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2011-10-24

China needs a new national culture

Comments on Yao Yang “From production-oriented to welfare-oriented government in China”, 24/10/2011, http://www.eastasiaforum.org/2011/10/23/from-production-oriented-to-welfare-oriented-government-in-china/

While it may be ideal to have a good social welfare system, China cannot afford moving away from high economic growth any time soon.
There will be a stage for China to move from the current state of low, unequal and incomplete of welfare to a state of comparable social welfare to most other countries, but it relies heavily on its high economic growth to address many of its urgent tasks.

Clearly there are some who would feel as victims of increasing inequality, a slower growth may generate its own problems.
If a tax reform in Australia would require government revenue available to compensate the losers, China's high economic growth has a similar role to address many social problems. Without adequate growth prematurely before its income becomes largely comparable to middle to high income countries, the Chinese government would face the issue of the legitimacy of its one party rule.

This issue will be especially important when the Chinese society has increasingly lost historical and cultural heritages and in need of seeking a new national culture.

The Chinese government needs to lead in this endeavour, otherwise people would move ahead of it.

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