The "Shanghai Wisdom" Learned from a Meal: Why Can’t Other Cities Emulate It?
Hello everyone, I’m your financial journalist. Today, we’re not talking about candlestick charts or macroeconomic data; instead, let’s discuss something more down-to-earth.
Recently, an article by Teacher Zhang Kun has gone viral, and the reason is quite simple: he attended a dinner where his tablemate was a retired Shanghai official. During the meal, the official didn’t talk about grand strategies but rather about how Shanghai provides for its elderly residents—how they are funded, fed, and entertained.
After hearing these stories, Teacher Zhang’s biggest takeaway wasn’t so much that Shanghai’s policies are excellent, but rather that the way of thinking behind these practices is deeply rooted in Shanghai’s culture and environment, and it’s difficult to replicate elsewhere.
Many cities claim to practice “precision governance,” but they often only grasp the superficial aspects (like distributing coupons or building facilities) without understanding the essence. Today, I’ll break down the core logic of this article into four key points in plain language, showing you what Shanghai’s officials are really “calculating” and why these methods are hard to copy.
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1. The Art of Planning: From “One-size-Fits-All Freebies” to “Targeted Assistance”
Let’s start with the most obvious example: the free public transportation and subway service for the elderly.
The old approach (most cities):
Anyone over 70 gets free transportation.
- Advantages: Simple, fair, and popular with the public; good for the government’s reputation.
- Disadvantages: Wastage of resources. Many elderly people don’t go out, yet the government has to pay for everyone over 70, creating a persistent financial burden.
Shanghai’s new approach (layered comprehensive subsidies):
Free transportation is abolished, and instead, a comprehensive subsidy is provided starting at age 65, directly deposited into the elderly’s accounts.
- How it’s used: Those who go out can use the money to pay for transportation; those who don’t can save it for other expenses.
- The key change: The focus has shifted from “ensuring fairness” to “planning carefully before providing benefits.”
Why is this smarter?
It’s like making a budget: you don’t promise to give money first and then figure out how to cover the costs later. Instead, you first assess your resources and see how much you can afford to distribute.
- For the government: It avoids wasting money on those who don’t use the services, ensuring the benefit can be sustained for decades.
- For the individuals: It gives the elderly more choices and makes them feel valued.
In simple terms: Before, it was “I give you a coupon whether you need it or not”; now, it’s “I give you some money, and you can use it as you wish.” This is not just about welfare but also about efficient allocation of resources.
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2. The Magic of Utilizing “Small Funds” to Boost Economic Activity
The second story focuses on consumer coupons and elderly travel. At first glance, it seems like a gesture of care for the elderly, but it’s actually a clever economic strategy.
1. Elderly dining coupons: Targeting idle periods
The coupons are issued during weekdays and off-peak hours in shopping malls.
- For the elderly: They get discounts and can eat affordably.
- For businesses: It fills empty tables and shelves, increasing profits.
- For the government: It uses little money to boost the overall economic activity in the area.
2. Elderly travel: Filling in gaps without building new facilities
Many cities build large elderly care facilities, but Shanghai, with its expensive land, avoids such projects.
- Instead, they use hotels, resorts, and suburban homes during off-peak seasons to provide suitable accommodations and services.
- Effect: Hotels gain revenue during off-peak times, the elderly have somewhere to stay, and the government saves on construction costs.
The core logic: Shanghai’s officials don’t rely on building new things but on activating existing resources. They find unused resources and match them with public services, benefiting all parties.
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3. The Officials’ Approach: Rationality, Attention to Detail, and Understanding of Limits
From these examples, you can see a unique approach among Shanghai’s officials:
1. Rationality: They calculate the costs and benefits before implementing policies.
- Other places might prioritize politics or reputation, distributing benefits without considering the long-term impact.
Shanghai’s officials consider three aspects:
- Financial: Is there enough money? Can it be sustained?
- Resource: Are resources sufficient? Will there be waste?
- Social: How will the public react? Will it cause conflicts?
- Only after these checks do they decide whether and how to distribute the benefits.
2. Attention to detail: They focus on the smallest aspects of daily life.
- They don’t rely on grand reforms but on practical solutions, such as tailored services for different elderly groups.
3. Clear boundaries for authority: The government focuses on three key roles:
- Setting standards: The government sets the rules.
- Providing platforms: The government creates the infrastructure.
- Supporting others: The government helps businesses and organizations provide the services.
- This balance allows the government to act as a facilitator, improving efficiency.
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4. Why Can’t Other Cities Emulate It?
The reason, as Teacher Zhang pointed out, is that the context is different:
1. Financial differences: Shanghai’s finances can afford such targeted subsidies. Most cities have tighter budgets and can only provide broad-based benefits or basic support.
2. Market maturity: Shanghai’s markets, services, and private businesses are more developed, making it easier to implement these policies effectively.
3. Governance culture: Shanghai’s officials are accustomed to a rational, rule-based environment, while other places may focus more on short-term achievements.
4. Citizen expectations: Shanghai’s citizens demand high-quality services and transparency, which drives continuous improvement.
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Conclusion
Teacher Zhang’s dinner was well worth it. Shanghai’s strength doesn’t lie in its skyscrapers or GDP figures but in the way its officials approach governance—rational planning, attention to detail, and a focus on practical solutions. This approach is the true essence of Shanghai’s “treasure.”
For other cities, Shanghai’s experience isn’t a set of rules to copy; it’s a reference point. It shows that precision governance requires careful planning, attention to detail, clear boundaries, and patience. It’s the result of a combination of financial strength, market maturity, governance culture, and citizen expectations.
In summary, the “Shanghai wisdom” isn’t something that can be simply replicated; it’s the outcome of a unique combination of factors. For other cities, it serves as a model for understanding what precision governance entails.