Putting more State capital into public services will boost public welfare, says a signed article in Guangzhou Daily. The following is an excerpt:

An official with the National Reform and Development Commission said that further reform will be carried out in State-owned assets. More State capital will be put into public service sectors instead of the manufacturing sector.

The switch of investment targets means more money from the State coffer, instead of private capital, will be inputted into public services, like medical care, education, public transportation and other sectors offering public goods.

It will definitely boost the public interest and offer more solid support to improve people's life.

Public services usually involve a huge investment in the long term and most of them are not rewarding in financial terms. But the services are indispensable for society.

Our current public services are far from perfect. Public complaints are often heard about the compulsory education or medical care. The primary reason for that is inadequate input from the State.

Official materials show that government expenditure on public services in China is just 25 percent of all spending, while the percentage is usually more than 70 percent in quite many developed countries.

It is high time to put more State assets into public service sectors. And with the developed capital market in our country, this could be accomplished by equity purchasing or other financial means, so that the injection of State capital does not involve administrative power.

Of course, State investment in the public service should not be targeted at profits, but a boost to public welfare. And with cuts to State investment quitting for manufacturing, private businesses have more opportunity, which will stimulate competition.

(China Daily 11/24/2007 page4)