Farmers are China’s backbone
freeman  Updated: 2005-01-26 10:42

I am elated to know this good news that China's GDP rose 9.5% in 2004 to arrive at US$1.65 trillion dollars, after 9.3% growth in 2003. This has proved the ability of China's new and young leadership in managing the world's fastest growing economy and the biggest population. (Taking into account of the buying parity of RMB yuan, many world economists estimate China's real GDP now accounts for 12% of the world's total, which I do not object.)

The problem now facing the leadership is how to sustain this rapid growth, while keeping the inflationary pressure at bay. Maybe another 0.25 percentage interest rate hike is necessary now, since last year's inflation hit 3.9%. With regard to the currency exchange rate, better keep it pegged to the dollar at present rate.

China needs annual 9-10% GDP growth rate to create jobs, and of course, at the same time wealth for the state coffers and the individual families as well. Also, the high growth will make China's buying power from usa, europe, japan, asean, russia and all others a growing possibility.

In 2004, countries like usa and japan yelled for Beijing to revalue its RMB yuan, and the World Bank and IMF added their weight. As a result, tens of billion of dollars of world "hot money" influxed, hoping to reap a windfall of China's policy change. It is wise for Beijing to leave the peg regime intact. My humble opinion is to continue to keep it at that by 2008 before a minor change is necessary and at our disposal.

China's growing wealth has been created by its working people, and the migrating farmer-turned-workers especially. China and the Beijing central government should thank its digilent and hardship-bearing moving farmers, billions of whom are now the driving force of the export-oriented production lines, and urban high-rise builders.

To say China's workers are lazy or leisure-seeking is to despise them. They are the backbone of this country.

I have two nieces working in Shenzhen and Shunde, who work 12 hours a day, at a monthly pay of 700-800 yuan. I have two nephews who work in Taiyuan and Beijing, earning 1000 yuan a month on average, who have no holidays and work deep in to the night. The money they have saved, plus Beijing's elimination of rural farming taxes, has added to their family income! Sure, they will have a nicer spring festival this year.

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