effective governance model and financial-services industry revolution

Encountering the global economic crisis, people begin to doubt the free economy policy. Then for China, on one hand, they obviously need revolution in their financial-services industries. While on the other hand, in those applause of efficient governance to prevent the swap transaction in credit-derivatives markets, last year, China has achieved low radio of low bad-load radio and solid profit profits and rapid growth, and at the same time, it possesses more than $1.4 trillion total assets. All these performance might make it lose their direction in the revolution and doubt their original purpose of it.

But is that true? Or there something wrong with the reality. From the basic guide line of Basel Committee, it is essential for both the stability of the financial industry and the economy growth that the requirement of the efficient governance will guarantee the construction and the maintenance the qualities that are the foundation of all commerce, which is also the pivot of the confidence and public trust. But even China has achieved a great mark in the current global financial crisis, the governance is not the efficient model. It still contains a lot of bug in the basic construction of the economy system. The system is too huge and overstaffed, just liking a running machine with enormous mass which would be difficult to turn or to modify the direction.

There are a lot of rumors or reality that millions of migrant workers in city will be out of job and China's booming myth will be locked in a downward spiral. According to the conversation with my friends, it seems the side effect is emerging.

China has its history of central control, which means the culture supports such single model of governance, just like most Asian businesses are controlled by a single family as in the media displaying. Sometimes, this model will show its efficiency but each model has its strength and weakness. What kind of model is suitable for China? China can not afford the bill of failure test. There are a huge amount of low-income classes, which suffer the risk of losing the opportunity of education, health care and even basic living ensurance.