Word: incentivesâ
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Prosperity has come less sweepingly to the main cities. A few individuals have managed to form their own lucrative businesses (see box). But Chinese industries, thanks to their system of guaranteed payment and employment?the absence, in effect, of incentives???remain largely paralyzed by their traditions of featherbedding and low productivity. One possible solution is represented by the four coastal enclaves, including Shenzhen, that the government has designated as "special economic zones." These areas, set up to be thoroughfares for the free passage of foreign investment and ideas, have flourished so vigorously that the government plans to create 14 more...
...Government should revise Medicare and Medicaid reimbursement formulas to pay hospitals a set amount for, say, removal of a gallstone, rather than costs-plus. Says Dr. Mitchell Rabkin, director of Beth Israel Hospital in Boston. "I'd like to see a system of incentives???say, if we saved money, that money could be split between the insurer and the hospital." Califano and some state regulators also are launching a drive to require that a majority of the directors of any Blue Shield plan be laymen. At present, many Blue Shield plans are dominated by doctors, who, to put it delicately...
...Communists demonstrated America's continuing interest in Southeast Asia. "Ships are easier to move about than are Army or land-based aircraft units," the Brookings report said. "Naval forces can remain near by but out of sight. Thus naval forces can be used more subtly to support foreign policy incentives???to underscore threats, or warnings, or promises or commitments?than can land-based units, and they can do so without necessarily tying the President's hands...
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