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.

Economy in China

As Christmas coming closely, it means one year is passing away and the new year coming soon, and China has participated in WTO for five years, facing the critical judgment from the international organization for its commitment and responsibility. All newspapers and magazines flood with data and criticism.

Some economist prefigured, that as for China has got huge rise, more than 10 percent for the third year in succession, according to Chinese statistics, the trend would be unstoppable and unsustainable in the next year. The leadership team of the president and the premier seems to apply an appropriate answer to the intergrade test, even at the hardest time of Sars virus. However under such glorious achievement, there are also many pressing issues. Domestically, the rich-poor gap has grown so large and quickly in recent years that the country is now more unequal than the US and Russia. According to a World Band study, the income of 10 percent of peasants decreased by 2.5 percent in the two years from 2001, comparison to the rapid economic growth. Contrary, it also generates thousands of millionaires and large members of middle-class in large cities on the coast. Another significant issue is environmental degradation. High improvement of economy need more raw materials such as oil from Africa and good relationships with market fellows abroad. And that is one of the reason for a single week in November, welcoming 10 south-east Asian leaders and senior leaders from 48 African countries. All these problems might make China to slow the pace of economic growth slightly next year, to about 9.5 percent or so.

On the other hand, others accentuate much more opportunities than challenges and state that the world might underrate the economic growth. For political reason, it almost has been established stable relations of neighborings. And the financial crisis gave out earlier, haven't caused disaster in many industries as they foretold at the beginning year in WTO, but intrigued reform of country-owned cooperations. And even in car industry, China will replace Japan to become the vehicle fabrication of Rolls-Royce to be the third market in the world. Also the central government's policy emphasizes on the health and education reform and social welfare. At the same time, it urges the country to adjust legal system to encounter the request of new economic rules. All these convince the great success of China. In future, it seems both enterprises and people quickly adapt to the new rules and much serious competitive environment and have learn great on how to become an international companies. When it comes to the future economy, in the short to medium term, the rapid growth will in all likelihood continue, with high investment rate, swelling exports and healthy local consumption.

But to most majorities, the citizens and farmers feel little about the improvement of living standards according to the economic increase. It means the government should pay more attention on the basic reform and social welfare. We should not be obsessed by the great achievement, but support the company to enhance the competitive ability and take more social responsibility, which is now very popular conception in the world.

Opinions about work and money

Just as one of ancient Greek philosophers Euripides said, "No man on earth is truly free. All are slaves of money or necessity." Most of ordinaries are pursuing for a better live just on their wages which will afford all burdens out of work and later life when they retire. Meanwhile most of them have a family to support.

He might be a father of several children and he has to caltivate them to be useful persons. What they need to consider are these facts, that all children have comfortable home, warm clothes, and well education, even all kinds of facilities to satisfy their wishes and desires. He also needs early plans for emergency, insurance or other extravagant travel or luxury consumption. All these come from their normal work. They must face that where they live is in a real world not fantasy and what they can rely on is just their hands and mind.

Or in same sense, work equals money to suffice basic living standard and further requirement. Of course, none of us have courage as Socrates to abandon all unnecessary things to follow call from deep heart. Even if a few have such admiring spirit, they probably can't bear the attack from families or other social relationships. At such occasion, you can remind the common scenario as in the movie or story.

There are also many anonymous hero or heroines working for their dream a better society. Ford, though he was a monopoly in his time, he did good things for his workers. That's because he can thoroughly comprehend ordinary lives. In one of his book, he presented that most of people in this country are living on wages. The improvement of their lives, to some extent the increase of wages determines the prosperous of this country. As a leader, the aim of a company is to provide higher salary than any other company in the same area dose. What a wonderful world! It seems to exist in communistic world. Also he did what he thought, and became the hero of that time. On the contrary, nowadays the gold rule in business is to gain maximum profits with minimum costs. Money is the highest target regardless of environment, health or even ordinary lives.

Nevertheless he has magnitude capital and ability to impact lives of ordinary people, he also has the same choice as normal ones. Obviously, there is no necessary for him to worry the capacity of deposit or other details. He has to choose between making money and staying with families. One of the statistics about the time spending on work and leisure life indicates that middle classes prefer more leisure life than work even they will decline incomes. Fast pace life style and sophisticated social relationship and working environment make people materialist. All those in their mind are more money. Life changes greatly, so does the value hold by ordinaries, and also together with many social problems, such as juvenile crime, senior without care. Even relation of parent to child becomes the patronage and beneficiary.

While looking through web sides, various pages about teaching you how to be rich. What they real need is a firm heart to stick to one goal concerning others' feeling at the same time.

Happiness index

That technical term first came out from the brilliant economist – Paul Samuelson who laurelled the Economy Nobel Price. In his famous textbook – economic textbook, he gave an equation：the happiness equals consumption divided by desire. At a surface glance, it is more tempting to get to the conclusion mechanically just the same as the Buddhism doctrine that the less you long, the more you will be happy. Notwithstanding, the desire comes from the basic request of live can be abandoned thoroughly. Only people will think about the happiness until they satisfy their survival requirement, the same as the relationship between the structure of architecture and decoration.

However, the happiness index, as the evaluation of harmony social system is introduced into the political purpose. In some sense, it signs the government put the happiness of the public into further consideration of political agenda, and that is a development of the public policy. As an ordinary person, everyone has the right to pursue his own happiness, and the final purpose of great society must be the most of the people feel happiness in greatest extent. Moreover, getting into basic fundamental principles, government serves for the majority not ruling the mass and all it does should accord to most interests of the public. But there are a lot of deficiencies of the action which need to be addresses in order to conform to its original aim.

Firstly, can the happiness be quantifiable? In technical sense, it is one of the subject emotions which can not be directly analyzed in such scientific method of economics. What we can rely on is how much money they spent on the certain items which can sufficiently judge the sense of happiness. Maybe in future, economists would study a more effective and efficient way to quantify the happiness, however at present that is only theory numbers from the most survey. Many factors play an important role of the happiness index, such as culture and basic psychology of comparison with others. For instance, after a person purchases a car, his life becomes more convenient, and then his happiness index might rise. However later for a while, he encounters the unpredictable questions about high maintenance, fuel fee and traffic jam, and on the contrary, his index falls. Different culture also breeds different index. If the culture prefer modesty, the answer might be just so, but the aggression, the answer might be happy.

When coming to the judgment of the political performance of the politics, it evolves the development of other direction. Considering the GDP, once become the estimate of the political achievement, it overwhelm all the other index, such as the education, culture, sanitation, resource, environment even the basic public policy of pension, supported from the whole aspect. Absolutely the leaders eager for the quick success and instant interest and ignore the majority happiness. They probably adopt the policy to forge the dates or invest on immediate interest industries. From long term, they will reduce the happiness index. Inevitably, the happiness index goes to the dissimilation, formation and philistinism. What government should really concern it the living condition and investment environment, social security, health care, education, reduction of the gap between the rich and the poverty and so forth, and find the inadequacy of social economic growing through the index, but not as the purpose. Also they should take every effort to solve such these social problems to raise the sense of happiness of the residents.