| ID | 071609 |
| Title Proper | Long-term outlook for economic reform in China |
| Other Title Information | resource constraints, inequalities and sustainability |
| Language | ENG |
| Author | Ash, Robert |
| Publication | 2006. |
| Summary / Abstract (Note) | In China, the inequalities generated by the reforms in the last two decades have been increasing. As a result, the unequal regional and sectoral impact of development associated with the growth-maximisation strategy, has given rise to increasingly severe social and economic tensions and contradictions. The threats to political stability posed by these developments remain, for the time being, potential more than real. But the damage which they have caused to the social, economic and environmental fabric of China is already evident. The main critical facts are: 1) the rise in urban unemployment, both de facto and concealed, that has accompanied the halting restructuring programme among state-owned enterprises (SOEs); 2) the massive reservoir of underemployment that affects at least 130 million farmers; 3) the absence of even basic social security provision for the sick, the unemployed and the old; and the highly differentiated access to education; 4) the pervasiveness of corruption and its destructive impact on the normative framework that usually regulates human economic and social behaviour, to the detriment of the social contract between state and individual.
Economic and social polarisation associated with China’s growth-maximisation strategy has become the single most important domestic issue facing the Chinese government. Emphasis by the Hun Jintao-Wen Jiabao administration on a new “people-centred” development strategy highlights the urgency of this problem. When added to the pressures of resource shortages and environmental degradation, the case in favour of shifting from growth-maximisation to sustainability appears to be unanswerable. These are the concerns that have prompted government leaders and officials to question China’s existing development strategy and to formulate a “scientific” concept of sustainable and “harmonious” development.
The most authoritative explanation of the new strategy was articulated by Hu Jintao in a speech he made in May 2004, which was subsequently republished in the Party’s leading theoretical journal (Qiushi). In it, Hu demanded a radical change in China’s growth model from one characterised by “high input, high consumption, high pollution, and low efficiency” to a new approach, based on “high science and technology contents, good economic benefit, low resource consumption, less environmental pollution, and full exploitation of human resource advantages.” This change in emphasis was designed to help resolve “prominent contradictions”, such as the excessive pace and scale of fixed-asset investment, which threatened not only to exacerbate resource shortages, but also to generate inflationary pressures attendant on excessive expansion of credit
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| `In' analytical Note | Asia Europe Journal Vol. 4, No. 2; Jun 2006: p177-196 |
| Journal Source | Asia Europe Journal Vol: 4 No 2 |
| Key Words | China ; Economic Reforms |