Think-tank warns of policy crisis
The State Development and Reform Commission says it is time to change the belief that economic development is the answer to solving the mainland's many social problems
A government think-tank has warned the State Council that conflict between economic and social development has become so intense that it will have a potentially grave impact on China's economy by 2010.
A document compiled by the State Development and Reform Commission says it is time to change the belief that social development must be compromised in favour of economic development, the China Business Post reported yesterday.
The newspaper said the document, an important consultation report for China's 11th five-year plan (covering the period from 2006 to 2010), will be submitted to the State Council for deliberation at a national conference on social issues in October. In the report, problems seen as potential threats for the mainland's future development, such as corruption and Aids, had been discussed for the first time, the paper said.
Ding Yuanzhu, the director of the commission's Macroeconomic Research Institute, said the rapidly increasing number of Aids infections would not only have a grave impact on the country's social stability but would also hurt its economy and investment environment. A United Nations report has forecast that the number of people infected with HIV would reach 10 million by 2010.
The document said more than a dozen factors could lead to an economic crisis on the mainland in the coming years, including Sino-US relations, the Taiwan issue and increasingly serious social problems.
Other social and political factors that could trigger an economic and social crisis include the bilateral relationship between China and America, security issues with neighbouring countries, mainland leadership changes, globalisation and foreign trade, financial risks, problems in agriculture, the widening gap between the rich and the poor, unemployment, social order, public security and environmental issues.
The report said most academics no longer accepted the once-prevalent belief that economic development was the answer to solving the mainland's many social problems.
China's economic development strategy - which has so far allowed the coastal provinces to get rich while leaving many inland provinces relatively undeveloped - has led to an unhealthy imbalance in the society and this social instability is now hurting the future economic prospect of the country, according to the report, the newspaper said.
Mr Ding said the government must adopt policies to ensure that the distribution of wealth becomes more even. It also should allow non-government organisations to play a bigger role to help solve social and environmental problems in society.
