And no wonder. One fifth of the world population is about to industrialize, with all that it brings, like demand on basic goods like refrigerators and TV- sets. This has happened thanks to Deng and his new way to govern China. To believe, however, like our prime minister of Sweden that everything in China is stable is wrong. It is still a totalitarian state, and as such China is handicapped when it comes to developing into a modern society.
Totalitarianism has a somewhat built-in inertia.
In particular China has a problem with its judicial system, which has lead to big problems with corruption and bribery that leads to constant market failures . Another problem with totalitarian systems is the information restrictions. Complete or at least good information is central in a market economy. This fact also gives rise to another paradox. Throughout history, the people of countries that have become industrialized have become more and more educated, which is a must if a country is to continue to develop.