And here are my prescription for Chinese economy. It is full of socialist ideas<g>
1. Increasing the tax for the super rich;
2. Restricting the transferring of capital overseas (this is an increasing trend in China);
3. Enforcing property registration system, and middle/high-ranking officials have to declare the source of their own and their children/relatives wealth (the later has been raised on the meeting of the Political Bureau for 3 times but has not been passed. Hu Jintao said "Yes" every time).
4. Setting up inheritance tax;
5. Not to privatize education, especially k-12 education, and health care system. Speed up the establishment of National Social security system.
6. Further emphasize on developing of the value-added industry;
7. Setting up a national fund, sort of like the US food stamp program, targeting the unemployed workers and very low-income level of farmers.
8. Switching from export-supported economy to domestic-consumption-supported economy.
9. Further slowing down privatizing SOEs (the process has been slowed down from 2002 due to the massive unemployed workers in cities (Zhu Yongji's legacy) but seems now accelerating again).
10. Asking some pragmatic domestically-grown Chinese economists for curing China's economic woes, disregard those "professional Economists" opinion. The Western economic theory is not appropriate for China's situation.
Yes, this would reduce the GDP growth rate somewhat, but in a long run, it will sustain a long-term growth, and more important, stabilize the society. The current trend of ever-increasing gap bet. the rich and poor is very troublesome. The Chinese Academia of Social Scienses published a report recently and said in some rural areas, the "climate" is already ripe for chaos/uprising.
What China does NOT need now: multi-party system, democratic election for highest ranking officials (Otherwise, what happened in Russia might also happen in China). One day in future, China might need them, but NOT now. |
