Gao Xiaoyong, Wang Dingding Interview Nobel Economics Prize Winner (Masters Discussing China's Economy and Economics)

Author: Gao Xiaoyong, edited by Wang Dingding
Publisher:
Publish Date: 2005-07-01
Features: It has been eleven years since that interview. News textbooks have interpreted and analyzed this interview, considering it a successful case of journalistic practice. But I still think outsiders find it hard to understand this interview. In the early 1990s, when the industry was far more rigid than it is today, how did a financially and politically powerless newspaper accomplish this? To say it was financially constrained meant it couldn’t even guarantee its publication in the coming weeks; to say it was politically powerless meant it had no one to rely on except some authors, scholars, and subscribers, and it still survives today under the "extralegal grace" of authorities. In fact, no other newspaper in the country has survived for over a decade like this. What’s even more astonishing is that such an academic and highly influential interview—one whose content was sent to the central and state leaders as a "memo for reference" and was specifically included in the 1995 Central Economic Work Conference documents by the then-Prime Minister; the then-Head of the National Development and Reform Commission, Chen Jinhua, even instructed the China Planning Press to compile and publish this interview—was planned, organized, and executed by someone completely untrained in economics. The interview itself originated from his random musings. I must admit honestly that while the 12 Nobel laureates in the U.S. gave many passionate lectures, I neither understood nor was interested in them. During my 15 days in the U.S., I acted like a foreman, satisfied just with the smooth progress of things—no one collapsed or took the wrong flight. At that time, many people read this book, but I couldn’t understand it at all—truly a case of dark humor.
Now, I am more of a true reader of this book than the interviewer or editor. I understand some of what they said, even disagree with some of their views, like Simon. He criticized the rational man assumption in economics and advocated the famous "bounded rationality." But I think Simon is making a mountain out of a molehill. Because the rationality assumed in economics is itself rational under constraints, rational within various constraints. If we talk about unlimited rationality, then the entire neoclassical economics framework being taught in universities worldwide would be a self-refuting system. If the rational man assumed in economics isn’t rational under constraints, then humans would be gods—omniscient and omnipotent—and planned economies would be feasible. In that case, the reasons for its failure would need to be reexamined. Of course, the seemingly tedious "bounded rationality" might just be what spurred the rise of research on the price of information and information economics.
Today, I have some personal "prejudices" against economics, but back in 1994, when I interviewed those Nobel laureates in economics, I was completely clueless about it. I did it just for fun, not with the intention of "standing on the shoulders of giants." Without money, power, or knowledge, I conducted an international interview that required money, approval, and knowledge—I still don’t know how it was accomplished. Those who analyze and interpret this must be gods. Writing a preface for this new edition is mainly to fulfill a long-standing sense of guilt. I want to thank one person and one organization that made this interview possible. Without the diligent organization and coordination of Hai Wen, who served as the president of the China Association of Economists in the U.S. in 1994, and the efforts of Bixie, Ding Zhuanxin, Xu Xiaonian, Li Ling, and Huang He, among others, from the association to pick me up in various cities in the U.S. and assist with interviews and translations, this joyful adventure would not have been possible. The China Association of Economists is grateful for the hard work of the interview and even wanted to give me money at the time, but I declined happily, perhaps out of embarrassment.
Incidentally, the impact of this 1994 interview on society made me feel guilty. I felt undeserving of the attention, so years later, Ied Wang Dingding to conduct another interview from an expert’s perspective to give back to society. The outcome wasn’t ideal, but it was better than nothing. That’s why this new edition includes three remaining interviews by Wang Dingding. Eleven years later, in May, multiple Nobel laureates in economics are coming to China for the "Nobel Forum." CCTV has invited me to Beijing to plan the live broadcast of this event, and I can’t help but laugh.