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NPC endorses shift in economic policy

(China Daily)
Updated: 2006-03-15 05:41

The National People's Congress (NPC) endorsed Premier Wen Jiabao's government work report and the country's newest five-year development blueprint yesterday with votes close to unanimity.

It enshrined China's new economic policies of relying on rural development and scientific technology and innovation.

The government work report and the five-year plan for national economic and social development set an 8 per cent growth rate for 2006, and 7.5 per cent annually up to 2010 by reducing energy consumption and discharge of pollutants.

Premier Wen's report was approved by 98.86 per cent of the 2,891 delegates at the closure of the annual session of the NPC. The Outline of the 11th Five-Year Plan for Economic and Social Development was passed by 97 per cent of the delegates.

Top lawmaker Wu Bangguo presided over the closing meeting, also attended by President Hu Jintao, Premier Wen Jiabao, and other leaders.

"The final validation of the government's action plan signifies China's major shift in economic policies from urban development and heavy investment in billion-dollar projects, to increasing rural development and investment in scientific technology for sustainable development," said Li Chong'an, an NPC deputy and vice-chairman of the NPC Law Committee.

In the past five years, China maintained an average annual economic growth rate of 9.5 per cent. In 2005, the economic growth rate was 9.9 per cent and per capita GDP exceeded US$1,700.

While putting more emphasis on economic efficiency, China will also stress social equity by narrowing the gap between the rich and poor "for the ultimate goal of easing social confrontations and maintaining social stability," said Ding Yuanzhu, from the Macroeconomic Research Institute of the National Development and Reform Commission.

During the annual NPC session that began on March 5, President Hu and Premier Wen both stressed the central authorities' determination to press ahead with the reform initiated by late leader Deng Xiaoping in the late 1970s.

"But they have put more emphasis on democratic and scientific policy-making and balanced development to ensure that the reform will benefit the majority, if not all, of the population," said Ding.

The shift in policy is easily found in the 11th Five-Year Plan, when compared with the 10th Five-Year Plan. In the new blueprint, there are few multi-billion-dollar construction projects, such as diverting water from the country's south to the north or a gas pipeline from western frontiers to the eastern coast.

Instead, the massive government funds will be used to help make the 900 million rural people better off, and boost research in scientific technology in a bid to turn the country from a workshop of cheap products for exports into a manufacturer of its own global brands.

According to the government plans, infrastructure investment will be shifted from urban areas to the countryside, focusing on farmland, roads, safe drinking water, methane facilities, power grids and telecommunications. And Premier Wen has pledged rural children will also receive a free nine-year compulsory education as it is in cities, an unprecedented step in the history of China.

"It will not be easy to fulfil the goals of the 11th Five-Year Plan, especially where reducing energy consumption and saving resources is concerned," said Li Chong'an. "But they are necessary and should be realized with intensified efforts."

The NPC resolution on the 11th Five-Year Plan says that the goals are "achievable through tangible efforts" as the action plans reflect the real conditions of China and the common aspiration of all the whole population.

The government's efforts in pushing forward the drive for building a new countryside and reducing energy consumption per GDP unit by 4 per cent are "a step in the right direction," said Li.

The NPC also yesterday ratified the plan for economic and social development in 2006, the central budget for 2006, and the work reports of the NPC Standing Committee, the Supreme People's Court and the Supreme People's Procuratorate.

(China Daily 03/15/2006 page2)