31 years ago, in the early morning of July 28, 1976, one of most destructive earthquakes in 20th century took place in Tangshan, an industrial city in Hebei Province. It claimed more than 240 thousand lives and more than 160 thousand people were injured.
However, the severe catastrophe does not become the obstacle for re-development of the glorious city. It becomes the motivation and the treasure. After recovering from the earthquake in 1986, the city developed very quickly with the double GDP coming in 1988 and the fourfold GDP in 1994. In 2006, the tax revenue ranks 1st in Hebei Province and 19th in China.
Nevertheless, the best treasure is not just the motivation for development. It’s the ruins and the most important thing, the care of ordinary people from the heart of Tangshan’s officials.
After the earthquake, seven sites of the ruins have been kept and three becomes the national historical sites. What’s more, the Tangshan urban planning bureau is planning to build up a memorial park to memorize those who died in the catastrophe.
It’s common that the government builds memorial tower or similar things for national heroes in China. For the ordinary lives died in catastrophe in China, it may be the very few cases to have that kind of treatment. One of the famous memorial sites for those ordinary lives is for the dead in the Massacre of Nanjing.
It is a sign to show that some of China’s local government, at least Tangshan government is trying to show more care for the ordinary peoples’ life. The memorial park may not only be a place to remember the serious catastrophe, but be a reminder of future tasks of good civil-related projects. It symbolizes the respect for peoples’ livelihood.
The catastrophe is a nightmare, but it is also a kind of treasure for the followers to build a brilliant future.
29 July, 2007
18 July, 2007
The Lessons Learned from Zimbabwe (Update1)
Probably Zimbabwe will never be forgotten by economists for its world famous hyperinflation and arbitrary restrictions. The fallen from the strongest economy in Africa to the weakest in the world alert people the importance of good governance and recognition of several important things.
Property rights are one of the important things that the president, Mr. Robert Mugabe denies for a long time. From expelling the white farmers to taking control of those private diamond mines, property rights become nothing but something can be easily stolen or robbed. Why people will attend to those things which they might lose at any time? (Read the article from Time and Bloomberg.)
The setting of the price is another thing that perhaps Mr. Mugabe has never learned from anyone who has a little knowledge of economics. The determinant of price is the relation between supply and demand rather than anything else. Again, when you find some policemen came to your store and told you that you might be arrested unless you cut your price of your goods under a certain price, those policemen were probably executing the order of Mr. Mugabe. (Read the article on Economist.)
The story in Zimbabwe is miserable. Hyperinflation reaches 3,700% as officially estimated, which may be actually higher. Millions of Zimbabweans flee the country mainly to South Africa. Those who are still working finds the money they earn provide nearly zero purchasing power in the black-market, since the stores, supermarkets have already had nothing left. However, those who have access to limited greenbacks at the official rate of 250 Zimbabwe dollars to 1 US dollar can make a killing by earning 250,000 Zimbabwe dollars for just one greenback. (Read the article on Economist.)
Anyway, Zimbabwe used to be strong and is used to the extremely poor states. The case is so famous that my macroeconomics lecture always put forward the case for us to discuss. Maybe, if anything fails, there is always one thing that can assure you of immortality called great mistakes.
Property rights are one of the important things that the president, Mr. Robert Mugabe denies for a long time. From expelling the white farmers to taking control of those private diamond mines, property rights become nothing but something can be easily stolen or robbed. Why people will attend to those things which they might lose at any time? (Read the article from Time and Bloomberg.)
The setting of the price is another thing that perhaps Mr. Mugabe has never learned from anyone who has a little knowledge of economics. The determinant of price is the relation between supply and demand rather than anything else. Again, when you find some policemen came to your store and told you that you might be arrested unless you cut your price of your goods under a certain price, those policemen were probably executing the order of Mr. Mugabe. (Read the article on Economist.)
The story in Zimbabwe is miserable. Hyperinflation reaches 3,700% as officially estimated, which may be actually higher. Millions of Zimbabweans flee the country mainly to South Africa. Those who are still working finds the money they earn provide nearly zero purchasing power in the black-market, since the stores, supermarkets have already had nothing left. However, those who have access to limited greenbacks at the official rate of 250 Zimbabwe dollars to 1 US dollar can make a killing by earning 250,000 Zimbabwe dollars for just one greenback. (Read the article on Economist.)
Anyway, Zimbabwe used to be strong and is used to the extremely poor states. The case is so famous that my macroeconomics lecture always put forward the case for us to discuss. Maybe, if anything fails, there is always one thing that can assure you of immortality called great mistakes.
17 July, 2007
Money, Time and Cost
Time is money. Perhaps this is one of the most quoted proverbs. How much are you willing to pay for the time? HK$1,000? HK$1,000,000? Or countless?
Sometimes, maybe we are too naïve to believe time is valuable that we ignore the price we set for it at each different time.
I went to China Travel Service (Hong Kong) Limited to extend my passport last week. When I took the photo, waited for half an hour and was finally served, I was told that I came to the agent too early. My passport would go expire in August. But now it was only July. If I insisted to get it done on that day, the duration for extension was 2 years rather than 1 year and another $50 was needed. Well, if I came one month later, then I have to pay about $10 more for traffic fees and would wait for another half an hour and about one hour for traffic. $50 was a good deal, I thought. “I’d like to extend for 2 years then.” At that time, I was paying for time, $40 for saving about one and a half hours in the future. At that time, I was sure that the price I pay was much lower than my reservation price.
But what in hell is your reservation price? Really countless?
If the additional fee is $100, will I accept it? What about $500? What about $1,000?
Actually, I may probably reject the idea to continue the process before I reach the amount of $100. The price I set for time may probably be related to some other things, for example, the opportunity cost. Probably, I can earn $100 by working as a private tutor for one hour and a half. Then I would be just indifferent to the process if it only asks for $100. However, if the additional fee is $200, then I would just be willing to waste the time. If I don’t pay the fee, I only lost $100 equivalent of time; otherwise, I would pay $200!
In the traditional concepts, time is so valuable that it does not have a price. However, it does exist a price for exchange.
Sometimes, maybe we are too naïve to believe time is valuable that we ignore the price we set for it at each different time.
I went to China Travel Service (Hong Kong) Limited to extend my passport last week. When I took the photo, waited for half an hour and was finally served, I was told that I came to the agent too early. My passport would go expire in August. But now it was only July. If I insisted to get it done on that day, the duration for extension was 2 years rather than 1 year and another $50 was needed. Well, if I came one month later, then I have to pay about $10 more for traffic fees and would wait for another half an hour and about one hour for traffic. $50 was a good deal, I thought. “I’d like to extend for 2 years then.” At that time, I was paying for time, $40 for saving about one and a half hours in the future. At that time, I was sure that the price I pay was much lower than my reservation price.
But what in hell is your reservation price? Really countless?
If the additional fee is $100, will I accept it? What about $500? What about $1,000?
Actually, I may probably reject the idea to continue the process before I reach the amount of $100. The price I set for time may probably be related to some other things, for example, the opportunity cost. Probably, I can earn $100 by working as a private tutor for one hour and a half. Then I would be just indifferent to the process if it only asks for $100. However, if the additional fee is $200, then I would just be willing to waste the time. If I don’t pay the fee, I only lost $100 equivalent of time; otherwise, I would pay $200!
In the traditional concepts, time is so valuable that it does not have a price. However, it does exist a price for exchange.
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