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China's goal: Peace and development

(China Daily)
Updated: 2010-11-09 07:51

Robert Lawrence Kuhn: Role of scholars

Scholars are essential for the flourishing of great societies, and they have been honored and respected throughout Chinese civilization. Scholars seek truth, and because truth is elusive and often disputed, it is incumbent on scholars to present their views without fear or favor.

Scholars have a corollary responsibility, too: Not to distort or mislead. But an absolute standard of what is, or is not, distortion or misdirection can be a challenge.

The common assumption in the West is that scholars in China are not free. This is not correct, because the assumption does not appreciate progress. Although there are indeed pockets of restrictions, the off-limit areas have been shrinking. So scholars in China today have vastly more freedom than they did four or five decades ago. We should appreciate that progress.

The common assumption in China is that many Western scholars, just like much of the Western media, are biased against the country and conspire against it. This is not correct, either. Scholars, like the media, often focus more on what's wrong than on what's right. That is their nature, and society can benefit from it.

The problem with foreign critics of China is not so much that what they state is wrong - the problems they emphasize are often real problems - but rather that they give the impression that the problems comprise the entire picture of China, as opposed to just part of the picture.

Constructive critics of China, whether Chinese or foreign - those who root for its success but are concerned enough to point out the problems - are the country's best friends and greatest allies.

There is great hunger in the world for information about China and for understanding of the country. It is the responsibility of Chinese scholars to ensure that the information is accurate, even if the understandings differ.

I conclude by offering my congratulations to Shanghai on the conclusion of the magnificent 2010 World Expo, which drew the world's attention on two historic themes: The needs of cities, highlighting new technologies as the developing world urbanizes; and the emergence of China as a great and responsible member of the international community.

The author is chairman of the Kuhn Foundation and has a book, How China's Leaders Think to his credit.

Shahid Yusuf: Sustaining globalization

Given the depth of the imbalances among countries, only an internationally orchestrated approach to policymaking can restore the tempo and health of globalization. This will call for a "new deal" on global governance with concessions by all parties for the common good. With such global governance it may be possible to arrive at credible and impartially enforced rules for containing and eliminating imbalances through coordinated macroeconomic and pricing policies, and, in time, settling the issues with regard to a global reserve currency.

The global financial crisis and its underlying causes argue for clearer guidelines for monetary policy, banking regulation and techniques for managing capital flows in the interests of price stability, and the avoidance of asset bubbles to minimize systemic financial risks.

While these measures could correct imbalances and lessen the risks of crises, China's growth will require other kinds of policy actions as well. First, even though more of China's growth should derive from household consumption, investment will remain a crucial driver as it has been for the past 30 years. Maintaining high levels of investment in industry, urban development and infrastructure, and human-capital-building services will be vital for growth directly.

Second, globalization has drawn much impetus from technological revolutions (in electronics, computing, the Internet and bio-technology) and innovations across a wide spectrum of activities. Many of these technologies are now maturing and although there is plenty of potential left, China and the world economy urgently need to push the technological envelope in new areas and to spur productivity-raising innovations. Technological change will not only be important for growth (through investment and productivity gains), it will also provide answers to challenges that lie ahead from climate change, resource scarcities, urbanization and aging population to name just a few.

Third, technological advances increasingly depend upon open trading and innovation systems and international networking of researchers. The globalization of innovation is a significant achievement and one that needs to be preserved at all costs. With advancing knowledge and increasing specialization, the productivity of research will depend upon international efforts and the quality of networks.

The author is economic adviser to the Development Economics Research Group of the World Bank.