Comments on: Costs of maintaining stability in China http://www.eastasiaforum.org/2010/05/23/costs-of-maintaining-stability-in-china/ Economics, Politics and Public Policy in East Asia and the Pacific Sun, 12 Feb 2012 22:50:38 +0000 hourly 1 http://wordpress.org/?v=3.2 By: JAhttp://www.eastasiaforum.org/2010/05/23/costs-of-maintaining-stability-in-china/comment-page-1/#comment-119448 JA Tue, 25 May 2010 09:48:39 +0000 http://www.eastasiaforum.org/?p=12055#comment-119448 In response to Mr Fung, it is naive to suggest that governments automatically know how to distribute wealth, such that in Thailand one needs only do so and it will be effective. The key issue is not a matter of moving money, but of knowing what to spend it on (and having "the right" option open in the first place). I am sure the Thai government would have paid the mythical "bill" for stability in advance, had they only been handed it. Ultimately, the notion of paying for stability is backwards. One pays for services and products, not institutions, rules, etc. In response to Mr Fung, it is naive to suggest that governments automatically know how to distribute wealth, such that in Thailand one needs only do so and it will be effective. The key issue is not a matter of moving money, but of knowing what to spend it on (and having “the right” option open in the first place). I am sure the Thai government would have paid the mythical “bill” for stability in advance, had they only been handed it.

Ultimately, the notion of paying for stability is backwards. One pays for services and products, not institutions, rules, etc.

]]> By: Lincoln Funghttp://www.eastasiaforum.org/2010/05/23/costs-of-maintaining-stability-in-china/comment-page-1/#comment-119372 Lincoln Fung Mon, 24 May 2010 23:19:24 +0000 http://www.eastasiaforum.org/?p=12055#comment-119372 After some thought about the article, I think the title might be more pertinent if it is called "Costs of maintaining stability in a wrong way in China". The current title gives the impression that the costs outweigh the benefits, but implicitly implying no costs of not maintaining stability. The post on Thailand's recent unrests following is a useful and timely reminder the costs of not maintaining stability. And the potential costs in China would be much far greater by some factors. Of course, I am not saying the way the Chinese government has relied on is a good one. Clearly it can do better with much lower costs. PS: the last paragraph may be misinterpreted: "The Tsinghua report indicates that concern about the negative impact of institutionalised state paranoia is rising in influential, even official, circles. The time has clearly come for the pendulum to swing of in favour of seeking long-term reductions in tension rather than quick fixes. The international policy community needs to develop thinking and strategies that are sympathetic to this trend." After some thought about the article, I think the title might be more pertinent if it is called “Costs of maintaining stability in a wrong way in China”.
The current title gives the impression that the costs outweigh the benefits, but implicitly implying no costs of not maintaining stability.
The post on Thailand’s recent unrests following is a useful and timely reminder the costs of not maintaining stability.
And the potential costs in China would be much far greater by some factors.
Of course, I am not saying the way the Chinese government has relied on is a good one.
Clearly it can do better with much lower costs.
PS: the last paragraph may be misinterpreted:
“The Tsinghua report indicates that concern about the negative impact of institutionalised state paranoia is rising in influential, even official, circles. The time has clearly come for the pendulum to swing of in favour of seeking long-term reductions in tension rather than quick fixes. The international policy community needs to develop thinking and strategies that are sympathetic to this trend.”

]]> By: Lincoln Funghttp://www.eastasiaforum.org/2010/05/23/costs-of-maintaining-stability-in-china/comment-page-1/#comment-119123 Lincoln Fung Mon, 24 May 2010 01:18:38 +0000 http://www.eastasiaforum.org/?p=12055#comment-119123 The so called China model does not really exist, or is so fluid or evolving or in transition that is not a model. It is like what Deng said of Chinese economic reforms, "cross the river by toughing stones". However, it is likely that China has got to a stage that it needs to consider its future strategic directions that may lead to China model eventually. Such considerations should adopt the same overarching strategies as Deng did for economic reforms, but in a much broader context. The so called China model does not really exist, or is so fluid or evolving or in transition that is not a model. It is like what Deng said of Chinese economic reforms, “cross the river by toughing stones”.

However, it is likely that China has got to a stage that it needs to consider its future strategic directions that may lead to China model eventually.

Such considerations should adopt the same overarching strategies as Deng did for economic reforms, but in a much broader context.

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