No quick govt fix for thorny housing problem

• Source: Globaltimes
• [22:39 March 01 2010]
• Comments

The economic crisis interrupted China's restructuring process. In order to pull the economy out of the slump, the government had to adopt a strategy of putting develop-ment first. Huge investments saved the Chinese economy, but also caused serious damage to Chinese society.

Contradictions can be easily found in many places. We have a rich country but poor citizens, "narrow houses" but "real estate kings," and labor shortages but high unemployment. All these show that the rapid restructuring of social wealth had a serious impact on some social groups.

After the economic crisis, social problems and the macro-economy have become more closely linked. In the past, China believed the restructuring only necessitated industrial or economic changes, but today, people are more concerned about welfare and sustainable development.

GDP is no longer an attractive way to measure people's happiness, and people are calling for social restructuring, a task China has to face up to.

A healthy market-oriented economy needs a social welfare system to support it. If we can build such a system, China's domestic demand can grow to its full potential, which will actually save China's economy.

To find one cure to all the problems is impossible, but the government does have an important role to fulfill by taking firm actions, reshaping wealth distribution mechanisms, and respecting the equal rights of each citizens. The government's executive power must be checked.

A housing, healthcare and social welfare system that can benefit everyone needs to be constructed so that China can become truly prosperous.

The author is a Beijing-based journalist. xiaokailin@sina.com