Chinism and the Irreversibility of Globalization: Implications for Global Governance

Abstract

Global governance trends from an East European perspective are the focal point of this analysis. The study suggests that in the future, none of the world's great problems can be solved without China. Irreversible globalization requires proper reinstitutionalization of global governance, which cannot happen without China's active participation. Understanding China will be key. The author coined the term 'Chinism' to advance understanding and he defines Chinism as a syncretic economic system based on multiple forms of ownership with strong macroeconomic policies and limited government control. Under this system, deregulation is subordinated to maintaining enterprises' activities on a course that is in line with the social and political goals set by the Communist Party of China. The policy of the government and the central bank, and to a lesser extent local authorities, use classic instruments of market intervention. At the same time, Chinism has helped eliminate shortages and effectively keeps price inflation in check. This is a feat none of the former models of state socialism, including the Soviet Union and CEE economies, were able to accomplish, which was the main reason behind their economic and, consequently, political demise. Keywords Global governance trends from an East European perspective • Irreversible globalization • Reinstitutionalization of global governance • Chinism as a syncretic economic system • Classic instruments of market intervention •