Chinese Expert in Macro Economy Projection

In April 2007, the writer had the honor to have an interview with the researcher Wang Tongsan, who is the academic commissioner of the Chinese Academy of Social Sciences and Director of the Institute of Quantitative Economics and Technological Economics. In the more than one hour long interview, the researcher Wang Tongsan talked about his life experience, academic viewpoints, and the experience in doing scholarly researches and the personal realization with passion and in a modest and gentle way. In addition, he also expected earnestly for our young scholars and put forward sincere suggestions. I benefit a lot from the words and became aware of a lot of truth.

Lou Feng (hereinafter referred to as Lou): Mr. Wang, you were born before the establishment of new China and you have experienced a lot of hardship and sufferings throughout your whole life. Please talk about your life experience.

Wang Tongsan (hereinafter referred to as Wang): I was born in July 1948 in Nanjing, Jiangsu Province. Since my parents are both intellectuals, my family exerts a gradual, uplifting influence on me. Since I was very young, my parents have been teaching me that I should work hard at study and endeavor to have a promising future and that I should be easy to get along with, observe all rules and regulations and observe disciplines. When I was a child, I moved to Beijing with my parents. I studied in the primary school, high school in Beijing and my senior high school was Beijing No. 4 High School. I had a relatively good performance in school. After that, my family was impacted during the period of the Great Proletarian Cultural Revolution and I went to the agricultural areas in Inner Mongolia to go to live and work in a production team. I have spent nearly 6 years in the countryside to put myself through the mill. In 1974, I returned to Beijing from Inner Mongolia. After that, I was allotted to Beijing Plate Making Factory where I served as a worker. I began my work there from being an apprentice and then since I worked with care at that time I was appointed to be the head of production team. In addition, I joined the Chinese Communist Party. When I was working in Beijing Plate Making Factory, I was ever selected by the factory to have a study on the Das Kapital written by Marx, the selected works of Lenin, the history of Western economy and ideas and the political economy in Beijing Teacher's College for nearly a year when my teachers were Wu Yifeng and Gao Hongye among others who are the famous economists in China. In 1977, the College Entrance Examination System was recovered and I was admitted to the department of mathematics of Beijing Teacher's College with a relatively good achievement score. I worked hard in my study during the four years in university and I was among the best of students in each examination. In 1984 when I graduated from my university, I was ranked the “Outstanding Graduate in Beijing” and I was the only one who won this title in my class. In the same year, I was admitted to the Institute of Industrial Economics of the Chinese Academy for Social Sciences, becoming a graduate student majoring in Modern Management. Since one who studies the Modern Management Major should learn economics as well as computer science and English etc. while the school running conditions of the Chinese Academy for Social Sciences were relatively poor, we were sent to Dalian Institute of Engineering (which is now Dalian University of Technology) for study. During that period, I learned the theory of economics in a relatively systemic way and had a good command of using English in a proficient and fluent way. In 1984, I got the master degree of economics. After graduating as a master student, I held a post in the Department of Overseas Investment in China International Trust and Investment Corporation (CITIC) where I participated in a number of overseas investment projects. One year later, I was transferred to another post in the Institute of Quantitative Economics and Technological Economics of the Chinese Academy for Social Sciences where I was engaged in scientific researches. During the period between 1987 and 1990, I was proceeding to the doctor degree of economics on the job in the Chinese Academy for Social Sciences. In 1990, I got the doctor degree of economics and became one of the first doctors of quantitative economics who were cultivated by our country. Since I joined the Institute of Quantitative Economics and Technological Economics of the Chinese Academy for Social Sciences in 1985 engaged in scientific research, I have completed many works with the guidance of the predecessors including Wu Jiapei and Zhang Shou and I have made relatively outstanding achievements. Therefore, I was promoted with higher title of a technical post twice by making an exception: in 1989, I was promoted to be associate researcher by making an exception and in 1992 I was again promoted to be a researcher by making an exception. Since 1993, I have been the winner of special government allowance and in 1994 I was ranked as the “young and middle-aged expert making outstanding contribution”, and in 2006 I was ranked as one of the first academic commissioners of the Chinese Academy of Social Sciences. Now, I assume the office of the Director, researcher and doctoral supervisor of Institute of Quantitative Economics and Technological Economics. In addition, I also hold a concurrent post of the President of the Council of Chinese Association of Quantitative Economics.

Lou: Mr. Wang, you have been engaged in the research works in the fields of the theory and methodology of quantitative economics, the economic model and economic projection, and the analysis and adjustment of macro economy among others. Since several years, you have published more than a hundred theses in various kinds of learned periodicals and written more than ten works. Would you like to make a summary of your major academic viewpoints in several aspects?

Wang: My academic viewpoints mainly include the following ones:

First, to be engaged in economic studies, we must combine the actual conditions of our own country instead of applying the foreign economic theories mechanically. Our ultimate goal is to serve China.

In 1986, in an research paper under the title of Evaluation and Methods of Effect on Predictions of Macroeconomic Model, I put forward that we should be based on the actual conditions of China and absorb the scientific and reasonable elements of the foreign economic theory and methodology rather than accept the western economic theory uncritically to make the economic model of Chinese macro economy and that it is very necessary to set standard for the analysis of macroeconomic model and we should constantly test, improve the model and gather experience so as to promote the macroeconomic model to become increasingly mature. In this paper, I put forward a set of standard and system for the evaluation of macroeconomic model: (1) the targets for the evaluation of macroeconomic model include: ①the evaluation of results on predictions of different models; ②the evaluation of results on predictions of different parameters and conditions of the same model; ③the evaluation of results on predictions of different stages of prediction of the same model. (2) the content of the evaluation of macroeconomic model shall be based on the following aspects: ①make a comprehensive consideration of the time factor and make analysis and evaluation concerning the prediction results of (one or several) model(s) on certain specific endogenous variable; ②make a comprehensive consideration of the time factor and make analysis and evaluation concerning the prediction results of (one or several) model(s) on certain specific period; ③make a comprehensive consideration of the prediction results of certain specific period. (3) the major methods of evaluation of macroeconomic model include: ①the method of single index, which includes method of mean square error and method of absolute error as well as method of unequal coefficient. The method of single index is simple and easy for calculation and is very effective for the evaluation of variable factors. However, it is difficult to put them in use of analyzing and evaluating time factors and overall model; ②the method of mean square error factorization. This method is relatively complicated at the aspect of calculation, but it can be used to analyze and evaluate each of the above mentioned items. Therefore, it is a relatively good method.

In 1986, I participated in the “Project LINK of China, the USA and Japan” of the Project LINK of the world which was taken charge of by Professor Klein, who is a world famous economics and the winter of Nobel Memorial Prize in Economic Sciences. In addition, I also served as one of the major researchers to research and develop Chinese economic model. During the process of research and development, our research group did not use the established western macroeconomic model as the template. Instead, under the instruction of the basic theory of Marxism and in accordance with the current economic system and special condition of China at that time, we used part of western economic theory for reference and developed the Chinese macroeconomic model in an innovative way, which became a success. Due to the rationality and integrality of this model, it can not only be used to link the world’s model but also can be used to simulate, analyze and predict the economic operation of China in a relatively good way. Chinese economic model had been widely praised by the counterparts in the world. That was the first time when the Chinese economic model linked with the world’s model and was an important step for Chinese research works in the field of macroeconomic model to enter the international forum and to make contribution to the world’s economic model as well.

In 1987, the Institute of Quantitative Economics and Technological Economics submitted a tender and undertook the “research on technical progress and industrial structure” – the key project in the field of soft science of State Scientific and Technological Commission. The issue of technical progress and industrial structure is a significant issue that the contemporary economy shall research and solve and it has a significant theoretical value and a great realistic significance for the development of China’s economy. There were more than 30 scientific research backbone personnel of the institute participated in this research subject. The method of combining the determining of the chemical composition of a substance with the fixing quantify together. It was the first time when the economic model was used on a large scale. As one of the major designers and analysts of this model, I, along with my colleagues was based on the actual conditions of China and not only paid attention to theoretical level but also gave priority to practical application. Depending on the collective power, we used the foreign results for reference and had the courage to innovate as well. We applied the Turnpike model theory in China for the first time and succeeded in designing the Turnpike model system of China. According to the research results, the research team made a series of suggestion reports on relevant policies, providing the departments concerned with scientific basis to formulate the policies on industrial structure. In addition, we also published a set of monograph series (including four books), which had made an extensive influence. This project won the first prize of 1989 scientific and technological achievements issued by the Chinese Academy of Social Sciences, 1989 Sun Yefang Prize for Economics and the second prize of 1990 National Prize for Progress in Science and Technology. At the 1989 Far East Meeting of Econometric Society, my thesis with respect to Chinese Turnpike model was given attention by the meeting and I was also appointed as the president of meeting group.

Second, the macroeconomic model is not only a theoretical model. It shall be constantly tested, improved and the experience shall be accumulated in a long term usage and practices. The level of macroeconomic model shall be constantly improved.

Our scientific research cannot be divorced from reality. It is true for social studies in particular. The tight combination of theory and transforming practices shall be given priority to in a greater extent and it shall be enduringly tested, improved and promoted in a long term. Before China’s reform and opening up, our country implemented the planned economics system. However, due to the lace of economic projection, the economic plan of the country was always greatly different from the actual results. A lot of problems of out-of-balance structure often appeared, which resulted in the serious high inflation. The central authorities paid much attention to it. In 1191, significant research subject of “Analysis and Prediction of Chinese Economic Situation” with Premier Fund was established, which was undertaken by the Institute of Quantitative Economics and Technological Economics of the Chinese Academy of Social Sciences. Every spring, the seminar of economic projection on this research subject was convened and the results of the analysis and prediction of economic situation was issued. The analysis would be made with respect to the current and potential economic problems of significance and the suggestions on policy and the countermeasures would be proposed to the central government in time. In these years, I have been taking charge of organizing and participating in the research and development of Chinese macroeconomic model, in charge of analysis of economic situation, organizing the calculation of prediction indicators, deciding on the guiding ideology of prediction report as well as organizing and participating in the overall process of drafting out the prediction report. Since the research project was set up in 1991, the project has been developed for 17 years. In these years, with the joint efforts of our research group, this research project has innovation with respect to economic theory and model technique every year and it has been tested and improved constantly and the experience has been accumulated unremittingly. The practices during these years prove that the research group has grasped the accurate and correct direction of the economic trends’ changes every year; that being tested, modified and experience accumulated for nearly 17 years, the Chinese macroeconomic model used by the research group stands the test of practices and becomes one of the most successful and most extensive large-scale macroeconomic model of China that is actually used. For example, in September 1991, this research group predicted that the economic growth rate of current year was 8%. After that, the statistics showed that the actual economic growth rate of current year was 7.8%. Such relatively accurate prediction makes this research group gain worldwide attention and praise. In addition, the model made correct prediction of the upturn in 1991, the rapid expansion in 1992, the summit in 1993, the smooth fall after a rise in 1994 and the success of soft landing in 1996.

After the symposium of analysis and prediction of economic situation held in autumn every year, we will edit and publish the Chinese Economic Blue Book. A total of 17 blue books (including 5 spring issues of blue books) have been published so far and the series of economic blue books with Chinese characteristics have come into being, which has been paid attention to and welcomed by a number of readers at home and abroad in a more and more widespread way. The prediction results of this research project are not only provided to the departments concerned of central authority and the State Council, but also provide a relatively scientific basis for reference when the central authority makes macroeconomic decides. Afterwards, the blue books are also provided for the all sectors of the community at home and abroad through the media so as to come into play up to the hilt. Meanwhile, it also realizes the good results of propagandizing the conditions of our country’s macro economy as well as the state’s economic policy.

The first Chinese Economic Blue Book was published at the end of 1991. As soon as the book was published, it was ranked as the top one event of the top ten events in the Chinese press in 1992 by the China Press and Publishing Journal and won the first Reward of Excellent Achievements in Education Scientific Research of Chinese Academy of Social Sciences (from 1977 to 1991). After that, every year when this book was published, it would be widely reported and commented on by the economic circles and press circles at home and abroad. The Xinhua News Agency broadcasts the features in both Chinese and English for the prediction results in time and the Associated Press, the Agence France Presse and the broadsheets from Thailand, Chinese Hong Kong, Macao and Taiwan etc. will all rebroadcast and publish them in time. In 1993 and 1994, the Economic Blue Book continued to hold the reward of “the National Top Ten Readings ranked by the Economic Daily” and in 1996, it won the second prize of the “National Prize for Progress in Science and Technology”.

Due to my constant recognition and deliberation in the field of Chinese macro economy for a long time, I have accumulated some experience in the analysis and prediction with respect to Chinese conditions of macro economy. Since 2003, I have been invited to take part in the drafting of documents of the work report of central authority’s meetings. In 2004, I was invited to take part in the drafting of the work report of central authority’s meetings with respect to economic works. After that, I also took part in the drafting of 2005 the documents of report on the work of the government. I am also one of the draftsmen of 11^th 5-Year Plan of China.

Third, with respect to economic modeling, the priority shall be given to the comprehension and analysis on the economic theories.

In 1989, I proposed my view with respect to the basic thought for modeling of macro-economic model in one of my research papers: the influence and effects between the economic theory and the economic model are bidirectional, namely the economic theory instructs the building and application of the economic model, on the contrary the economic model test the degree of exactness and operability of the economic theory. In those bidirectional influence and effects, the analysis of the former shall be emphasized on much more often and in more places. The influences of the economic theory on the macro-economic model can be summarized as follows: only if the macro-economic model has the aid of the economic theory, can it have the function of show the characteristics of motion of social economy in an objective way and become an effective approach to analyze and study the economic problems, exactly as what Klein said, “The setting and the application of economic model shall be on the basis of acknowledged (or newly developed) economic analysis in a firm way”. The part of one macro-economic model – each behavior equation or technical equation, or other equation – reflects one kind of special economic behavior or production technology relation. The entirety of one macro-economic model – the dynamic totality of all economic equations – reflects the overall operating mechanism of macro economy. As far as I am concerned, the macro-economic model, as a matter of fact, is a kind of research method of science of economy. If it is divorced from the economic theory, it can only be nothing.

In addition, in China, since the organization in which I work – the Institute of Quantitative Economics and Technological Economics had relatively obvious advantages in subject at that time, I came into contact with the theories of 3SLS, LIML (Limited Information Maximum Likelihood) etc. in a relatively early period of time and in addition, I apply them in the parametric estimating of large-scale macro simultaneous equations in a relatively early period of time as well. Furthermore, I also learned, researched and developed the theory of CGE model and Turnpike model theory etc. in a relatively early period of time. They have exerted a positive impact to a certain extent on the macro-economic model of China as well as the development of its theory.

Fourth, China shall strengthen the research on methodology of economic theory.

China shall strengthen and give priority to the deliberation and research on methodology. It is very important. As far back as 1990 when I returned after attending the “the 6^th World Congress of the International Econometrics Association”, I appealed that the economists in China shall strengthen the research on methodology. When Marx wrote the Das Kapital in the 19^th century, not only his economic theory is the most revolutionary, but also his methodology is the most innovative. It is most obviously shown on the analysis and demonstration of the relations between the two categories. The mathematical expression of the relations between the two categories that was put forward by Marx gave strong support for his scientific judgment. On the contrary, the other western economics only widely used the mathematical methodology to research the economic problems in the beginning of the 19^th century after the rudiment of econometrics had taken shape. However, at the present time, there is a considerable gap between the level of our research on economic methods and that of other countries. In the research of physics, people gradually go into the research of molecule, atom and quantum constantly with innovative methods so they can constantly reveal the intrinsic quality of the material world. The same principle is still appropriate for the research of economy. Only if we constantly use the innovative methods combining with the use of the latest research results of other subjects, can we develop and go deep into the revolutionary research of economy that was initiated by Marx. In defect of the innovation and development of methodology, the revolutionary nature of the economic theory of Marxism cannot be innovated and developed.

Fifth, insisting on deepening the reform is the basic guarantee for the success of macroscopic readjustment and control; establishing the scientific development view is the key to realize the stable, sustainable, rapid and sound development of economy.

Since the reform and opening up in 1978, our country has gone through several adjustments of macro-economic policies, including the four tight readjustments and controls between 1979 and 1981, between 1985 and 1986, between 1988 and 1989 as well as between 1993 and 1996, which were all aimed at governing the overheated economy. In addition, there was one expansionary readjustment and control between 1998 and 2002 which was aimed at stimulating economic growth. In the several tight readjustments and controls aimed at governing the overheated economy in the old days, the readjustment and control between 1979 and 1981 can be a “warming up” as it were, while that between 1985 and 1986 was when the “rebound” appeared. In the one between 1988 and 1989, there was a “hard landing” to a certain extent and in that between 1993 and 1996 the “soft landing” was achieved in a relatively good way. By summing up all previous macroscopic readjustments and controls since the reform and opening up as well as the experience and lessons gained from them, I come to a conclusion of the two key connotations of the readjustment and control of the macro economy:

The first point is that insisting on deepening the reform is the basic guarantee for the success of macroscopic readjustment and control. The overheated operation of macro economy in our country appears time and again which is inseparable from the various kinds of malpractices that exist in the original economic system. Therefore, only if the reform is deepened, can the success of macroscopic readjustment and control be guaranteed. The macroscopic readjustment and control between 1988 and 1989 proved that if the problems emerge in the political setting the macroscopic readjustment and control cannot go with a swing neither can it go into ideal effect while the macroscopic readjustment and control between 1993 and 1994 proved that when we have clear and definite goals of reform and are endeavoring to deepen the reform the macroscopic readjustment and control is possible to achieve a relatively good effect.

The Fourteenth National Congress of the Chinese Communist Party that was convened in 1992 had set the clear and definite general orientation of reform that was establishing the socialist market economy system. At the Third Session of the Fourteenth Central Committee of the Chinese Communist Party that was convened in 1993, the reform policies and measures for establishing the socialist market economy system were set in detail and provide a basic guarantee for the “soft landing” that achieved in a relatively good way in the macroscopic readjustment and control between 1993 and 1994. The Decision with Respect to the Several Problems for Further Improvement of the Socialist Market Economy System Issued by the Central Committee of the Communist Party of China passed at the Sixteenth National Congress of the Chinese Communist Party convened in 2002 and the Third Session of the Sixteenth Central Committee of the Chinese Communist Party convened in 2003 laid a solid foundation and provided guarantee for the smooth progress of this macroscopic readjustment and control and the relatively good results achieved in this macroscopic readjustment and control. We are totally able to the push forward various kinds of reforms in a positive and reliable way under the guidance of the spirit of the Sixteenth National Congress of the Chinese Communist Party and endeavor to be crowned with complete success of this macroscopic readjustment and control.

The second point is that establishing the scientific development view is the key to realize the stable, sustainable, rapid and sound development of economy. Reviewing the several macroscopic readjustments and controls that we have experienced since the reform and opening up, we cannot help asking why there are often the overheating of economy appearing in our country and even sometimes that situations were so serious, which thus forced the government to make the macroscopic readjustments and controls? In addition to the normal fluctuating factors of economic operation, the problems existing in our economic system, our people and the concept of leaders at all levels in particular cannot be ignored. The concept of being only in pursuit for the growth of GDP while ignoring the concept that the ultimate aim of developing socialist means of production is to meet the constant improvement of the masses’ level of material well-being life and that of spiritual life to the greatest extent and even the current check-up system for achievements in one's official career are all the important reasons that result in that the overheating of economy often arise and the macroscopic readjustments and controls have to be made. Therefore, adhere to the people-oriented values and establishing the all-sided, coordinated and sustainable development view have very important significance for avoiding marked ups and downs in economy and for striving for a relatively good result in the necessary macroscopic readjustments and controls. The history has fully proved that establishing the scientific development view is indeed the key to realize the stable, sustainable, rapid and sound development of economy.

Lou: Mr. Wang, as an awesome senior, you not only have a rigorous attitude when pursuing your studies and are diligent and eager to learn knowledge, but also are kind and easygoing and have the common touch while are upright, fair-minded, positive and optimistic as well. Would you please to make some suggestions and sincere advises for us young scholars, including that with respect to academic aspects and manners of behavior?

Wang: My suggestions for the young people are as follows:

First, as a young people, you should achieve that “When water flows, a channel is formed; and things will be easily settled when conditions are OK”. Nowadays, the young scholars have good conditions and have enriched knowledge and experience. They possess a broad spectrum of knowledge and have received good systemic education. Their structure of knowledge is good and they have their own ambitious targets and grand ideals. It is very good. However, since the international and domestic societies are complicated and there are many things that are difficult to predict, it is normally difficult for them to go smoothly according to the targets they have set. Therefore, the young scholars shall adjust their mentality and have their feet on the ground. In particular with respect to the academic works, it is true that the targets and ideals are important however keep your nose to the grindstone in a diligent and conscientious way is more important. “Bowing your head to do works and raising your head to look at the way”. Raising your head to look at the way is necessary, but you shall bow your head to do works more often. Even if the works are simple, not eye-catching or fussy, you shall do the works with care and in a thoroughgoing manner. There will be no harm for you. You should not steer your efforts in the direction that you think is better and pay no attention to the others. Even if you decide on one direction for research, you should also make down-to-earth efforts to the current works with care. The scope of knowledge concerning the subject of the quantitative economics and technical economics involve a lot, the knowledge application is relatively comprehensive thus you should do better in this way. In addition, the young scholars should keep a kind of curiosity, keep a curious mind on the novel things, the leading edge knowledge and advantage as well as the information from beginning to end as young people shall do and be interested in them as well as cast about for understanding all of them and develop ideas increase your knowledge and experience. It is very important for our profession.

Second, the young people should learn the manners of behavior and be able to make cooperation. It is very important and crucial to cooperate with others when doing academic researches. Learning but refusing discussion or consideration will not have any prospect or possibility. The collective strength is always larger than that of an individual, which is significant in particular in current days when the knowledge is rapidly developing at a geometric rate. When cooperating with others, one shall learn the manners of behavior, having more respect for others, caring for others more, listening to the others’ opinions and suggestions more and helping others more. You should put yourself in other's position with the concern for others and be good at learning from others and assimilate the beneficial advantages from the others. The intellectuals have one characteristic that they always regard themselves as the best. It is necessary, we should have self-confidence; however, we should also pay attention to the other aspect. We should be modest, amiable and emphasis on respecting others. Furthermore, the young people and the senior should learn to make their respective advantages complementary to each other; the senior should learn the pioneering spirit, the brains and drive and the latest knowledge from the young people and the young people should learn experience from the senior.

Third, with respect to the methodology, the foreign methodologies are more advanced so we shall study hard, enhance the contacts with the foreign countries, follow the tracks of the development of new methods and explore whether these new methods can be applied by us. Both of the ways shall be followed. On one hand, we shall base on our own efforts well, combining with the actual conditions and constantly striving to become stronger; on the other hand, we shall follow the foreign developments and learn from the foreign countries as well as be ready to listen to advice. We shall give priority to and enhance the academic exchange on an international level and broaden our horizon. Taking part in the international academic exchange is a important part and parcel for improving our country’s level of economic research. Every young scholar shall engage in advanced studies abroad for more than a half year at least. We encourage and urge the young scholars to go abroad for further study so as to open up their horizons and learn the advanced technology and theory from abroad.

Moreover, I am very interested in English language. You young people may be inspired by my experience of learning English. When I was in junior high school and senior high school, what I learned was Russian because the relation between China and the Soviet Union was very good at that time. After the Great Cultural Revolution broke out, I had nothing to do but stayed at home. With the guidance and advice of my father, I began to learn English. However, there were no teaching materials and teachers at that time. We managed to get a Book One of teaching materials that was compiled by Beijing Institute of Foreign Languages, and hence I started to learn by myself according to the schematic diagram of pronunciations printed on the textbook. After that, when I went to live and work in a production team in the rural area of Inner Mongolia, I insisted on listening to the “special English”, a foreign program and learning the 900 English Sentences in the leisure time from work. Afterwards, when I was studying in Dalian Institute of Engineering, the school attached great importance to English and our English classes were given by Canadian teacher. From the very beginning, I had poor basic skills of English and could hardly understand, so I had to attend the adjustment class. I had no choice but grind away at study and studied hard at English. I almost spent 95% of time and energy in learning English. One year later, I succeeded in attending the honor class and had the ability to use English expertly and fluently. To sum up, my secrets of learning English well are as follows: one is diligence and the other is the courage to “open month”. With respect to the second secret, my experience is as follows: if you meet a foreigner and he can say a Chinese sentence to you, you must feel he is very cute and cordial – he can speak Chinese! You will never blame him for making any mistakes in speaking Chinese or laugh at his problems in grammar. On the contrary, you will leave no stone unturned to understand what he means and make communication with him. It is the same when the foreigners meet with a Chinese. Therefore, you don’t need to be afraid of having a poor command of spoken English and thus dare not open you month. You don’t need to be afraid of losing face or being laughed at. If you want to express certain meaning but you don’t know how to express it in a correct way, you can say it in another way and explain what you mean. After the foreigner understands what you mean, he will repeat your meaning by a correct expression. In this way, you have got the correct way to express this sentence. What’s more important, by means of verbal communication, you can realize the function of language as well as the pleasure of communication and thus your interest in and motivation for leaning a foreign language will be further strengthened. In addition, based on my own experience, I also think that when learning foreign languages you should only be proficient in one foreign language. Learning two foreign languages but not proficient in either is not as good as being proficient in one foreign language. With respect to the profession of economics, one had better be proficient in English.

Lou: Mr. Wang, you ever held the posts of the Deputy Director and the Director of the Economic Model Research of the Institute of Quantitative Economics and Technological Economics of the Chinese Academy of Social Sciences, Assistant to the Director of the Institute of Quantitative Economics and Technological Economics, the Deputy Director and the Director as well as the President of the Council of Chinese Association of Quantitative Economics etc. and you must have unique profound experience and managerial experience in terms of the administration of institute. Would you please talk about it?

Wang: It is far from being the experience in terms of the administration of institute. I have only realized that as a leader one shall pay attention to the following aspects:

Firstly, as a leader, one should not assume great airs and should be easygoing, understand others more and show more respects for others. The leader is supposed to bear in mind to serve others and to solve the problems and difficulties of others at all times.

Secondly, as a leader, one should not bear grudges and should permit others to have different opinions from you. When the different opinions don’t influence the implementation of resolutions, they shall be permitted to exist. Since the different opinions of others have substance to a certain degree, the leader needs to try to figure out what is the principle of a different opinion and what are the reasonable points of the different opinion.

Thirdly, in the research institute, as a leader, one should attach importance to the contention of a hundred schools of thought with respect to academics. In terms of the development of discipline, the distinction of various subjects shall be laid emphasis on. The more obvious the distinction in terms of the theories of various subjects is, the better this subject will develop. To be fair, the best method will be used.

Fourthly, as the President of the Council of Chinese Association of Quantitative Economics, I have done my best to make a little contribution to promoting the construction and development of quantitative economics while doing the works of my institute well. Since 2000, I have organized and initiated to convene one workshop on quantitative economics every year so as to gather the elites in this research field in China and invited world famous economists and well-known scholars to make discussion and do research jointly. As the collected papers of the annual meeting, a total of seven volumes of the Quantitative Economics in the 21^st Century have been published so far and they have received an overwhelming response in all colleges and universities as well as research institutes all over China.

Lou Feng male, was born in Linquan, Anhui in August 1976. He graduated from Dalian University of Technology in 1999 and 2002 with Bachelor’s degree of engineering and Master's degree of engineering respectively; in 2005, he graduated from the University of International Business and Economics where he majored in finance and received Doctor's degree of economics. From 2005 to the present, he is engaged in researches the Economic Model Research of the Institute of Quantitative Economics and Technological Economics of the Chinese Academy of Social Sciences.

(Translated by Xu Jin)