McGill University professor helps China open its economy to the global market
In 1980, two years after China took the decision to "open up" to the outside world, the Chinese Government turned to Dr Sam Noumoff for help. The McGill University Political Science professor had the singularly unique experience of having lectured at the national, provincial, municipal and county level schools of the Communist Party of China and, furthermore, having been one of the earliest contributors to the Canadian Business Review (the organ of the Conference Board of Canada) on the prospects of the China Market. Dr Noumoff was asked to prepare a series of lectures on the experiences of other countries in absorbing foreign investment and how this experience might be utilized by China in designing its own strategic plan. Since then, he has delivered the results of his research on seven cross-China lecture tours.
In 1985, Professor Noumoff invited the Deputy Director of the State Economic Commission, Zhu Rongji, to visit McGill. Zhu later became Mayor of Shanghai, Executive Vice-Premier and, finally, Premier of the State Council. Zhu and Noumoff have met on numerous occasions both in Canada and China and, as a consequence of one of these meetings, the research focus shifted to technology transfer.
How can China develop a balance between rapid entry into the global market, which normally would require importing foreign expertize, while simultaneously developing its own autonomous technology infrastructure? Dr Noumoff selected some case studies to shed light on this question. While a "turnkey" option may be available from a large multi-national corporation, the cost can be prohibitively high. Furthermore, the outside company will normally try to restrict full transfer of essential technology and limit export of the final product. China has developed technological capacity internally in some product fields and eventually would likely make the breakthroughs necessary to equal present international levels. However, by the time this were achieved, new product cycles may have superceded current standards.
What then is the appropriate policy option? Noumoffs present research focuses on developing a "venture capital" model that conforms with the principles of a socialist market economy - not an easy task. One of the key elements he has identified is the requirement for a very high level of confidence between the outside party and the Chinese. Both sides must trust each other in negotiations on the technical aspects of the project, but, more importantly, they each must feel secure that they are working towards a common goal by displaying sensitivity and knowledge of cultural, language and systemic differences. When successful, this enables the Chinese to acquire outside technology at an early stage of development and allows Chinese scientists and engineers to internalize the research and development associated with the process and acquire the skills necessary to innovate.
In 1999, Dr Noumoff was appointed Economic Development Advisor to two of Chong Qings (Sichuan Province) sub-cities (Fuling and Jiulongpo), where he is concentrating on technology in the environment sector.
