OPINION> Commentary
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OPINION> Commentary
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Best rescue plan
(China Daily)
Updated: 2009-02-04 07:43 Some lament the absence of an explicit Chinese promise to bail out the IMF. Some complain about their leaders' failure to extract a Chinese concession on Tibet. But sensible Europeans should celebrate what Premier Wen Jiabao brought to the Old Continent - political will and confidence to maneuver decent growth at home, and readiness to lend a hand to struggling Europe. That is about the best they can reasonably expect and we can afford to commit to. While the world looks on us to play a rescuer's role, we are glad to hear Premier Wen reminding Britons our per capita gross domestic product remains 1/16 of theirs. Heroism and moral responsibility aside, few other countries are more anxious to see an immediate upturn in the global economic scenario. Our dependence on export markets determines that. Even for self-protection, China has a profound interest in contributing to international rescue programs. That is exactly what outsiders expect of us. But how? Or in what way can we contribute the most? Many, British Prime Minister Gordon Brown included, want to see China commit to such specific rescue projects as investing in the IMF, or World Bank. That is a way to contribute. But how much is enough? Nobody can tell. Premier Wen rightly assured the media that China cannot save capitalism. It is simply beyond our capabilities. The best way to do our bit in this crisis, as Wen reiterated, is to manage our own economy well. This may sound less than pleasing to the ear. At this point, many would rather see China disburse concrete international bailout attempts.
But a well-crafted and well-executed Chinese stimulus package can do a lot more than that. It may completely transform the way the Chinese economy interacts with that of the world's. For decades, it has followed the pattern of a simple and primitive exchange - Chinese-made goods for foreign cash. The theoretically lucrative 1.3-billion consumer market, on the other hand, has by and large remained dormant. The Chinese stimulus plan's heavy emphasis on stimulating consumer spending features an unprecedented official endeavor to seriously tap that potential. Which is an essential yet so far missing link in a truly virtuous circle. So what the Chinese government does at home is not just creating jobs for the Chinese workers. It is at the same time cultivating an enormous army of spenders. We have seen a rough consensus on this overseas, mainly among economists. More need to get this message. The shoe hurled at Premier Wen at Cambridge was a graphic reminder of how little the average European knows about China, and how deeply political nonsense has permeated into European awareness. The ultimate cure for that, again, is to manage our own affairs well. (China Daily 02/04/2009 page4) |
