Economic package at a glance

PUBLISHED : Wednesday, 17 November, 1993, 12:00am
UPDATED : Wednesday, 17 November, 1993, 12:00am

THE Communist Party Central Committee has released the full text of the new economic master plan adopted at the third plenum.

The document is titled: Decision on Some Issues Concerning the Establishment of Socialist Market Economic Structure, and the following are some of its key points.

NEW ENTERPRISE SYSTEM A modern enterprise system with public ownership as its mainstay to be developed step by step.

Corporate system in state-owned enterprises.

National corporations to be changed into holding companies.

Management of small state-owned firms to be contracted out or leased.

Strengthen supervisory bodies over state-owned assets to plug loopholes.

Encourage the development of the individually-owned, private and foreign sectors.

MARKET SYSTEM A unified, open, competitive and orderly integrated market.

Price reform to establish a mechanism by which prices are determined, mainly by the market.

Reform the commodity circulation system and further develop the commodity market.

Further develop markets for finance, labour, real estate, technology and information.

Strengthen management and supervision of the markets.

GOVERNMENT ROLE IN ECONOMY Devise and implement macro-economic control policies; appropriate construction of infrastructure facilities and create a favourable economic environment.

Hands off daily management of enterprises.

Separate Government from enterprises as soon as possible.

NEW FINANCIAL ORDER Tax reform to change the current contract responsibility system to a tax assignment system.

Unified tax laws; an indirect tax system based mainly on value-added tax; levy of consumption taxes.

Double budget system and strict control over deficits.

Central bank system, with policy-lending banks and commercial banks.

Floating interest rate and exchange rate systems.

Yuan to gradually become freely convertible.

New investment system to gradually establish risk liabilities for corporate investment and bank credits.

State planning system based on the market.

SOCIAL SECURITY AND INCOME DISTRIBUTION Competitive mechanisms to break away from egalitarianism.

Minimum wage system.

Multi-layered social security system. Commercial insurance as a supplement to social insurance.

RURAL REFORMS Double-layered management system with a contract responsibility system as its main form, plus unified management and independent management for the future.

Rural social service system.

Increased Government support and financial assistance for the poor.

OPEN DOOR AND FOREIGN ECONOMIC RELATIONS Further opening and reforms to meet international standards.

Multi-directional opening in the mainland.

Reform of the foreign economic and trade system.

TECHNOLOGY AND EDUCATION A new system to serve economic development; A central role for Government in education, with participation from other sectors.

LEGAL SYSTEM A legal system adapted to a socialist market economy by the turn of the century.

An anti-corruption drive as a long-term task.

PARTY LEADERSHIP Strengthen and improve party leadership by party-building, to ensure solidarity.

Be strict in carrying out democratic centralism.

Tighten discipline and improve work styles.

Improve people's congress system. No multi-party system.

Strengthen ideological and political work, with education on patriotism.