Page 303 - SELECTED WORKS OF CHEN YUN Volume II.indd

SOLUTIONS TO PROBLEMS 301
Will our work improve after the conversion to state-private ownership?
I think so, because the workers are more enthusiastic than in the days of
private ownership, and most entrepreneurs take a positive attitude toward
joint ownership. Unified management by the special companies is more
rational than decentralized management and represents a step forward. This
indicates that conditions are favourable for improved performance, but we
should not be overconfident. Some enterprises are turning out products of
poorer quality and less variety and are managed more carelessly than in the
days before joint ownership. There are not many of these, but if we ignore
the problem, it may spread. Why is it that these factories are turning out
products of poorer quality and less variety? One reason is that they only want
to turn out more products at a faster rate. But if they are constantly changing
their machinery and materials, they will produce less and at a slower rate.
To avoid problems, some factories manufacture only everyday goods of
mediocre quality. All they are concerned about is their own convenience;
they ignore the needs of the consumer. Another reason is that without a
profit incentive, some factories think it makes no difference whether the
product is good. Since the introduction of a state monopoly of purchase and
marketing in 1953, the quality and variety of some goods have fallen off.
The monopoly is necessary to stabilize prices and prevent speculation and
profiteering, but one drawback is that since the government buys everything
that is produced, factories are paying less attention to quality and variety.
Now I want to ask the private industrialists and merchants and the cadres
who will represent the state in joint enterprises to run those enterprises better
than before the conversion. For this purpose, they should see to it that the
following three things are done. First, factories should improve the quality
of products and manufacture no shoddy goods. Second, they should increase
the quantity of products as much as possible, given the availability of raw
materials and markets. This is not to say that production should be increased
across the board; the availability of raw materials and markets should be
considered first. Third, shops should continue to offer a variety of commod-
ities.
What can we do to ensure quality and variety? Here are some sugges-
tions:
1) Certain commodities, such as everyday necessities, should be exempt-
ed from state monopoly. The state will challenge manufacturers by buying
quality goods and rejecting inferior ones. When the price of inferior goods
falls, and the factories producing them begin to lose money and find
themselves unable to pay their employees, managers will have to use their
heads to improve quality and increase variety. The exemption of selected