Q: Supposing the inefficiencies of the state-owned enterprise system caught up with them and the economy slowed down as a result, would that be sufficient reason for them to make the change? A: I cannot say. If the slowdown is severe, they’ll have to think of a way to motivate the managers or to replace them with more commercially minded ones and give them a stake. How do they do that? Giving it to their friends and their party comrades? How does that ensure that they are people with the right attributes to run the company? If there are small and medium enterprises which they allow to grow and
...more
