#-Lens

George's Comments on Everything 

First Taste of Democracy

I had my first taste of democracy yesterday, Oct. 14th 2008. It was the general election day for Canada. Since I turn 18 and becoming an eligible voter, there has been two elections. Regretfully, I did not vote in the first one, not that it would make any difference since it was strong Liberal riding.
 
It was very interesting and exciting for me to cast the ballot. Growing up in China, educated in Canada (at Queen's, a very grassroots democratic school, almost everything at the university is run by student. We even got an elected rector who gets a say in the school budget setting.) I found this constant struggle and debate about political system. What is the better form of government? A mono-party system in China or multi-party democratic system like in the West? (I hate to use the word dictatorship, because the current government is not run by one person, hardly even a circle of people. There are some constant political struggle between different fraction of the party behind the scene. That could be a topic for another post.) On one end, I found pro-Chinese government people arguing that democracy is bad because it never gets things and it is just corrupted. The main evidence they have for this is India and Taiwan, and sometimes Japan. Now we can probably add US to the list for its failure to prevent the financial Armageddon. It is true that democracy is inefficient. Any political textbook will tell you that. In a representative system, politician tend to trade favors to support each other's bill. US is really bad at this, pork and barrel projects tow to about $200 billion. However it is untrue that democracy induce corruption. In a well designed democracy anyways. Taiwan's democracy is still at infant stage, but even then we can observe the beauty of democracy. That is of course correction. In Taiwan case, we can see the prosecution of a former president, which we will not able to observe in a non-democratic society. Look broadly, we can see that democratic countries, especially US, have made many mistake at the top, but it is very impressive that the system can heal itself by elect the right person who is going to fix the problem. I deeply believe that is real beauty and impressive thing about democracy. It can be wrong sometimes, but it also can heal itself, whereas in an authoritarian state, the system heal itself through revolution and civil wars. Much more painful way to correct the wrong.
 
Until a better system discovered, we should stick with Churchill's words: "Many forms of Government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed, it has been said that democracy is the worst form of government except all those other forms that have been tried from time to time."
 
 

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Finally, Land Reform

Finally, it is here. The almost private ownership of land for 800 million farmers in China.

CCP has recently passed a policy in the central plan committee meeting that would allow peasants to freely trade and sell their 30-years land rent contract. No more those peasants are exploited by Town/County official who would take the land away, sell to land developers and leave peasants with a peanut compensation comparing the land's market value. Many protests in recent year in China (thousands per year) are centered around the issue of rural land. Peasants want proper compensation, yet by law they have no rights to it. No More!

With this policy, peasants should see their wealth increase, productivity raise. Those who want to stay farming can have more land and achieve scale of efficiency. Those who want to move to the city can have a good capital to start them off. The wealth gap between those who live in city and rural region should be narrowed. Now the question is how to make those 800 million peasants aware and understand this policy. It is a going to a difficult task given many of them are illiterate. Word of mouth would a good bet!

George Liu
george.j.liu@gmail.com

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Rescue The World From Depression

No escape, no safe heaven. Around the globe, stock markets are falling. S&P 500, Dow, FTSE, Nikkei 225, Heng Seng, Shanghai, everywhere has been falling. In Russia and Iceland, stock market has to be shut down to avoid further landslide. Corporate bond prices are falling, the return on Treasury bill are at all-time low. Commodity prices are also dropping off the wall. What is there to invest in other than gold?

All of those are caused by fear factors. People, investors in particular, are scared! They fear losses, so they withdraw money, which just further depress the price, a self-fulfilling prophecy. The real problem is when is all of this are going to hit real economy? Probably pretty soon! Banks feared of insolvent, are conserving capitals. Inter-bank rates are at all time high, lending to consumer and corporations are all the lower with record high rate.

No more credits simply means no more spending and possibly pushing many firms into insolvency. Government is scared, they tried everything, from Bail-out to injecting cash, even lower rates. All those so far have failed to shore up the confidences. The question is how can a bunch of scared faces convince others not to?

source: Economists (http://www.economist.com/daily/kallery/displayStory.cfm?story_id=12381847&source=features_box4)

George Liu
george.j.liu@gmail.com

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Photos of Miao in the Mountains

My friend Wei has just came back from Moon Mountain in Guizhou, China. It is where ethnic group Miao lived. He has came back with great photos. We will be working on them and post them soon to socialjourney.org. Here is some preview.

   
Click here to download:
Photos_of_Miao_in_the_Mountain.zip (368 KB)

It has been some hard works for Wei, who backpacked for hundreds of miles on feet in those mountains. Those who want to give him a round of applause can do so at his blog mirageyard.com.

George Liu
george.j.liu@gmail.com

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