Ten years ago, an Indian politician on a visit to China summed up his impressions with the comment that the Communist Party of China reminded him of a Delhi bus driver. Noticing the puzzled look on the face of our envoy, he explained that, like the Delhi bus driver, the party was wont to signal a left turn while actually turning right. The 16th National Congress of the party in Beijing which concluded on November 14 formally

approved and incorporated into the party's constitution Jiang Zemin's "thought of the Three Represents". Shorn of ideological swaddling cloths, the "thought" asserts that in addition to peasants and workers, capitalists and private-sector managers should also be enlisted in the party. As Jiang points out in his report to the congress, "It is improper to judge whether people are politically progressive or backward simply by whether they own property or how much property they own."

The decision to co-opt China's new capitalist class into the party is eminently sensible and pragmatic. The new class already wields considerable power and influence through informal channels. If denied a role within the party, it could well spawn new power centres outside the party's control. By co-opting it, the party seeks to ensure its monopoly over state power.

FORWARD MARCH: Jiang (centre) took up from where Deng left

Indeed, historically speaking, the "thought of the Three Represents" is a logical development from Deng Xiaoping's "theory" that opened the door to domestic and foreign capitalists to participate in the task of building a prosperous and powerful China. Deng's celebrated dictum that "it is glorious to be rich" would have been regarded in most countries as a trite and tasteless comment. But in China, where for decades capitalists had been suppressed as "enemies of the people", it was a new and daring guideline-indeed, a historical turning point.

By unleashing the entrepreneurial talents of its people, China has achieved truly dramatic progress since 1989. It has been a major military power since 1949. Today, it is also a great economic power. It is one of the world's top trading countries and figures prominently among the principal destinations for global investment flows. It has emerged as a regional economic power-house: the stability of the Renminbi proved to be an important factor in the recovery of Asian economies after the financial crisis of the 1990s.

In Jiang's report to the congress, he noted with justifiable pride that China had succeeded in quadrupling its GDP in the past two decades. He announced that China would now strive to again quadruple its GDP of 2000 by 2020. "The country's overall national strength and its international competitiveness will increase markedly," he declared.

The concept of "overall" or "comprehensive" strength underlies Chinese analyses of world affairs. It defines national power in terms of a country's economic and technological strengths, its military capabilities and internal political stability. Jiang also covered military reforms but his reference to China's growing "overall national strength" was significantly placed in the context of economic projections and was directly linked to its international economic competitiveness.

Apart from issues of high policy, the congress also anointed a new generation of leaders. Jiang will hand over the post of party general secretary to 59-year-old Hu Jintao as part of a wholesale replacement of the highest echelons by younger officials. The turnover is designed to ensure continued dynamism at the topmost levels. The old guard will continue to be influential behind the scenes but the hands at the steering wheel will be those of younger men.

Of much greater importance, from our point of view, are the implications of the policy decisions adopted by the congress. China's leaders have grasped the basic reality that we live in a highly competitive world in which the rise or decline of nations is determined by the speed with which they respond to new challenges and constantly changing circumstances. The ability to sweep aside obstacles and press ahead with restructuring and reform is the key to a nation's rise. Deng overcame deep-seated orthodox resistance to open up China's economy. Jiang, in turn, faced resistance in pursuing the path of rapid reform and opening the doors of the party to the new entrepreneurial class. Without hard decisions on the part of its leaders, China could not have achieved the spectacular economic progress that is rapidly propelling it to the rank of a great power.

We need to reflect on the consequences of timidity in pursuing our own reforms. India, like China, aspires to play its rightful role in the comity of nations. Can we afford to let our reforms splutter and run out of steam whenever we face resistance from vested interests?