IT'S ALMOST ENOUGH TO MAKE YOU SORRY THAT EVEN THE UR CAN'T PREVENT AN UPTURN:

Twilight of the Autocrats: Will the financial crisis bring down Russia and China? (Joshua Kurlantzick, March 16, 2009, American Prospect)

Gansu is one of interior China's most forlorn provinces, one that has gone largely unnoticed by the outside world. When I worked in rural Gansu two years ago, I met few people who had ever left their hometown. In one tiny village, ethnic minority Muslims were eking out a living as farmers in the dusty, arid climate and sleeping in simple stone huts that looked like they'd been built centuries earlier. Most villagers had never met a foreigner before.

Then last fall, Gansu suddenly hit the news. Some 2,000 people rioted in one district, torching cars, smashing up the local Communist Party offices, and attacking policemen with iron rods, chains, and axes in protest of a local government decision that might have forced some of them to resettle.

Gansu isn't the only Chinese province that has erupted in social unrest lately. Taxi drivers have gone on strike in several Chinese cities, people who lost money in illegal fundraising have protested in Beijing, and demonstrators have gathered across the country to demand unpaid back wages. Protest has even spread to the Pearl River Delta, the manufacturing center that abuts Hong Kong, traditionally one of the most prosperous parts of the country. In some years, the Delta's factories have produced 5 percent of all manufactured goods made in the world. But orders for the Delta's products have dried up, and angry factory workers, many owed back pay, have taken to looting warehouses. As these protests turn violent, they could provoke a violent response; Chinese factory owners are increasingly hiring thugs to hit back at demonstrators.

The protests hint at something even bigger than China: The economic downturn has created a profound threat to the autocratic regimes of the world, from China and Russia to Venezuela and the Persian Gulf states. Already, the Russian police have been placed on alert to crack down on demonstrators. Several of Russia's prominent human-rights activists have been killed in recent weeks. Protests, once rare, have spread from eastern Russia to the heart of the Kremlin itself.

Modern autocracies are very different from those of the past. Rather than ruling by strict ideology, ruthless internal police, and tight control of information, authoritarian regimes like Beijing and Moscow have remained in power primarily by making an implicit bargain with their most critical middle-class citizens -- you might not have freedom, but you will have money. As long as the broad middle class, which is where the most dangerous dissent would take hold, is gaining ground economically, the regime is safe.

So while in the West, leaders worry that the global economy faces a second Great Depression, such an economic crisis poses a major threat to some of the world's most resilient autocracies. A strong economy was their only backstop. Now, starved of the growth that keeps them in power and unable to repress their people as old-fashioned dictators did, these autocracies may have nothing left to fall back on.

Demographics will finish them off, not economics.

Posted by Orrin Judd at March 24, 2009 10:19 AM