suited towards their jobs, and therefor they workers will be more effective. Infrastructure: l believe that China has to build a railway system, so itwill not have the highest utilisation rates for freight traffic. l alsobelieve that China should give incentives for students to enter highereducation. Government Finance: l think that the government should stopmaking up for losses of state-owned firms, and stop paying subsidies tothese firms and consumers, hence the budget gap would be more than closed.Why privatisation may not be needed: Privatisation in many cases may not be needed because the governmentsupports many businesses and purchases their products. If the company's areopen to the market, many jobs will be lost. If foreign ownership buys it up,many jobs will also be lost, as well as many profits and products. Stateowned firms are not ready for the market, because they are geared for thebureaucrats and not customers. They are more concerned with the welfare ofthe employees rather than efficiency. In the past, communism led to lowproductive workers, because the more profits they made, were taken fromgovernment. Now things have changed, the more the retained earnings, themore the employees receive in bonuses, and that will make them work harder.A bracing wind is blowing through the open door: China follows the policies of its East Asian neighbours on foreigntrade and investment. In 1978 China had an isolated economy, with aminimal share of world trade, commodities, especially oil which was China'smain export. It has now blossomed into a $300 billion trade by 1995.Exports has five-fold. China will also receive a lot of foreign investmentfrom countries, especially japan, which will hit poor parts of China. Chinawill also be joining GATT soon, and have reached an market-openingagreement with the US in October. I believe that China should allow asmuch foreign investment as possible because it has helped other countries...
