China's top Communist Party officials at a plenary meeting in
Beijing are expected to adopt the "11th five-year plan" for
economic and social development from 2006-2020, which will center
on more even wealth distribution among its citizens.
The concept of "scientific development," first put forward by
President Hu
Jintao, will be enshrined into the plan. Beijing is also
calling for the building of a society that will improve the lives
of millions of farmers and poor urban dwellers currently left out
of the country's economic boom, and therefore eradicating the roots
of social unrest, observers said.
Despite the Party awoken to the inequity concern, it is unclear
what can be done to help the poor. Some economists have said China
is witnessing a stage of economic development in which many people
are going to be left behind, raising the danger of unrest.
An editorial in the The People's Daily Saturday noted
that life had improved for all classes of Chinese society,
including farmers, as a result of the changes. But problems have
cropped up in the past two years, it said, adding that China must
make "macroeconomic adjustments" in the next stage so the machine
runs more smoothly.
The new Five-Year growth roadmap, is expected to put greater
emphasis on sustainable but relatively fast, non-wasteful and
environmentally-friendly growth.
President Hu Jintao, who is general secretary of the ruling
Party, has chaired the crucial meeting.
The scientific development concept will become the guiding
theory for building a "harmonious society," said Yan Shuhan, a
professor with the Central Party School.
They are discussing the country's five-year development plan,
with the view of seeking "sustainable, healthy, coordinated and
rapid development," Yan said.
The focus of the proposed five-year plan indicates the Party and
the Government have awoken to the problems with the model of growth
China has been following for the past 27 years since economic
reforms were launched in 1978. China has relied largely on
manufacturing low value added products for other countries, using
its land, natural resources and labor, the Xinhua news agency
said.
It should instead move towards the model adopted by developed
countries -- depending more on technological innovations and less
on resources and labor for growth, it said.
Over the years, government coffers and state-run banks have
funded many viable infrastructure projects, but also unworthy ones
such as city plazas and high-tech parks that remain empty.
Corruption and lack of accountability played a big part in the
wasteful spending as local officials are able to pocket kickbacks
from developers and others, and face little reprimand for pushing
through unnecessary projects.
Such "blind" investment has led to a waste in resources such as
steel and energy, causing prices to shoot up and raising fears of a
depletion of resources.
This has also led to large-scale environmental degradation, with
many of China's rivers and lakes polluted and many Chinese cities
blanketed with filthy air.
The model of growth adopted, which has placed the emphasis on
China's coastal regions, has also created a serious income gap
between urban and rural areas, with a majority of the rural
population falling far behind in living standards as compared to
city dwellers.
Unless farmers' incomes rise, it is feared China will not be
able to continue growing at the current rapid pace of more than 9
percent a year.
The next five years is a "golden development period" but also
fraught with challenges, Xinhua said.
Zheng Xinli, deputy director of the Central Policy Research
Office, attributed China's growth to the huge investment and
excessive consumption of natural resources.
Growth must be achieved through scientific progress and
improvement in laborers' quality, Zheng said.
From 1979 to 2004, China's economy grew by a blistering 9.4
percent annual average, making it the sixth largest economy in the
world. However, China's consumption of natural resources is
alarming: its gross domestic product accounts for 4 percent of the
world, while its consumption of water accounts for 15 percent of
the world, steel for 28 percent and cement for 50
percent.?
(Xinhua News Agency October 10, 2005)