EL ÚLTIMO PUEBLO COMUNISTA DE CHINA | Jabiertzo

Summary

The video explores Nanche, a rural town in China's Henan province, known for its unique adherence to Maoist principles despite China's broader economic reforms. With a population of 3,700, Nanche's economy is driven by the Nanche Group, comprising 28 companies, including food, technology, and agriculture sectors. The town maintains a collective model, offering free housing, healthcare, and education to its residents, making it an anomaly in modern China. Despite economic ups and downs, including a near-bankruptcy in the 2000s, Nanche remains a case study in collective ownership and economic resilience.

Takeaways

• 📍 The village of Nanche in Henan is known as the last to remain faithful to Maoism, with a population of about 3,700 but employing over 11,000 people.
• 🏭 Nanche has 28 companies, including a famous instant noodle company, a brewery, a pharmaceutical plant, and a tech park, making it an industrial hub.
• 🧑‍🤝‍🧑 Despite its small population, the village attracts nearly 500,000 tourists annually due to its status as a 'Red Tourism' destination.
• 🌾 In the 1980s, the village began privatizing the exploitation of farmland while keeping the collective ownership structure, a form of privatization that remained within communist principles.
• 🏠 Residents benefit from free housing, education, healthcare, utilities, and other essential services, leading to a strong sense of community support.
• 💼 Although salaries in Nanche are lower than in many private companies, residents enjoy significant benefits that offset the lower wages, including no-cost living essentials.
• 📉 The village faced an economic decline between 1998 and 2004, with production lines shutting down and banks refusing to lend money, but it bounced back with government support and tourism.
• 🍜 Nanche’s economy revolves heavily around its instant noodle production, which continues to be a significant part of its industrial output.
• 👨‍🏫 The village’s leadership has emphasized collective responsibility, with leaders receiving modest pay compared to their counterparts in private industries.
• 💡 The village, while once entirely collective, transitioned to a cooperative model in 2004, where workers became shareholders of the enterprises, yet the village maintains its collectivist roots.

Q & A

What is Nanche and why is it considered unique in China?

Nanche is a small town in the Henan province of China, known for being one of the last remaining places that still follows Maoist principles in its economic structure. It operates with a collective system, providing free essential services like housing, healthcare, and education to its residents.

What is the main economic driver in Nanche?

The main economic driver in Nanche is the Nanche Group, which consists of 28 companies involved in various industries such as food and beverages, pharmaceuticals, packaging, and agriculture. These companies employ over 11,000 people, far exceeding the town's population of 3,700.

How did Nanche's economy evolve from its difficult beginnings?

Nanche was once an economically challenged area, but in 1979, its leader, Juan Hong Bing, initiated industrial projects like a flour mill and a brick factory. These efforts helped lift the town out of poverty, turning it into an economically stable collective community.

How does the town's collective economic system work today?

The town operates on a collective model where most essential services are free for residents, including housing, education, and healthcare. Workers receive a salary, but the collective nature means 30% of all profits go to the employees. This system prioritizes social welfare over individual wealth accumulation.

What role does 'Red Tourism' play in Nanche's economy?

Nanche has become a popular destination for 'Red Tourism,' which celebrates communist history. This tourism draws nearly half a million visitors each year, contributing significantly to the local economy.

What were some of the challenges the town faced during its development?

Nanche faced several economic downturns, especially between 1998 and 2004 when many of its production lines closed and workers were not being paid. The town's economy rebounded with the help of government funding and a focus on tourism.

How has the privatization process in Nanche differed from other parts of China?

In the 1980s, Nanche's agricultural land remained collectively owned but privatized in terms of operation, allowing farmers to work and sell their crops independently. However, the town's leaders found that privatization did not significantly benefit rural farmers and led to increased inequality and crime.

How does housing work in Nanche, and what benefits do residents receive?

In Nanche, housing is provided for free to residents, including new couples who are assigned apartments when they marry. Residents also receive free healthcare, education, and other social services, which is not common in the rest of China.

What significant mistakes did Juan Hong Bing make during his leadership?

One of Juan Hong Bing's notable mistakes was investing millions of dollars into building a perpetual motion machine, a scientific impossibility. This led to ridicule and financial setbacks for the town, but he eventually admitted his error.

How did the town recover from its economic struggles in the early 2000s?

Nanche's recovery began when the government injected $4 million into the town, promoting tourism and revitalizing local industries. By 2011, the town was generating significant income from its food production sector, with its instant noodles factory producing 400 tons daily.