Short Essay on Real Modernization – Modernization need not be confined to the import of plant and equipment only.
Know-how is one thing but do-how is even more important and there is no reason why we can’t learn to do things the others do by buying and operating plants abroad. This is what the Chinese are doing. They have sent out scouts to look over companies in the US and elsewhere which are for sale and can be picked up for a song.
These are brand new companies in such sunrise sectors as electronics and not old fossils rusting in the sun. The Chinese are reported to be spending over $ 100 million a year on such purchases, which is a flea-bite. It is, of course, one thing to buy companies abroad and run them there in their kind of environment and quite another to run them here but there is no reason why we should not try the Chinese experiment.
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Modernization means nothing unless we come out of our shell and that is precisely what the Chinese seem to be doing. Incidentally, the industrial growth rate in China was nearly twice ours throughout the seventies. (192)
Important Points to Remember about this Essay:
1. Modernization does not mean only importing plants and know-how.
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2. It includes do-how too.
3. Chinese purchase plants cheaply abroad and run them in their own country.
4. They spend a lot every year for a little inconvenience.
5. Thus they have increased their growth rate which was double ours in seventies.
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6. Modernization means coming out of our shell.
7. We can also try the Chinese experiment.