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The milkman versus the spaceman: China's dilemma

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In Brief

A brief skim of Chinese newspapers recently would give the casual reader a fairly good idea that China managed to have a man walk in space. Woe betide this same reader should they then reach for a skim milk though. Not that you would know from a casual scan of the Renmin Ribao.

Yet, for us, juxtaposing the recent space crisis with the powdered milk incident provides a valuable perspective of the nature of modern China.

[caption id="attachment_1785" align="alignright" width="200" caption="Look at me kids! Now drink your milk... (from yesterland.com)"][/caption]

In the red corner, we had Colonel Zhai wearing his 265-pound, US$4 million, Chinese-made "Feitian" space-suit for a jaunty space stroll, the success of which has sent Chinese propaganda "hitmen" such as Yu Feihong into a frenzy.

An editorial run in major newspapers said the success of the Olympics and other such "nation-building feats" demonstrated the superiority of the Chinese political system to the democratic West's "corrupt, divisive and inept policy-making". "Its advantages are increasingly evident," it said. "Western countries are mired in low growth, and the United States' recent severe financial crisis is a manifestation of the dead-end of liberalism."

At the same time contaminated milk powder, laced with the industrial chemical melamine in order to make it appear more "full of protein" for Chinese consumers, has been blamed for causing the deaths of four infants and sickening more than 54,000 others. Chinese authorities stated that dairy farmers added melamine, usually used in plastics, paint and adhesives, to watered-down milk. The practice was apparently widespread in the industry, with government investigations finding 37 Chinese dairy companies, including the most reputable brands, had sold tainted products.

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How, it must be asked, can a nation of such current resources, power and influence that it is banging on about the evils of liberalism be simultaneously suffering from an inability to do something as simple as ensuring that it can test milk powder for children?

Largely, because the centre is able to do things far more efficiently than the levels of government that people actually see and interact with everyday. If a project is big, glitzy and demanded by the central government, it shall be done, and done well.

Yet on the day to day level, China suffers from the dilemma of unfunded mandates making the provision of public services incredibly expensive and inefficient. I have written earlier on the impact that this has had on the public health system in China.

Chronic fiscal shortages don’t just have an impact on health service delivery. They affect all elements of people’s lives. China’s regulatory bodies are famously underfunded. Its regions are also famously underfunded. Funnily enough, its regional inspection bodies are… underfunded. Over years, this begins to wear down the provision of simple public services. (Indeed, it is noteworthy that all babies suffering symptoms of poisioning from the milk powder were offered “free treatment at the Beijing First Hospital”. What about treating them in Henan, where they actually fell sick? Oh.)

Yet when something becomes a political priority from the centre, such as the space walk (or the Olympics), it is done with astounding efficiency and brio.

To be clear, I am not arguing that these things are not vital for Chinese national unity and cohesion. That said, you need some bread to go with your circuses. A greater concentration on resolving the fiscal shortage problem, and improving the capacity of local government in particular will never make the front page of the papers. But it would make a considerable difference to people’s lives.

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