System analysis in different social settings

Abstract

AbstractA one‐year project was conducted jointly in 1981‐2, between the University of Michigan and Qinghua University, with participation from the Shanghai Environmental Protection Bureau (EPB), to compare and improve system analysis methodologies and utilization in the different social settings of the United States and China. The research was done in the context of the comprehensive planning for water pollution control of the Huangpu River in Shanghai. Four system analysis methodologies were applied in an interrelated manner to the case study:—water quality modeling—cost minimization of wastewater treatment—cost‐benefit analysis—decision analysis.Attention was also given to both the de jure and the de facto decision processes, especially in regard to knowledge utilization and technology transfer in these processes. The first two methodologies are more physically and instrumentally oriented than the latter two. Therefore the first two were easily adapted to different social settings although their proper use required close cooperation. The third, cost‐benefit analysis, is anchored more upon economic theory. It was more difficult to adapt, especially to a nonmarket economy or a mixed (planned and market) economy, in which many important prices are administered. The fourth, decision analysis, is basically culturally independent. However, the specific techniques for its practical applications requires a style of interpersonal skills and relationships which are predicted on certain Western traditions. The adaption of decision analysis techniques to the Oriental culture remains a great challenge.