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Premier Sums up Experience on Macro-Economic Control
China has accumulated a wealth of experience in macro-economic control and regulation in the process of executing the Ninth Five-Year Plan for National Economic and Social Development (1996-2000), said Premier Zhu Rongji.
In his report on the Outline of the Tenth Five-Year Plan for National Economic and Social Development (2001-2005) to the Fourth Session of the Ninth National People's Congress (NPC), which opened Monday, the premier summed up the following experience:
-- Revolving problems on the road of advance by way of development.
Development is the hard and fast principle. Persistence in making economic development the central task and in adopting effective measures to stimulate a sustainable, rapid and healthy development of the national economy provides the foundation for handling properly all contradictions.
Persisting in doing a good job of both material and spiritual civilization and in promoting democracy and the legal system provides the comfortable social environment and strong motivation to economic development.
-- Timely adjustment of the thrust and strength of macroeconomic control policies in the light of changes in economic situation.
In controlling inflation, persistence in maintaining economic growth paves the way to "soft landing"; while coping with deflation, persistence in the policy of expanding domestic demand and introduction of the proactive fiscal policy by issuing both additional state treasury bonds and expanding investment to encourage consumption gives a big pull to economic growth.
-- closely combining expansion of domestic demand with restructuring.
The government increased investment in agriculture and science,technology and education and supported the technical transformation of enterprises. It accomplished something big that had not been accomplished for years by taking advantage of surplus production capacity of capital goods.
-- Properly handling the relations among reform, development and stability.
Instead of stopping, reform continued, actively and orderly, amidst complicated and difficult situations, giving a powerful impetus to economic development. At the same time, the government paid high attention to protecting the basic interests of the people by introducing the re-employment projects and ensuring the issue of basic living allowances for laid-off workers and pensions for retired workers. The government also introduced the open-end purchasing of grain from farmers at the protective prices. All these helped maintain good social stability and sustainable economic growth.
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