Economy

It's time to share the "cake"

By Huang Shuo (chinadaily.com.cn)
Updated: 2010-10-18 14:39

The 12th Five-Year Plan, the country's key economic plan for the next five years' development from 2011 to 2015, drafted by China's leadership and economic authorities, including the National Development and Reform Commission, has an essential distinction compared with the former plan (2006-2010). Seeking wealth for ordinary people of the country is a focus, versus only pursuing benefits for the state.

The central government of China has recognized the necessity to alter the nation's policy orientation and is searching for a new economic growth plan relying on rising domestic demands instead of an export-oriented economy, and relying on a balanced distribution of social wealth. However, local authorities may have a different perspective on economic development and social affairs depending on solely maintaining GDP growth at a high pace and gaining more revenue from land sales.

How to solve the current issues confronting local governments in China? Local governments should understand and implement the new strategies and policies summed up by the Tolerable Growth theory of central government to fulfill the goal of sustainable and harmonious development with long-term benefits. That's the foundation for basic social stability. Unfairness in wealth distribution is due to a lack of political reform and its consequence -- existing special interest groups.

Quality in economic growth should be the goal of local authorities. Whether the public can share the country's big "cake" of more than 30 years' development or not will become a major standard to assess governments' performance. If the public's income really increases along with GDP growth, it can be imagined that inequality will be alleviated to some extent.

Moreover, high housing prices pose another "threat" to a harmonious society in China.

In the next five years, China has devised a plan to promote more balanced development in different areas, which will push this socialist country with special characteristics to a higher level of common wealth so as to narrow the wealth gap. Increasing income for the residents of China is also involved in the 12th Five-Year Plan.

All in all, a harmonious society can not be built in one day. People contributed mostly to the "cake" -- development and prosperity of the country -- over a long period of time. Consequently, the biggest share of it should be allocated to the masses. It's time to share the "cake".

The author is a Beijing-based freelancer in China. He can be reached at larryhuangshuo@gmail.com.