Highlights of commentary pieces from the Dec 5, 2011 issue of the Economic Observer
The True Stature of a Country is Measured by the Dignity of its Poor
By Qi Yue (启越), an editor with the EO
Nation, Page 15
Translated by Zhu Na
Original article: [Chinese]
China announced a new poverty line which is almost twice the level of an earlier standard; this is in keeping with the kind of attitude we expect from a responsible government. Although this new standard means that the number of people recognised as poor will expand from the 26.9 million in 2010, to 128 million - taking a bit of shine off the "one of the countries that has lifted the most people out of poverty" badge that we like to wear - that said, we believe that allowing the poor to live with dignity is the real measure of a nation's stature and reputation.
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If we consider China's special circumstances, we really shouldn't be so proud of the level of our poverty line. Let's make a simple calculation: in 1985 China the official poverty line said that anyone earning less than 200 yuan a year was poor; the new standard is now 2,300 yuan. This means that over the past 26 years, the number has increased around 11.5 times. However, we also need to remember that over this 20-plus year period, our total GDP has increased more than 50 times, and the growth in fiscal revenue is even more astonishing. Think about what it means to live on 2,300 yuan a year - that is 6 yuan per day - in this current era of rapidly rising prices, nevermind if you're living in the city or the countryside, it would be hard enough to afford the basics of food and clothing, let alone worry about other necessities.
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We must reach a social consensus: allowing the poor to lead dignified lives is an obligation that governments should strive to meet. This is not simply related to having a social conscience, but has more to do with how stable and harmonious a society is. In a society where the poor cannot live with dignity, will the rich be able to live with peace of mind?"
We believe a county's stature is not only displayed by the number of world-class events it hosts, or how many aircraft carriers it has, or whether it's capable of launching missions to the moon; but that a better reflection of a country's true statute is that its citizens can lead a healthy life, that its children can safely ride in school buses and that the poor can live with dignity. These are the true marks of a great nation.
We Need Fundamental Reform of China's Power Industry
By Zhang Xiangdong (张向东), a reported with the news section of the EO
Nation, Page 15
Translated by Zhu Na
Original article: [Chinese]
The National Development and Reform Commission (NRDC) announced at the end of November, that as of Dec. 1, they will increase the retail price of electricity by 3 fen (0.03 yuan).
[…] all these [recent reforms to China's power pricing system] measures share a common feature, that the negative consequence of the reform have mainly been shouldered by either the coal companies or ordinary households.
But the underlying need to reform power prices is not related to either coal companies or ordinary residents, it has instead to do with the monopolies that control the country's electricity grid, the power groups and and the NDRC, the only party with the power to adjust prices.
These latest announcements once again are aimed at both residents and the market, but nothing has been done to address the position of the monopoly power producers. Therefore, these latest price "reforms" are not real reforms.
Basic Tone of Macroeconomic Policy Should be Maintained
By Yun Zhongqing (尹中卿), the deputy director of the Financial and Economic Affairs Committee of the National People's Congress
Nation, Page 15
Translated by Zhu Na
Original article: [Chinese]
In terms of the general outlook for macroeconomic policy in 2012, we hope to continue to implement proactive fiscal policy and prudent monetary policy.
Spending on Foreign Aid Must Be Transparent
By Shinian Kanchai (十年砍柴), a well known Beijing-based blogger and media commentator
Economic Observer Online
Translated by Zhu Na
Original article: [Chinese]
What would've have simply been another unremarkable act in the diplomacy of the Chinese government, 23 school buses were donated to Macedonia. However, news of the donation emerged just after a tragic traffic accident involving an overloaded school bus killed 19 children in Gansu province.
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The glaring contrast between these two events was enough to stoke the fury of internet users.
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Foreign aid should respect the majority public opinion. But how does one know what the majority public opinion is? Open and legal procedures are needed. For example, organizations responsible for expressing public opinions (parliament or the National People's Congress) should conduct strict examination on the budget of the Ministry of Foreign Affairs, including spending on foreign aid. The money spent on foreign aid is of course from taxpayers, it should therefore receive comprehensive and effective supervision from taxpayers.
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[…] how much has the government spent on foreign aid? Which countries received aid? Why did they need aid? Most citizens don't know the answers to these questions, and it seems that the related departments don't want them to.
