Rich dividends for reform
THIS year should be a year of ''double bumper harvest'' in the drive to speed up economic growth and intensify reform over the economic system, Xinhua (the New China News Agency) said yesterday.
In a New Year commentary, Xinhua said the past 15 years of modernisations had demonstrated that the economy in some regions grew more rapidly wherever reform had been pursued.
The agency said it was imperative to learn how to intensify reform over the economic system at a time when the economy had developed at a faster pace and that the ''change of economic relations'' had become more complicated.
Reform for the establishment of a new economic structure was the only way to drastically emancipate productivity and ensure the ''sustained, high-speed and healthy'' growth of the economy, Xinhua maintained.
''1994 is of utmost significance to China's reform and economic growth. It should be a year of 'double bumper harvest','' it said.
It said the official projection of an annual economic growth rate of nine per cent this year would help maintain the momentum of economic growth.
High-speed growth, however, should not be temporary or short-term, but sustainable, Xinhua added.
''Development should also be healthy in the sense that it is in conformity with the law [of development,] accompanied by macro-control and regulations and guaranteed by law,'' it said.
Xinhua said chronic economic problems such as low efficiency of state-owned firms would remained unresolved if no major revamp is being taken.
It said more than 38 per cent of state-owned enterprises were running in the red last year which had severely hampered the sector's economic growth.
Excessive capital investment and ''unreasonable'' distribution of funds had also slowed down economic growth, it added.