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Subway ticket price hike challenges city management

(Global Times)    07:25, December 31, 2014
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On Sunday, a new ticketing system was put into use on Beijing's subway network. The new system, which is distance-based, is more expensive than the previous flat 2 yuan ($0.32) fare. It is estimated that the passenger flow at peak time in the morning fell by 5.23 percent.

The inevitable complaints surfaced on the Internet. But generally, the fare adjustment was smooth and many people showed understanding. This shows that mainstream society is clear that Beijing's subway system can't be propped up by government subsidies for ever. But since price hikes are not something to cheer about, complaints are normal.

Subway fares in Beijing had gradually risen till 2007. Perhaps due to the upcoming Olympic Games at that time, the fare then decreased to the flat 2 yuan. The public applauded the move, but soon the government's financing could not sustain these price levels.

The new government had been trying to tell people about the role of the market, but it is not easy to persuade people to sacrifice their interests.

The rise in the public transportation fare will have some consequences. As migrant workers and some low-income employees live in suburban areas, the increase in transportation fees will surely impose pressure on their employers. This indicates that low-income positions will be squeezed. From a long-term perspective, companies that rely on cheap labor in first-tier cities such as Beijing will face more challenges.

The public transportation fare in Beijing was the lowest in China, but housing prices in Beijing's suburban areas are more expensive than in many big cities. As the fares rise, Beijing will make long-term policy adjustments.

The public transportation system cannot fully rely on the market, but it still needs the market doctrine as guidance. The public places many demands on the government. The government also has plans to develop cities and it has to weigh up different factors.

Some people say that the government should follow the public, but should also have decision-making capabilities and not be led by the nose. They say that if social media had emerged 30 years ago, China would have become another India. Such declarations lack precision, but sound reasonable.

China's city management faces a tough test. The country is developing rapidly with various changes. It is difficult to have fixed price systems and social systems. The Chinese people often feel that the prices of commodities are rising, but seldom notice that their life is improving.

It is hoped that today's younger generation, despite complaining, will find their life is getting better. The cheap subway fares will become but a memory. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Zhang Qian,Bianji)
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