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Author Archives: GovWorldMag

Industrial strategy

The government has published its Green Paper designed to boost industry and productivity, and to spread investment and prosperity more widely around the UK.

One of the main improvements   I have been seeking is improved public procurement. The paper stresses the need for change in this area. The public sector buys all too many items from overseas, when acting as an intelligent customer and partner of UK business would allow it to buy good value goods and services here in the UK. The public sector would then benefit from the taxes levied on that business activity and on the incomes of the employees involved, and there would be a saving on the balance of payments.

The Defence department has ordered a large number of Ajax light tanks from Spain. Given the long term production runs needed the government could have worked with a UK company and design. It is importing steel for our new submarines on the grounds that our industry does not make the right specification. Surely it could have been worthwhile to discuss with our steel industry how they could invest in transforming their base steel into the required material?  We are importing large quantities of building materials and components for the UK public housing programmes executed by Housing Associations and Councils. This again is work that could be done at home.

In our overseas aid programme large sums are sent to foreign institutions, charities and companies to spend for us. I want to see us concentrate our aid activities on specialist areas like disease eradication and the provision of clean water. If we did we could have sufficient purchasing power to allow companies to invest in producing the vaccines and water plants here in the UK instead of importing them from other rich countries. Overseas aid is best spent in the country you are helping. Where that is not possible it should be spent on things we are good at here.

The Green Paper also covers R and D, skills, infrastructure, start ups, exports, affordable energy, world leading sectors, spreading investment around the whole UK and creating institutions to assist. Tax cuts would  also be a big help in generating enterprise and growth. Ensuring proper competition and preventing take over by large groups wanting to reduce competition will also be essential.

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John Redwood MP • • •

China beats target by creating 13m urban jobs

China created 13.14 million new jobs for urban residents last year, exceeding the official target, but the country faces challenges this year to create jobs for a historic high of almost 8 million university graduates.

University graduates attend a job fair in Shanghai early this month.[Photo/Xinhua]

University graduates attend a job fair in Shanghai early this month.[Photo/Xinhua]

The registered unemployment rate in Chinese cities stood at 4.02 percent at the end of last year, down from 4.04 percent three months earlier, Lu Aihong, an official with the Ministry of Human Resources and Social Security, told a news conference on Monday.

He said the country has “obtained obvious achievements” in promoting entrepreneurs to create jobs through the construction of incubation bases, and the government has also encouraged migrant workers to start businesses in their hometowns.

The government pledged to keep the whole-year registered unemployment rate below 4.5 percent and create at least 10 million jobs last year.

According to the Ministry of Human Resources and Social Security, China created 13.12 million jobs in 2015, and the registered unemployment rate in cities stood at 4.05 percent.

“The employment situation this year is stable, but there is also something to be worried about,” Lu said.

Though the Chinese laboring population has been declining since 2012, some laborers entered the market comparatively late due to educational reasons, which will keep the demand for jobs high in cities this year, and the rural laborers who are entering cities for work also increase the demand, he said.

He said employment pressure also comes from the task of re-employing workers laid off from a reduction in capacity and the downward pressure on the economy.

Meanwhile, Lu said he is expecting more jobs to be created as the country reforms its economy amid the acceleration of urbanization and the promotion of the Belt and Road Initiative.

This year, there will be 7.95 million university graduates－300,000 more than last year.

Lu said the ministry will encourage graduates to work in grassroots organizations and encourage them to start their own businesses.

Chen Yang, 27, a senior postgraduate at the School of Government, Nanjing University, said he thinks the employment situation this year will be “not that bad”.

“As far as I am concerned, one-third of the 2017 graduates have guaranteed themselves a job, though they are still several months away from graduating,” he said.

Chen, who hasn’t found a job yet, doesn’t show much interest in working for grassroots organizations, though it’s “possible” that there might be good opportunities there, he said.

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East Asia • •