Chinas urbanization rate is impressive enough to fill those empty ghost towns not too long in the future, but problem is, supplies are not efficiently targeted at meeting demands. For example, you need more investment into affordable housing than the glamour and extravagance in some of those buildings and constructions, especially in poorer regions. Officials in public offices should have their salary and reward packages pegged against a set of KPIs, inclusive of but not limited to the GDP, spread out over the longer term. This is to help promote long term accountability, instead of implementing speculative initiatives and projects. I am not too sure of the extent of the Chinese property bubble. Probably, nobody is. But, should there be a huge crash, that may be a much needed impetus to set off overdue revolutionary sociopolitical changes which can turn out to be a blessing in the long run. Same logic should be applied to formulating payout contracts in the hiring of senior management in the corporate world. Anyway, Tianjin, as we commonly know, had never been a Ghost city. Visit there and see for yourself. If anything, you may even feel a sense of suffocation from overcrowding and heavy air pollution. China, as of today, has a deformed society, with a peculiar mix of milestones in genuine achievement and deeply entrenched distortions, in a rigid state of tight regulations. While bold innovative ideas and entrepreneurial spirit may take flight, significant turmoils and turbulence are likely to surface, though not being anywhere near the scale of a civil war or even the Color Revolutions.....
Posted on: Mon, 08 Sep 2014 09:04:06 +0000
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