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VOL5 October 2013
Sustainable and Sound Development

Since the 18th National Congress of the Communist Party of China (CPC), General Secretary of the CPC Central Committee Xi Jinping has made a series of important remarks on development, connecting it to the realization of the Chinese Dream.Li Wei, Director of the Development Research Center of the State Council, believes that the historical mission for Chinese people is to push forward the realization of the Chinese Dream through tolerant, sustainable and efficient development. Excerpts of his thoughts follow: 

After decades of hard work and continuous effort following the establishment of the People's Republic ofChina, the foundation for the great revitalization of the Chinese nation is here.

History proves that while economic development is a decisive factor in a country's prosperity, it is not the only condition that matters. Xi said that socialism with Chinese characteristics is based on all-round development.

Historically, economic development is a decisive condition for national prosperity and strength. But, economic growth is not equal to a country's growth and power, let alone its lasting stability and success. Countries that failed in competition tend to be those that are rich, but not strong. In retrospect,China's economic aggregate long surpassed that of Europe, and until 1870, it was still the world's largest economy.

Today,Chinaparticularly needs to strengthen its construction of social security systems on the basis of economic development, so as to promote social progress and harmony. Xi said that the CPC always puts forward goals in accordance with the people's will.

During the early days of the People's Republic ofChina, the Chinese economy was centered on agriculture, with its industrial base quite weak. In the face of Western economic pressure and the threat of military attack,China's industrialization could only give priority to heavy industry. Within a short period of time,Chinamanaged to set up a relatively well-developed industrial and national economic system. However, such a mode of industrialization comes at a price. In particular, living conditions among people in both rural and urban areas improved very slowly. During the early years of reform and opening up that started in 1978,Chinastill had more than 250 million people living in absolute poverty. At a time when the people fervently expected rapid improvement in living conditions,Chinaentered a new stage of development, which created a number of miracles.

Chinais now the second largest economy in the world, and has become a middle-income country. It still has some conditions for further development, such as a strong and consolidated government, which provides a basic and stable social environment for development; expanding industrialization and urbanization as well as underdeveloped central and western regions. Various problems arising in the process of development are undergoing extensive and deep changes, posing severe future challenges.

On one hand, Western countries hope to see stability and development inChina, so that they can share the development fruits. On the other hand, they are not so willing to see a strong and prosperousChina, and thus use obvious or hidden measures to containChina. Meanwhile, when a big country begins to enjoy more rights in the world, it takes on more responsibilities, a new challenge facingChina.

It is urgent to transformChina's current economic development mode. With the rapid expansion of its economic aggregate, problems that lead to unbalanced, uncoordinated and unsustainable development, and conflicts that curbChina's sustainable and sound development become increasingly striking. Rising labor costs, shrinking demographic dividends, excessive dependence on energy resources and foreign core technologies, sharply increasing ecological environmental pressure, all highlight the importance, urgency and difficulty of transformingChina's economic development model.

At the same time, there is still no essential progress in various structural reforms designed to cope with the global financial crisis. We still have to wait and see whether great technological revolutions that could restore rapid global economic growth will appear in the coming five to 10 years.

While proud of the great achievements we have made, we must be clear on the issues posing severe challenges to social development. We must speed up methods to resolve conflicts and problems that affect social harmony and justice, which urther hinder our efforts to build a society of common prosperity. We should not equal development to economic development. When drastic changes occurred in Eastern Europe, the per-capita income, technological capability, military strength and living standards in those countries were much higher than we have inChina. What led to the rapid collapse of these countries? It taught us a lesson that development results must equally benefit the whole of society and we should pay equal attention to social as well as economic development.

Over the past 60 years and more, the CPC has accumulated rich experience in governing the country. However, under new circumstances, it has a lot of problems. Improving the Party's leadership and governing capability is key toChina's growth.

Apart from economic growth, development also includes social progress. The major factor affecting development is economic growth, while the transitional period from medium income toward high income hinges on the method and quality of social development.Chinais now moving toward a high-income society, and thus while transforming the economic development mode, we must also further promote social equality, improve policies and push forward systemic reform.

In order to set up a more efficient, standardized and fairer market system, we need to draw a clearer line between the government and market. Unnecessary administrative approval procedures should be cancelled, while some administrative rights should be deregulated from the Central Government to local authorities.

Meanwhile, we need to set up an efficient social security network that covers the whole population. The people should be guided to participate in community and public affairs management. There should be a platform for the demand of legitimate rights and interests. If well done, these efforts will help lay a solid foundation for lasting peace and prosperity. CA

 

 

 

 

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