Sail across the sea

Chapter 377 Pareto Optimization

In his previous life, Gao Fan read some memoirs written by his predecessors, describing how difficult the reform process was, which he could not understand.

In Gao Fan's view, reform is nothing more than someone standing on high ground raising their arms and calling out, and then everyone working together to move forward.

Don't you see those immature teenagers who travel to ancient times, rush into a garrison, shout "From now on, we will never owe wages again," and the soldiers immediately become the protagonist's loyal fans, ready to go through fire and water without hesitation?

Gao Fan clearly saw the benefits of regulating rare earth mining. Standardized mining could extend the lifespan of a mine tenfold, essentially turning one mine into ten, benefiting future generations. Ore refining could increase added value tenfold, and it would also give them leverage over foreign countries. Both publicly and privately, it truly deserved the description "benefiting the present and future generations."

Shouldn't such a good thing cause a great uproar as soon as it's mentioned?
But after Xu Ying and Qiao Jiaxi gave him a little pointers, Gao Fan understood. Everyone else had to make a living, unlike him, who seemed detached from worldly concerns. Gao Fan was thinking about what benefits the country and society could gain, while everyone else was thinking about protecting their own interests.

Only when people are sure that their own cheese won't be taken away by others will they have the leisure to consider their contributions to the country.

Of course, if you can promise to add a little cheese to their plates, everyone will be even more motivated.

Increase the amount of cheese on at least one person's plate without reducing the amount of cheese on anyone else's plate.

This is the famous concept of "Pareto optimization" in economics.

The real world is more complex than economists describe. People have different understandings of cheese. In the past, you might have been content eating two ounces of meat a day. Now, if you still eat two ounces of meat a day, but your neighbor can eat three ounces, you'll feel dissatisfied.

To achieve Pareto optimization in the real world, it's not enough to simply ensure that the absolute amount of cheese on everyone's plate doesn't decrease; we also need to maintain the perception that the relative amount hasn't decreased significantly either—even if it's just an illusion. Only in this way can they avoid becoming an obstacle to reform.

Is it possible to achieve such a goal?
If the economy can grow rapidly, so that everyone's share of the pie increases at a visible rate, and people don't have time to look at each other's pie, then this kind of Pareto optimization in a relative sense can be achieved.

In the autumn of 1984, Gao Fan was confident that he could achieve this.

“Aunt Xu, Director Qiao, this is what I’m thinking. It doesn’t matter if the Bureau of Geology and Mineral Resources isn’t enthusiastic. As long as we can keep them in check and prevent them from becoming an obstacle, things will be much easier.”

"I will go to Zeshan first and try to find a way that can benefit the country, the collective, and individuals. As long as all parties can see the benefits, we can sit down and have a proper talk."

Having figured out the cause and effect, Gao Fan spoke to Xu Ying and Qiao Jiaxi.

Xu Ying smiled slightly; she liked Gao Fan's confident demeanor. Past experience showed that Gao Fan usually kept his promises, and this child had enough knowledge and wisdom to find a win-win path for everyone.

As for myself, all I can do is hold up an umbrella for this child, shielding him from the wind and rain, so he won't be bothered by worldly affairs. The central government has issued a notice, and although the provincial economic commission and the geological and mineral resources bureau lack enthusiasm, they can't openly resist it. They even have to make some public appearances to avoid giving the central government any leverage that could affect future negotiations.

Under these circumstances, it would be perfectly acceptable for the Department of Chemical Industry and the Department of Geology and Mineral Resources to jointly grant Gao Fan a formal title and allow him to carry out his work in Zeshan.

After our conversation, I believe Gao Fan has understood the conflicts of interest involved in this work. With his intelligence, he will surely avoid the pitfalls and find a viable path.

"Xiao Fan, just go ahead and do this," Xu Ying said. "In the next couple of days, I'll have the department send a letter to the Department of Geology and Mineral Resources, and the two departments will jointly issue a document outlining rectification requirements for Zeshan City and its counties."

"Don't expect this document to make the local government make immediate rectifications, but having this document in hand will at least prevent them from directly making things difficult for you, which will help you in your work."

"Thank you, Aunt Xu," Gao Fan said obediently.

Xu Ying smiled and said, "What are you thanking me for? This is originally the work of the provincial department. You, a young person, took on this responsibility. The hard work is yours, and the achievements belong to the provincial department. I should be thanking you."

Qiao Jiaxi also said, "The department has arranged for me to assist you with your work. If there's anything I can do for you during this process, just let me know."

Gao Fan quickly feigned panic and said to Qiao Jiaxi, "Director Qiao, please don't say that. I'm just here to run errands for you. If you have any instructions, just let me know."

Before Qiao Jiaxi could say anything more, Xu Ying interrupted their pleasantries and said, "Ultimately, Director Qiao will be responsible for this matter. Xiao Fan, if you encounter any difficulties at work, just tell Director Qiao anytime. If Director Qiao can't solve it, the department will step in."

"Xiao Fan, you don't need to have any worries, just go for it. Minister Zheng specifically named you to participate in this work. If even Minister Zheng trusts you so much, the provincial department has even less to say. After all, you are a member of our Maolin Province chemical system."

When the car arrived at the Chemical Industry Hall, everyone got off. Gao Fan declined Xu Ying's invitation to have dinner at her home and went out to take a bus back to the Canghai Fertilizer Plant office.

Watching Gao Fan walk away, Qiao Jiaxi said to Xu Ying, "Director Xu, I don't think this matter is good for the Chemical Industry Department. It might even affect our relationship with the Geology and Mineral Resources Department, and leave a bad impression on the provincial leaders. So, shouldn't the department remind Gao Fan not to take too big a step when he goes to Zeshan?"

Xu Ying glanced at Qiao Jiaxi and smiled, "Old Qiao, I understand your concerns. Gao Fan isn't a reckless person. You heard what he said in the car just now. The fact that he said those things shows that he knows his limits. You can keep a closer eye on him later, but don't overly restrict him."

"As for your point about this not benefiting the Chemical Industry Department, I don't see it that way. You can tell from the early days of converting ammonium to urine that this guy isn't one to suffer losses. The provincial department has given him so much support, he will definitely not forget the provincial department."

“Rare earth is a huge industry. If Gao Fan can get the Chemical Industry Bureau to get a share of the rare earth industry, the benefits will be enormous.”

(End of this chapter)