EDITORIAL : THE GLOBAL TIMES, CHINA

BRICS' development lies in strategy of shared prosperity

As this year progresses, the whole world has seemed to be stuck in the mud from the unrest in the Middle East.

In contrast, leaders from Brazil, Russia, India, China and South Africa, or the BRICS, met in Sanya, Hainan Province last week, vowing to join forces in reshaping the global political and economic orders and to seek shared prosperity.

The momentum exhibited by the cooperation among the BRICS is so robust that some view it as a brand new player, the B5 to rival the G7.

The success of the BRICS cooperation mechanism is mainly reliant on the internal driving forces between the members rather than on external pressure or irrational impulses.

The cooperation between BRICS countries sets up a new model of international cooperation, as the horrors of the financial crisis still echo, and represents the effort to bring about a new international order.

In his speech titled "Broad Vision, Shared Prosperity," Chinese President Hu Jintao shared his observations on maintaining global peace and stability, on promoting the common development of all countries, on bolstering international exchanges and cooperation as well as on strengthening partnership among the BRICS for common development.

Firstly, common development serves as the fundament. To share prosperity is the only way forward for BRICS countries after the financial crisis. It is a common aspiration among all countries, both developed and developing, to seek swift economic recovery.

To seek common development is the main reason that compelled the BRICS members to come together.  With a total population of 3 billion, BRICS countries are culturally and socially diverse.

Countries that attach undue emphasis to their own interests, sell so-called "universally-accepted values" or seek protectionism cannot make lasting alliances on the international arena. Equality is stressed as part of seeking development among the BRICS countries.

Secondly, the ultimate goal of the BRICS countries is to establish a more equal and fairer world with a new system. Global challenges such as earthquakes, tsunamis, hurricanes, droughts and diseases, which dwarf conflicts between nations, have raised the international alarm bells.

Serving as an important platform for dialogue, BRICS countries seek pragmatic cooperation despite any historical spats and territorial disputes they may have.

Thirdly, stability is also capital, as recognized by all the BRICS members and serving as a cornerstone in the creation of new international orders.

In retrospect, economic crises always bring about instability and turbulence to the world, and have even initiated wars and conflicts. At this crucial moment, the utmost interest of the world is to maintain stability and to provide a peaceful environment for economic recovery.

A peaceful and stable international environment is an essential prerequisite for further development. 

Wage hike plans must be realistic

Yang Zhiming, vice minister of human resources and social security, said on Monday that China should strive to raise wages by 15 percent annually and to double its national average wage within five years. Such an increase would be welcome, but whether it can be achieved is doubtful. As shown by a Global Times poll on Tuesday, 93 percent of participants indicated that they had "no confidence" in this plan.

We hope Vice Minister Yang will provide further explanations. Any information about great benefits to society should not be left vague or incomplete.

Wages are the most sensitive topic in social production and distribution. Most countries only set minimum income standards instead of national wage growth rates. Few countries have established wage increase plans during tough times, but not in detail. Regarding the 15 percent annual growth rate, it is not clear by what leverage the government is going to implement such a high goal.

Chinese law does not have a mandatory bottom line for annual wage growth rates. The prosperous State-owned enterprises will be accused of wage hikes while ineffective private sector companies will be accused of failing to match the raise. This possible confusion should be fully assessed before the 15 percent goal is officially announced.

The government usually has approximate expectations for the indexes that would determine the wage increase. However, it is both innovative and risky to establish a wage increase guidance plan.

Workers' desire for more wages is evident, but policy-makers have to withstand such pressure. The welfare of the population also depends on the general health of the overall economic environment.

China has made outstanding achievements in improving livelihoods of late. It should thus conduct more management of public opinions toward welfare, making them consistent with reality. Public opinion should not stimulate consensus, nor disturb government officials.

It is vital to seek truth when dealing in public welfare issues. The Chinese government has enjoyed public trust in the economic indicators. After officials provide good news, society often takes this to heart, which will in turn lead to renewed pressure on policy makers.

Governments at all levels should renew focus on improving welfare for low-income people, and work to keep wage growth above inflation, thereby reducing the gap in income distribution.

In recent years, the government has actively tackled this issue. Regarding the increase of ordinary wages, a certain document has been put forward that workers' income growth should not be lower than that of the GDP. This guidance statement seems to be enough. The specific goal of 15 percent may not be able to motivate people.