WHAT'S THE CHINESE FOR POTEMKIN?:

China's last Maoists submit to capitalism (Richard Spencer, 19/04/2008, Daily Telegraph)

While the rest of the country abandoned the commune, pursued personal fortunes and dismantled state industries, the village of Nanjie in central China renationalised its land, set up factories and paid all residents £20 a month.

Advertising was banned and instead, propaganda banners hung in streets which led to a 30ft statue of Mao built in 1993. Annual "profits" from the 26 village businesses paid for a mass wedding ceremony and honeymoons in Beijing.

Nanjie also provided free housing, schooling and health care, supporting a standard of living so much better than surrounding towns that many who visited were awestruck by its egalitarianism.

Ten years ago, The New York Times noted its well-kept apartments and spacious schools - although it added that the state of its finances could not be verified.

More recently, one of the nostalgic Chinese tourists attracted to the village as its fame spread enthused to the BBC: "Mao's slogan 'Serve the people' is really put into practice here. It's not just empty rhetoric."

Unfortunately, few of the visitors were accountants. In the past two months, newspapers in Hong Kong and Guangzhou have unravelled a tale of Enron-style woe.

Oops, they were going to be the subject of Michael Moore's next movie about how Communism trumps capitalism.

Posted by Orrin Judd at April 18, 2008 7:50 PM