Changing of the Guard: Chinese Communist Party Faces Calls for Democracy





BEIJING — As the Communist Party’s 18th Congress approached, Li Weidong, a scholar of politics, made plans to observe a historic leadership battle in one of the world’s great nations.




Instead of staying in Beijing to monitor China’s once-a-decade transfer of power, Mr. Li boarded a plane.


“I’m going to the United States to study the elections,” Mr. Li said in a telephone interview during a stopover in Paris. After witnessing the American presidential election on Tuesday, Mr. Li went on the radio for another interview. “I still think China’s politics remain prehistoric,” he said. “I often joke that the Chinese civilization is the last prehistoric civilization left in the world.”


With China at a critical juncture, there is a rising chorus within the elite expressing doubt that the 91-year-old Communist Party’s authoritarian system can deal with the stresses bearing down on the nation and its 1.3 billion people. Policies introduced after 1978 by Deng Xiaoping lifted hundreds of millions out of poverty and transformed the country into the world’s second-largest economy. But the way party leaders have managed decades of growth has created towering problems that critics say can no longer be avoided.


Many of those critics have benefited from China’s stunning economic gains, and their ranks include billionaires, intellectuals and children of the party’s revolutionary founders. But they say the party’s agenda, as it stands today, is not visionary enough to set China on the path to stability. What is needed, they say, is a comprehensive strategy to gradually extricate the Communist Party, which has more than 80 million members, from its heavy-handed control of the economy, the courts, the news media, the military, educational institutions, civic life and just the plain day-to-day affairs of citizens.


Only then, the critics argue, can the government start to address the array of issues facing China, including rampant corruption, environmental degradation, and an aging population whose demographics have been skewed because of the one-child policy.


“In order to build a real market economy, we have to have real political reform,” said Yang Jisheng, a veteran journalist and a leading historian of the Mao era. “In the next years, we should have a constitutional democracy plus a market economy.”


For now, however, party leaders have given no indication that they intend to curb their role in government in a meaningful way.


“We will never copy a Western political system,” Hu Jintao, the departing party chief, said in a speech on Thursday opening the weeklong congress.


The party’s public agenda, which Mr. Hu described in detail in his 100-minute address, was laid out in a 64-page report that is in part intended to highlight priorities for the new leaders, who will be announced later this month. Much of the document had retrograde language that emphasized ideology stretching back to Mao and had little in the way of bold or creative thinking, said Qian Gang, the director of the China Media Project at the University of Hong Kong.


Most telling, there was no language signaling that the incoming Politburo Standing Committee, the group that rules China by consensus, would support major changes in the political system, whose perversions many now say are driving the nation toward crisis.


While Chinese who are critical of the current system generally do not expect a wholesale adoption of a Western model, they do favor at least an openness to bolder experimentation.


“To break one-party rule right now is probably not realistic, but we can have factions within the party made public and legalized, so they can campaign against each other,” said Mr. Yang, who added that there was no other way at the moment to ensure political accountability.


Only in the last few years has the idea of liberalizing the political system gained currency, and urgency, among a broad cross-section of elites. Before that, as the West foundered at the onset of the global financial crisis, many here pointed to the triumph of a “China model” or “Beijing consensus” — a mix of authoritarian politics, a command economy and quasi-market policies.


But the way in which China weathered the crisis — with the injection of $588 billion of stimulus money into the economy and an explosion of lending from state banks — led to a spate of large infrastructure projects that may never justify their cost. As a result, many economists now say that China’s investment-driven, export-oriented economic model is unsustainable and needs to shift toward greater reliance on Chinese consumers.


Constant lip-service is paid to that goal, and on Saturday, Zhang Ping, a senior official, reiterated that stance. But it will not be easy for the new leaders to carry it out. At the root of the current economic model is the political system, in which party officials and state-owned enterprises work closely together, reaping enormous profits from the party’s control of the economy. Under Mr. Hu’s decade-long tenure, these relationships and the dominance of state enterprises have only strengthened.


“What happens in this kind of economy is that wealth concentrates where power is,” said Mr. Yang, the journalist.


The 400 or so incoming members of the party’s Central Committee, Politburo and Politburo Standing Committee, as well as their friends and families, have close ties to the most powerful of China’s 145,000 state-owned enterprises. The growing presence of princelings — the children of notable Communist officials — in the party, the government and corporations could mean an even more closely meshed web of nepotism. It is a system that Xi Jinping, anointed to be the next party chief and president and himself a member of the “red nobility,” would find hard to unravel, even if he wanted to.


Mia Li contributed research.



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Prince William Pays Tribute on Remembrance Sunday









11/11/2012 at 07:00 PM EST



A solemn Duchess of Cambridge watched Sunday as husband William paid his personal tribute to Britain's war dead.

William, in RAF uniform, was one of the senior royals making a somber commemoration of those who have died in the World Wars and other conflicts on Remembrance Sunday.

He followed his grandmother Queen Elizabeth and her husband Prince Philip in laying a wreath of bright red poppies at the Cenotaph in Whitehall, London.

Kate, whose coat was decorated with poppy-style jewelry, watched from a balcony along with one of William's aunts, Sophie Wessex.

The royals traditionally lead the commemorations in London, where hundreds of veterans then paraded. At 11 a.m. around the U.K., the country fell silent for two minutes of reflection.

Missing this year was Prince Harry, who is currently on a military tour in Afghanistan.

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Food labels multiply, some confuse consumers

FRESNO, Calif. (AP) — Want to avoid pesticides and antibiotics in your produce, meat, and dairy foods? Prefer to pay more to make sure farm animals were treated humanely, farmworkers got their lunch breaks, bees or birds were protected by the farmer and that ranchers didn't kill predators?

Food labels claim to certify a wide array of sustainable practices. Hundreds of so-called eco-labels have cropped up in recent years, with more introduced every month — and consumers are willing to pay extra for products that feature them.

While eco-labels can play a vital role, experts say their rapid proliferation and lack of oversight or clear standards have confused both consumers and producers.

"Hundreds of eco labels exist on all kinds of products, and there is the potential for companies and producers to make false claims," said Shana Starobin, a food label expert at Duke University's Nicholas School of the Environment.

Eco-labels have multiplied in recent years in response to rising consumer demand for more information about products and increased attention to animal and farmworker welfare, personal health, and the effects of conventional farming on the environment.

"Credible labels can be very helpful in helping people get to what they want to get to and pay more for something they really care about," said Urvashi Rangan, director of consumer safety at Consumer Reports. "The labels are a way to bring the bottom up and force whole industries to improve their practices."

The problem, Rangan and other said, is that few standards, little oversight and a lot of misinformation exist for the growing array of labels.

Some labels, such as the USDA organic certification, have standards set by the federal government to which third party certifiers must adhere. Some involve non-government standards and third-party certification, and may include site visits from independent auditors who evaluate whether a given farm or company has earned the label.

But other labels have little or no standards, or are certified by unknown organizations or by self-interested industry groups. Many labels lack any oversight.

And the problem is global, because California's products get sold overseas and fruits and vegetables from Europe or Mexico with their own eco-labels make it onto U.S. plates.

The sheer number of labels and the lack of oversight create a credibility problem and risk rendering all labels meaningless and diluting demand for sustainably produced goods, Rangan said.

Daniel Mourad of Fresno, a young professional who likes to cook and often shops for groceries at Whole Foods, said he tends to be wary of judging products just by the labels — though sustainable practices are important to him.

"Labels have really confused the public. Some have good intentions, but I don't know if they're really helpful," Mourad said. "Organic may come from Chile, but what does it mean if it's coming from 6,000 miles away? Some local farmers may not be able to afford a label."

In California, voters this week rejected a ballot measure that would have required labels on foods containing genetically modified ingredients.

Farmers like Gena Nonini in Fresno County say labels distinguish them from the competition. Nonini's 100-acre Marian Farms, which grows grapes, almonds, citrus and vegetables, is certified biodynamic and organic, and her raisins are certified kosher.

"For me, the certification is one way of educating people," Nonini said. "It opens a venue to tell a story and to set yourself apart from other farmers out there."

But other farmers say they are reluctant to spend money on yet another certification process or to clutter their product with too much packaging and information.

"I think if we keep adding all these new labels, it tends to be a pile of confusion," said Tom Willey of TD Willey Farms in Madera, Calif. His 75-acre farm, which grows more than 40 different vegetable crops, carries USDA organic certification, but no other labels.

The proliferation of labels, Willey said, is a poor substitute for "people being intimate with the farmers who grow their food." Instead of seeking out more labels, he said, consumers should visit a farmers' market or a farm, and talk directly to the grower.

Since that's still impossible for many urbanites, Consumer Reports has developed a rating system, a database and a web site for evaluating environmental and food labels — one of several such guides that have popped up recently to help consumers.

The guides show that labels such as "natural" and "free range" carry little meaning, because they lack clear standards or a verification system.

Despite this, consumers are willing to pay more for "free range" eggs and poultry, and studies show they value "natural" over "organic," which is governed by lengthy federal regulations.

But some consumers and watchdog groups are becoming more vigilant.

In October, the Animal Legal Defense Fund filed a lawsuit against Petaluma, Calif., organic egg producer of Judy's Eggs over "free range" claims. The company's packaging depicts a hen ranging on green grass, and the inside reads "these hens are raised in wide open spaces in Sonoma Valley..."

Aerial photos of the farm suggest the chickens actually live in factory-style sheds, according to the lawsuit. Judy and Steve Mahrt, owners of Petaluma Farms, said in a statement that the suit is "frivolous, unfair and untrue," but they did not comment on the specific allegations.

Meanwhile, new labels are popping up rapidly. The Food Justice label, certified via third party audits, guarantees a farm's commitment to fair living wages and adequate living and working conditions for farmworkers. And Wildlife Friendly, another third-party audited program, certifies farmers and ranchers who peacefully co-exist with wolves, coyotes, foxes and other predators.

___

Follow Gosia Wozniacka at http://twitter.com/GosiaWozniacka

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Proposition 30 win no guarantee of fiscal safety for California









SACRAMENTO — The election wasn't even over Tuesday when state Treasurer Bill Lockyer's phone started ringing. Activists of all stripes had the same message for him: With voters apparently poised to approve billions of dollars in tax hikes, it was time to spend more money.

"They had to be reminded the money has already been spent," Lockyer said.

As California tries to shake its national reputation as a financial bungler, policymakers in Sacramento will be managing an estimated $6 billion in annual revenue from Gov. Jerry Brown's newly approved tax plan, Proposition 30. The money is already included in the budget the governor signed last summer.





The bloodletting that has become a ritual part of assembling the state budget is expected to fade. But some of the issues that have made California's financial problems so persistent remain and could still create a budget gap if things don't go as planned.

In essence, analysts say, voters have stabilized the patient, but surgery may still be required.

Brown has long acknowledged that fixing the state's fiscal problems will require more work. He told reporters last week that "there are no cure-alls" and pledged to hold the line against new spending. As the former seminary student often does, he used a biblical allusion to make his point.

"We need the prudence of Joseph," he said.

The governor's plan will increase the state sales tax by a quarter-cent for four years and raise levies on high earners by one to three percentage points for seven years. Passage of Proposition 30 prevents billions of dollars in education cuts and gives the state an opportunity to end the fiscal year without a deficit for the first time in five years.

But California still has the lowest credit rating of any state. Its tax system is unstable. Borrowing costs remain high, and there are signs that the Brown administration's current $91.3-billion budget may be fraying at the seams as savings fail to meet expectations.

"By no means is California out of the woods yet," said Kil Huh, a director at the Pew Center on the States in Washington. "They've built up a set of challenges that are daunting for any state."

For starters, swings in the stock market can have an outsize effect on California's budget because the state relies so heavily on income taxes paid by the wealthy. In 2010, the richest 1% of Californians earned 21.3% of the income in the state and paid 40.9% of the state income taxes, according to the most recent government data available.

Gabriel Petek, an analyst at Standard & Poor's, noted that California has, over time, decreased more reliable sources of revenue, such as fees on motor vehicle registrations, while increasing less dependable ones, such as income taxes.

Revamping the tax base is politically treacherous. Voters approved strict limits on property taxes in 1978 with Proposition 13, which has since been considered the third rail in California politics.

"If I was dictator of the state, I would look at it," said Kim Rueben at the nonpartisan Tax Policy Center in Washington. "I'm not sure it will ever be looked at."

The responsibility for handling state finances now is expected to fall completely to Democrats, who are poised to gain a supermajority in each house of the Legislature. Republicans would no longer be able to block tax increases, which require a two-thirds vote.

Senate President Pro Tem Darrell Steinberg (D-Sacramento) said in an interview Friday that changes in the tax system can bring "political peril" and are not high on his agenda.

California could also face budget gaps when Proposition 30's tax hikes expire. Administration officials are banking on improvements in the economy to make up for the loss of extra tax revenue then.

Some Republicans fear Democrats will increase spending so much that they'll try to make the tax hikes permanent.

"They won't be able to help themselves from continuing to expand the growth of government," said Sen. Ted Gaines (R-Roseville).

And $34.1 billion in debt has accumulated over the last decade as the state has deferred payments to schools, local governments, pension plans and other areas. Ana Matosantos, the governor's finance director, said the administration has a plan in place to pay down most of that "wall of debt" by 2016.

California also has $80 billion in general obligation bonds outstanding, requiring the state to spend nearly 9% of its general fund annually to cover the cost of that borrowing.

"It means you're spending several billion dollars for debt service that isn't available for schools or healthcare," Lockyer said.

Administration officials counted on saving $3.1 billion in the current fiscal year with the dissolution of redevelopment agencies, but so far those savings have fallen far behind expectations. The nonpartisan Legislative Analyst's Office said the state could end up almost $1 billion short.

Finally, tax revenue has failed to match projections. The administration's most recent report showed it falling 2.1% below expectations in the current fiscal year, a $379-million drop.

Marilyn Cohen, founder of Envision Capital Management in Beverly Hills, worries that Sacramento will face the same problems year after year.

"I have no confidence," she said, "that this state knows how to create a budget and hit their budgetary goals."

chris.megerian@latimes.com

For the latest California election results, go to: Latimes.com/electionresults and Latimes.com/socalresults.





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