[MUSIC] Now let's look at some data that will help us evaluate the impact of the 1000 Talents Program. This first figure shows that whereas in 2001, 97% of mainlanders were still in the US five years after getting their PhD. By 2011, that percentage had improved by 12%, right, less, 12% less. And here you can even see comparing 2007 where it's almost, it was 93% almost 94%, down here we've improved the situation by about 8%. So that says something positive. Second thing we can see is that in terms of percentages of returnees with foreign PhDs, the 1000 Talents is almost perfect, right? Where it would include some entrepreneurs who may just have a masters degree but still be quite effective in their jobs or their companies overseas. So that's probably where that 12% comes, but you can see compared to other programs that the state set up, and we've talked about them, that the 1000 Talents program was clearly doing much better. Now here's another slide which shows the number of overseas students and returnees between 1993 and 2013, and there are some things that we can highlight from this table. First is in 2006, we can see here that a policy became more liberal in people going overseas, so the number of people going out increased. Many of these people were actually going out for Masters degrees. And that's partly why we see in 2007 the number of people returning increases significantly. Because many of these masters degree students were going out for one year, max two, and then they would come back soon after. So this uptake in people coming back is actually a reflection in the uptake in people going out. But then one thing that we can see is that the scale here, the number of people, mainlanders who were former students and scholars who remained overseas is actually by 2013 1.4 million, which is really a lot of people. Now the problems, the complaints that people raised about these programs actually change over time. Initially people complained that there just wasn't enough money, right, in the 1990s, the big issue was the low salaries. But by 2011, concerns became much more focused on getting access to research funding. Excessive role of personal ties in getting grants and getting even graduate students allocated to your research team. Problems of academic misconduct, bias against returnees, and excessive power in the hands of administrators, these all became the dominant problem. And here's another table that I would show you where the government policies and here are the government priorities. These are the things that the government thought that it needed to give people, competitive salaries, research money, here easing the transaction costs and family opportunities. But we find that the real problem was largely this whole question of personal relationships and what we would call as the research culture. And amazingly here, the CCP Organization Department of the Communist party in 2011 organized or hired a research team to go and find out why people didn't want to come back. And many of their findings were very similar to critiques by and critiques by me. And these were critiques that I presented in fact to Chow in a meeting that I was invited to. And Lee Yen Chow in fact knew that one of the major problems was that research funds were being allocated based on relationships and not on competition or based on merit. Which is one of the things that he really wanted to raise all along. Now this table, this is part of the data that I showed him when I gave my presentation, right. That initially his plan was to bring back people full time remember it was six months, minimum of six months. But they found that academics and scientists didn't come back. Of the 501 1000 Talents awardees that I could find online, a total of 82 were entrepreneurs. Of whom 89% had come back full time because if you want to run your company successfully and not have someone steal your intellectual property, you have to be back in China full time. But if you compare this group to the scholars and scientists or what here are the A, innovative group, there are only 26.5% of them who had come back full time. And that was a real problem because Li Yuanchao then had to step back from getting his people to come back under his program full time. Today, in the last two, three years, we've seen Xi Jinping, now running China, and one of the first things that he did was that 12 character phrase that emphasized and gave the opportunity emphasizing. That people should be free to come back and then leave again. He added on in essence three more characters, which really said that the state should maximize the capabilities of people after their return. And maybe that was because he wasn't thinking so much that he was going to bring all these new more people back, but that in fact he wanted to make good use of the people that have come back. Because the current political environment in China, I think, is quite negative for many people to think about returning. What we've seen over the last six to eight months is very tight control over the use of funds. Difficulties accessing overseas websites, an emphasis on ideology and on party leadership. And I would think that for many people who are thinking of coming back that's a kind of dis-incentive. And I even know that people have been told by their parents that in the current climate it's best to stay abroad.