Enlarging the Middle Class

China is a country still very much in the process of transitioning from a traditional polity to a democratic one. To ensure this transition is a smooth one, the country needs to deal with three important relationships: the relationship between labor and business, between central and local governments, and between the State and society. The three relationships are intertwined with each other a problem in any one area can lead to serious issues in the others.

Unfortunately, most advocates of political reform in China focus their attention primarily on the relationship between the State and society. However, neglecting to balance the three may lead to political chaos, jeopardizing the very democratization process itself.

For example, if the majority of a population has not reached consensus over its future path, a hazy decentralization of power from central to local government may lead to division of the country. Also, the experiences of other countries show that without realizing a certain level of prosperity for the majority of the population, the rapid rise of populism can lead to radical movements which bring political chaos. Moreover, rapid democratization in a country with a wide income gap may not only perpetuate existing social stratification, but also result in a pseudo-democracy, oligarchical in structure.

Given China’s vast size, cultural diversity, widening income gap and polarization of political opinion in recent years, we must be aware of the prospect of such dangers when pushing forward political reforms. These are not “necessary price of democracy” or“worthwhile sacrifices,” as some radical democracy advocates may argue. To achieve a successful transition toward democracy, China must find the right formula.

An effective way of overcoming these problems is to enlarge China’s middle class. There has long been a consensus that the existence of a large middle class is essential to a country’s democratization, with both aspiration for meaningful change and desire for stability preventing the rapid rise of populist movements.

Unfortunately, despite decades of economic growth, China’s middle class has not yet fully developed. Although there are a large number of people with medium-level incomes, they have yet to form a shared middle class identity and values, which has forestalled them from fully cementing their influence. For China to continue its transition toward democracy, it must endeavor to enlarge its middle class.

In addition to many widely acknowledged measures, such as reducing taxes, rebalancing income distribution, creating a fairer society, and encouraging greater civil participation in social and cultural affairs, China should also include the often neglected rural areas when promoting the middle class.

Currently, the majority of China’s vast rural population have low living standards compared to urban residents, and are categorically excluded from the middle class. The Chinese government should center its rural policy around increasing agricultural productivity by pushing forward urbanization, China can turn peasants into farmers. With farmers engaging in more efficient agricultural production, a large proportion of the rural population will join the middle class, and in the meantime, increased agricultural productivity will help to both stabilize food prices and address food security issues.

Only when the middle class becomes the dominant social group in both rural and urban society, can China achieve a smooth transition into a modern, democratic country.