Anonymous Kumquat submits:
This edited introduction is from Han's latest book: The Economics of Competition: A Critique of Paul Samuelson's "Economics," published by Jingji Kexue, Chubanshe, 2002
"The Economics of Competition: A Critique of Paul Samuelson"
Han Deqiang, China Study Group
A Collective "Prisoners' Dilemma"
China has switched to a market economy for a whole decade now. People once
hoped, and may still be dreaming that, as the institution matures and
perfects itself, China would become a strong developed country, where
democracy rules and people enjoy high quality of life not only in material
terms but also in spiritual and moral terms.
But reality seems to be moving
farther away from such a dream. Since the late 1990's, all kinds of Chinese
enterprises have gone bankrupt en masse. With it came increased
unemployment, lower mandatory retirement age, lower wages for workers,
decreased income for farmers and slack domestic demand. With the influx of
foreign enterprises and foreign products, many Chinese enterprises have
switched their business lines because they no longer have the confidence to
run a high-tech business at a profit. They become de facto employees of
those foreign enterprises, earning meager fees for their efforts.
In the
meantime, there has been a staggering number of tragic mine accidents that
kill thousands year after year. Major accidents involving large number of
deaths, such as firework factory explosions, plane crashes, as well as fires
at cyber cafes, night clubs, theaters and shopping malls have occurred with
mind-numbing frequency; villages and small towns are flooded with fake or
poor quality products; drugs and AIDS are rampant. Not only has corruption
become a normal way of doing things among many officials, but it has also
become a normal part of the values/belief system of the collective national
psyche, marked by an egregious lack of civil-mindedness and ethical
awareness. Teachers, doctors, lawyers and accountants all share the belief
that " One must make use of one's position of power for self-enrichment
before one loses it"; schools have become agencies that sell diplomas;
hospitals force patients to pay up or leave.