By Dr. Robert Lawrence Kuhn

An inland province living in the shadow of its well-developed coastal neighbors (Guangdong, Fujian, Zhejiang), and with a mid-sized population just over 40 million, Jiangxi is often considered by foreigners to be a relatively poor land with modest prospects for the future. My visit in late March 2005 suggests otherwise. It was a riveting experience that altered my personal business strategy in China.

Though lagging behind adjacent provinces in economic development, Jiangxi now sparks with new hope, energy and vigor. Though not as large or strong as other provinces, Jiangxi takes second seat to none in Can-Do enthusiasm and reality-based creativity. Jiangxi leaders are willing to take risks-not the norm for political careerists-and Jiangxi people are not shy in expressing their appreciation for it. One senses such optimism instantly, whether in formal meetings with senior leaders or informal conversation with common people. The leaders are fluent with evidence of dramatic growth and the common people are brimming with confidence, pride, energy and enthusiasm. Leadership, vision, professionalism and commitment- people are Jiangxi’s best resources.

Jiangxi is a beautiful, fertile land that is well endowed with water resources. Poyang Lake is the largest freshwater lake in China, and the more than 4000 white cranes that winter here (accounting for 95% of the world’s total population of this rare bird) confirm the environmental excellence of the region (after all, one cannot fool or coerce a migrating bird). Sixty percent of Jiangxi is covered by forest, high for China where lumber in general is scarce. There is a long growing season in Jiangxi, nine to eleven months. Rice is the dominant crop; cotton and rapeseed are cash crops.

There are rich mineral resources, leading all China’s provinces in deposits of copper, tungsten, gold, silver, uranium, thorium, niobium, and other non-ferrous metals. The ancient, world-renowned porcelain industry of Jiangdezhen was founded on local deposits of kaolin and made Jiangxi famous for “china”. A variety of light and heavy industries produce steel, pharmaceuticals, petrochemicals, textiles, processed food, and printed materials.   

Jiangxi’s beauty drives its tourist industry, particularly Mount Lushan with its breathtaking scenery, and Longhushan, the traditional birthplace of Taoism.

There is history here. Jiangxi was the first revolutionary vase of the Communist Party and became the origin of fabled Long March. Nanchang is the birthplace of the PLA, with the uprising of August 1, 1927 leading to the birth of the Red Army.

You don’t hear excuses in Jiangxi. Though in times past some may have blamed Jiangxi’s lagging development on its rich provincial neighbors- siphoning off foreign capital and poaching talented people- Jiangxi people are today ready to make their own mark for rapid, harmonious development. The fact that only 26 Jiangxi companies have been thus far listed (and only two in Hong Kong and none in the U.S.) is viewed as a challenge for the future not as a blight of the past. I like no excuses.

Development has been vigorous: The 2004 GDP was 75% higher than 2000 GDP; fiscal revenue twice as much; fixed assets three times as much. 2004 exports exceeded those in 2002 by 90%. The inflow of foreign capital in 2004 was nine times that of 2000, which placed Jiangxi number eight among all provinces. Obviously some savvy international corporations have an early sense of what’s happening here.

How do I account for such a remarkable transformation? Federal policy support is important, but vision, creativity and commitment of local leadership to imagine new vistas, liberate thinking and empower people is more important. This I witnessed not just in official meetings but in private conversations. People are Jiangxi’s best resource. The leadership team- under Party Secretary Meng Jianzhu- is diverse, determined and professional; they are both visionaries and realists and, significantly, it is not below the dignity of their high office for them to attend to detail personally, including working with specific potential investors. I was most impressed with Jiangxi’s economic Operating Principle: “Help Investors to Succeed.” That got my attention.

There is great opportunity in Jiangxi, the center of six key coastal and central provinces. Much work needs to be done, of course. For example, many Jiangxi enterprises will need to be consolidated as well as restructured in order to build the critical mass required appeal to foreign investors and for accessing international capital markets.

Speaking as an investment banker and corporate strategist, I look forward to spending more time in Jiangxi, a thought I would not have at all entertained prior to my visit. I will also advise clients, partners and associates to do likewise.

Speaking as someone fascinated by political philosophy, I see Jiangxi as a proving ground for the “Scientific Development Perspective” in demonstrating how thoughtful economic growth can optimize local advantages and improve the lives of the vast majority of its people, all the while building an “all-around society” with respect for cultural enrichment and concern for environmental protection. There seems to be a “New Long March” coming out of Jiangxi, one that can become a model for all China in building a harmonious society under the Scientific Development Perspective.

Such transformation, however, cannot be expected to be linearly positive and continuously trouble free. As such, one bad result of a new policy should not be used to scuttle the entire policy. Similarly, mistakes should not damper creativity and capacity for risk. If all your ideas are good ones, it means that you have too few ideas!

Other danger signs that Jiangxi leaders should monitor include the following:

Obsessive numerical comparisons with other provinces; while healthy competition can be stimulating, provinces can be so different as to defy simplistic match-ups.

Excessive concern with gross economic growth, which is easy to do since it is so quantifiable; for example, the growth of per capita income alone says nothing about income distribution among the people.

A tendency to talk environmental protection when there are no conflicting interests with growth, but to downplay the environment when hard choices need to be made between growth and the environment.

Overconfidence in allowing success to draw leadership away from the hard work and detailed involvement with specific investors.

Allowing (even inadvertently) the Scientific Development Perspective to become a mouthed mantra not a real-world guide (which can happen in the intoxicating euphoria of great economic success). The Perspective should be implemented effectively according to the reality of Jiangxi so that it can achieve the goal of building a harmonious society in Jiangxi.

As I said, speaking personally, I’m coming back. Jiangxi’s progress is an exciting story. It may well herald the future of China.