The Great Chinese Transformation: From the Third World to the First

Abstract

This paper aims to answer the question how the rules of the economic and political game are changing in an era of irreversible globalisation and to what extent they must take into account the growing importance of China. The main method of analysis is comparative economics and a look at the complex development process through the lens of political economy and the new pragmatism approach. The study leads to the conclusion that China should not be opposed or fought against, but must be cooperated with in solving global problems. On the one hand, China should adapt to the external world; on the other, the world must take into account the specific features of the Chinese system, so-called Chinism. It is not possible to impose a model formed elsewhere on China, especially as liberal democracy is experiencing a crisis in many countries. Likewise, the Chinese model cannot be imposed on other economies, even though it may seem tempting to them. The further development of the world economy requires re-institutionalisation of globalisation and making it more inclusive. The only sensible path to the future is in-depth observation of alternative systems and mutual learning as well as reasonable cooperation based on unorthodox economic thought.

Keywords

• globalization
• economic system
• transformation
• world order
• new pragmatism