The Development Research Center of the State Council (DRC) is an institution directly under the State Council. Its major function is to conduct advanced study on the overall, comprehensive, strategic and long-term issues in the national economic and social development and provide policy options and decision-making advice to the central government. Given its function attribute, DRC should provide high-quality consulting advices and policy options so as to live up to the requirement of the central government. The realization of the above-mentioned work load involves a number of issues including the development of human resources, the cultivation of talents, the improvement of personnel quality, financial support and research projects management. Based on the author's work experience, this paper delves into these issues from several aspects.

I. A proper understanding of the relations between policy research and theoretical studies and research on economic and social development

The fundamental function of DRC is to provide consultations on state policies, whereas policy consultations should not be isolated from but should be closely connected with theoretical studies and research on economic and social development, and they should not reject each other, but be integrated with and support each other. Any correct and effective policies related to national social and economic development must be based on the relevant economic structure, formulated in accordance with the objective law of economic and social development and examined through the implementation in social practice. People always try their best to make sure that the formulated policies are consistent with the economic system and economic and objective laws so as to achieve the unity of motive and effect. In fact, the process of achieving unity is one when people get motive integrated with theory and practice and constantly revise and perfect the practice-theory-practice relationship. Guiding theories and their examination in practice are indispensable. Mao Zedong pointed out in his article On Practice that "practice gropes in the dark if its path is not illumined by revolutionary theory". If theory is divorced from social practice, it will become aimless like a castle in the air. Likewise, it would be impossible for researchers to put forward high-quality and effective policy suggestions on national economic and social development without a proper academic background and a firm grasp of the economic and social performance of a market economy.

Zhu Xi, a great master of Neo-Confucianism in the Song Dynasty, wrote a poem entitled "Thoughts from Reading", which goes like this: There lies a glassy oblong pool, where light and shade pursue their course; how could it be so clear and cool, for fresh water comes from the source. This poem does not mention a single word about reading, but it implies the poet's thoughts from reading. The principle contained in the poem also applies to the work of policy research. If we want to offer high-quality policy suggestions, we need to enrich ourselves with "fresh water", i.e. new knowledge, theory and social practice. While fulfilling various research projects, we should raise our academic level to achieve a solid theoretical foundation, so as to produce more influential works on economic and social development. We also need to make economic and social surveys and find out the pros and cons after the implementation of relevant policies to improve our policy research work. We shouldn't be too preoccupied with finishing our day-to-day work load, since such a way of working style, though it is diligent, is no good for our knowledge updating. Of course, policy research is our major work, but we should integrate it with academic studies and research on social and economic development in an effective manner.

II. Striving to improve three abilities

1. The ability to perceive major issues in advance

In the course of development of any existing things, their essence is revealed through relevant phenomena in one way or another, while the essence would indicate the development trend of things. One thing crucial to policy consultation and research is the ability to anticipate in advance how things are going to develop. As Mao Zedong said, "To foresee is not to see where something is spreading in the world but to see it from afar when it emerges." Song Yu, a writer from the Warring States Period, said in his Ode to Wind, "Wind starts at the end of a lily leave", which is a metaphor for people's ability to foresee the arrival of something before it shows the least sign. The ability to foresee major social and economic development trends is what makes the difference between a mediocre and a senior counselor. And that ability lies in the accumulation of knowledge and experience and, more important, whether the person is sensitive to political, economic and social development.

At the beginning of the 1990s, one event could be described as sensational in China. In 1992, Deng Xiaoping made a speech during an inspection tour in southern China, which can be seen as an immediate prelude to China's reform and opening up. On March 25, of the same year, Vice-premier Zhu Rongji made a speech during his meeting with delegates attending the national people's congress in Shanghai. He mentioned that people should correctly understand Deng's speech and his argument that "development is of overriding importance", and that people should pick up the pace of reform and opening up, accelerate structural adjustments, improve corporate performance and make progress in science and technology. Zhu's remarks actually called attention to the development trend that in some areas people were blindly pursuing industrial value and GDP growth without a correct understanding of Deng's speech.

When Zhu's remarks were made public, especially in Hong Kong, a fuss occurred over it, and some media even argued that Zhu's remarks went against Deng's talks. But Deng himself gave Zhu his full support and made Zhu's remarks into an official notice and sent down to all working units. Regrettably, Zhu's remarks, in spite of Deng's support, did not receive adequate attention and the excessive pursuit of GDP growth was not stopped. As a result, in June 1993 the CPC Central Committee and the Central Government had to impose measures on macro-control to cool down the overheated economy. In reviewing that part of history, it can be seen that there were signs of overheated economic performance even in 1992, and they were perceived by some people. That is really thought-provoking for policy researchers.

2. The ability to grasp the essence of things and internal laws of development

The nature of contradictions differ in different periods in the course of development of things and contradictions can be divided into primary and secondary contradictions, principal and secondary aspects of contradictions as well as different expressions of contradictions related to their appearance and essence or surface and substance, which are interwoven and intricate with each. The present era is one of information explosion. When people see things, sometimes it is like looking at flowers in a fog and it becomes hard to tell true from false. The ability to grasp the essence of things from a maze of phenomena and to find out the internal law of development is no doubt something that qualified researchers and a high-level research institution should possess. Different or even opposite conclusions can be drawn from the same information or data, and this is especially so with economic issues. The difference might be induced by various factors, but the basic principle is whether one could master and implement the appropriate method related to epistemology and methodology. Mao Zedong once said that when we look at things we should discard the dross and select the essential, discard the false and retain the true, proceed from the one to the other, from the outside to the inside. The Analysis of Different Classes in Chinese Society and the Report on An Investigation of the Peasant Movement in Hunan Province are both classic works by Mao Zedong that policy researchers should study so as to master the proper method to understand things.

3. The ability to provide scientific and feasible policy options

Policy researchers should be able to provide feasible options for actual implementation. Any appropriate, effective and perfect policies should be proven in practice. If one wants to put forward a proper option for policy formulation, he must fully assess its feasibility for operation. In addition to theoretical analysis and academic interpretation, a proper policy option should be based on academic argument and be closely related with current circumstances. The option should be backed by analysis of current issues, and demonstration whether it could be implemented in light of the actual conditions related to the system structure, personnel quality and management level. One should fully consider the "friction co-efficient" induced in the course of implementation and evaluate whether such an option could bring about the expected results. Those officials with quick insight and great resolve would rely heavily on scientific-based policy making, and also show much concern about the feasibility of policy options for the actual economic and social performance. Only by integrating theory with practice could relevant policies become feasible, reasonable and practical in practice. In fact, some rules and regulations are repeatedly enjoined, but the results are not satisfactory. There might be a number of reasons behind that, but whether these rules and regulations are really feasible in practice is a question for people to think about.

In fact, whether a policy option can be adopted or not depends on many factors. Sometimes a smart piece of advice might be ignored if those in charge are less perceptive or decisive. But researchers need to increase the possibility of a suggestion to be approved and adopted. That does not mean that they should bend the principle to please those in charge. Rather, they should ensure that what they propose is worth considering and workable. After all, it is meaningless to make a suggestion that will not be confirmed and adopted.

In the course of development, things are all related with each other and this is also the case with policy research. When raising suggestions, researchers should consider all the relevant aspects and should not limit themselves to one sector or one field. If a problem is analyzed across the board and with a larger picture in mind, the research findings would be feasible and free from limitations or one-sidedness.

III. Grasping the law of development and keeping in mind that more haste less speed

A good suggestion must reflect truth from facts, which is also the starting point in following the law of development. Epistemologically speaking, things would go through the following three processes in the course of development, which should be correctly understood:

First, things would develop from a lower stage to a higher one and finally disappear or change into another form. This is a process of interaction, both internally and externally, of different factors and contradictions. It is also a temporal process, during which the essence of things gradually emerges and changes over time. People should not, and cannot, overstep this process to get their goal out of their own will; otherwise things would turn out contrary to their wishes. China is now witnessing the primary stage of socialist development and if people surpass the present stage and go beyond the objective material conditions including human resources and financial power and try to reach the future goal, they would receive heartless punishment resulting from violating the objective law.

Second, it takes time for people to grasp the essence of things and the law of their development. It is not only a process of time, but also a process of practice for people to enhance their understanding. People's understanding of things' development is conditioned by various factors including actual conditions, their cognitive ability and subjective wishes. It is quite common that people's subjective judgment does not match the objective reality. People's groping for truth entails repeated revisions and can be called a process of constant corrections of erroneous views through suffering setbacks towards improvement. Generally speaking, we should not make subjective policy suggestions in an arbitrary way. A proposal should, while leaving some leeway on positive points, be objective, and should not mistake the partial for the overall or without substance.

Third, resolving contradictions is done where conditions are created. A Chinese saying goes, "A melon falls off the stem when it is ripe," meaning, when conditions are ripe, success is naturally achieved. In the Chinese classical novel Romance of the Three Kingdoms, this metaphor is illustrated in the story "All is ready except for the east wind". If Zhu Geliang (a chancellor of the state of Shu during the Three Kingdoms period) did not make use of a strong east wind, he could not succeed in setting fire to the enemy's warships moored at the base of Red Cliff. So, before making a policy suggestion, we need to consider whether the conditions are there for implementation. When we talk about a policy's feasibility, we are talking about whether the conditions are right for bringing about the anticipated results.

If we want an egg to be hatched, we need not only an egg but also a proper temperature. This is obvious, but it might become a different case when an egg is hatched against complicated social circumstances like the implementation of relevant policies. For instance, people have to be aware that the egg is not eaten by animals or stolen by naughty kids or broken by accidents. Only when there are no precarious harms can the egg be hatched with a proper temperature. Therefore, we should not ignore social realities when we come up with a suggestion. We should take into account not only the favorable conditions for implementation but also unfavorable ones. If we surpass the present conditions, we could not have the suggestion materialized as expected. In fact, there are quite a few cases where motives are divorced from effects and policy targets are separated from implementation results, and the fundamental cause of failure is the underestimation of the unfavorable conditions for implementation and new development trends. With regard to policy makers or policy advisers, this issue is not only related to their cognitive and leading abilities, but also to their responsibility towards the people and the country. In a country like China with a population of over one billion, a slight policy failure might lead to a serious consequence.

IV. Seeking truth from facts and calling a spade a spade

Seeking truth from facts is Mao Zedong's summary of historical and dialectical materialism and something he advocated for the Party to adhere to. Mao even made it the motto of the Central Party School, back in Yanan, Shaanxi Province. Deng Xiaoping once said, "Seeking truth from facts is the essence of Marxism." Mao Zedong explained it in his article Reform Our Study that "'Facts' are all those things that exist objectively, while 'truth' means their internal relations, that is the law governing them, and 'to seek' means to study." Chen Yun had a deep understanding of how to comprehend and realize seeking truth from facts. He indicated that "After I pored over Chairman Mao's relevant speeches and telegraphs, I felt the guiding principle of his works is seeking truth from facts. But how to pursue seeking truth from facts? My understanding is that we should not blindly follow the instructions of higher-ups or what has been said in books, but we should concern ourselves with facts." The remarks of those leaders about seeking truth from facts will help us better understand and undertake our tasks as policy researchers and their words serve as a principle that we should always adhere to.

For policy researchers, it is crucial for us to go by the principle of seeking truth from facts so as to properly understand and grasp the essence of things as well as the internal laws of development and it is also a prerequisite for us to come up with high-quality solutions to address problems. But for policy researchers, they could not only get satisfied with the proper understanding of the essence of thins and the internal laws of development. If they want to really fulfill their responsibility, they should be able to make their policy options be accepted and understood by policy makers. This can be realized in most normal cases, but life is not fair. In the course of policy research or after policy options are formed, the circumstances might be quite complicated. The policy advices you have raised might run contrary to that of most people, or that of some experts, or even that of government documents. What is even worse, your policy advices might contradict the views of relevant leaders or policy makers related with your promotion. Under such circumstances, could one still follow the principle of seeking truth from facts and not blindly following the instructions of higher-ups or what has been said in books, but concern oneself only with facts, as Chen Yun indicated, and uphold the truth? It is an important benchmark for policy researchers to prove whether they have a strong Party spirit and are responsible for the benefits of the country and its people.

In the 1930s, when the revolution was at a low ebb, Mao Zedong, based on the fundamental principles of Marxism, analyzed the national conditions of China. In defiance of the risk of possible dismissal from his post and expelling from the Party, he claimed to encircle the cities from the rural areas and seize political power by armed forces, which is different from the Soviet mode of revolution. He set a great example for Communists in China through seeking truth from facts and sticking to the truth. As policy researchers, our work might not be that significant as Mao's time and we might not face the kind of danger as he did, but the work we are doing is directly related to the country's and the people's major interests. As Communists, and as researchers of a top-level think tank, we're obliged to stick to the principle of seeking truth from facts, and the spirit of not blindly following the instructions of higher-ups or what has been said in books, but just concern ourselves with facts. We should have the courage to speak truth and with a high sense of responsibility make our due contribution to the Party and the people. In fact, such a spirit should also be imbued by a real economist, sociologist or scientist. We could illustrate a number of forerunners who had demonstrated such a spirit including Ma Yinchu, a prominent Chinese economist, the 15th century Polish astronomer Nicolaus Copernicus, and Giordano Bruno, the 16th century Italian astronomer, philosopher and thinker who was burned to death at the stake. Shouldn't we brave all difficulties for pursuing truth?

V. Observing several issues in compiling research papers

DRC submits its policy options and advices to the central government mainly through Research Reports and Abstracts. It is quite important for us to improve the quality of the research findings. I would like to illustrate my relevant views on that point.

1. The research reports should be succinct and not tedious

Leaders of the central government are generally busy occupied with day-to-day work and could afford much time to read long articles. So the reports and abstracts submitted by DRC should be as concise as possible. Deng Xiaoping mentioned, "Chairman Mao seldom holds long meetings, his essays are short and concise and his speeches succinct. When he asked me to draft the report on government work to be delivered by Premier Zhou Enlai at the 4th National People's Congress, he said it should be no more than 5,000 words. And I fulfilled my job and kept the report within 5,000 words and all issues were clearly stated. So the issue of writing long reports should be addressed." Even the government work report can be made concise, not to mention our policy options. We should watch out for the practice of producing long, stereotypical writing. Short articles with clear-cut opinions and thorough analysis are best ones, which demand good writing and research capacity.

2. The research reports should explain the profound in simple terms

In writing articles, it is necessary to bear in mind who will read them and what social effects they will produce. Policy suggestions are not academic papers or archaeological arguments, but recommendations for reference when senior leading members make relevant decisions. So there should be fewer complicated and obscure academic words or numerical equations (unless necessary). We should try our best to simplify complicated problems, make the academic popular, and propose an idea in a clear and straightforward manner.

3. The research reports should make clear the pros and cons and avoid ambiguous wording

Policy suggestions are, in the final analysis, options for policy makers to refer to in making decisions. And the essence of a policy option is the weighing of pros and cons. Obviously, we take the lesser of two evils. So, we must be aware of the ultimate goal of writing reports and abstracts and make clear with convincing facts the advantages and disadvantages between our policy recommendations and other policies. If you want to convince others, you should first convince yourself. That means we should not jump to any conclusions before we make careful consideration.

The author, Li Wei, is President of the Development Research Center of the State Council (DRC). The article appeared in the first issue of Management World in 2011.