Points from February 13, 2008 Guest Lecturer
China’s New Challenge: Balancing Growth and Social Justice
Dr. Minxin Pei
Dr. Pei described how the economic growth in China has created problems in the following areas: pollution, health care, and crime. China has seen a double digit economic growth in the last 3 decades and an emergence of a middle class. China’s growth, however, has been achieved at a cost—healthiness, pollution, and crime. Because of the rise in the standard of living and the availability to the fast food industry, China is now worried about obesity, when just 30 years ago they were worried about malnutrition. Moreover, 66 percent of its river is polluted and 90 percent of its land water is polluted, meaning 300 million people in China are drinking polluted water. In addition, economic growth is traditionally followed by inequality, which fosters crime.
Dr. Pei did offer some remedies counter the negative effect of growth: (1) China’s government can invest in education and health care to benefit the poor. (2) China’s government needs to use physical or tax policies, such as progressive tax income, and levy inheritance tax to get additional revenue. China has no inheritance tax but does have capital gain tax. (3) China’s government should also allow labor to organize so wage can rise, but China does not allow collective bargaining.
Dr. Minxin Pei
Dr. Pei described how the economic growth in China has created problems in the following areas: pollution, health care, and crime. China has seen a double digit economic growth in the last 3 decades and an emergence of a middle class. China’s growth, however, has been achieved at a cost—healthiness, pollution, and crime. Because of the rise in the standard of living and the availability to the fast food industry, China is now worried about obesity, when just 30 years ago they were worried about malnutrition. Moreover, 66 percent of its river is polluted and 90 percent of its land water is polluted, meaning 300 million people in China are drinking polluted water. In addition, economic growth is traditionally followed by inequality, which fosters crime.
Dr. Pei did offer some remedies counter the negative effect of growth: (1) China’s government can invest in education and health care to benefit the poor. (2) China’s government needs to use physical or tax policies, such as progressive tax income, and levy inheritance tax to get additional revenue. China has no inheritance tax but does have capital gain tax. (3) China’s government should also allow labor to organize so wage can rise, but China does not allow collective bargaining.
posted by Maria Teresa de la Cruz at 9:50 PM
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