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China today is largely a communist state. It is governed by the Chinese Communist party and maintains a unitary system of Government i.e. Being a one party state and after it won the civil war in the year 1949 and it entrenched the power of Governance in the constitution of the Chinese Independent Republic. The war was between the Chinese Communist party and the National Party of China, which was for the sole purpose of control of the Governance of China based on the different ideologies that each of the party held. This in return led to the division of the Chinese republic into two i.e. the main Republic of China and the one country of Taiwan. It is not very clear as to what led to the cessation of the war in the early 1950s since there was a voluntary military cease fire in regards to the hostilities that both sides were showing or had shown to each other and hence the split.
The Communist party came into power with different ideologies that in the opinion of the party addressed the issues that affected the people even though the reality on the ground showed that the policies were to favor those that were in the upper echelons of power unlike the common citizens of the country. They came up with policies that would be instrumental in the growth of the main land China Republic on paper but were not actually implemented. They borrowed so much for the Economics of Karl Marx whereby they had a socialist market in a socialist economy. The economic ideology and policies were therefore formulated by the Central planning department of the then Chinese Government.
The economy was largely tailor-made to be a strict hierarchy and behaved to serve the concerns of a few people as earlier mentioned. The Government was characterized by a bloated cabinet that mostly concentrated on expanding their territories and did not want to take the fault for the inefficiencies that were experienced in Government. The top party office holders were not vetted and normally held big government positions despite their failure to perform in earlier portfolios held. The taxes were misappropriated and went against the very principle of tax collection that sought to assist Government offer services to the people and also serve as a means to bridge the gap between the rich and the poor.
However, in addition to this, appointments were made in return for the appointees to benefit from revenue collected from the masses and the rest to benefit the superiors that facilitated the appointment. Corruption was also entrenched in the Commerce industry whereby if one wanted to establish a business one had to pass through many bureaucracies of which of each one had to part with a bribe to get the required license. This curtailed establishment of businesses in the country since if one wasn't able to part with a little bit more in form of bribes then one wouldn't be in a position to start the business.
In addition, there was avoidance of payment of Government taxes and this denied government the much needed revenue since bribes were normally given to facilitate the default of tax payment and thus basic facilities to be provided to the people of China was made difficult or impossible at the very least. The result of all this inefficiencies resulted to the emergence of citizens of the second class who were known as the victims of the "Hukou" system who struggled to access the basic services of education and health amongst other services. Since the system was continuous it was inherited by, subsequent generations who continued to go through the same predicaments including those who migrated to the Urban centers in search for a better life and were also faced with the challenges of getting legitimacy due to the requirement of obtaining residential permits in Beijing.
The Nationalist Party that took over Taiwan up to 1970 and had far reaching economic and political benefits as compared to their mainland counterparts. The policies that the Nationalist Party implemented included Land reforms, enabling growth of the economy and having an independent Government for the people in the lower echelons of society. This was characterized by policies that partly discouraged capitalism through introduction of punitive regulations towards those that had succeeded using capitalism and this sought to discourage this culture in the country. It was a case of preaching water and drinking wine in that they discouraged communism in public but behind the scenes they sought to encourage it. An example of this was the levy of the single tax .It was based on the argument that having a communal economic system.
I can deliver quality work at a cheaper price. Land being a component of production, productivity from it should be taxed and the proceeds obtained should be used to enable the improvement society. In addition, it was argued that a tax on land amounted to a tax on wealth and therefore sought to bridge between the gap of the rich and the poor. In addition to this, the Government had dedicated its effort to fight for the poor and therefore since the capitalist policies were supported by the western powers, this seemed to put off Chiang and this fuelled his efforts to fight even more for their cause. The system therefore worked more to decentralize the wealth from the rich and awarding the poor who were mostly peasant farmers of the Chinese origin both industrial autonomy and title to land thus answering the question that has been asked that China would be different since the Nationalist Party would not have allowed the system that was in the mainland China and by chance would there have a few individuals who had gotten wealth through corruption which its self a capitalist policy then the resources would have been disbursed to the poor as it was the case in Taiwan. This was characterized by prudent management of taxes and provision of essential commodities to the poor in form of education and health, since the Government described the 4 main pillars that defined basic livelihood, being food, shelter, clothing education, health and transportation.
From our earlier discussion, the mainland China Communist Party preached communism but in real sense practiced capitalism by promotion of self-interest behaviors and a Government plagued by rampant corruption. In the Taiwan, the Kuomintang preached capitalism but in the real sense practiced communism .It would be important to note that Chiang practiced strict discipline and therefore there was relatively more prudent management My reach is jamesmacharia five thirty nine at gmail, illegal and my managers cannot find out, delete as soon as you read it off the radar win, win for both of us respond as soon as you read this of public funds
This was characterized by the nationalization of corporations to be Government owned and the formulation and implementation of economic ideas that were geared towards this form of economic governance. An example would be that taxes from natural resources apart from land would be re-invested in public utilities such as roads, public educational facilities, forests of which the taxes would then be used in the empowerment of the local population which in turn would lead to the overall, development of the economy. If these policies had been applied in the main land China together with the strict discipline which was described as one of the most efficient by a renowned American advisor and an economic scholar, then probably we would have a turnaround in the economy.
It would be important unlike the main land China, where Government officials were elected on the mere basis of political patronage, in Taiwan, elections were held and the democratically elected leaders took over power and therefore represented fully the interests of their electorates. Kuomintang advocated for a hybrid system whereby they would not do away fully with the capitalist, but rather there would be a hybrid system. This system has been a success and has made Taiwan to be an economic giant in Asia together with the mainland China.
It was characterized by introduction of a national educational curriculum, establishing of facilities that were meant for recreation and intellectual intercourse to advance the anti-communism agenda in an effort to promote capitalism at that breath. In addition, the country developed linkages with countries practicing capitalism such as America with linkages with American Universities on courses such as engineering and commerce. This has eventually led to trade liberalization and the opening of the Taiwan economy to the world given the fruitful harmonization of both the communist and capitalist policies.
Despite the economic gains that the Nationalist party has brought forth to the People of Taiwan, the Government due to its strictness and also the part promotion of capitalist policies has led to some cases of financial mismanagement whereby it was one of the richest political parties with transactions that were not publicly disclosed to the public but by the elections held in 2004 there was no evidence as to illegally held assets within its portfolio of assets. There are also cases of its top officers being involved in corruption, a case in point being in 2005 one of the contestants who was chairman was convicted for the embezzlement of funds and was forced to resign. The embezzlement occurred when he held another position of Mayor before he run for chairman.