Market power sparks cultural creativity

• Source: Global Times
• [22:05 January 18 2010]
• Comments

Wang Hongbo

SW: Have existing special interests hindered the reform of the cultural system to a certain extent?

Wang: Privatization is an important step. The competition will be intense. For instance, it is primarily the power of the market that creates the competition between Hunan TV and CCTV.

Chen: The entering of private or semi-private enterprises into previously monopolized industries will create some pressures at first on State-owned enterprises. But after a period of time, especially in cultural industries, as long as special interests exists, the rules in this field will surely become unjust. And private enterprises must be alert to the danger of being elbowed out.

For instance, programs like "Super Girl", a Chinese counterpart of "American Idol", had some public impact, but then various policies came out and suppressed those creative programs produced by Hunan TV. All the private entrepreneurs I know have left for other industries.

It is impossible to win when competing with large corporations with support from the State. This unfair competition will drive away any ambitious private entrepreneur. We need to get rid of special interests like this.

SW: At the moment, the State sector seems to be growing. Is this affecting cultural industries?

Wang: Once culture gets connected with ideology, its nature will change. Twenty years ago when I first came to Beijing, even the storing of cabbages during the winter needed to be decided by the government. Culture is connected with national stability, but we definitely can't take every cultural issue as a security issue.

Chen: The biggest side effect of the financial crisis was probably that it reinforced the mistaken idea that government's control over the industry is a good thing. If we go further in this direction, China's economic vitality will be suppressed.

Lü: We should also not be too pessimistic. Not all State-owned enterprises are refusing marketization.

Wang: State-owned enterprises may know better where the resources are than private enterprises. So if they do business under the market system, they may make more money.

I also agree with Professor Chen. We should be concerned with the expansion of the State sector. If we do not plan carefully, in the future this phenomenon may be more severe in cultural industries than elsewhere.