Creat Value...Dig it

My time in Shanghai is almost done. So I'm looking back on this time trying to gather my thoughts on my time here and determine what the greatest thing I learned was. To be honest, I've learned a lot, which I will probably write about in the future, but for now, I want to write about what I've learned about the future of China.

In order for China to compete, they need to create value. If they do not add value on a microeconomic level, their macromistakes will soon catch up to them. China has been so concerned with catching up with the major players in the world, and has done so by sacrificing its own land and people.

China's Return On Capital is horrible when compared with it's output levels. If they expect to maintain this growth, they must find a way to increase their returns. The country needs to realize that large a large GDP and a trade surplus does not make you a major world player. Thousands die a year in China's workforce in order contribute to the countries expansion. For instance, experts estimate that 4,000 miners die a year in China. (The latest mining accident occurred three weeks ago and killing almost 200.) Granted, most of these accidents occur in illegal mines, but when eight miners are trapped in a mine in America, it's a national tragedy. However, you won't hear a single thing from the Chinese media about this story.

Workers are held as slaves by extreme factory managers, and quality control is placed on the back burner while our children in America are roofied freshman-sorority girl style. All of this is overlooked for the "greater good," a "harmonious society."

The countries impact on the environment is another story. There is no safe drinking water aside from bottled water, rivers are highly polluted, the list goes on. The local government's attempt to "make their areas greener" includes planting trees in designated areas, not regulating CO2 output or any sort of other regulations. However, according to my Chinese professor, trees are good because "the color green makes the area pretty and helps give oxygen." Which I don't disagree with, trees are pretty, but what about the pollution killing those trees?? National parks are treated like theme parks. One of my visits to a glacier park in the Sichuan province revealed trails destroyed by horses and humans walking on the same path, the ground was destroyed. Convenient stores littered the side of the paths, selling instant ramen noodles and other packaged products. No trashcans along the trail, trash everywhere. Where is the value?

The issues raised by the Western media over the past six months have shown the need for the creation of value. If China does not adapt to the current world economy, other developing countries, like India, could easily overtake China in the next 30 years. Although these issues may not be of importance right now, if China is to become a self-sufficient economy, there must be a creation of value. However, what if this a cultural difference between China and the Western world? In a collectivist society like China, is it possible to create value on a micro level?


In other news, I just got the new Lupe Fiasco CD "The Cool." It's the nastiest, dirtiest, most glorious piece of art I've owned in a very long time. Dig it.*





*= This can also be said of "In Rainbows"