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Genuine research
(China Daily)
Updated: 2009-04-11 08:13

Experts should use scientific research rather than distorted studies to win the support of the people, says an article on the website www.qianlong.com. Following is an excerpt:

In recent days, Ren Zhiqiang, a Beijing real estate developer, has quarreled with the Beijing Academy of Social Sciences (BASS) about a report it has just released.

The report has concluded that Beijing housing prices are still on the rise and will continue on the up until 2010, when a great number of government-subsidized houses for lower-income families hit the market.

Ren Zhiqiang has raised four questions about this report and questioned the expertise of the BASS researchers responsible for it.

Both sides debated the calculation of disposable incomes and the definition of "rigid demand" for houses, among other issues.

Ren was dissatisfied with the report forecasting price drops, which would make potential homebuyers wait longer and cause developers to suffer profit losses.

As for the BASS team, they have sided with ordinary folks by predicting price drops. Moreover, they called for consumers not to buy homes until prices dip to affordable levels.

Shall we thank them for their research efforts? Not really.

We thank experts only when they can explain puzzles for people and fight for their benefits with solid research.

If they made indiscreet conclusions only to cater to what the public wanted to hear, we shouldn't be thankful to them for forecasting price slumps.

In fact, the report on housing prices is not that insightful. Ordinary folks may possess a better command of current prices through long-term attentiveness to a certain type of property than those experts using prices of discrepant houses to draw a general conclusion.

And their call for consumers to wait is quite ridiculous. Those who want to buy a house to settle down or to improve their living conditions cannot keep waiting.

Price drops are just a forecast. Experts must know that they should speak the truth for the people.

But that's not enough. On top of that, they must conduct careful research or think carefully before speaking. Otherwise, impetuous views may mislead the masses and even hurt their interests, and meanwhile people will choose not to believe researchers any more.

(China Daily 04/11/2009 page4)