Balanced growth a must for keeping wealth

Why?

It is apparent that the by-products of China’s fast but lopsided development in the past three decades — mainly environmental degradation — have panicked some people, driving them to seek better places to live in abroad when they become financially capable.

Moreover, while fresh air has become a luxury for people in big Chinese cities, such as Beijing, the living costs, as indicated by home prices, have been surging in recent years, making it relatively more affordable to live in those advanced economies.

Education is also a major factor behind the migration decisions by the rich people. The Western educational system, which is more flexible than domestic test-centered regime, is more attractive for many potential Chinese migrants who wish their children could study in a more liberal educational system.

Meanwhile, many rich people fear their wealth may not be well protected due to what they say precarious policies and changeable implementation of rules, problems that are mainly caused by policy loopholes and corruption.

With the exodus of the rich,China suffers from not only large amounts of lost wealth, but dented public confidence in the future of the country.

As an emerging economy,China has concentrated most of its resources on expansion of its economic scale and poverty reduction in the past three decades. It will take a long time for the country to upgrade its development mode and build up its “soft power” — improved public governance, less corruption, better environment and more liberal education, among other things — to become a more desirable place not only for investors, but for those who have already made money from their investment.

Regrettably, it seems the nation is focusing on economic development, eclipsing its efforts in environmental improvement and social systematic build-up. If it wants to keep more rich people from moving abroad, it is a must for China to mend its pace in adopting a more balanced development philosophy.