若湖人物诗:Open the lock using the right key---Elaborating on China's "nationalization"

Open the lock using the right key---Elaborating on China's "nationalization"17:31, February 11, 2011
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By Li Hongmei
The annual Spring Festival travel peak termed "chunyun" in Chinese, which has reportedly transported nearly 300 million people so far, is drawing to its end, with the unbelievable congestion and a sea of complaints. The phenomenon recurs year in and year out, but entails leaving an open discussion for the coming days of 2011----in the emerging powers with giant geographic and population size, the ongoing "nationalization" is looming large and is undoubtedly complicating the situation in the backdrop of globalization.
Population flows from poverty-stricken areas to the relatively developed regions, and capital flows, in the opposite direction, from wealthy areas to the neediest regions. Large cities, or even mega cities have been shooting up, and medium and-small-sized cities have been itching to have a go. People in pursuit of fortune and happiness have been attempting to break through the geographic barrier, thus pushing forward the unfolded urbanization, perhaps unconsciously, and catalyzing the modernization of the nascent powers such as China, India and Brazil.
The fallouts brought about by the untamed trend of urbanization might be inevitable---- "urban ailments", along with the wealth gap as a result of the uneven population shift totally commanded by the economic baton, starts to show its effect.
Hence, it is high time to give more than just a passing thought to the concept of "nationalization" and to deem it more than a mere process to seek new balance in the global structure of imbalance.
Take China for example, some people believe that China's economic "nationalization" began in the Qin Dynasty some 2,000 years ago, when Emperor Qinshihuang united the country, and united currencies and units of measurement. However, because of the lack of market game rules, the drive to build a united national market has yet to be concluded.
The Chinese have long and indeed benefited from "nationalization" of the economy and the conception of "Bigger is Better" The economy owned, run and controlled by the government will stop the consumers being exploited and relatively cut down their social costs, as the government can manage the economy by controlling the important industries and macro-controlling the economic structure if necessary. And meanwhile, the government can invest money and make the economic operation more efficient.
That explains why China's "nationalization" drive was reignited when Zhu Rongji, China's former Premier, was in office from 1998 till 2003, by endeavoring to break local barriers. It is a hard nut to crack for China to embrace globalization except when it first achieves "nationalization".
This means that China must first eliminate the numerous trade barriers erected between provinces and cities. "Eliminating local protectionism" used to be one of the more popular slogans in those days.
Mr. Zhu Rongji urged that the elimination of local protectionism and unfair competition should be on the government's agenda, so as to build a united national market and create a sound economic environment in the then China--To do business in such a vast country as China, a businessman must be patient and deal with numerous local standards, regulations, and customs -- some are just nonsense, and varies from city to city, county to county, and village to village.
With the passage of days, however, the scale economy featuring all played on the united national chessboard seems to be outliving its usefulness.
The biggest disadvantage to "nationalization" (note the spelling) is that it makes competition almost impossible. Competition has many benefits: improved efficiency, more consumer choice, better quality, a desire to innovate and remain responsive to people's needs.
Admittedly, "nationalization" could give rise to some problems. But, viewed from a different perspective, it could also bring opportunities. Back to the case of "chunyun", it is, indeed, a big headache still plaguing China, but it would more or less keep some flexibility for population flow---mega-cities would cease to be the only destination for the migrant workers. This will be, on the one hand, conducive to individuals' personal growth, and on the other, will contribute to the country's economic development.
In the meantime, "nationalization" would create new growth points for a new wave of globalization. With the start of economic expansion and the robust growth of local economy in the medium and small-sized cities, China might well become the hub of global consumption, and thus China's "nationalization" will serve as the new driving force for global economy and globalization.
Therefore, by no means should China copycat the Western-style privatization and individualization----"one man's meat, another's poison" as the famous proverb goes.
China's specific problems can only be settled with the solution explored and conceived of by the Chinese themselves and fitting in well with the Chinese conditions.
After all, China's "nationalization", albeit a long and arduous journey, is still being streamlined, and in a long run, can be taken as an ideal solution to many of the country's current problems.
The articles in this column represent the author's views only. They do not represent opinions of People's Daily or People's Daily Online.
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