the means of
production is under social, democratic control.
Socialist economy system means of production, distribution, and exchange be owned and
regulated by the community as a whole. In practice, that means it is owned and regulated by the
government.

 Both socialism and capitalism grant workers legal control of their labor power, but
socialism, unlike capitalism, requires that the bulk of the means of production workers use
to yield goods and services be under the effective control of workers themselves rather
than in the hands of the members of a different, capitalist class under whose direction they
must toil.
 Socialism is not equivalent to and is arguably in conflict with, statism (1) involves
expansion of social power - power based on the capacity to mobilize voluntary cooperation
and collective action - as distinct from state power - power based on the control of rule
making and rule enforcing over a territory - as well of economic power based on the
control of material resources.

Socialism with Chinese characteristics:

US journalist Joshua Cooper Ramo labeled the Beijing consensus.
 Socialism and capitalism are "peas in the same pod" because both require planning;
 Only difference between the two, Deng claimed, was that socialism relied on central
planning whereas capitalist planning was determined by market forces of supply and
demand. Since central and market planning were designed to influence economic outcome,
both are consistent with socialism.
 To achieve socialism, Deng hinted that China must go through capitalism. But its usage
must be controlled by the state.
 Consist with China's history and economic, political and social institutions.

There are two achievements in China’s political circles in adapting Marxism to conditions in
China: one is Mao Zedong Thought, including the theories of neo-democracy and socialism; the
other is the system of theories of socialism with Chinese characteristics, including Deng
Xiaoping Theory, Jiang Zemin Theory, and the Scientific Development concept. There have also
been a lot of theoretical developments in academic circles in the theory, method and practical
policies in Marxist economics, Marxist philosophy, Marxist politics, Marxist culture, Marxist
sociology and law, etc.
1. Socialism with Chinese characteristics insists on the guiding position of Marxism.
Marxism, as the scientific world outlook and methodology, is the theoretical foundation of
socialist movements, and ought to be put in the guiding position in the practices of
socialism with Chinese characteristics.

2. Socialism with Chinese characteristics insists on the primary position of public ownership of
the productive forces within the socialist market economy. China thinks that, the decisive
distinction in basic economic system between socialism and capitalism lies in the social structure
of ownership of the productive forces. It is also the foundation of the socialist superstructure,
such as governance by the Communist Party.

3. From the point of political system, socialism with Chinese characteristics insists on the
leadership of the Party of the working class. China insists on a “Trinity”, that is, organically
unifies the Party's leadership, the position of the people as masters of the country, and law-based
governance. China adheres to a “four-layers’ systems,” that is, it requires and improves the
system of people's congresses, the system of multiparty cooperation and political consultation
under the leadership of the CPC, the system of regional ethnic autonomy, and the system of self-
governance at the primary level of the society. All this is intended to promote continuous self-
improvement and development of the socialist political system.

4. From the point of international relationship, socialism with Chinese characteristics insists on
improving the harmonious development of the world. China’s theories and policies of
international relationship advocate true equality and mutual benefit, peaceful cooperation, and
purpose to improve the harmonious development of the world.

5. From the perspective of our ultimate goal, socialism with Chinese characteristics insists on
socialism and communism. China insists on sustainably developing the productive forces,
eliminating exploitation and polarization, achieving the socialist nature and principle of common
prosperity, and finally realizing communism based on the utmost development of the productive
forces. Certainly, this is a very long process of historical evolution and systematic innovation.

Communism

Communism is an economic system where the group owns the factors of production. In countries,
the government represents the group.

Capitalism:
  The term simply means the means of production is privately owned and controlled.
 People legally own their labor power. (here capitalism differs from slavery and feudalism
systems some individuals are entitled to control, whether completely or partially, the labor.

 Markets are the main mechanism allocating inputs and outputs of production and determ
productive surplus is used, including whether and how it is consumed or invested.

 There is a class division between capitalists and workers, involving specific relations
(bargaining, conflict or subordination) between those classes, and shaping the labor
market, broader political process.

 Production is primarily oriented to capital accumulation (i.e. economic production is pri

profit rather to the satisfaction of human needs).

Capitalism, allows individuals to own the industries that produce and distribute the goods
and services that the population requires. Workers, in turn, contribute their skills in return
for money to buy their share of those goods and services.

State Capitalism:

 China-style: private and public enterprise co-existed.

State-owned industries: Strategic industries like finance services, telecommunication,

transportation, energy, oil and gas/price were to be determined by the state/subsidizing energy,
public transportation and communication prices/per unit production costs would fall/party gain
popular support and showed they are socially responsible/ serves the interest of people.

 Giving people access to essential goods enhanced social stability and the party's popularity.
But there were also charges of widespread corruption and cronyism.

Private Capital: non-strategic industries like clothing/price determined by market that a way to
improve efficiency and competitiveness;

 Motivating through recognizing self-interest, taking risks and working hard that would
make money;
 Deng or his staff understood the market mechanism producing only the goods that they
could make a profit on at the prices that consumers were able and willing to pay;

 Offering consumers, the best prices and highest quality;

 Financial incentives for firms to lower the cost of production;

  Seven-worker rule Phus eight worker: Private enterprise Phus owner which consistent with
Maoism;

Authoritarianism:

Authoritarianism is a political system in which a small group of individuals exercises power over
the state without being constitutionally responsible to the public.

Public does not play a significant role selecting or removing leaders from office.

In authoritarianism system restrict people's in - liberties, freedom of speech and freedom of

assembly.

Chinese authoritarianism approach: a developing economy requires a "bivalent dictatorship"

more than Western-style democracy and its infant stage.

In the 1970s. the Indian economy was actually bigger than China's. Today the Chinese economy
is almost live times the size of India's. The East Asian economies serve as another example of
how authoritarianism transformed their economies and made them rich countries. Only after their
economies were semi or fully developed did the East Asian tigers and Japan adopt some
semblance of Western-style democracy. China may follow that tradition in that the leaders
recognize creativity and innovation thrive under democracy. Singapore, South Korea, Japan and
Taiwan are at the frontier of innovation and technological breakthroughs because of freedom of
expression and enterprise. The nurturing of creativity and innovation through education may
eventually lead to a more democratic civil society in China.

Experimentalism:

Did not story away from experimenting new ideas through is may not have been consistent with
socialism;

Famishing micro-economy
Korean war
The Korean War was the first major conflict following the end of World War II and the first war
of the Cold War between the United States and Soviet Union. It was fought between North Korea
and the South Korea throughout the early part of the 1950s. The north had the support of
communist allies including the Soviet Union and China, while the south had the support of the
west with the United States.

Causes of Korea War:

1. The main reason the United States got involved in Korea was the purpose of doing everything
possible to keep communism from spreading around world.
2. Japan loses WWII and has to give up control of Korea 1945;
3. Soviet and US divided Korea in half and set up temporary government;

On June 25, 1950, the Korean War began when some 75,000 soldiers from the North Korean
People’s Army poured across the 38th parallel, the boundary between the Soviet- backed Democratic
People’s Republic of Korea to the north and the pro-Western Republic of Korea to the south. This
invasion was the first military action of the Cold War. By July, American troops had entered the
war on South Korea’s behalf. As far as American officials were concerned, it was a war against
the forces of international communism itself. Finally, in July 1953, the Korean War came to an
end. In all, some 5 million soldiers and civilians lost their lives during the war. The Korean
peninsula is still divided today.

History of Korea war

 Korea Had been occupied by Japan;
 In 1945, the Empire of Japan surrenders to the Allies. According to the terms of Potsdam Declaration
Korea becomes independent;
 Then at Potsdam they decide to divide the Korea into Sphere of influence. The North is going to
be influenced by China and Soviet Union and the South is influenced by the US.
 South Korea created a franchise to raise money and funds to recover;
 In 1945 establishment of Peoples Republic of Korea with Yuh Woon-Hyung, but 1946 February, US
army breaks it and Yuh Woon Hyung is murdered;
 Then US-USSR joint commission on the formation of a Korean Government reaches an impasse. The
joint commission is dissolved a s the Cold War begins;
 In 1948 May, elections were held in South Korea;
 In 1949 the murder of Kim Gu. Kim Gu was a Korean independence activist who believed in, and
fought for a unified Korea. He strongly objected to the formation of a separate South Korea state. He was
shot in his home by a South Korean army lieutenant;
  In 1950 June the Koran War begins;
 1950 September, UN troops make an amphibious landing at Inchon;
 1950 November, Chinese Forces enter the war;
 1953 the Korean War is halted by the Korean armistice agreement that has remained in force until now;
 War lasted from 1950-53;
 North is easily winning the war early. Pushes the South Korans to Busan and the Southern
Part of Peninsula, capturing Seoul the capital of South Korea along the way.
 UN/US send General Douglas MacTuthur from Japan to Korea to save South Korea.
 In the war 54000 US soldiers die and 5 million of Koreans;
 Truman is concerned that China will get involved leading to WWII;

The Korean War Reaches a Stalemate

In July 1951, President Truman and his new military commanders started peace talks at
Panmunjom. Still, the fighting continued along the 38th parallel as negotiations stalled. Both sides
were willing to accept a ceasefire that maintained the 38th parallel boundary, but they could not agree
on whether prisoners of war should be forcibly “repatriated.” (The Chinese and the North
Koreans said yes; the United States said no.) Finally, after more than two years of negotiations,
the adversaries signed an armistice on July 27, 1953. The agreement allowed the POWs to stay where
they liked; drew a new boundary near the 38th parallel that gave South Korea an extra 1,500 square miles of
territory; and created a 2-mile-wide “demilitarized zone” that still exists today.

Result of Korean war:

 North Korea becomes isolated- Communist country. Very poor, no one in, no one out.

 South Korea becomes a very successful capitalist free enterprise county with a successful economy.

 Today South Korea is a major trading partner of ours and we have troops there still today.

 Great example of how capitalism is better than communism. must have competition to have success.
East Asian Miracle:

Introduction:
The rise of Asia was a transforming event of the economic and political history of the second half
of the twentieth century. The most important are the High Performing Asian Economies (HPAEs)
- Japan, Hong Kong, Korea, Singapore, Taiwan, China, Indonesia, Malaysia, Thailand.

Many Asian economies have shared in the success (Figure 2): first Japan; then the tigers, South
Korea, Singapore, Hong Kong, and Taiwan, China; then the new industrializing economies,
Thailand, Malaysia and Indonesia; and most recently and dramatically China.
India looks set to be next. All East Asian economies have achieved historically exceptional rates
of growth for at least two decades and often much longer. Over the last forty years, Korea has
been one of the most impressive performers in this remarkable group.  These growth rates have
inevitably increased the relative weights of the East Asian economies in the global economy
(Figure 3). For instance, Korea expanded its share of global income more than four and a half
times. Similarly, the share of East Asian countries in global trade has increased, from 14.1% in
1953 to 24.1% in 2002.
Causes of the miracle: public policy and economic growth:
Public policy (World Bank Report)
 Rapid accumulation (of human and physical capital);
 Developing human capital
Primary and secondary education was emphasized;
Female literacy --> more workers, lower fertility rates;

 Creating effective and secure financial systems:

 Promoted by the integrity and accessibility of postal banks;

 Increased investment:
 Investment-friendly environment; creating infrastructure;
 Easy credit through "financial repression"
 Efficient allocation of capital:
 Letting markets work; flexible labour markets;
 Governments less responsive to organized labour;
 Productivity driven wage rise, even downward;
 No minimum wage;

 Most subsidy small, but a signal to capital markets;

 Technology catch up and high productivity:
 Actively seeking foreign technology;
 Industrial policy promoted high tech sectors;
 Encouraging exports;
 Other special features of East Asian growth:
 The principle of shared growth;
  Macroeconomic stability;
 Cooperative competition (led by technocratic elite);
 Business-friendly environment, led by private investment;
 State interventions addressed market failures;
 Allocated by "contests"

Economic history of Asian tigers:

Four countries are known as Asian tigers achieve country's are located in East Asia as Korea,
Singapore, Hon Kong and Taiwan.

1. The Asian tigers were notable for maintaining extremely high growth rates and rapid
industrialization between the early 1960s and 1990s by the 21th century all four countries
developed into advanced and high-income economies.
2. Hong Kong and Singapore have become world leading international financial centers, while
South Korea and Taiwan are world readers in manufacturing information technology equipment.