Norway is often celebrated as a rich, democratic, and socially just country. Yet, beneath the surface, many citizens feel economic pressure, high stress, and limited freedom. Meanwhile, countries like Dubai and even authoritarian regimes like China sometimes achieve outcomes that appear more “effective” for their people. This article explores the intricate relationships between wealth, freedom, democracy, innovation, and happiness, and why Norway’s oil and gas revenues are both a blessing and a constraint.
The Housing Market: Who Really Controls Prices?
In Norway, the housing market is described as “superheated,” yet homebuyers ultimately decide prices through bidding wars. The real superstars among the best entrepreneurs are the superheroes called “Real Estate Agents.” They often justify high commissions by claiming they can maximize the seller’s price, but in practice, a desirable location alone drives up bids.
Are real estate agents really working for the people? No, they are working for the seller so the people need to buy as much as possible. Are politicians on the people`s side? No.
The fact is that politicians, not buyers or agents, have the true power to influence the market through zoning, building approvals, and regulations, yet often they are not on the people’s side. What democracy is that?
Contrast with China: Are the communists in China on the people`s side? Yes. China’s government directly builds massive cities to increase housing supply, effectively controlling availability. Result: demand is met faster, homes are more accessible, and prices stabilize.
Key Insight: Democracy on paper does not guarantee results for citizens if politicians fail to act effectively.
Democracy vs Results
Democracy is often measured by free elections and political rights, but these do not guarantee that citizens get what they want. Examples in Norway:
Road tolls (bompenger) implemented despite public opposition. The people doesn`t want it, but politicians do not listen to the people.
High taxes and property regulations limiting economic freedom. The people doesn`t want high taxes, but politicians do not listen to the people. Hundreds of rich people are fleeing rich countries like Norway. They move to Dubai and Switzerland.
In China, the government may act efficiently to provide outcomes like housing, but citizens have little direct influence. Observation: Norway excels in democratic process, while China sometimes outperforms in results, at least in targeted areas.
Freedom, Wealth, and Economic Dynamism
If citizens have access to affordable housing, low taxes, and minimal fees:
They retain more disposable income
They spend more, boosting businesses
High consumption attracts talent, entrepreneurship, and innovation
This creates a self-reinforcing cycle: wealth → consumption → business growth → jobs → higher wages → innovation → productivity → more wealth.
Contrast with Norway:
High housing costs, taxes, and fees suppress consumption and slow economic growth.
Oil and gas revenues act as a safety net, allowing citizens to live comfortably without driving productivity or innovation in many sectors.
Key Insight: Norway has wealth and stability, but its reliance on oil reduces the pressure to innovate. A luxury few countries can afford.
Socialist Policies vs Individual Freedom
Norwegian socialists often prioritize redistribution and state control to ensure equality. However, this can limit the economic potential of individuals and reduce incentives for innovation.
Contrast with Dubai:
Low or zero income tax
Citizens retain wealth and spend freely
Government collects revenue via targeted consumption taxes
Result: citizens enjoy wealth and freedom, while the state still funds infrastructure and public services. Strategic taxation allows both individual prosperity and state revenue, without stifling innovation or happiness. A lot of rich people in socialist countries are moving to Dubai now.
They`re doing it because of the great zero tax system, but also for happiness.
Oil, Innovation, and Norway’s Advantage
Norway’s wealth is largely underpinned by oil and gas revenues, which act as an economic shield. This allows:
High living standards
Collaboration with neighboring countries without the fear of losing competitiveness
Reduced pressure to innovate, because the country is already rich
Consequence: Norway can enjoy the best of both worlds; resources and stability, while still pursuing innovation in selected sectors, without risking national survival. Most citizens may not even realize this structural advantage.
Norway’s wealth is partly supported by extraordinary revenues from oil and gas. This has allowed the country to build a strong welfare system and maintain high living standards. However, it also raises an important question: how dynamic would the broader economy be without this resource advantage?
Wealth vs Happiness
Norway is wealthy on paper, but high stress, depression, and widespread use of medications like painkillers and antidepressants indicate that wealth alone does not create happiness.
Dubai and other low-tax, high-freedom societies show that wealth combined with economic freedom produces higher perceived happiness, especially for those who can thrive in the system.
Conclusion: Happiness requires both resources and freedom, not just wealth or social safety nets.
The Snowball Effect: How Freedom Drives Growth
Free citizens with disposable income → high consumption → thriving businesses → more jobs → innovation → higher productivity → increased wealth.
Contrast with Norway: Regulatory and tax pressures slow this cycle, suppressing growth and individual wealth, even though oil and gas keep the country rich.
Snowball model:
Lower taxes / affordable housing
↓
More disposable income
↓
Higher investment and entrepreneurship
↓
Innovation and new technology
↓
Higher productivity
↓
More goods and services produced
↓
Economic growth WITHOUT strong inflation
Final Thought: Norway’s Paradox
Norway is rich, democratic, and socially advanced, yet citizens often feel economically constrained. Its oil and gas revenues provide comfort, stability, and collaboration opportunities, but also reduce the need for widespread innovation.
True prosperity and happiness require not just wealth, but freedom, opportunity, and the courage to innovate. Norway may have the resources to be free and happy, but the question remains: will its citizens feel the pressure to truly flourish before the oil runs out?
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee the accuracy of this information. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Artificial intelligence is advancing so fast that some economists, technologists, and futurists believe we are heading toward a historic breaking point. Predictions range from 300 million jobs being automated to AI systems replacing everything from lawyers and teachers to software developers and journalists.
This raises a fundamental question:
If AI takes over most labor, where will people get money from, and can capitalism survive?
Interestingly, this debate echoes ideas written more than 150 years ago by Karl Marx, who warned that capitalism might ultimately be undermined by its own technological progress. Today, his predictions are being pulled back into the spotlight.
This article breaks down what Marx said, what AI is doing, and what the future of labor, and money, might look like.
1. What Marx Actually Predicted
Karl Marx believed capitalism had a built-in conflict: the drive to replace human workers with machines.
He argued two key points:
A) The “Tendency of the Rate of Profit to Fall”
Marx said that profit comes from human labor. But capitalists constantly try to replace human labor with machines because machines:
don’t get tired
don’t strike
don’t demand wages or rights
The more companies automate, the fewer workers they need.
But the paradox is:
If you replace too many workers, you remove the source of profit — human labor.
This, Marx believed, would eventually destabilize capitalism from within.
B) Automation makes workers “superfluous”
Marx predicted a future where technology becomes so advanced that:
masses of workers become unnecessary
unemployment grows
inequality rises
social tensions explode
For most of history, this sounded theoretical. Today, with AI able to perform cognitive work, Marx suddenly feels more contemporary than ever.
2. The AI Shock: Why This Time Is Different
In the past, automation replaced muscle:
factory robots
tractors
machinery
Those technologies eliminated many physical jobs but created others.
AI replaces the brain:
analysts
accountants
teachers
programmers
designers
writers
marketers
customer support
even medical diagnosis
White-collar workers, once considered “safe”, are now at risk.
Reports from groups like Goldman Sachs estimate that 300–800 million jobs worldwide could be automated in the coming years.
For capitalism, this is enormous. Capitalism is built on two pillars:
Labor → creates value
Wages → let people buy things
If AI replaces too much labor, wages disappear, and the system loses its customers.
This is what worries economists.
3. The Core Economic Problem: No Jobs = No Money = No Capitalism
Here’s the simple logic:
Companies automate work → fewer workers
Fewer workers → less income
Less income → less spending
Less spending → companies lose customers
Companies lose customers → profits fall
Profits fall → economic system breaks
Capitalism needs consumers. Consumers need wages. Wages come from labor. Labor is disappearing.
This is the exact contradiction Marx warned about.
4. What Happens to Society if AI Wipes Out Jobs?
Three major scenarios are being discussed in global economic circles:
A) Capitalism survives but transforms
Governments introduce:
Universal Basic Income (UBI)
AI and robot taxes
redistribution policies
national “AI wealth funds”
profit-sharing models
This keeps consumers alive even without traditional jobs.
B) Extreme inequality + political instability
If nothing is done:
wealth concentrates into a few tech giants
middle class collapses
consumer markets shrink
social unrest rises
governments face pressure for reform or revolution
This is the scenario many analysts fear.
C) A transition to “post-capitalism”
This idea doesn’t mean communism. Instead, it means a system where:
machines produce most wealth
humans work less or not at all
value is redistributed through society
the wage-labor system becomes obsolete
Some predict a peaceful shift. Others see a turbulent transition.
5. Will New Jobs Replace the Old Ones?
Historically, technological revolutions created more jobs than they destroyed.
But AI is different for three reasons:
It automates thinking, not just physical effort
New jobs may require skills most people don’t have
AI learns faster than humans can retrain
For the first time, technology is competing with humans in creativity, reasoning, and decision-making.
This makes the future less predictable than any previous industrial revolution.
6. Will AI Destroy Capitalism?
There are three main schools of thought:
1) AI will reshape capitalism, not kill it
The system adapts by creating safety nets like UBI, or by shifting focus to new industries.
2) AI will create “hyper-capitalism”
A handful of mega-corporations control all the AI models and extract enormous profits, leading to an extreme concentration of power.
3) AI will push us beyond capitalism
If machines produce nearly all value, the traditional logic of:
work → wages → consumption
falls apart.
In that case, capitalism as we know it would need to evolve or be replaced.
7. The Short Answer
If AI eliminates hundreds of millions of jobs and nothing is done, capitalism collapses because consumers vanish.
If governments and companies adapt, we enter a new economic era. Perhaps capitalism 2.0.
Marx didn’t predict AI, but he did predict the danger of a system that depends on labor while simultaneously trying to eliminate it. That contradiction is now the central question of the coming decade.
In the end, nobody truly knows where this collision between AI, labor, and capitalism will lead. Some predict unprecedented prosperity, others foresee economic collapse, and many warn that the transition itself may be chaotic.
Even politicians in several countries have started telling people to “buckle up,” hinting that families should keep basic supplies like food and water on hand. Not because disaster is guaranteed, but because the pace of disruption is now faster than society’s ability to adapt.
One thing is sure: we are crossing a threshold into unknown territory, where the old rules may no longer apply. The question is not whether change is coming, but how prepared we are for the world on the other side.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee the accuracy of this information. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Zohran Mamdani is the next New York City Mayor. He is a muslim, anti-Trump, Anti-capitalist, and will make free buses for the people in New York. At the same time, he will tax the rich. Trump moved out of New York long ago. So do many other wealthy people in New York.
Not only that. More than 1 million Orthodox Jews have escaped New York. Maybe we will see more jews escape New York as a muslim is their new Mayor. Time will show. But, there is no doubt; A massive storm is coming! Put your steel helmet on and fasten your seatbelt.
On the other hand, what we see today is not something new. This is how the system works. It goes, and then it goes down again, and again, and again. The crisis in New York has nothing to do with the Mayor. This is happening all over in the West. It is the system. Not the Mayor.
The Returning Storm: Capitalism’s Crisis & the Echoes of 1848
We hear it again and again: that the system is failing large numbers of people. The working class is struggling, costs are skyrocketing, and the ladder of opportunity seems broken. That’s why many vote for socialists: they look at the system not as a solution, but as the problem. But why does capitalism still persist when it doesn’t work for everyone?
Karl Marx saw it clearly: capitalism is built on the exploitation of workers (the proletariat) by those who own and control the means of production (the bourgeoisie). The extraction of surplus value, alienation of labour, cycles of boom and bust, and rising inequality. He argued that all of it spells eventual collapse, ushering in a socialist revolution.
Maybe what we’re witnessing now is not a violent revolution with barricades and guillotines, but a democratic and social one: a shift in consciousness, a call for new economic arrangements.
A Story That Shows What’s Wrong
Imagine an old woman in Spain who has lived in her apartment for seventy years. Her home is her past, her memories, her identity. Now, an American hedge fund buys the building. Her rent shoots up far beyond what her pension covers. She’s told: “Move out or pay the price.”
What kind of capitalism is this? Where the place you’ve lived your entire life, the neighbourhood you know, becomes a profit asset to someone else, and you, the tenant, are simply a cost-to-be-cut or revenue-to-be-raised.
This isn’t small-scale displacement; it’s systemic.
According to research, private equity firms now own a significant share of the U.S. housing stock, and their business model often involves raising rents, cutting maintenance, and treating homes as profit centres.
When individuals who’ve paid their dues, who’ve worked and saved, are pushed aside so someone else can “monetize” their roof, the legitimacy of the system is damaged.
1848 and the Warning from History
Nine years ago, I wrote an article about the French Revolution, and I need to get back to that story once again. Back in February 1848 in France, the blueprint of revolt was laid bare. The monarchy of Louis Philippe, once hailed as a “Citizen King,” had drifted away from the people. Wages collapsed, food prices soared, and despair turned to anger. When the government repressed the protests, Paris erupted in barricades. The king fled, and a second French Republic was proclaimed.
The lesson is clear: when a system fails the many and protects the few, the many find a voice. When inequality is visible, persistent, and reinforced by institutions that claim neutrality, resistance builds. The revolution of 1848 was not just about a king dying. It was about legitimacy dissolving.
So, Why Do We Still Have Capitalism?
Because it works. For some. Because markets deliver dynamism, innovation, and wealth. If measured for the few. Because institutions decide the rules and often shield the winners. Because alternatives are messy, unproven, and intimidating for those who benefit now.
Yet the crisis is also structural. The logic of profit demands cost-cutting, evictions, rent hikes, financialization of housing, and commodification of basic needs. When a woman who’s lived somewhere for 70 years is priced out overnight, that’s not a bug. It’s a feature of the system.
Are We on the Edge of a New Revolution?
Perhaps. Not in the storm-and-fury sense, but in the long, accumulating demand for change. When politicians like Zohran Mamdani win with promises of free buses, rent freezes, and groceries for all, the message is: the old order is brittle. The working class has been squeezed too long. The vote is a signal.
But the storm won’t vanish just with promises. The funding model matters. The rents, taxes, business flight, and investment flows. All these determine whether change can be real or become another wave of disappointment.
The Elderly Woman and the Bigger Question
When you see her story. 70 years of life, on a fixed income, facing eviction because of global capital chasing returns, you understand what’s at stake. It’s not just housing. It’s dignity. It’s the promise of stability. It’s the belief that society isn’t only for the rich.
And when capitalism no longer delivers that promise for large swathes of people, then the logic of Marx begins to look less like ideology and more like prophecy.
In 1848 they overthrew a king. In 2025 they may overthrow the illusion. The illusion that capitalism still works for everyone.
The storm is coming
It might be messy. It might be uncomfortable. But history shows us that when systems stop working for most people, change happens. So ask yourself:
Are we watching the death of the promise of capitalism as we knew it? Or are we witnessing its evolution — into something fairer, more inclusive, more human?
Closing thought
In 1848, they forced the king to abdicate. Today, maybe we don’t need to kill a king. We need to kill the illusion that this system works for everyone. Change isn’t coming tomorrow. It’s already knocking at the door.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee the accuracy of this information. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
The Korean Peninsula was inhabited as early as the Lower Paleolithic period. Its first kingdom was noted in Chinese records in the early 7th century BCE. The succeeding Korean Empire (1897 – 1910) was annexed in 1910 into the Empire of Japan.
Japanese rule ended following Japan`s surrender in World War II, after which Korea was divided into two zones: a northern zone, which was occupied by the Soviet Union, and a southern zone, which was occupied by the United States.
After negotiations on reunification failed, the southern zone became the Republic of Korea in August 1948, while the northern zone became the communist Democratic People`s Republic of Korea the following month.
In 1950, a North Korean invasion began the Korean War, which ended in 1953 after extensive fighting involving the American-led United Nations Command and the People`s Volunteer Army from China with Soviet assistance.
The war left 3 million Koreans dead and the economy in ruins.
The May 16 coup of 1961 led by Park Chung Hee put an end to the Second Republic, signaling the start of the Third Republic in 1963.
South Korea`s devastated economy began to soar under Park`s leadership, recording one of the fastest rises in average GDP per capita.
Despite lacking natural resources, the nation rapidly developed to become one of the Four Asian Tigers based on international trade and economic globalization, integrating itself within the world economy with export-oriented industrialization.
The Fourth Republic was established after the October Restoration of 1972, in which Park wielded absolute power.
The Yushin Constitution declared that the president could suspend basic human rights, and appoint a third of the parliament.
Suppression of the opposition and human rights abuse by the government became more severe in this period
South Korea has since then had a huge economic success. They have big companies like Samsung (which is the biggest company in South Korea), LG Energy Solution, Hyundai, and Kia to name a few.
On top of that, they also have BTS which is a boyband from South Korea. According to the Hyundai Research Institute, BTS was estimated to generate around $3,6 billion annually for the South Korean economy.
In some years, their direct and indirect contribution has been as high as $4,6 billion, which is comparable to major multinational corporations. BTS has been estimated to contribute around 0,3% to 0,5% of South Korea`s GDP in recent years.
This is a remarkable figure for a single music group, considering the country`s GDP was around $1,63 trillion in 2020.
South Korea`s economic success is well known all around the world, and they has become an economic powerhouse. But right now, it seems like their economic model is running out of steam. The economy has been slowing for years. It has basically stopped.
The economy in South Korea is on the way to be like Japan. What in the world is going on?
It all started in the 1950`s. Their economic growth was 10%, and it reached the top in the 1980`s. Then it began to slow. Growth in the 90`s declined to around 7%. Ten years later, the growth went down to 4%. In 2010, their growth was only 3%.
But something has happened in the last five years. The growth has been slowing year by year. This is what’s happening with the economy as they get richer. It happens in all rich countries. But, in South Korea, it seems like this is not temporary. It seems to be a new normal.
Bank of Kora (BOK) has warned that South Korea`s economy may enter negative territory in the next decade. The country is on a declining trajectory. Unless this is going to change, the next generation will be worse off than their parents.
But, how is it possible that a successful country like South Korea with so many high-tech companies can decline like this? Well, it has its own explanation. We need to look at their economic model, and how it came to be, and how it operates today.
The core of the South Korean economy is made up of something called «Chaebols». «Chae» stands for wealth or property, while «Bol» stands for clan or group.
«Chaebols» refers to large, family-owned business conglomerates in South Korea that wield significant influence over the country`s economy.
The influence of chaebols is often cited as a contributing factor to some of South Korea`s economic challenges, but they are not the sole reason for any economic decline. Several factors, including chaebols’ dominance, are at play when examining South Korea`s economic issues.
This is what we see in the U.S., but also in many other places in the West. They blame big corporations, wealthy entrepreneurs, and investors.
It is the concentration of economic power. Chaebols control a large portion of South Korea`s economy, leading to less competition. Their dominance can stifle small and medium-sized enterprises (SMEs), limiting innovation and growth in other sectors.
Chaebols have also been involved in corruption scandals, often using their power to influence political decisions. This has led to inefficiency in governance and public discontent, undermining economic reforms.
Over-reliance on Export-driven Growth is also considered to be a challenge. Chaebols are heavily focused on industries like electronics, shipbuilding, and automobiles, which are export-driven. This makes the South Korean economy vulnerable to global economic shifts and trade disputes, especially in a world where the diversification of industries is increasingly important.
They also face succession and corporate governance issues. Since chaebols are family-controlled, they often face challenges with leadership transitions between generations. This can lead to inefficiencies and financial mismanagement within these conglomerates.
Strong and independent entrepreneurs have made the wealth you and I have today. They have created products that made our lives better, and their companies have grown to be multi-billion corporations. If this is a problem for countries around the world, well, what can we say? If so, this is not the only reason why the growth is slowing.
We see the same going on in South Korea as well as in Japan and many other places. Broader factors are leading to economic challenges, and one of them is the aging population. South Korea has one of the lowest birth rates in the world, leading to a shrinking working-age population.
This demographic challenge puts pressure on economic growth and social welfare systems. This is not only happening in Japan and South Korea. It`s happening in many other places around the world.
We also have a global economic slowdown. South Korea`s heavy reliance on exports means it is susceptible to the global economic downturn. Trade tensions, especially between the U.S., and China, impact South Korea`s major industries.
On top of all that, we have technological disruption. Even though chaebols have driven much of South Korea`s technological advancements, their scale makes them slow to adapt to new digital trends and innovations compared to more agile startups.
So, what is South Korea doing to address these issues? The South Korean government has been working to implement reforms aimed at reducing chaebols’ influence, promoting transparency, encouraging innovation, and supporting small and medium enterprises (SMEs).
While chaebols have contributed significantly to South Korea`s rapid industrialization and growth, their outsized role can create imbalances in the economy, making reforms crucial for long-term, sustainable growth.
In conclusion, while chaebols are not the sole cause of South Korea`s economic challenges, their dominance and related issues do play a role in creating an environment that can hinder broader economic diversification and reform. As we can clearly see, successful entrepreneurs and large corporations can be both beneficial and problematic for an economy.
Unfortunately, we very often see that successful entrepreneurs are attacked. Especially by socialists. But we have to ask ourselves what we should do without them? Because they are the ones that are creating wealth in the long run. No socialism without capitalism. The socialists need money for the welfare system, and that money comes from entrepreneurs who make goods and services.
Entrepreneurs drive innovation, create new industries, and develop new technologies that can improve productivity. Successful businesses, especially startups, can grow into larger companies, and boost economic growth.
Large corporations provide millions of jobs and stimulate related industries (e.g., supply chains, and service providers). For example, companies like Apple Amazon, or South Korea`s Samsung employ a large global workforce and indirectly create additional jobs in the ecosystem surrounding their businesses.
We can see time and time again, that entrepreneurs are often the source of disruptive innovation, bringing new products and services to the market. Successful entrepreneurs can help transform entire industries.
Large corporations often have the resources to invest in research and development (R&D), leading to technological advancements. For example, tech giants like Google and Microsoft invest heavily in artificial intelligence, cloud computing, and other areas that push technological boundaries.
Multinational corporations make a country more competitive on the global stage. For example, South Korea`s chaebols (Samsung, Hyundai) or the U.S. tech giants, like Google and Apple, enhance their countries’ global influence. They also attract foreign investment and contribute to the trade balance through exports.
Successful entrepreneurs and large corporations are not inherently bad for the economy. In fact, they can drive growth, innovation, and global competitiveness. However, their dominance can lead to economic and social imbalances that harm the broader population if left unchecked. Balancing their power with fair regulations, competition, and equitable policies can be essential for sustainable economic development.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
People in the West like to think that democracy in the West is much better than autocracy in Russia and China. But, what if China`s «one rule» party, the CCP (China Communist Party) is a better solution than the democratic mess (according to Vladimir Putin) in the West?
Democracy is one of mankind`s greatest achievements. But, for democracy to thrive and grow it must also adapt. We need to know what a democracy is.
The word democracy comes from the Greek words «demos», meaning people, and «Kratos» meaning power, so democracy can be thought of as «power of the people». A way of governing which depends on the will of the people.
It is a system of government by the whole population or all the eligible members of a state, typically through elected representatives. A state governed under a system of democracy.
People in the West vote for their president, political parties, politicians, and prime ministers. In other words: a democratic process. But what about China? They are ruled by one party, and that is CCP. China`s Communist Party. Is it a democracy?
The answer is yes. But it`s more sophisticated than we like to think. People in China call it «Whole-process people`s democracy, which is a Chinese Communist Party (CCP) political concept describing the people`s participation in, and relationship to, governance under socialism with Chinese characteristics.
The term «whole-process democracy» was used to describe existing governance practices such as Chinese experiments with democratic elements in the legislative process and in local government activities.
CCP general secretary Xi Jinping first used the term publicly on November 2, 2019, while visiting Shanghai, and he stated:
«China`s people`s democracy is a type of whole-process democracy» in which legislation is enacted «after going through procedures and democratic deliberations to ensure that decision-making is sound and democratic.»
On July 1, 2021, Xi incorporated the word «people`s» into the concept during his speech at the 100th Anniversary of the Chinese Communist Party, coining the concept’s current name «whole-process people`s democracy.»
Xi tied the concept to «common prosperity.»
The addition of «people`s to the concept emphasizes the Maoist practice of the mass line.
Xi describes four components of whole-process people`s democracy, expressed as pairs relationships:
Process democracy and achievements democracy
Procedural democracy and substantive democracy
Direct democracy and indirect democracy
People`s democracy and the will of the state
According to Xi, this results in «real and effective socialist democracy.»
The concept`s emphasis on «whole-process» is intended to further distinguish the CCP approach to democracy from the procedural qualities of liberal democracy. It includes primarily consequentialist criteria for evaluating claims of democracy`s success. In this view, the most important criterion is whether democracy can «solve the people`s real problems,» while a system in which «the people are awakened only for voting» is not truly democratic.
Liberal democracy or Western democracy is the combination of a liberal political ideology that operates under a representative democratic form of government. It is characterized by-elections between multiple distinct political parties, a separation of powers into different branches of government, the rule of law in everyday life as part of an open society, a market economy with private property, and the equal protection of human rights, civil rights, civil liberties, and political freedoms for all people.
To define the system in practice, liberal democracies often draw upon a constitution, either codified or uncodified, to delineate the powers of government and enshrine the social contract.
Whole-process people`s democracy also serves as a political tool to both defend the Chinese government`s governance practices and criticize liberal democracy.
In the CCP`s view, whole-process people`s democracy is «more extensive, more genuine, and more effective» than American democracy.
The CCP uses the concept of whole-process people`s democracy as a means to participate in global discourses on democracy, seeking to deflect criticism and improve its foreign relations. This ties into the government`s larger efforts to promote its global leadership.
In that regard, the Chinese government`s 2021 white paper China: «A Democracy that Works» emphasizes the whole-process people`s democracy perspective in an effort to demonstrate the country`s «institutional self-confidence.»
The white paper argues that the whole-process people`s democracy is the impetus behind China`s development and growth.
Qin Gang is a Chinese diplomat and politician, and he stated this. «Isn`t it obvious that both China`s people-center philosophy and President Lincoln`s «of the people, by the people, for the people», are for the sake of the people? Shall we understand China`s socialist whole-process democracy as this: from the people to the people, with the people, for the people?»
China practices the whole-process people`s democracy, which not only means that people engage in democratic elections, but they`re also involved in consultations, decision-making, management, and oversight.
According to CCP, people`s democracy is the lifeblood of socialism, and it is integral to China`s efforts to build a modern socialist country in all respects.
If we compare Chinese Democracy with American Democracy or Western Democracy, the key difference is that China focuses far more on substantial democracy. Western Democracy places more emphasis on procedural democracy. A Democracy in the West is equivalent to «one person, one vote, universal suffrage, and a multi-party system.»
China`s democracy focuses far more on the purpose and objectives of democracy. Especially good governance, and what they can deliver to the people.
Whole-process democracy encourages the expansion of democratic channels, and diversifies the forms of democracy, so as to ensure that people can participate in the management of State, economic, cultural, and social affairs.
It also ensures that people`s congresses at all levels are formed through democratic elections, and guarantees that people`s congresses and their standing committees lawfully exercise the powers of enacting laws, conducting oversight, making decisions, appointing, and removing officials.
It improves the working mechanisms for drawing on public opinion and pulling the wisdom of the people. And these are not only words. When Chinese leaders say something, they mean it and take action to turn that into reality.
The Chinese people`s political consultative conference (CPPCC), is China`s highest advisory body and plays a vital role in China`s consultative democracy. It encourages active participation in the deliberation, and administration of state affairs, promoting the democratic, and scientific decision-making process of the party, and the state.
The CPCC has more than 3,200 organizations at four administrative levels. National, provincial, city, and country, with more than 600,000 CPPCC members from 34 areas, including 8 other political parties, and representatives from Science and technology, literature and art, economics, sports, religion, and other areas.
According to Chair Professor at Soochow University, Victor Gao Zhikai, few people in Western countries want to acknowledge that the Communist Party of China is not the only political party at all. In addition to the CPC, there are 8 other democratic parties;
The Communist Party of China
The Revolutionary Committee of the Chinese Kuomintang
The China Democratic League
The China Democratic National Constitution Association
The China Association for Promoting Democracy
The Chinese Peasants and Workers Democratic Party
The China Zhi Gong Party
The Jiu San Society
The Taiwan Democratic Self-government League
In addition to this, there is a large Chamber of Commerce, which caters to business owners, private business owners, etc, and on top of that, there is a larger group of people called people without political affiliations.
This is the only way China has achieved such explosive productivity, efficiency, and economic, and political transformation over a short period of only about 43 years.
The legislative information offices not only promote China`s rule of law, but also practice whole-process people`s democracy by listening to the public and gathering the wisdom of the people for efficient, and high-quality National legislation.
The small grassroots legislative information office has become a significant democratic platform.
It`s all a part of a Chinese evolution. In November 1931, before the People`s Republic of China was established, the first national people`s Congress of the Soviet Republic of China was held in Zhangshi province.
In caves along the northern Shanxi Plateau, they used soybeans to cast their votes to elect the cadres. In September 1954, the first session of the first national people`s Congress was held. Marking the official establishment of the people`s Congress system as the fundamental political system in China.
After decades of practice, and exploration, China has been continually improving the people`s Congress system. People accessing their voting rights is an important manifestation of people being the masters of the country, which is the essence of democracy.
Among the nearly 3,000 deputies to the 14th NPC, 16,69% are workers and farmers. Besides the Communist Party, there are 8 other political parties that all have representation in the NPC. There are also a sizable proportion of delegates without any stated political affiliation. The 55 ethnic minorities hold 14,85% of the NPC seats.
For many people in the West, democracy means the right for each person to vote for their leaders. This is basically why they reject the idea that China has a democracy. But what people in the West don’t understand is that Chinese people are deeply involved in the elections of leaders of various levels.
Millions of urban and rural citizens do in fact directly vote for the representatives who govern their daily lives, who then make decisions that accurately reflect the needs, and desires of the people from the most fundamental level.
It`s normal for more than 90% of Chinese voters to turn out in the village, and Community elections all across China, which is much higher than in most Western democracies.
There are now over 2,7 million deputies in the people`s Congress across the country. More than 1 million registered voters have participated in county, and Township level elections.
The ultimate goal of elections is to choose the virtuous, and the capable who can solve today`s most urgent problems, and lead the country toward development.
China`s political system guarantees the rights of its people to elect their representatives, but more importantly, it guarantees that those representatives will be held accountable to the people.
The CPC leadership regards democratic supervision by the people as one of the highest priorities. Article 3 of the Constitution of the people`s Republic of China states:
«All administrative, judicial, and procuratorial organs of the state are created by the people`s congress to which they are responsible, and under whose supervision they operate.»
Democratic supervision refers to consultative supervision carried out by means of opinions, suggestions, and criticism. China has implemented several channels of democratic supervision. Today, democratic supervision is part of everyone`s daily life. People can monitor, and supervise how authorities exercise power at any place, and at any time through many kinds of democratic channels, and platforms.
China has a 1,2,3,4,5 citizen hotline service center, and that has been going on since 1987. When you call 1,2,3,4,5 to file a complaint, an operator will put you through to the right department to talk to. In 2019, the hotline was upgraded with time-sensitive feedback services.
In 2021, the mechanism was further improved and upgraded. They selected the most common issues that people called about that were hard to solve. They dedicated special task forces to focus on these issues.
About 350 cities have these hotlines, and they provide first-hand information about public opinions and concerns that City officials could hardly get in other ways.
Since the founding of New China, people have expressed their opinions on state affairs, both large and small, and party leadership has been relentlessly exploring appropriate, convenient, and diversified forms of supervision by the people.
Satisfying the public need for information, and the need to speak out is no easy task for a country of 1,4 billion people. Undeterred by this daunting task, the country`s leadership has emphasized democratic supervision throughout the whole process of performing duties.
The only litmus test of a democracy is whether it can generate real benefits. Making the country a better place to live, and making the lives of its people better.
Democracy has always been cherished by China, and its people, and it will continue to evolve in China with its own Chinese characteristics. China has lifted nearly 99 million out of poverty. It has built the world`s largest social security system, and health care system, covering more than 1,3 billion people. More than 10 million jobs have been created each year for 15 consecutive years.
China`s success is caused by one major thing: capitalism. It doesn`t matter what system you have if you don`t earn money. Even the Soviets would have succeeded if they earned money. The editor’s opinion is that the difference between democracy, autocracy, or dictatorship is very tiny. It`s all about money. It`s money that matters. Money comes first.
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Ket Garden
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