Chinese Economics Thread

Franklin

Captain
The “Surprises” of Public Opinion Surveys

Public opinion surveys have had profound influence on the study of regime resilience in China. Sometimes these surveys challenge long-existing beliefs about political and social realities. Below I will mention five controversial and provocative findings in Chinese public opinion surveys.

(1) The Tiananmen protest was not a pro-democracy movement. While analyzing the esric data, I found something very interesting and unexpected. Public dissatisfaction with inflation, unemployment, social morale, and government inefficiency skyrocketed during the peak of the urban protests in spring 1989, but the majority of urban residents in October 1988 (54 percent) thought that market reform was going “too fast,” and such “anti-reform” attitudes closely echoed the rise of inflation during the same time. In the meantime, public demand for liberal democratic ideas such as freedom of speech and freedom of the press never surpassed 33 percent, even in May 1989.

Putting these findings together, what the esric surveys reveal is that the Tiananmen Square protest was by nature an anti-reform movement when urban residents panicked about the negative consequences of marketization. In a miracle of miracles, if there were free elections, the conservative anti-reform candidates probably would have won, and China would have returned to the centrally planned system where urban residents enjoyed a cradle-to-grave social safety net.

This paints a very different picture from the Western media’s coverage of the Tiananmen protest. According to the Western media, the Tiananmen protest was a pro-democratic movement where the majority of Chinese urban residents demanded liberal democratic reform. Discussing the findings of the esric surveys was very unpopular in the early 1990s, when Communist governments in the Soviet Bloc were collapsing.6 Yet the regime resilience in China later proved that the findings of the esric surveys were a realistic reflection of public sentiment in urban China. Today, the esric surveys stand out as the best and only available scientific evidence about what really happened in the spring of 1989 in Tiananmen Square. I would rather trust the results of the esric data, which are based on probability samples, than media reports based on anecdotal stories.

(2) Regime support is high. One of the most consistent findings in the Chinese public opinion surveys is the high level of regime support. Chinese survey respondents have shown strong positive feelings toward their government no matter how survey questions are worded, such as “support for the central government,” “trust in the Communist Party,” “trust in the central government leaders,” “confidence in the key political institutions,” “approval of China’s political system,” “satisfaction with central government performance,” or “identity with the Chinese nation.” Such strong regime support is found in different Chinese surveys conducted by different organizations and different investigators, including the World Values Surveys, the Asian Barometer Surveys, the Pew Surveys, the Chinese General Social Surveys, and the Chinese Urban Surveys, among others.

For example, in the fourth wave of the World Values Surveys conducted around 2000, when respondents in different countries were asked how much confidence they had in their country’s political institutions, China stood out by showing the highest levels of institutional trust among the selected countries, including both new and established democracies.

The most common challenge to the findings of strong regime support in China is the “political sensitivity” argument. According to this argument, China is an authoritarian police state and Chinese survey respondents hide their unhappiness with the regime due to fear of retribution. This view could be true of the Mao era, but it is a little out of date in today’s China. Analyzing online comments, researchers including Gary King, Jennifer Pan, and Molly Roberts found Chinese internet users were willing to be politically active and highly critical of the government, as long as they did not advocate organized political actions. Survey tools such as the list experiment have been used in the United States to detect, for example, when respondents hide racial biases. When the same list experiment was used in Chinese surveys, only 8 – 10 percent of the respondents were found to hide their unhappiness with the central government. Even after discounting for the political sensitivity effect, regime support in China is still among the highest in the world, higher than in many democracies.

Some people think that authoritarian regime trust is unhealthy and democratic regime distrust is healthy. This may be true, since critical democratic citizens can play the role of assuring government accountability. Yet it seems equally true that decision-making is more efficient and less wasteful of time and resources if there is less tension and greater harmony between the government and the public, particularly in societies with a lot of people and limited resources to spare.

(3) Interpersonal trust. The third “surprise” in the Chinese public opinion surveys is the high level of interpersonal trust. Many Chinese survey respondents in the past twenty years have consistently agreed that “most people can be trusted.” For example, 60 percent of the Chinese respondents in the sixth wave of the World Values Survey in 2012 agreed that most people could be trusted, ranking the second highest in the world only next to the Netherlands (62 percent) and much higher than many democracies such as the United States, Taiwan, Japan, and South Korea, in which only some 30 percent of citizens expressed trust in each other. This finding is counterintuitive because it conflicts with the traditional theory of democracy, which tends to make interpersonal trust and social capital a precondition for the successful functioning of democracy.

Such a finding is equally controversial. Some people do not want to believe it because it does not match their impressions when they travel to China and talk to Chinese people. Unfortunately, personal impressions cannot serve to discredit survey findings, especially when surveys are based on representative samples. The disbelievers need better evidence to challenge the survey findings.

Others tend to argue that interpersonal trust has different meanings in different societies. China is a Confucian society, so interpersonal trust must mean trusting one’s own family members, while in democratic societies interpersonal trust means trusting strangers. Such a depiction is only partially true. While family trust is very high in China, it is not the most important reason for the high level of general trust. Instead, community-based trust turned out to be most closely related to general trust in China, and it has a positive effect on regime support in multivariate regression analysis when other factors are controlled. The abundance of social capital despite the lack of democracy seems to make China a significant outlier in the existing theory of civic culture and democracy.
 

Franklin

Captain
(4) Political activism. The fourth “surprise” in the Chinese public opinion surveys is the high level of political activism. For example, in the 2012 Chinese Labor Dynamics Survey, nearly half of employees mentioned that they had at least one labor dispute in the past two years. In the 2004 Legal Survey, only 6 percent of the respondents chose to do nothing when they were involved in legal disputes, and the rest would try to resolve them by various channels, including the court, the labor mediation bureau, the news media, the internet, petition, and protests.

These findings are consistent with the media reports of the increasing number of mass protests in recent years, particularly at the local level. For example, the New York Times reported that there were 180,000 mass incidents in 2010, compared to only 10,000 in 1994. The scale of these incidents ranges from a few protesters or petitioners to as many as 100,000. Challenging the government is no longer the business of a few dissidents and intellectuals.

Recent high-profile incidents have been widely reported by Western media: the protest against the local government’s handling of a young girl’s drowning in Wengan in 2008, protests against a chef’s death in Shishou in 2009, the land dispute in Wukan in 2011, the mining plant dispute in Shifang in 2012, the wastewater processing plant dispute in Qidong in 2012. These incidents have generated considerable excitement among Chinese dissidents and some Western media outlets, who tend to describe them as harbingers of political change, a stepping stone towards democracy, or the beginning of the collapse of the authoritarian regime.

On the surface, political activism seems to contradict regime support, as the former brings out public political contention against the regime in the conventional belief. Yet, what is remarkable is that in survey data such as the Chinese General Social Survey, trusting the central government makes people protest more. In other words, central government supporters and the protestors are the same people.

Authors such as Keven O’Brien and Li Lianjiang believe that Chinese citizens engage in a clever practice in which they protest against local governments and their bad policies while using the central government’s glorious propaganda about serving the people. According to this belief, the protestors learn to fight for their rights in this process, and eventually will fight against and ultimately bring down the authoritarian regime itself. In contrast, others such as Yanqi Tong and Shaohua Lei and Peter Lorentzen believe that mass protests at the local level are encouraged by the central government either through the CCP’s populist ideology of Mass Line, or to test and identify unpopular local policies and officials. Such a practice will eventually improve public support for the central government. If the second view is true, political activism is an integral component of regime resilience in China.

(5) Government responsiveness. The fifth “surprise” is the high level of government responsiveness. For example, in the second wave of the Asian Barometer Survey conducted in 2008, 78 percent of mainland Chinese respondents agreed that their government would respond to what people needed. In contrast, only 36 percent of Taiwanese respondents agreed with the same statement in the same survey. The percentages are even worse in other East Asian democracies that copied the Western liberal democratic system, including Japan (33 percent), the Philippines (33 percent), Mongolia (25 percent), and South Korea (21 percent).

In a multivariate regression analysis when other factors such as age, education, gender, income, religiosity, and geographic location are taken into consideration, government responsiveness played the single most significant role in promoting regime support in China. Existing studies typically attribute the high level of government support to three things: economic growth, media control, and cultural values. According to these studies, the Chinese are happy with their government because (1) their economic conditions have improved during China’s period of rapid growth; (2) they are brainwashed by the government-controlled media, which always presents a rosy picture of the country; and (3) the Confucian cultural values make people respect political hierarchy and avoid challenging authority. Yet when these three factors are compared with government responsiveness in the same regression model, the latter continues to show the strongest impact in promoting regime support.

One of the most common challenges to the perceived high level of government responsiveness goes like this: the Chinese live in an unfree society so that they have extremely low expectations about what their government can do for them. They tend to be thrilled if their government does a little of something. In a democratic society, the government regularly responds to public demand, yet the public is always grumpy and constantly asks for more. But this view needs to present real evidence that democratic citizens hold higher expectations of their governments than authoritarian citizens. In fact, the high level of public political activism discussed above suggests that Chinese citizens may have high expectations, and that they do not hesitate to challenge their government when they perceive any mistreatment by its officials. Even if the view of low expectations is true, it discounts the importance of public opinion. Positive public opinion of government responsiveness at least demonstrates external political efficacy, a political commodity desired by any government, regardless of how much a government responds.

Another even more provocative explanation of the above finding is that the Chinese authoritarian government is actually more responsive to the public than a democratically elected government such as in Taiwan. Leaders of a democratic government may be hyper-responsive to public opinion only during the election season, and only to their own supporters, but less so once they get elected, between elections, and to those who do not vote for them. In contrast, leaders in authoritarian China do not have the luxury of electoral cycles. The CCP claims to represent the interests of the highest number of people in China, yet it does not have elections as a simple but effective yardstick to measure such representativeness. The CCP becomes paranoid and compelled to respond even when it sees a single protestor on the street. Researchers such as Tong and Lei in their 2014 study of protests in China show that the CCP spends a large amount of time and resources to calm and compensate protestors and petitioners, as an effort to maintain social stability. Perhaps that explains the perception that the CCP spends more on maintaining social stability than on defense.
 

Franklin

Captain
Authoritarian Resilience and the Theory of Democracy

The information explosion based on public opinion surveys in China in the past thirty years has left a few cracks in the empirical foundation of some of the classic theories of political science that were first developed in the West with limited firsthand evidence. For example, the classic theory of civic culture was developed from survey data in only five countries — the United States, the United Kingdom, Germany, Italy, and Mexico. Today, the World Values Surveys cover more than eighty countries in all continents with human inhabitation.

Among these countries, China stands out as an outlier and does not fit the theoretical predictions of Western political science. As discussed in the above mentioned “surprises”: (1) the Tiananmen protest in 1989 was an anti-reform movement, but it was expected to be a pro-democratic movement; (2) the Chinese regime enjoys strong public support even though many in the West expected it to have collapsed already; (3) social capital in China is among the highest in the world, despite political science’s expectation that its authoritarian political system would produce public distrust; (4) the authoritarian government is (perceived to be) highly responsive while the theory of democracy predicts otherwise; and (5) Chinese citizens are politically active and enjoy a strong feeling of political efficacy even if they are expected to be politically apathetic.

One problem in the existing political science literature is the rigid (and black-and-white) definition of democracy. For example, in the rankings of democracy and freedom by Polity and Freedom House, both highly respected organizations whose annual rankings are widely used in political science teaching and research, China has been consistently ranked at the very bottom in terms of freedom and democracy. Yet in the World Values Survey in 2012, more than 60 percent of Chinese respondents said they felt free, which was higher than in many democracies. Yes, the Chinese may have extremely low expectations, but they do feel free, and that feeling matters because unhappy citizens can cause political disruption.

The problem of measurement error is not only limited to China. In fact, when comparing the subjective feelings in public opinion surveys with the “objective” measures of democracy in the rankings assigned by Polity and Freedom House, public opinions throughout the world show a negative correlation with the democracy rankings. This negative relationship between the subjective and the “objective” measures of democracy can be clearly seen in the chart below, based on the Global Barometer Surveys (2010 – 2015) covering more than seventy countries and regions. The respondents in these surveys were asked about their opinions regarding the following six questions related to the levels of subjective democracy in their societies:

(1) The level of democracy is very high in my country;
(2) The democratic system in my country is functioning very well;
(3) Ordinary people in my country can freely express their opinions;
(4) I trust the media in my country;
(5) My government responds to what people need; and
(6) I am satisfied with my government’s performance.

These six items are combined into a single index of subjective democracy. When this index is compared to the Polity scores of “objective” democracy in these same countries and regions, the correlation coefficient is a statistically significant –0.51! In other words, democratic citizens feel less democracy and freedom in their societies than authoritarian citizens.

One way to solve the inconsistency between the subjective and “objective” measures is to slightly stretch the concepts in the political science literature. Concept stretching may carry a negative meaning because it may result in the diluted explanatory power of a theory. Yet overly rigid definitions can limit the scope and effectiveness of political analysis. Some of the key concepts in political science can be stretched (or enriched) by the available public opinion surveys. For example, the traditional study of authoritarian politics can include both elites and masses, and formal and informal politics; social capital can incorporate both civic trust (trusting strangers) and community-based interpersonal trust. More importantly, the traditional definitions of democracy, freedom, government responsiveness, and political legitimacy that are derived from institutional designs (objective measures) can be enriched by including public (not elite) perceptions of these concepts (subjective measures). Those who only focus on the institutional design of democracy but discount the importance of public perception of democracy run the risk of political arrogance.

Finally, a further barrier to understanding China’s authoritarian resilience is ideological bias. While people outside China take it for granted that academic research in China is ideologically limited, it is also true that China is frequently judged with ideologically tinted glasses by some media organizations and scholars in the West. According to these ideologically tinted views, the authoritarian political system in China is inherently bad; supporting such a system is unhealthy; civic trust is the only type that can qualify as interpersonal trust and social capital; government responsiveness is due to Chinese citizens’ “extremely low expectations,” and so on. These value judgements prevent researchers from understanding what is working and what is not working in the Chinese political system, regardless of whether it is good or bad.

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Hendrik_2000

Lieutenant General
Traditionally Confucian society cherish children and education It can be observed in China, Japan, Korea and Vientam where tiger mom is the norm. Here is the report by "Save Children" via LKJ 86
China ranked best developing country in Asia for children to grow up - Xinhua
Source: Xinhua| 2018-05-31 20:55:40|Editor: Li Xia

BEIJING, May 31 (Xinhua) -- China has ranked as the best developing country in Asia for children to grow up in for the second year in a row as it continues to make progress in child well-being, according to a new report by Save the Children.

Released ahead of International Children's Day on June 1, the global charity's report examines 175 countries on a range of indicators related to childhood like child marriage, teenage pregnancy and child mortality.

In the charity's End of Childhood Index, which ranks countries according to where childhood is most and least threatened, China improved one spot to 40th, marginally behind the United States (36th) and Russia (37th).

"Children in China experience the safest childhoods of all developing nations in Asia. China has made tremendous progress both in the economy and in improving the well-being of children across the country in recent years," said Wang Chao, Save the Children country director in China.

China made the greatest gains in education enrollment for disabled children and nutrition. Wang said that while this was promising, there was still room for improvement.

"Children with disabilities in China by and large are still being left behind. Far greater investment needs to be made in inclusive education to enable all children -- regardless of their ability -- to attend and learn at mainstream schools," Wang said.

In May 2017, the revised regulation on improving education for the disabled came into force. It is the first time that inclusive education was written in Chinese regulations.

While the revised regulations will benefit a large number of children, there is still a long way to go until they are fully implemented, and until children stop suffering from negative stigmas associated with disabilities, Wang said.

According to the charity, the situation for children has improved in 95 of 175 countries surveyed, but worsened in about 40 nations since last year.
The report also reveals that globally more than 1.2 billion children are at risk of poverty, conflict and gender discrimination, and these children are excluded from learning, and denied basics like healthcare and even food.

Source:
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A moving account of teacher in Tibet a less developed part of China. It is good that China fulfill the promise , made decades ago to the minority as they passed thru their area in long , that someday they will make life better for them

 

supercat

Major
Traditionally Confucian society cherish children and education It can be observed in China, Japan, Korea and Vientam where tiger mom is the norm. Here is the report by "Save Children" via LKJ 86
China ranked best developing country in Asia for children to grow up - Xinhua
...

Note that China achieved the following with a per capita GDP of only 1/4 of America's.

China overtakes U.S. for healthy lifespan: WHO data

GENEVA (Reuters) - China has overtaken the United States in healthy life expectancy at birth for the first time, according to World Health Organization data.

Chinese newborns can look forward to 68.7 years of healthy life ahead of them, compared with 68.5 years for American babies, the data - which relates to 2016 - showed.

American newborns can still expect to live longer overall - 78.5 years compared to China’s 76.4 - but the last 10 years of American lives are not expected to be healthy.

“The lost years of good health that are a factor in calculating healthy life expectancy at birth are lower for China, Japan, Korea and some other high income Asian countries than for high income ‘Western’ countries,” said WHO spokeswoman Alison Clements-Hunt.

The United States was one of only five countries, along with Somalia, Afghanistan, Georgia and Saint Vincent and the Grenadines, where healthy life expectancy at birth fell in 2016, according to a Reuters analysis of the WHO data, which was published without year-on-year comparisons in mid-May.

The best outlook was for Singaporean babies, who can count on 76.2 years of health on average, followed by those in Japan, Spain and Switzerland. The United States came 40th in the global rankings, while China was 37th.

In terms of overall life expectancy China is also catching up with the United States, which Reuters calculations suggest it is on course to overtake around 2027.

“Chinese life expectancy has increased substantially and is now higher than for some high-income countries,” said Clements-Hunt.

Meanwhile U.S. life expectancy is falling, having peaked at 79 years in 2014, the first such reversal for many years, Clements-Hunt said.

That reflected increasing rates of drug overdose deaths, mainly from opioids, suicides, and some other major causes among younger middle-aged Americans, particularly in less affluent areas, she said.

The world’s longest life expectancy is in Japan, at 84.2 years, meaning that babies born there in 2016 were the first to be able to look forward to seeing the next century.

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now I read (actually the first time heard of
Housing Provident Fund in China
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on this occasion)
The housing provident fund deposit in China up 17.7 pct in 2017
2018-06-02 18:41 GMT+8
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The total deposit of China's housing provident fund reached 12.5 trillion yuan (1.95 trillion US dollars) by the end of last year, up 17.7 percent year on year, according to official data.

Annual deposit grew 13.1 percent year on year to 1.9 trillion yuan in 2017, marking a five-year straight double-digit growth, according to a report released by the Ministry of Housing and Urban-rural Development, the Ministry of Finance and the People's Bank of China.

By the end of 2017, the fund's total balance was 5.2 trillion yuan, up 13.1 percent year on year, and the number of employers and employees contributing to the fund grew by 10.1 percent and 5.2 percent year on year, respectively.

The housing provident fund is a long-term housing savings plan made up of compulsory monthly deposits by both employers and employees. It can only be used by employees on house-related expenses and, if unused, is returned to them when they retire or stop working.

It has effectively reduced housing cost for employees, helping them save 194 billion yuan as the housing provident fund loans offer lower interest rates than commercial loans, according to the report.

The main uses of housing provident fund are for home loans, down payments, rent and renovations, with 67.4 percent of 2,025 respondents opting for using the fund for home loans, according to a recent survey by the China Youth Daily.
 

Hendrik_2000

Lieutenant General
now I read (actually the first time heard of
Housing Provident Fund in China
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on this occasion)
The housing provident fund deposit in China up 17.7 pct in 2017
2018-06-02 18:41 GMT+8
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It is the same system as in Singapore no surprise here since many Chinese official intern in Singapore and it is a forced saving to finance down payment
In Singapore they call it CPF When you work they deducted automatically say 12% out of your salary then the your employer match that contribution say another 12% so for every dollar that you work you already save 25%. It will accumulate over time But the money can only be used to buy house or renovate old home Lately they allow it to fund your children education or medical expenses. If unused you can collect if you retire or leave the country.
It is self financed retirement account.

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British colonial authorities in Singapore created the Central Provident Fund in 1955 as a compulsory savings scheme to assist workers to provide for their retirement without needing to introduce a more extensive and costly old age pension. Money contributed to the Central Provident Fund earned a
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rate of return. The Central Provident Fund was expanded in 1968 to provide for housing expenses under the Public Housing Scheme. In 1984 the Central Provident Fund was again expanded to cover medical care expenses.
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In 1986 an investment option was added to give members the opportunity to manage their own risk and returns.
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In 1987, the Minimum Retirement Sum Scheme annuity was introduced.
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In 1990, MediShield health insurance funded by Central Provident Fund savings, was launched to provide universal healthcare to all Singaporeans. Later programs includes interest rate top up of 1% for the first $60,000 of retirement savings, the Workfare Income Supplement which supplements retirement savings for low-income older workers, and the Pioneer Generation Package which provides additional support for the medical expenses of older workers.

When the CPF was started in 1955, both employees and employers contributed 5% of an employee's pay to the scheme. The rate of contribution was progressively increased to 25% for both employers and employees in 1985. The employer contribution was cut to 10% during a recession in 1986. The employer contribution rate was reverted to match the employee rate until the
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, and thereafter lowered to 10% for workers 55 years or younger. Since then, the employer contribution rate has been gradually increased.
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Employers currently contribute 3 fewer percentage points of salaries over S$750 for employees up to 55 years old.
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Hendrik_2000

Lieutenant General
haven't heard of it either, thanks Hendrik...

Good that you are willing to learn and maybe shed some of the preconception that European has over Asia There are other country beside Japan you know and they can be as good as Japan
Another thing is HDB(Housing Develpment Board) it goes hand in hand with CPF
A government effort to provide low cost housing for citizen. This is the one that China should emulate. It government developer that sell good and low cost housing for citizen regardless of income but you have to be married . I think China has this one too but only for low income people
Today more than 80% of Singaporean live in HDB unit and there is no slum

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Shortly after achieving self-governance in 1959,
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faced a serious problem of housing shortages; low construction rates and massive damage from
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further exacerbated the prewar housing shortage. In 1947, the British Housing Committee Report noted Singapore had "one of the world’s worst
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-- 'a disgrace to a civilised community'", and the average person-per-building density was 18.2 by 1947.
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were also rare. In 1959, the shortage problem remained. An HDB paper estimated that in 1966, 300,000 people lived in squatter settlements in the suburbs and 250,000 lived in squalid shophouses in the
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.
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In its election campaign in 1959, the
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(PAP) recognized that housing required urgent attention and pledged to provide low-cost housing for the poor if it was elected. When it won the elections and formed the newly elected government, it took immediate action to solve the housing shortage. The government passed the Housing & Development Act of 1960, which replaced the existing
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with the Housing & Development Board.

Led by
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, the HDB made first priority during formation to build as many low-cost housing units as possible, and introduced the Five-Year Plan. The housing that was initially built was mostly meant for rental by the low-income group. The Home Ownership for the People Scheme was also introduced to help this group of people to buy instead of rent their flats. While the new scheme acted as a hedge against inflation, it provided financial security to homeowners. Later, the people were allowed to use their
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money for down payments. These efforts were, however, not successful enough in convincing the people living in the squatter settlements to move into these flats. It was only later, after the
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in 1961, that the HDB's efficiency and earnestness won the people over.
 
Good that you are willing to learn and maybe shed some of the preconception that European has over Asia ...
actually there's something I wanted to ask about here: did you see that new thread
Annoyed at the constant stream of news articles https://www.sinodefenceforum.com/annoyed-at-the-constant-stream-of-news-articles.t8288/
?

what kind of hogwash is this

#1 solarz, Wednesday at 9:18 PM

#3 Zool, Thursday at 1:09 AM

individuals criticized somebody without saying who that is

I LOL now, but for me it looked like total cowardice (I don't read posts there anymore)
 
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