IX the quinquennial plan and the X quinquennial plan

Retrospective glance to the economic and social development during IX the Quinquennial Plan

During the éltimos five years, the diverse ethnic groups of the Chinese town fought united, undertook new ways of advance and achieved important success in all the lands.

The national economy registered a continuous, accelerated and healthy development; integral the national force became strong more. In the year 2000 the gross inner product (PIB) reached 8.940.400 million of yuanes, number that half supposes an annual increase of the 8,3% during éltimo quinquennium. The task was fulfilled fully per capita of quadruplicating the gross national (PNB) product in relation to 1980. On the base of the continuous growth of the economy and the improvement of their yield, the income public of the year 2000 were of 1.338.000 million of yuanes, number that half represents an annual increase of the 16,5% during éltimo quinquennium. The volume of production of the main industrial and agricultural goods was placed in the first positions of the world, which essentially ended the shortage of merchandize. It was progressed in the readjustment of the sectorial structure of the economy. The capacity of production of cereals and other basic agricultural products rose remarkably, which supposed an historical step of a chronic agricultural product shortage to a general provision balanced basically and accompanied by a supply surplus in the years of good harvest. Successes in the elimination of the slow productive forces of the industry and in the reduction of the surpluses were obtained, and it advanced incessantly in the technological transformation of the high-priority companies. The industries of discharges and new technologies grew quickly, like the computer science industry. The successes in the construction of infrastructures were remarkable; and one alleviated the agreement of the “necks of bottle” that supposed the energy, the transport, the telecommunications, the raw materials and the materials.

The reform of the economic structure in all the scopes was impelled and the system of the socialist market economy settled down of preliminary form. Important progresses in the consisting of reform the implantation of a modern enterprise system in great and the medians became companies of state property. The great majority of the state companies nails have realized the reform directed to the establishment of the system of companies and a némero elevated enough of them quotes in the national and international stock markets. The results of the transformation of the deficit companies in profitable companies were evident. In the year 2000, the industrial companies of state property and the holding companies of the State generated benefits of 239,200 million of yuanes, 2.9 times the number of 1997. The triennial goal was basically reached to carry out the reform of the great state companies and medians and to help them to overcome its difficulties. Along with a greater development of the péblico sector of the economy, the sectors private and individual also experienced a quite fast advance. The establishment of the system of markets continued advancing; the markets of essential elements were developed quickly, such as the capital, the technology and the force of work; the basic paper was accentuated and made more visible of the market in the allocation of the resources. The systems fiscal and tributary improved progressively. The passage in the financial reform was accelerated. The reform of the system of urban houses, of the social security system, the governmental organisms and other aspects registered important progresses. They perfected aén plus the state systems of macroeconomic regulation and control.

The level of the opening to the outside rose incessantly; it was formed in basic the landlord of the omnidirectional opening. The reform of the system of the foreign trade advanced with safe step and the economy oriented to the outside was developed quickly. In the year 2000, the total volume of the import and exports added 474.300 million dollars, of which 249.200 million corresponded to the exports, which supposed an increase of 69% and 67%, respectively, in relation to year 1995. The structure of the exports improved, and the specific weight of mechanical, electronic products rose and of high tech. The spheres of the opening to the outside extended step by step and the investing atmosphere was improving. The magnitude of the pick up of foreign investments increased and the quality of its use rose. In the five passed years, the used foreign investments totalized more than 289.400 million dollars, that is to say, increased 79,6% in comparison with those of VIII the Quinquennial Plan. At the end of the 2000, the national currency reserves reached the 165.600 million dollars, which meant an increase of 92.000 million in comparison with the same period of 1995.

The conditions of life of the town continued improving and, generally, a rich level was reached modestly. In the year 2000 the net income per capita of the rural population reached the 2.253 yuanes and the income available per capita of the inhabitants of the cities and the 6.280 towns arrived at yuanes, numbers that represent an average of real annual increase of the 4,7% and the 5,7%, respectively during the éltimos five years. The markets had rich an assorted one of products, the level of consumption of the population rose incessantly and the total volume of the article sales retail of consumption of the set of the society registered an annual increase half of 10.6% during the éltimos five years. The conditions of life of the urban and rural population improved considerably with respect to the house, the telecommunications and the consumption of electricity. In the past lustrum, the balance of the accounts of saving of the citizens was duplicated fully and other financial assets, like the actions and bonds, increased quickly. The poor population of the countryside fell considerably, which meant the fulfillment in the basic thing of the objective to solve the most difficult problem of eradication of the poverty.

Science, the technology and the education accelerated their rate of development, and the diverse social activities progressed generally. A series of important profits in the aeronautics, the cosmonautics, computer science, the new materials, the bioengineering and the other fields of the high teches was obtained. As much the basic investigations as the applied ones made new progresses. One was fulfilled in basic the consisting of reform turning into companies the academies and assigned institutes of scientific research applied to the governmental departments and, at the same time, one unfolded of global way the reform of the system of the other academies and institutes of scientific research. One accelerated the process of commercialization and industrialization of the scientific and technological profits. It was developed to the education in all levels and modalities. The goal was reached of preliminary way to generalize basically the nine years of education obligatory and to alphabetize in basic to the illiterate young people and adults. Superior was prospered substantially in the reform of the management system of education. The extension of the admission of students in the teaching institutions superiors was applauded generally by the popular masses. The fields of the demography and the familiar planning were obtained to new successes in. One visibly intensified the ecological construction and the environmental protection. The culture, the péblica health, the social sport and other activities were developed of continuous form. Constant successes in the promotion of the administrative moralización and the fight against the corruption were obtained. The integral control of the péblico order was reinforced. New progresses in the construction of the socialist civilization in the spiritual like of the democracy and the legal system were made as much. New passages in the promotion of the national defense and the construction of the Army occurred.

In the period of IX the Quinquennium, the Chinese Government resumed the exercise of his sovereignty on Hong Kong and Macao, so that historical progresses in the great cause became of the pacific reunification of the mother country. After the return of Hong Kong and Macao to the mother country, the principle of “a country, two systems” and the Fundamental Laws of both regions have been implemented in all the scopes. The work of the governments of Special the Administrative Regions of Hong Kong and Macao has been fruitful, the social order of both regions has stayed stable and their economies have grown.

With the fulfillment of IX the Quinquennial Plan, the determined strategic target for the second stage of the modernization of the country has been materialized, so that firm bases have sat down to undertake the X Quinquennial Plan and to begin to advance towards the established strategic target for the third stage.

The great registered profits of the economic and social development throughout IX the Quinquennium were obtained surpassing multitude of difficulties, reason why its attainment was not far from easy in ningén felt. China left windy the challenges raised by the sudden international incidents, managed to resist the impact of the financial crisis of Asia, evaded the influence of the inflation untied in the initial period IX the Quinquennium, restrained the deflationary tendency that appeared the past to half-full and final of Quinquennium, and controlled, at the same time, to the serious floods and droughts.

However, few problems in the economic life subsist not and social that require sum attention and measuring are due to take more to solve them. There are the main ones here: irrationality of the sectorial structure of the economy and lack of coordination in the economic development of the different regions; low quality of the national economy as a whole and little competitiveness in the international plane; imperfections surpluses of the system of the socialist market economy and noticeable persistence of the institutional factors that prevent the development of the productive forces; relative delay of science, the technology and the education, and capacity of comparativily weak scientific innovation; shortage of important resources, such as the water and petroleum, and deterioration of the ecosystem in some zones; increase of the pressure of the use, slow growth of the income of the farmers and a part of the urban population, and increasing disparity in the same; certain chaos in the order of the market economy in some scopes, and occasional serious accidents for want of security; quite serious cases aén of administrative corruption, moral degeneration, lavishness, wastefulness, formalism and burocratismo; and, in some localities, a deficient péblico order.

Quick execution of the X Quinquennial Plan

As of 2001, China will initiate the execution of the first quinquennial plan of the new century. The Proposal of the Central Committee of the Communist Party of China on the Elaboration of the X Quinquennial Plan for the Economic and Social Development, approved by the V Plenary Session of XV the Central Committee of the Party, has raised the governing objectives of the persistence, principles and the main tasks of the economic and social development for next the five years. In agreement with the spirit of this Proposal, and after kindly listening to the opinions of the diverse social sectors, the Council of State has elaborated “ Scheme of the X Quinquennial Plan for the Economic and Social Development of the Popular Repéblica China (Project).

In his report on the Scheme of the X Quinquennial Plan for the Economic and Social Development, presented/displayed before IV the Session of IX the National Popular Assembly, Prime minister of the Council of State Zhu Rongji said that when fixing to the national and international situation that occurs in these beginnings of the new century, he verifies himself that next the five or ten years constitute a period of extreme importance for the economic and social development of China. In the world-wide plane, the revolution of the new sciences and technologies acquire impetus, the tendency to the economic globalisation acentéa, in many countries the readjustment of the sectorial structure of the economy is being impelled dynamically, and the development in the nations around China is being accelerated. Such international surroundings not only have raised us a serious challenge, but also an historical conjuncture has provided us that allows us to accelerate the march and to realize a development burning stages. If we watched our country, we stated that our economic reconstruction is in the crucial period, that our reform is crossing the stage of confrontation with the most difficult problems, and than ours soon enter the World-wide Organization of Commerce will bring with himself certain new problems. Since the tasks in the diverse dominions are very arduous and exist numerous underlying contradictions that require solution, the situation demands to us to take this opportunity and to accelerate the development. At the same time, also we told on many favorable conditions that they make possible a relatively fast development of the national economy during a quite long period.

In agreement with the situation and the tasks of the X Quinquennium, in “ Scheme " the primary targets of the economic and social development for next the five years are formulated. These are: to maintain a rate of development of the relatively accelerated national economy; to obtain concrete results in the strategic readjustment of the economic structure; considerably to lift the quality of the economic growth and its yield, in order to seat solid foundations so that in the 2010 the gross inner product of the 2000 is duplicated; to obtain that the state companies give important advances in the establishment of a modern enterprise system; to implant comparativily complete a social security system, to gradually perfect the system of the socialist market economy and to obtain majors progresses in the opening to the outside and the international cooperation; to extend the use channels, to increase of continuous way the income of the urban and rural population, to improve of considerable form the conditions of life in the material and the cultural thing, and to fortify the ecological construction and the environmental protection; and to accelerate the development of science, the technology and the education, to more elevate the qualities of the national population, and to obtain notables progresses in the promotion of the socialist civilization in spiritual and the construction of the democracy and the legal system.

In the Scheme of the X Quinquennial Plan the important governing principles are shaped as it follows:

To persist in taking the economic development like main subject. It is necessary to emphasize the union of the speed and the yield, and to secure a relatively fast development under the premise to improve the yield. Only the rapidity based on the market and the yield supposes a true development and is what counts. When considering of integral way the diverse factors, an annual rate of around 7% has settled down as it puts of the growth of the economy during the period of the X Quinquennial Plan. This rate, although a little inferior to the obtained one actually during IX the Quinquennium, is still enough to be elevated. In order to reach this goal being based on the improvement of the yield, it is necessary to realize arduous efforts. On the other hand, dices some present indefinite factors as much in the international plane as in the national, are advisable to leave certain margin for the pre-selected targets in the plan. It will favor the channeling of the main efforts of the diverse sectors towards the readjustment of the structure and the elevation of the yield, as well as the avoidance of the economic overheat and the duplication of construction projects.

To persist in taking the reconstruction like main line. The economy of China has arrived at a point in which without carrying out a readjustment it could not continue being developed. If the economy is developed on the previous structure and the modality of extensive growth, not only the products will lack acceptance in the market, but as much the natural resources as the environment will not be able to support this practice. It is essential to readjust the structure during the development and to maintain a relatively fast development during the process of the reconstruction. In next the five years, it will be necessary to as much readjust with energy the sectorial structure of the economy and the structure of the economic and social development of the different regions as from the city and the field, taking especially first like key point. It has to consolidate and to reinforce the position of agriculture like basic sector, to accelerate the reorganization and the transformation of the industry as well as the optimization and the update of his structure, to expand with much energy the sector of services, to accelerate the process of computerization of the national economy and the society, and to continue harnessing the construction of infrastructures.

To persist in taking the reform, the opening and the scientific and technological progress like driving forces. As much the economic development as the reconstruction must be driven by means of the innovation of the system, science and the technology. In the next lustrum, it will be necessary to impel firm and the reform invariably, to extend the opening and to remove the institutional impediments that prevent the progress of the productive forces, in order to provide a powerful driving force that impels the economic and social development. It has to place the development of science, the technology and the education in an outstanding place, to continue applying to the strategy of vitalización of the country by means of science and the education, to invigorate science and the technology, and to prepare suitable people, all this with a view to contributing to one close integration of science, the technology and the education with the economy.

To persist in taking the elevation from the standard of life of the town like to begin with fundamental point. To improve continuously the conditions of life of the urban and rural population, constitutes so much the main target that we persecuted when developing the economy, like an answer to the urgent necessity that considers when extending the internal demand and to promote the continuous growth of the economy. He is indispensable to insist on locating the elevation of the standard of life of the town in a preeminent place, abrir more sources of use, to increase the income of the population, to readjust of rational way the distribution of the income and to perfect the social security system, in order to guarantee that the popular masses march towards one more a richer life.

To persist in the integration of the economic development and the social one. It is necessary to reinforce with energy the promotion of the socialist civilization in spiritual and the construction of the democracy and the legal system; to deal with suitable way the relations between the reform, the development and the stability; to promote the development of the diverse social activities; and to assure the social stability. It is imperative to attribute extreme importance to the demographic, ecological problems and of natural resources, and to solve them seriously, as well as to apply more the strategy of sustainable development to drive therefore the harmonious development between the economy, the society and the ecological surroundings.

In the Scheme of the X Quinquennial Plan the strategic, macroeconomic aspects are put of relief and political, the production indices are reduced and increase the indices prospective that reflect structural dynamics; around the pending main questions of solution and to the high-priority fields of development, it is indicated the corresponding course that are to follow themselves and policies and measures. It is emphasized that the execution of the plan demands to put game in the heat of the mechanism of the market, and that stops the macroeconomic regulation and the control on the part of the government is precise to more resort to the handles and the economic policies, as well as to legal means. With respect to the method of elaboration of the plan, it has been tried to elevate the degree of participation of the society, so that the process of its elaboration becomes a process in which unfolds of the democratic spirit and aéne the wisdom of the masses, and in which the diverse interested sectors can arrive at a consensus.