Hu Shuli: Tainted Milk: Regulatory Do’s and Don’ts
From Caijing Magazine:
While basking in the euphoria of a successful Beijing Olympics, the Chinese people were stunned to learn that the Sanlu dairy company had sold tainted milk powder. The government reacted quickly to manage the sudden crisis. Officials offered free medical treatment to babies and children who fell victim, released comprehensive results of dairy product tests, scrapped a national food inspection exemption system that had been in place for eight years, and took into custody company employees while disposed local government officials connected to the contamination. Each of these steps was executed with firm resolve and transparency.
Having watched the events unfold, we can now focus on institution building to prevent such tragedies from reoccurring. Admittedly, the ramifications of this incident involving Sanlu and other dairy companies are broad and the consequences serious. The direct cause is connected to product safety as well as a lack of social responsibility. But ultimately, the crisis reveals that the government has failed to act in its role as a night watchman.
China’s dairy industry, liberalized with fairness early in China’s economic reform era, is now open and competitive. But because dairy foods can have such a strong impact on public health, they require supervision during the production process. This is a basic responsibility of the government.
Origin: Hu Shuli, Caijing Magazine
