China can help set global agenda

Short-term economic interests should not compromise China's long-term goals

Though opening-up is an essential part of China's reforms, it also needs to take on a more global sheen and focus on "shaping the global agenda". While this calls for an increased role for China in global affairs, it also involves establishing strategic targets globally and getting support from all stakeholders.

There are three major areas where global collaboration is needed and in which China can help set the agenda.

The first involves smart and sustainable urban development or production and consumption patterns. The rapid urbanization now underway in China is an important activity that can provide answers to this problem.

The second area where China can pitch in is by continuing its efforts to transform its ageing population into assets and by restructuring the economic system in such a manner that cultural contributions from older people are recognized and valued more than material luxuries.

China can also lead an international initiative to guide accelerated technological development, in areas such as nanotechnology, so that it benefits citizens around the world and not just a few companies.

Such an approach to opening-up is essential and it is more than likely that these measures will find support at the Third Plenum in Beijing.

From a historic perspective it is important that China live in a new era and not in the past. The global economy is much more integrated today, both in terms of information exchanges, investments and economic activity, and also in the flow of natural resources.

Though bilateral relations have been the pivots of global ties in the past, it is becoming clear that a cluster approach, one that involves several nations, is more ideal to address today's challenges. The role of major transnational companies is also becoming much more important today, and this role has become so powerful that governments need to collaborate to ensure that economic development is guided by long-term concerns and not quarterly profits.

It is important to remember that the roots of the current international system were sown by a few nations after the World War II. This system is becoming increasingly outdated and new ideas are needed.

China can make an important contribution to global economic and trade rules by teaming up with other countries, especially emerging ones, to develop and implement concrete proposals on new global governance systems.

Such a system must also shed the old industrial, centralized, growth paradigm and instead seek harmonious development and protection of nature. More focus on arts and sciences are required, while there should be less emphasis on increasing material consumption. A culture where collaboration is more important than competition, and network clusters rather than individuals are recognized will clearly be an engine of innovation.

At the same time, China's major domestic challenges should also be seen as important opportunities. China's desire to move from a resource-heavy growth economy to a knowledge-intensive and high-quality economy requires it to set clear targets for economic development and ensure that vested interests in resource-intensive and polluting industries do not influence major policy decisions.

Targets for urban investments are also needed to support the development of smart resources, using the latest green technology and micro financing tools. This will help create environmentally smart cities and avoid speculative bubbles.

For China, the most important thing is to ensure that the flow of ideas is not compromised by short-term economic self-interest. Most of the challenges that China faces require open and dynamic discussion among all stakeholders and avoiding rumor and false information.

Continued reforms to encourage an open and innovative climate will hopefully be discussed during the Third Plenum. Some bold targets could also help galvanize innovation and create a focus for economic development.

Eliminating poverty and ensuring improved equity by 2035 so that the gap between the rich and the poor is reduced further is likely to be one of the bold targets that is set by policymakers.

China has already made a step in this direction by introducing reforms that aim to support a sustainable lifestyle among the rich. It could also be the first country where lifestyles that help eradicate poverty in China and beyond are promoted, especially by paying fair prices for agricultural products and by purchasing products that drive innovation needed to reduce poverty, such as smart lighting and communication solutions.

Instead of quantitative growth, new measures for quality of life and creativity in society can be introduced along with transparency tools, where the contributions of individual companies are disclosed on a weekly basis.

Finally, unless the gap between the new rich with their destructive lifestyles and the poor begin to close there will be conflicts, both due to lack of resources and due to frustration that a few have so much do not share it. Reforming the incentive system for companies and ensuring that the tax system evolves in a manner that rewards companies that provide innovative solutions. At the same time, companies that promote an egoistic and resource-intensive lifestyle should be punished.

The author is the founder of 21st Century Frontiers, a Sweden-based consultancy that specializes in research on China's global media image.

(China Daily Africa Weekly 11/01/2013 page9)