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(China Daily)
Updated: 2008-12-25 07:45

The report on the implementation of the 11th Five-Year Plan (2006-10) sheds needed light on both the progress and the lack of it in our achievements of economic and social development goals.

If the country is to find an opportunity in the ongoing global crisis to expedite domestic economic restructuring and pursue sustainable development, top legislators should press the government to take up tasks that remain unfulfilled.

The economy has maintained an average growth rate of 11.8 percent in the past two years and a 9.9 percent growth in the first three decades of reform and opening up.

Given this context Zhang Ping, minister of the National Development and Reform Commission, is definitely justified in assuring the Standing Committee of the National People's Congress that the country's 11th Five-Year Plan as a whole has worked well so far.

Though the ongoing global financial crisis and economic slump has hit the Chinese economy hard and is expected to last and worsen, the country has managed to accomplish ahead of schedule most of the tasks in boosting economic growth and improving people's living standards.

For instance, besides faster-than-expected GDP growth since 2006, the country has created 30 million jobs, two-thirds of the employment growth target set by the five-year plan. Up to last June, the country's basic urban pension system covered 210 million residents, 73 percent of the plan.

Admittedly, great challenges resulting from a drastic change of the global economic and financial situation will make it much more difficult for China to sustain its robust economic and employment growth. But due to the solid foundation, we will stand a good chance to meet these five-year goals. And that will be remarkable given the gloomy global growth outlook in coming years.

However, when taking stock of the implementation of our development strategies, lawmakers should not ignore the country's lack of progress in economic restructuring as well as energy conservation.

The country planned to raise the proportion of the service sector in the gross domestic product by 3 percentage points between 2006 and 2010. But two years later, the share of the service sector in the national economy remains unchanged from that in 2005.

On energy efficiency, the country aims to reduce energy consumption by 20 percent per unit of GDP during the 11th five-year period. But in fact, energy intensity was cut by 5.38 percent during the first two years, only about a quarter of the five-year target.

These issues are of both long-term significance to the country's economic growth and sustainable development and immediate concern for Chinese enterprises to survive the current crisis.

Only a fast-growing service sector can provide the needed source of growth for China to smoothly reduce its dependence on export-led investment and manufacturing. And the vast potential of energy efficiency can help Chinese enterprises cut costs and even make profits.

The government has promptly come up with a massive stimulus package. Policymakers will certainly do what they are good at to boost economic growth. Yet, it is the obligation of legislators to urge them to also face those tough but necessary tasks.

(China Daily 12/25/2008 page8)