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Editorials

Broader growth plan

(China Daily)
Updated: 2010-10-20 07:56
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With China set to become the world's second largest economy this year as a result of more than three decades of reform and opening-up, the nation's new development agenda carries great significance for itself, as well as the world.

The priorities and principles of the 12th Five-Year Plan commencing in 2011, that the leaders of the Communist Party of China outlined at a meeting that ended on Monday, should be a cause for optimism.

By highlighting the urgency of improving living standards nationwide, the Chinese authorities have shown a strong resolution to shift away from the excessive focus on gross domestic product growth toward pursuing inclusive development that puts people first.

And, by stressing all-round reforms as a powerful driving force behind economic restructuring, Chinese leaders also displayed a sober understanding of the many systematic restraints frustrating the country's sustainable development.

If the country can achieve major breakthroughs in economic restructuring, while maintaining stable and relatively fast economic growth in the next five years, China will manage to lay a decisive foundation for building a moderately well-off society in all aspects.

Domestically, that means consumption will play a greater role in boosting environment-friendly and energy-saving growth, of which the fruits are more fairly shared among all members of society.

Internationally, China's continued rise as an economic power will not only serve as an engine for global growth but also help address the global imbalance by rendering itself a much needed source of demand.

However, neither successful implementation of previous five-year plans, nor the latest preparation for a new one, will guarantee smooth progress in the pursuit of such a broader development agenda given the enormous challenges China faces at home and abroad.

With a population of more than 1.3 billion, the country is yet to overcome the development trap that many other low and mid-income countries have confronted on their way toward greater prosperity.

Widening income disparity will test Chinese policymakers' ability to chart a new growth pattern that can quickly tilt the nation's wealth distribution in favor of the majority of the people, especially those in the vast hinterland of central and western China. The worsening environment also will force the Chinese government to adopt a greener development path, as only in this way can the country's long-term growth story possibly be sustained.

These are all difficult challenges that Chinese policymakers must rise to in coming years.

China's growth over the previous three decades has already inspired many developing countries to seek prosperity. It is hoped that its embracing of a broader development agenda will help shore up the international community's confidence for a lasting global recovery as well as universal prosperity.

(China Daily 10/20/2010 page8)

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