“Greatly Hopeful” Cooperation between Chongqing and Singapore

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“Greatly Hopeful” Cooperation between Chongqing and Singapore

Interviewer: Zeng Rui, journalist of this magazine

Interviewee: Yao Shujie, economics professor of the University of Nottingham in Britain and Chongqing University, specially-appointed professor of Changjiang Scholars and wellknown Chinese economist

The economist Yao Shujie thinks that it is undoubtedly of great significance for Chongqing’s development since the third Sino-Singapore cooperating project between governments is launched in Chongqing. W e should not only witness the number of signed projects and amount of attracted investments, but also look into the tremendous drive for Chongqing as key pivot city of “Belt and Road” and “Yangtze River Economic Belt”.

See Chongqing: an important role in “one composition (chess game) across the nation”

“There are great hopes!” said president Xi Jinping when he came to Chongqing for investigation in the first work day of 2016. As the whole nation of China was under great pressure unfavorable economic development, Chongqing bucked the trend and took the lead in terms of GDP growth in 2014, accounting for 10.9％; in 2015, the growth still kept No.1, accounting for 11％.

In addition, while the national export grows negatively, Chongqing’s has increased over 30％ and near the top among all provinces or districts in term of foreign capitals. So what are the experiences and conditions for Chongqing to be successful? Chongqing is the only one municipality directly under central government in China west, but its development relatively fell behind because Chengdu which was paralleled with Chongqing as major municipal cities before 1997 is provincial capital. Transformed into the municipality, Chongqing’s political status leaped over the whole Sichuan province, even prior to Chengdu, all which can attribute to an important measure of China’s west development strategy in later 1990s. At the end of last century, there were great gaps in economic development in east, middle and west of China. In order to improve the economy in the west, the central government had to of fer particular policy for the development there. The change of municipality and provincial unit with largest population from a city in Sichuan give Chongqing political and geographical advantages for its rapid development later on. Compared with Beijing, Tianjin and Shanghai, Chongqing has its two major advantages: one is the late-mover advantage; another is land and population which the other three municipalities have no. the first advantage means that Chongqing can take in the experience and lesson from coastal cities and use the newest technology and management experience to avoid dif ficulties and tortuous paths that eastern cities encounter in the process of development.

There are both developmental advantages and disadvantages in Chongqing. For example, in early years, Chongqing has weak economic basis and large population, its rural population accounting for 50％. The centralized poverty-stricken population of Chongqing is that the other three municipalities can’t compare with, and therefore, per capita income in Chongqing is less than half of that in other three cities and more ef forts should be made to catch up with them. To keep same with national per capita level of GDP, Chongqing has to grow more 2％ than average level in GDP. So the leading economic growth at present is just to shorten the gap betweenChongqing and national average level.

When it comes to regional economic balance and identical development, Chongqing is undoubtedly a good example. In the stage of medium and high speedy development for China’s economy, it mainly depends that backward areas surpass the developed regions and the latter continues to find out their respective endogenous growth potential and technical innovation ability. Technical innovation is a necessary condition for newly increased dynamic power to replace old production energy of motion. But the appearance and promotion of new energy needs time. For a quite long time in the future, China’s economic growth has to realize based on two energies. Then, in terms of regional balanced growth and less dif ferences between backward areas and developed areas, old energy can still occupy leading position. Personally, this is not only a premise to eliminate poverty and build a comprehensive well-being society, but the only road to step over “medium income trap” for China’s future.

This is Chongqing’s important role in the “one composition (chess game) across the nation”. Chongqing, as a large metropolis in upstream of Yangtze River, is also a largest center city with promising development in the west of China. Its success will bring western areas confidence and impetus and give forceful example for China to stepping into identical development and cross“medium income trap”.

See Singapore: is “Singapore experience” useful to us?

China and Singapore are dif ferent in political system. Even so, many of Singapore’s policies and developmental measures are still useful for China torefer to.

Firstly, in terms of city traf fic policies in Singapore, China has to learn from it. Now, in such big cities like Beijing, Shanghai and Guangzhou, there is traff c jam, serious pollution and low service. But in Singapore, it is totally dif ferent. These differences originate from the government’s different policy orientations. In Singapore, all of city traf fic policies are designated for most people’s benef ts so as to focus on people and place harmony in the f rst place.

The necessary elements that China’s cities have to learn are to improve cars’ cost of ownership, vigorously develop public traff c, intensify environment construction and strengthen sense of service. However, these are not enough and other actions such as taxi management and road and bridge tolls management should be taken; besides, there is also other work to do.

Secondly, the housing. The real estate policy in Singapore may be very suitable for China’s national conditions. The government totally take charge of regulating and controlling the housing to ensure that everyone can have places to live and develop in a sustainable way, which is a basic national policy concerning people’s livelihood and nation’s prosperity.

Last but not least, there are many aspects like medical policy, education policy, industrial policy and laws and regulations to use for reference; even the incorrupt government building, means and functions of government intervention are worth learning.

Promoting Singapore’s economic development with openness

It is free trade and investment, industrialization led by country, sound democracy legal system, global top-ranking education and technically innovative ability as well as social comprehensive harmony that bring Singapore great success.

Singapore is the most open city around the world, with its rate of international trade volume and GDP accounting for 408％. Singapore attracts foreign investments from over 7000 multinational corporations in developed countries like Europe, America and Japan as well as 1500 corporations in China and India.

The country gives strategic industry and services supports with purpose and plans, making them the most competitive industries in the world and industries with high ef ficiency, powerful competitiveness and strong employment ability to develop sustainably and innovate continuously by introducing non-state-owned economy.

The rigorous and transparent legal institutions make the whole national administrative system clear, transparent, highly creditable, highly ef ficient and low-cost. Foreign corporations are willing to come to Singapore not only because legal guarantee can be fully obtained but there is no need to be intervened unfairly by governmental departments.

Since winning dependence in 1965, Singapore has kept developing with high speed. Except that Asian financial crisis in 1997and world economic crisis in 2009 gave rise to Singapore’s negative increase in short time, it keeps healthy sharp growth in other periods. For example, Singapore’s GDP in 2011 reached 15％.

Eff cient and harmonious social service system

Like Hongkong, Singapore also has great difference in income distribution of developed economic entity, with its Gini coeff cient of per capita income reaching 0.47. There is no minimum wage standard in Singapore and the main purpose is to encourage full employment instead of cultivating lazy people, which is a major modi f cation to Britain andEuropean system. Singapore’s unemployment rate never exceeds 4％ and the rate in 2011 is only 2.9％, accounting for one third of Britain unemployment rate.

Although there is a great dif ference in income, the government tries its best to provide all residents with the most fundamental and honorable life conditions and service. Singapore has established Public Housing Management Committee in charge of construction, management and distribution of publicowned housing. The committee offers cheap low-rent houses and single rooms to the group with minimum income. The rent per month is only 80 SGD, small change of family income.

For those families with a little higher wages, the government encourages them to purchase housings provided by it and the price decreases by 40％ compared with commercial residential housings in free market.

Besides housing, education of primary and middle school is free and university fees also obtain a large quantity of subsidies from government. In terms of medical care, the service in governmental hospital needs no costs.

As for income, I get in touch with several Singaporeans. One is a taxi driver who drives E-grade Benz, mainly of fering special service to local companies. He said to me that the job was so hard that he had to work for 14 hours with 4000 SGD monthly income. Ten years ago, he bought economically affordable housing and it cost him 200,000 SGD for 100 square meters but now the house may be worth 500,000 SGD.

The second Singaporean is a teacher retiring from local vocational high school. He has 40 years’length of service with 6000 SGD of monthly wages and gets paid for 13 months in a year before he retired. The wage after retirement is two thirds as that before. His wife’s wage is almost the same as his. 25 years ago, he spent 120,000 SGD buying governmental house covering an area of 112 square meters with four rooms and one hall. And now, the house’s price is 500,000 SGD.

Another Singaporean I know is a professor who works from mainland to Singapore. He has income of 15000 SGD per month and lives in a house with four rooms and hall. However, he has to buy house by himself with 800,000 SGD at price, better than governmental houses in condition and location.

In addition, it should be emphasized that the governmental housing in Singapore is of good quality. The storey is not high, about 15-30 floors. The space between f oors is quite big, not crowded like Hongkong at all.

In short, Singapore’s successful experience can be concluded: Chinese diligence and smartness as well as f rst-rate governmental management and administrative system can create wonders for human being and goes beyond Europe, America and Japan, which is the best and most direct enlightenment given by Singapore’s developmental experience.