The Hindu Business Line : China's infrastructural revolution

Will anyone believe if told that China has 40,000 km superhighways, second only to the US (75,000km)? Or that its total power generation capacity has crossed 622,000 MW, an increase of 100,000 MWs from 2005, making China the second-largest power generator after the US and the fastest-growing power generation market in the world? Or, that China owns the world's largest fixed-line and mobile network in terms of both network capacity and number of subscribers?

China has by conscious policymaking and deliberate intent brought about a veritable infrastructural revolution in the period since 1978 when, soon after US President Richard Nixon's visit, it opted for opening its doors for foreign investment and launched its major economic reforms. It was probably the first in South- East Asia to understand the vital role infrastructure played in boosting economic development and wealth creation.

It will be recalled that it was by embarking on a massive post-Second World War nationwide highway construction that the US was able to usher in an era of an unprecedented economic boom in the years following.

Taking a leaf from the book of the US, China was quick to see the enormous multiplier effects of linking the whole country in a network of top-class roads. Not only did it help in carrying the fruits of development in the form of goods and services to the rural hinterland but it also raised the levels of employment, income generation, social integration, education and health care.

The credit for this largely goes to Mr Gordon Wu who heads the Hopewell Group of companies which are in a big way into building highways, power plants and bridges, besides also having interests in real-estate, property development, leasing and hospitality industries. Mr Wu is, in fact, hailed as the progenitor of all that the Chinese have achieved in the domain of infrastructure.

As per a knowledge@wharton write-up on him of June 14, 2007, Queen Elizabeth knighted Mr Wu in 1997 for his contributions to Asian infrastructure, and in effect for building one of the continent's largest civil construction firms, and former Philippines president Fidel Ramos once described Wu as "the man who turned on the lights".

MEETING THE CHALLENGE

The write-up also gives a gist of Mr Wu's talk on May 26 at the Wharton Global Alumni Forum in Hong Kong on "Up and Down the Capitalist Road" which explodes many of the myths connected with his field of operations. (For a full account, visit http://knowledge.wharton. upenn.edu/india/article. cfm?articleid=4204).

For instance, the prevalent impression is that mobilising resources for, and expansion of, infrastructure is intricate and intractable and does not lend itself to any fast track approach.

No, says Mr Wu, "telecommunications, power stations, superhighways, hotels...these are very easy to create, although in 1979 when I first went in and negotiated with Chinese leaders, it did not seem to them to be an easy thing to create. I told them that it was the easiest thing" and demonstrated it by meeting the challenge head on when he was given the opportunity.

The key is to get the dead (and some would say foul!) hand of the government in any shape or form out of the way, and entrust the job to the private industrial prime movers to carry it out in a collaborative effort.

The government's role should be confined to setting up the regulatory environment to lay down, and oversee the implementation of, measures to avoid possible imbalances and divides, and making available the needed ancillary facilities. It would be a good idea for India's planners to invite Mr Wu and pick his brains on how best to meet the nation's mind-boggling requirements in this sphere in the foreseeable future.

B. S. RAGHAVAN

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