2010 July NEWSLETTER
VISIT OUR WEBSITE

Non-profit, non-governmental, independent think tank, advancing market reform in China


In this issue...

  • Unirule Highlights
  • Current Events
  • Current Researches
  • Upcoming Events
  • New Books

useful links
Websites:
Unirule Chinese and CCPPP£¨Chinese£©

SUBSCRIBE
To subscribe to Unirule's bi-monthly newsletter, please click here.

Unirule
The Unirule Institute of Economics (Unirule) is an independent, nonprofit, non governmental (NGO) think tank, which was jointly initiated in July of 1993 by five prominent economists, Prof. Mao Yushi, Prof. Zhang Shuguang, Prof. Sheng Hong, Prof. Fan Gang, and Prof. Tang Shouning. Unirule is dedicated to the open exchange of ideas in economics in general, with a particular focus on institutional economics, and maintains a highly prestigious status within academic circles.

Address: 2-601, Yishuiyuan, Wanliu Donglu, Haidian District, Beijing, 100089, P. R. China
Tel: 8610-62132181
Fax: 8610-62132181

New books




China Economics 2008


Creating Peace Forever By Sheng Hong


A Brief Retrospect of My Eighty Years¡¯ Life By Mao Yushi




This series of books are academic summery of Prof. Zhang Shuguang


 


The Educating Rights Given By the God--Speech on ¡°Thirty People¡¯s Forum on Education Reform¡± on May 14th, 2010

The title of my speech is ¡°The Problem of the Educating Rights is A Constitutional Problem.¡± It firstly should be emphasized that ¡°the Educationing Rights¡± here is not ¡°Educated Rights.¡± In other words, it means ¡°The Rights to Start Schools.¡± The reason for attributing it to a constitutional problem is because the constitutional problem is a root problem, the problem of the origin where powers come from.

There are various explanations for success of China¡¯s thirty-year reform, among which one of the most important experiences is that we conducted constitutional reform. In other words, the most fundamental rule in China has been changed. This is reflected by two well-known sentences, one is ¡°No matter if it is a white cat or a black cat, a cat that can catch mice is a good cat,¡± and the other is ¡°Mao Zedong is a man, not a god.¡± The first sentence means, it does not matter much which doctrine we stick to as long as our aim is achieved. ¡°Aim¡± here refers to happiness of the people, development of society and prosperity of the country. The second sentence implies that each individual has his limitations, it¡¯s impossible for him to be omniscient, all-powerful, always correct, and to make no mistakes. So there is no a perfect institution designed by men, and there is no such a person who can give ¡°supreme instructions¡± which shall not be challenged and reformed by anyone. Although these two sentences were not written into the constitution, they are in fact two most basic principles of China¡¯s reform. By sticking to them, we have conducted a very deep reform in thirty years, the most important of which is the market-oriented reform. This has its constitutional meaning, that is, people obtain the freedom to conduct economic activities, which is actually the most fundamental thing. However, where does the freedom or right of economic activity originate from? In fact, it is not a right granted by government, but one of the natural rights of the people. The government is merely returning to the people what originally belongs to them. This is how we have made the wonder in thirty-year reform.

For more details:
http://english.unirule.org.cn/Html/UniruleIdeas/20100630132318483.html

zhangshuguang

Sheng Hong
Director, Unirule Institute of Economics

Highlights

People-oriented or Country-oriented?
By Prof. Mao Yushi

Artyom Savelyev, the 7-year-old Russian boy adopted by an American nurse named Torry Hansen from a Children¡¯s Welfare Home in Vladivostok when he was 6 years old, was recently sent alone on a one-way flight back to Moscow by his adoptive mother, with a note saying she no longer wishes to parent this child as he was violent and had severe psychological problems. This incident is merely a family dispute in itself, and a variety of similar things have happened in the past. In more certain severe cases, even bodily injury has been involved. However, since it involves people of two countries, it then became an issue between two countries, and diplomats, even the president of Russia have released statements on this issue. The media then added fuel to the fire, making this incident an international affair. This incident, if not involving two countries, is actually no more than an ordinary issue, which would barely be qualified for a local newspaper. From such comparison, we can see that both politicians and the common people are more willing to view things from a country¡¯s perspective, thus making simple things much more complicated. A matter between two individuals then becomes an issue between two countries. Which viewpoint is right and which is wrong? The boundary point is the principle of ¡°people-oriented¡± and the principle of ¡°country-oriented.¡±

For more details:
http://english.unirule.org.cn/Html/UniruleIdeas/20100524103302395.html

How to Evaluate China¡¯s Economic Development during the Thirty Years before China¡¯s Reform and Opening-up (1949-1978)
By Prof. Mao Yushi

China has made remarkable achievements in its economic development in the past thirty years of reform. No one would deny this, whether he is friendly or hostile towards China. We Chinese people who had experienced this process by ourselves definitely have a much deeper understanding. Except for those who are much younger, people over thirty have all witnessed this great change with their own eyes. I suppose more than ninety-five percent of Chinese people have benefited from the economic reform. Surely, there are still quite a few who feel unsatisfied. However, they are unsatisfied not because their living standard is lower than that of thirty years ago, but because they feel oppressed in some other aspects.

However, there is a lot of controversy as how to summarize China¡¯s economic development during the thirty years before the reform from 1949 to 1978. For one thing, young people have no personal experiences. For another, theoretical issues of economics are also involved here. Therefore, it¡¯s not easy to make it clear.

For more details:
http://english.unirule.org.cn/Html/UniruleIdeas/20100621094026580.html

Where Does Chinese People¡¯s Grievances Stem From?
By Prof. Mao Yushi

China is said to have risen again, and this is not a groundless rumor. China¡¯s economic accomplishment in the past thirty years is second to none around the globe. Also, China has completely changed its image of poverty and starvation, and will not be bullied by anyone anymore. The label on old China, "sick man of East Asia," has long been consigned to the dustbin of history. It¡¯s quite a rare case in world history for such rapid changes to happen in such a big country as China. In particular, China has transformed itself from a country under dictatorship with its doors all locked against the world in Mao Tse-Tung 's era into the one implementing all-round opening up and granting its people much freedom. China¡¯s achievement in economy draws the envy of all the other developed or developing countries. We did better than Russia, Japan, East Europe, and Latin America, not to speak of African countries. No one could match us in terms of the speed with which we improved living standards, political progress, and advancement of international status. However, this is not to say that we are doing well enough and that China is already an advanced country. What I mean to say is that our pace of progress is really incredible. Thirty years ago, no one would have dreamed that China would achieve so much is so short a time span.

For more details:
http://english.unirule.org.cn/Html/UniruleIdeas/20100630132512861.html

Events

2010 Education Reform Forum Held in Beijing
Unirule Institute of Economics held ¡°2010 Education Reform Forum¡ª¡ªA Discussion on Fair and Effective Allocation of Educational Resources¡± in Beijing Hubei Hotel on June 25th, 2010. Prof. Zhang Shuguang, Chairman of the Academic Committee of Unirule, gave the opening speech. Prof. Sheng Hong, Head of Unirule, Cheng Fangping and Chu Zhaohui, Research Fellows of China National Institute for Education Research, Li Chang¡¯an, Associate Professor of School of Public Administration, University of International Business and Economics, Prof. Ma Luting, Director of Higher Education Research Division of National Center for Educational Development Research, Mr. Xin Lijian, President of Guangdong Xinfu Education Group, and Associate Professor Shen Youlu of Education School of Guangxi University, delivered keynote speeches and answered questions from reporters and the audience.

The theme of the forum is fair and effective allocation of educational resources. Experts present at the forum carried out in-depth discussions, made thorough analysis on influence and causes of the phenomena of unfairness and inefficiency in current allocation of educational resources, further stressed the urgency and significance of reform on system and mechanism of educational resources allocation. They also suggested various solutions based on experience and reference.

Prof. Shenghong attended the International Symposim on Confucianism Constitutional Government and China¡¯s Future
Prof. Shenghong attended the "International Symposium on Confucianism Constitutional Government and China's Future" held by City University of Hong Kong from May 4th to 5th 2010, where he presented his thesis of "Virtue and Happiness Are Mother and Daughter--On Principle of Confucianism Constitutional Government and Historical Dimensions."

Prof. Mao Yushi Attended Sino-German World Expo City Forum in Shanghai
German President Horst Koehler attended "Sino-German World Expo City Forum" which was held in the Hamburg House of the World Expo on May 20th, 2010. Four people in total were invited to the forum, including German President Horst Koehler, Prof. Tang Zilai of Tongji University, Germany Architect Ms. Weiss, and President Mao Yushi of Unirule Institute of Economics.

Prof. Mao Yushi gave his opinion on the following three aspects. Firstly, China's urbanization pace will be increased. As the urban population keeps increasing, more and more employment opportunities are created, and more rural workers will mvove into the cities. Secondly, China's income gap is rather large at present, resulting in diversified housing demand in future cities. Since the government does not permit the existence of slums, we have to pay special attention as to how to meet the housing need of low-income populations in the cities. Thirdly, China is rapidly become a ¡°Gray¡± society, a problem that has been exacerbated by the family planning policies. The proportion of elders will increase rapidly, which will put pressure on city planning.

New Academic Committee of Unirule Elected
According to the Articles of Association of Unirule, Unirule Board of Directors held a new round of election of members of Academic Committee. Newly elected members include Yao Zhongqiu (Qiu Feng) and Zhao Nong. Prof. Zhang Shuguang was elected as Chairman, and Yao Zhongqiu was elected as Vice Chairman of the Academic Committee of Unirule.

Name list of members of the new Academic Committee is as follows: Chen Zhiwu, Fan Gang, Feng Xingyuan, Li Shi, Mao Yushi, Sheng Hong, Tang Shouning, Wang Dingding, Yao Zhongqiu, Zhang Shuguang, Zhao Nong, Zhou Yean

Prof. Mao Yushi, Prof. Zhang Shuguang, and Prof. Sheng Hong were invited to attend ¡°High-End Forum on 2.5 Industrial Orientation and Jintang City Development¡± in Chengdu on June 24th, 2010.

Current Researches/Consultings

Low-Income Housing System Research Project
It¡¯s an international consensus that the government should guarantee the right of habitation of its residents. However, how China should provide housing security is an issue deserving thorough study. Considerable problems exist in China¡¯s current affordable housing-dominated housing security system both in terms of theory and practice. Firstly, affordable housing policy is against social fairness. Secondly, affordable housing policy distorts market price signal and decreases the efficiency of resource allocation. Thirdly, distributing affordable housing by administrative means is sure to result in rent-seeking and frequent corruption in practice.

At present, China¡¯s housing security system has not yet taken shape. As affordable housing system is currently under scrunity, many regions are looking into low-rent housing, price-limiting housing, public rental housing, shared ownership housing, etc. Ministry of Housing and Urban-Rural Development is drafting the Housing Security Law.

With this as background, this research project will conduct a systematic and thorough study on the issue of housing security, looking to propose a feasible framework plan of housing security system and supporting policy suggestions which balance the equity and efficiency well.

The Nature, Performance and Reform of State-owned Enterprises: Research on Reform of State-owned Enterprises Under ¡°Guo Jin Min Tui¡± Background
¡°Guo Jin Min Tui¡± phenomenon (state-owned enterprises¡¯ expanding while private enterprises¡¯ withdrawing) became an obvious trend in the Chinese economy recently, such as in the steel and coal industries. This phenomenon sparked a heated debate in academic circles and throughout society. The inefficient operation and lack of supervision of state-owned assets means that China is not only facing economic difficulties, but is also breeding serious corruption and a potential contradictions within society.

In order to prevent the spread of this negative phenomena, the purpose of this research is firstly to clarify the nature of state-owned enterprises. Secondly, to give a description of the performance of current state-owned enterprises through large amounts of data and cases, and to judge their impact on society and government. Finally, this research will offer suggestions on ways to reform existing state-owned enterprises.

Research on China Market Competition Status
Unirule¡¯s ¡°Research on China Market Competition Status¡± was launched in January 2009. This research project aims at detecting possible monopoly problems through assessment on market competition status of different industries in China, and providing policy recommendations on promoting market competition and breaking monopoly based on the Anti-monopoly Law of the People's Republic of China which went into effect as of August 1, 2008.

Public Governance
Unirule¡¯s ¡°China Public Governance Observation Research Project¡± was launched in March 2009, aiming at recording and assessing public governance status in different areas of China through the perspective of news reporting. The research team held the Public Governance Index Press Conference in Beijing Friendship Hotel on April 30, 2009, to promote the rankings of its public governance index (PGI). The press conference generated extensive media coverage through a variety of outlets, including the prominent Sina, Phoenix Weekly, China News, Cajing economic newspaper, etc. The initial research achievement ¡°China¡¯s Governance in Media Recording¡± will be released in 2010.

The Research of Farm Land Transfer and Modern Agriculture Development
The Research of Farm Land Transfer and Modern Agriculture Development, is the third investigation into land reform led by Prof. Zhang Shuguang. This time, the research team introduced the process and characteristics of land transfer and scale management, and did detailed case studies in five locations, including Yujiawu and Yongledian, Tongzhou, Beijing; Land Cooperation Committee in Zhenghong Village, Ningyang, Shangdong;High-Tech Modern Agricultural Zone in Chongzhou, Chengdu, etc.

Urban Wastewater and Solid Waste Management for Small Cities and Towns
This Asian Development Bank Technical Assistance (TA) Project is led by Sogreah, Unirule and ICEA. The intended impact of the TA is to improve urban wastewater management and solid waste management by developing a national policy framework for wastewater and solid waste tariffs, including tariff calculation methodologies, focusing on small cities and towns. The goal of the TA is to achieve an increased rate of wastewater treatment and of sanitary disposal of solid waste for small cities and towns.

Upcoming Events

Unirule Biweekly Symposiums
Unirule¡¯s Biweekly Symposiums are known in China and throughout the world for their long history of open and in-depth discussions and exchanges of ideas in economics and other social sciences. Over 380 sessions have been held and over 15,000 scholars, policy makers, and students, as well as countless readers on the web, have directly and indirectly, and participated in the Biweekly Symposium for close to 20 years.

Biweekly Symposiums begin at 2 pm every other Friday and are free and open to the public.

Schedule
Biweekly Symposium No.411 : July 16th, 2010
Biweekly Symposium No.412 : July 30th, 2010
Biweekly Symposium No.413 : August 13rd, 2010
Biweekly Symposium No.414 : August 27th, 2010

Comments? Questions? Email us at jianghong@unirule.org.cn




If you no longer wish to receive these emails, please reply to this message with "Unsubscribe" in the subject line

Unirule
The Unirule Institute of Economics (Unirule) is an independent, nonprofit, non governmental (NGO) think tank, which was jointly initiated in July of 1993 by five prominent economists, Prof. Mao Yushi, Prof. Zhang Shuguang, Prof. Sheng Hong, Prof. Fan Gang, and Prof. Tang Shouning. Unirule is dedicated to the open exchange of ideas in economics in general, with a particular focus on institutional economics, and maintains a highly prestigious status within academic circles.