Monday, October 2, 2017

The Role of Chinese Government in Social Innovation for Global Good

So far, we have discussed internal factors of the development of social enterprises and social innovation. This week, I read some articles concerning the externality of this issue – the ecosystem for social innovation in which governments should be actively involved. I would like to depict the role of Chinese government in social innovation for global good.

Before elaborating on Chinese government's role, I would like, at first, discuss the reason why governments' engagement matters for social innovation. Firstly, there are sizable segments of the social sector where governments have become by far the biggest player, spending tens of millions of dollars annually.[1] This is a rather straightforward reason. To put it in another way, it is unwise for governments to leave the arena ill-managed, because they have already invested a huge amount of money. Secondly, governments have resources to rigorously test and assess new models of social innovation. It is governments that have the abilities to support and test new experiments, so that evidence-based models with promising future are likely to scale their impact with funding from both governments and foundations. Third, policies that can facilitate the development of social innovation should definitely be drafted and implemented by governments. At least, at the early stage, governments should start with removing regulatory barriers.

A case in point to discuss Chinese government's role in global innovation is its involvement in Africa. China has long been involved in Africa's health and medical services since 1960s. However, until couple of years ago, the nature of China’s engagement in Africa had been subject to massive suspicion, mainly because, under poor regulations, some unqualified enterprises were participating in the projects so as to extract local resources for economic benefits. Nevertheless, as a 21-st century global superpower, Chinese government has done a lot to change the status quo and do make some progress in generating global good in Africa.

First, in the framework of South-South Cooperation, China began to work closely with African nations as a partner, calling for active engagement of both sides, rather than simply a donor country which dictates other countries and attempts to reap economic benefits.

Second, Chinese government strongly supports research and development of relative products which can bring huge outcomes in health in the world. Since China has huge internal market for vaccines, drugs and medical equipment, the manufacturing cost is considerably lower than that in the Europe and the U.S. In this way, China can invest more in research period so as to maximize social benefits.

Third, Chinese government has adjust regulations concerning social innovation and removed outdated ones that have impaired the development of non-profits. Thanks to the social-innovation-friendly ecosystem, greater collaboration on the ground in Africa has been developed between non-profits and enterprises. The collaboration brought health expertise, infrastructures, medical techniques and ways of commercialization.

To sum up, Chinese government plays the role of partner, research supporter and ecosystem builder in China’s practice in health area in Africa.

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