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A while ago, I stayed with my sick father for few weeks. This is the longest stay in my hometown in past 20 years, so I got a chance to see what had happened to my hometown. |
My home province, Liaoning, was most industrialized province in China. Her industry, education, R&D, art, sport were famous in China in past 50 years. Even right now, the average population school education years is till still number one in the provinces. And, for sport, you will find many of the players in national teams are from this province.
But what happens? Well, if I have to choose one word to describe my home, I have to pick “xia gang” – lay off.
I was told stories repeatedly related to how terrible the lives are to the laid off workers, and what violent demonstrations had happened. One of the stories is, the mayor was beat up by the angry laid off workers.
You may guess I will blame the mayor, no, I won’t. Here I tell you why.
Three relevant formulas in China
Formula one – Central Government Owned Companies (CGOC) pay more than 90% of their tax and profit to central government
Formula two – When the CGOC are making good money, they belong to central government; when CGOC are no longer making money, they will be “return” to provincial government. It means, when the companies died, they were not central government owned, but provincial government owned. Then, the laid off workers will belong to the province, and central government has a clean hand.
Formula three – CGOC are nothing to do with provincial government. They are completely controlled by central government. Municipal governments are of course even nobody; they are not even a thing to the CGOCs.
I saw these 3 formulas work very well in my home – many years ago, when the huge manufacturers in this province were all belonged to central government. The government of Liaoning province was nobody, the municipal governments were treated like sh!t. All money came to Beijing, not this province.
Now, the huge manufacturers became huge ruins. Few millions of laid off workers are paid by provincial government and municipal governments. But where is the money from? Of course not from central government but from the tax collected from the companies in this province.
Is this fair? Does this province stand a chance to develop economy? The province does not even have enough money to pay the laid off workers who are forgotten by the central government.
Re-build North East China Old Industrial Base, Sounds good, but how?
[ Last edited by luf2004 at 2006-3-8 11:05 PM ]