Editor's note: David Blair is the vice president and senior economist at the Center for China and Globalization. He was commissioned by Xinhua's China Chat Show to write this article.
by David Blair
BEIJING, March 8 (Xinhua) -- While visiting the small Tibetan town of Lunang, I happened to spot a building with a sign that said "Maker Center."
I'm used to seeing maker centers -- places where people can build and try out physical tech products such as drones or 3D printers -- at big universities, but was surprised to see one at such a remote location.
It turns out this center was attached to a primary school, giving young kids the opportunity to learn to build things. What impressed me most was a large poster saying "Live Innovative Lives."
What a great message to impress on children so young! But what can be done to ensure that these children and others throughout China, and the world, have the opportunities to turn their innovative dreams into reality?
One important factor is infrastructure. Over the last 20 years, China has invested heavily into building roads, rail lines, airports, and communications capabilities, even into the most remote areas of the country. Tibet now has great road, rail, electric power, and 5G infrastructure.
Without this national investment that created good road and Internet connections, the children in Lunang would be as isolated as were previous generations in the region.
We were also able to visit a small company near Lhasa that produces traditional Tibetan incense. Now, this company has a growing business, much of it direct online sales to customers around the world. Again, this would not be possible without the national investment in roads and Internet connections.
Nobel-prize winning economist Edmund Phelps argues in two recent books, 2013's "Mass Flourishing" and 2020's "Dynamism," that a nation cannot be innovative unless the mass of the population have opportunities to be creative, to realize their inherent innovativeness.
I've had the chance to visit many villages and small cities in China, even in formerly very remote areas, that have become prosperous by producing specialized goods and selling them directly to customers. Without online connections and logistics, none of this would be possible.
The current transformation of China reminds me very much of the era of the 1930s to 1960s when my own country, the United States, was building an extensive infrastructure throughout the nation. It is no accident that the high point of the American economy was exactly this time of infrastructure investment.
It greatly worries me that the U.S. is no longer able to build good infrastructure efficiently. Even when politicians promise infrastructure investment, it turns out to be a false promise.
For example, the 2009 so-called American Recovery and Reinvestment Act was sold as an infrastructure and investment plan. In fact, only 0.1 percent of the act's spending resulted in new infrastructure spending.
Widespread education is also a key factor that enables mass innovation and economic transformation. We were able to visit two high schools in Lhasa. The kids at both schools seemed eager and engaged. They were very familiar with world culture and music.
The schools taught in both Tibetan and Mandarin Chinese, with most students also learning English.
Sometimes, the schools are criticized for requiring native Tibetan students to learn Mandarin. My view is that knowing the national common tongue is important to their future opportunities in life. It would be cruel not to give them these opportunities. Of course, learning English creates further opportunities for them.
Chinese students famously score extremely high on math competency and knowledge. They work extremely hard during their school years. More reform needs to focus on how to encourage kids to be innovative and dynamic without losing the current strengths of the system.
A third key enabler for an innovative, transformative economy is creating a good business environment that makes it as simple as possible for businesspeople to get things done. Of course, infrastructure investment is part of that. National policies that enforce anti-monopolization laws are also crucial.
But, most business is done at the local level. I've been able to talk with many small business leaders who see the local governments as friendly supporters who are eager to see the businesses prosper.
China is now at a crucial point in its economic transformation. It needs to make a big step from a low-wage producer and technological follower to becoming an indigenously innovative, higher-wage economy.
I was lucky to get the chance to see some of the key institutional reforms and real investments needed to make this transformation work. ■
