If not handled properly, it will trigger social crisis.

During economic transition and social transformation, uncertainties are increasing along with the rise of social problems and public complaints.

Traditional governance mechanisms are being reformed, while new and effective social governance structures and mechanisms are still in the process of being established and consummated. At this point, both the government and society are quite unprepared for unexpected disasters.

In the context of globalization, while we are strengthening economic and social links with the outside world, we also have to face rising uncertainties. Some unexpected happenings usually bring about international consequences. The impacts of these can spread quickly to other countries and vice-versa. This is the key feature of unexpected events in the context of opening up and globalization.

During the period of economic transition, the government tends to be thrown into difficulty when dealing with unforeseen occurrences.

At present, it is in the process of shifting from an all-round government to a functionally limited one. It is relatively strong in playing the function of promoting economic development, but its function of providing public welfare and public services remains rather weak.

Although the government's role in economic development is of vital importance, when the market economy develops to a certain stage where social problems are accumulating, the government must strengthen its role in providing adequate public services.

At the beginning of the fight against severe acute respiratory syndrome (SARS), some local governments and departments of the central government failed to take effective measures to handle the crisis. In a sense, the fight against SARS has exposed some of our institutional weaknesses. Facing this squarely will motivate us to accelerate institutional reform.

The lesson we have learned from the SARS crisis is that it is important and imperative for the government to reposition itself and defuse critical social problems as a priority.

In addition, it will also help us realize that the government is facing many problems in creating mechanisms to deal with unexpected events. These may include a crisis management mechanism that can be mobilized by the government when necessary; a mechanism with which the government can mobilize financial and social resources in response to sudden crisis; and a mechanism for the government to release information.

Providing true and reliable information to the public is the social responsibility of the government and the media. In times of a crisis such as SARS, they should consider not only the health and safety of the people in affected countries but also in other countries.

Experiences at home and abroad have demonstrated that timely and objective disclosure of information is more important than anything else in dealing with unexpected events. Failure to provide such information -- either willingly or unwillingly -- can produce immeasurable losses.

The outbreak of the SARS crisis also focused public attention on the deficiency of the current health care system in dealing with unforeseen events. It has also exposed some institutional weaknesses in our country. Public health systems in urban and rural areas should be strengthened and an early warning system and mechanism for tackling public health emergencies should also be reinforced.

Dealing successfully with unexpected events depends on the mobilization and participation of social forces to a large extent. Many things cannot be done or done well by government alone so the potential of social forces should be tapped and channels for their participation expanded.

The dynamic interaction between the government and civil society is the key to success in coping with unexpected events like SARS.

To this end, urban communities should be given more power so they can share the social responsibility for epidemic prevention.

The cultivation and development of non-governmental organizations (NGOs) should also be accelerated. Their role in mobilizing and organizing social forces to deal with unexpected events should be maximized.

They should be encouraged and supported to take immediate action in various ways to join the fight against SARS and play a role in maintaining social stability. They should be encouraged to co-operate with professional international organizations in the fight against SARS.

At present, very few NGOs are co-operating with professional international organizations and international volunteer organizations. And the number of private foundations that can absorb donations is even smaller. This situation must be changed as soon as possible.

The attitude and behaviour of officials in some departments of the central government and some local governments in fighting SARS have also exposed a number of loopholes in the country's personnel system.

First, under current system, some officials in leading positions tend to give too much weight to GDP growth as a measurement of their performance, and have developed a mindset of being responsible to their superiors instead of the people. They dare not report negative events such as the spread of extremely contagious diseases for fear of being removed from their positions. Rigid personnel management system must be reformed as soon as possible.

Second, proper supervision of the government should be encouraged and the government should improve the quality of decision-making.

Third, the government should punish officials directly responsible for the spread of SARS or those who sneaked away at critical moments. This must be done through open, strict and fair administrative or judicial procedures.

Fourth, the general public is keeping a close watch on what the government is doing during this unique period. It is therefore a golden opportunity for the government to improve its image and restore its social credibility by serving the people heart and soul.

The author is executive president of the Hainan-based China Institute for Reform and Development.

(China Daily May 27, 2003)