Written by Laurence Brahm - Published by South China Morning Post on 07/06/2004

On July l last year, 500,000 Hong Kong people protested against Chief Executive Tung Chee-hwa's bungled handling of Article 23. This year, according to police, some 200,000 people hit the streets. Perhaps there was no coherent rallying point to attract the demonstrators. Some felt obliged to march to commemorate last year's rally. For others, it represented a coming together of people seeking to define the city's new identity.

While the media was busy counting marchers, few paid much attention to what was happening in Beijing, where July 1 marks the anniversary of the founding of the Communist Party. On this day, announcements - or at least signals are sent out by the leadership concerning the party's own quest for a new political identity. But few observers were paying attention.

Party General Secretary Hu Jintao departed from the ways of his predecessor, Jiang Zemin, who commemorated July 1 by making "important speeches” to large audiences. Instead, Mr. Hu convened a low-key study session to discuss "questions of promoting strengthening construction of the party’s governing ability". Certainly, it was not a s visually exciting for the media as Hong Kong marchers thronging the streets. However, consistent with Mr. Hu's quiet style, it signaled that substantive changes, or a rethinking of political reform priorities, are now clearly in progress. Mr. Hu talked about the pragmatic problems of governance. The meeting was certainly no ideological hair -splitting session.

Mr. Hu marked the party's 83rd anniversary by signing an "overriding decision" to relieve the State Council of nearly half its licensing authority, reducing from 900 to 500 the items requiring central government approval, which include licensing powers retained by different ministries.

While outside observers may not see what this has to do with democracy as a notion, such a move should be understood in the Chinese context as a clear step towards political reform. By slashing Beijing's bureaucratic procedural authority, Mr. Hu has daringly scaled back the once overriding powers of China's executive branch of government.

On another level, Mr. Hu is attacking party corruption at its source. Clearly, he recognizes that a liberalized economy requires more efficient government, and China's government needs reform to keep up with its new-found capitalist society.

From the 1950s through to the 1970s, the Communist Party was revolutionary in nature. During the 1980sand 1990s, it discovered western capitalism. But this does not necessarily provide China with a new identity, at least politically. Whereas America's culture is founded on a distinct political identity, .China's political evolution will have to be founded on its cultural identity. July 1 sessions now serve as a forum in the process of China coming to terms with itself.

Mr. Hu used his study session to widen parameters. He said: "Our nation's historic culture, social system and level of development differ from other nations ... However, there are beneficial aspects of their political governance methods which we can research and draw lessons from in broadening our outlook and thinking, grasping the world's large patterns of political and economic development."

These words should be read carefully. A lot is said in such simple sentences, which do not require a China-watcher to read between the lines. His message is quite clear. The Communist Party, in deliberating its future, is open to models of other nations. But just like economic reform, it will adopt various parts to China's own situation.

Mr. Hu's comments may not reflect the kind of "shock therapy" universal suffrage for China. However, they do reveal a realistic and practical attitude towards change, in line with China's evolving conditions - a very sensible first step for China in developing its own democratic model.

Laurence Brahm is a global activist, international mediator, political columnist and author. He is the leading advocate of a fresh development paradigm - The Himalayan Consensus - an innovative approach to development.

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