No Good for Protecting the Deer by Killing the Wolf

People's Daily / China / April 26, 2005

In a nature reserve in Alaska in the USA there are a great number of deer but there are also many wolves - strong foe of the deer. To protect the deer, the local folks began to kill the wolves in large numbers.

Once in a period after the deer lost the chase of the wolves the number of them began to increase a little bit. However, not long afterwards the number of deer began to go down again. The reason is simply like this: under a living condition in which the deer lost the chase of the strong enemy the herds of deer can live a peaceful life and so they have much less activities, leading to a weak physique condition, hence a large number death of the deer.

In the economic life in China, there exists the same problem of protecting the deer by killing wolves. For instance, some local governments set up barriers against the market accession, disrupting the market order by providing local protection to the markets of their own.

Like the deer many animals vie for survival and grow incessantly stronger in nature. The artificial change of the law of nature for the animal kingdom does no good for the protected animals to survive well along.

Since the rule for survival of the animal kingdom is like this so is the competition for survival among enterprises. The enterprises can grow stronger through competition for existence. The artificial alteration of the competitive rule by hindering the accession and existence of the rivals into the market will make enterprises to have less pressure from without and so they have no motive force for reducing the production cost, for raising the product and service quality nor will they have any driving force for technological innovation and management creation.

Just imagine how an enterprise which has no wish for "going fast forward" can eventually avoid from being wiped out from the market.

Only by adhering to the law of nature can the deer colony enjoy a very healthy existence. Likewise, only by adhering to and following the market rule, initiating an environment for fair competition, making smooth the mechanism hindering the impartial competition and reducing manmade interference and letting the economic bodies to have full competition in the market can they get enough vigor for surging forward and promoting a sustainable and healthy development of the economy in China.

By People's Daily Online