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The Bigger Picture around Beijing's Fare Reduction
    2007-10-10 17:33:05     CRIENGLISH.com

Beijing's subway ticket fare was reduced to 2 yuan at the beginning of October. This follows the reduction of bus ticket fares earlier this year. Does this show the government's role in public services is gradually changing?

Let's find out what local media is saying about that.

Reporter:
An article from the Information Times supports the lowering of subway fares, saying this policy is the consequence of an inevitable trend. It seems that the government is compensating those who use public transportation. In the long-term, such investment can improve the overall standard of living for much of the population. The move can enhance the economy and serve the needs of social development.

China Youth Daily states that from an economics perspective, this move is in line with other countries. Most public services like buses and subway should be free. Government should provide services at low or no cost; otherwise it should be a private enterprise rather than be a public service. The article adds, despite the recent growth in the economy, China still has a large number of low-income people like farmers and migrant workers. In large cities, these people deserve accessible public services. The market economy meets the demand of higher-income people, while those of lower income depend on public services.

Based on this, the government should adjust its plan for public expenses. The current problem is not insufficient funds. Some think that too much of the budget is spent on economic development and government operations.

What's more, the writer points out, is that the government can be the public service provider, but should depend on the private sector to manufacture the products used for such services. If the government is in charge making products and overseeing the service itself, it will likely lead to low quality and high costs. Which, would opposite of the original intention.

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