[MUSIC] Given the crisis in the brain drain that results from Tiananmen, Deng really needs to find a solution to the refusal of people to come back. And in part, we see this that After June 4th, the ministry of education starts looking for class enemies among overseas students, because they had protested outside of American embassies and consulates, Chinese embassies and consulates all over the world. And the west had given Mainlanders permanent resident status in the early 1990s. 50,000 people are able to stay in the US, 11,000 students can stay in Canada, 20,000 students can stay in Australia. So how should the leadership respond? Well, Deng responds very quickly. And during his southern tour, which really reinvigorates the reform period, he really detoxifies the political climate. And he calls on all students, Chinese students to return, and he says that all anti-government activities will be forgiven. And he's quoted as saying, if people want to contribute to China, they must return. And so in spring 1993, the government puts forward the 12 Character Program, which has governed the policy up until very recently, which includes the idea that people have the freedom to come and go, and does this, because it resolves the worries for those that are overseas and thinking of returning. If things go badly, they can get out again. And this, in a way, deregulates the controls over people, and it even allows them to decide where they want to go back in China when they return. That's the important part of the policy as well. Now, this feeds in very nicely to an emerging phenomenon back in 1989- 90, which is this intense inter-city competition. And Shenzhen is really the leader in all of this. It sends out very few students, because it has no really good universities, but it wants to bring back a lot of people, work in Shenzhen, so it starts to introduce new policies to attract entrepreneurs. And in the 1990's, over 100 cities will build incubators for overseas entrepreneurs in new high tech zones. And some zones, the management committee will invest in these startups and become partners. And this program of the zones was really directed by the State Science and Technology Commission. And the cities offers an offer incentives, tax free equipment, cheap cars, houses, free floor space in the incubator. And is we'll see, in 2009, under the 1000 Talents Plan, which begins then. Each city has to draft the plan outlining their technological and development needs in terms of human capital, and then the leadership group on talent in each of those cities was expected to go out and recruit those people, recruit that talent from overseas. Now, Jiang Zemin, the general secretary in the 90s, and the prime minister, Zhu Rongji, introduced a lot of innovations within their period of authority. In 1996, we get the beginning of 100 Talents Program in the Chinese Academy of Sciences, and we'll call it CAS. It awarded 2 million RMB, a lot of money to a returnee who could then buy equipment, fund a lab. He could use some of that salary, up to 20% of it, to supplement his own economy, his own income. And they were given authority over a research team in their lab, and this made a lot of people willing to come back. They introduced the policy of strengthening the country through talent, which significantly promoted science and technology. In May 1998, Jiang Zemin makes a speech in honor of the 100th anniversary of Peking University, makes it in the great hall of people. I actually was there, because I went to Peking University back in the 70s. I was invited to attend, and this leads to what's called the 985 plan to create what he called world-class universities. And the state threw money at some of these schools, and 20% of the funds that went to those schools were to be used to recruit overseas talent. Jiang and Zhu continued to come up with ideas, new ways to encourage people to return. In 1999, Jiang Zemin emphasizes the fact that the private sector is a key part of the national economy, and that's enshrined In the Chinese constitution. He even allows capitalists to join the Communist party, which seems kind of funny, right? But he sees talent, Chinese talent as a global commodity, and he argues that the state, the party must let people go out, enhance their human capital. And then, China has to compete internationally for their talent and make China a comfortable place to encourage these people to come back. And Zhu Rongji, in September 2001, says that henceforth China would change the emphasis of the open policy from attracting foreign capital to attracting human talent and technology. Now, in 2001 before he steps down, Jiang is able to introduce a new policy called the diaspora option. And this policy borrows from programs by other countries around the world. One in particular that was famous in that time was by the country of Colombia In South America, and so China follows this policy. And what it says is you recognize that people are going to stay abroad. You can't stop them, right? But even if they stay abroad, encourage them to help the country develop. And this is a major policy shift from accusing people who stayed abroad of treason to accepting that their desire to stay abroad is understandable, is not traitorous, but let's figure out some way to get them to help. So we can see that in the first 25 years there are some successes, but those are still limited success. The work was done by the Ministries of Education, personnel, Ministry of Science, the Chinese Academy of Sciences. And so by 2004, under Cassus, under Calan's program, they had brought back 899 researches. Under the Ministry of Educations, Chung Kom or Changjiang Scholars Program, which was funded in part by Hong Kong billionaire Li Ka-shing by 2004, they had brought back 537 professors from overseas to the universities. The Natural Science Foundation set up a China-distinguished Scholars Program, and between '94 and 2004' they had brought back over a thousand scientists to return to China. Now, these results are okay, but they're certainly not system transformative.
