The government of China's leading industrial city Shanghai has become a pioneer in the country in officially listing in its 2004 governmental plans investment in environmental protection, R&D and the increase of it citizens' income.

In its work report delivered by Mayor Han Zheng, the Shanghai government aims to increase its investment in research and development (R&D) up to 2.2 percent of the city's 2004 GDP and the investment in environmental protection over three percent of GDP, and to raise the growth rate of Shanghai people's spendable incometo higher than the national average.

Zhu Ronglin, professor from the Development Research Center of State Council, the Chinese central government, said according to the goals made by the mayor, the city's percentage for R&D is a high rate for a developing country and the percentage for environmental protection is equal to that by a moderately developed country.

A focus on the growth rate of spendable income indicates that the government has shifted its goal solely from GDP growth to growth of benefits people can share from a robust economy, according to Zhu.

Mayor Han said Shanghai has to strictly follow sustainable strategies in the face of two issues. One is that the city has no energy and no resources, as it is mainly a manufacturing and commercial center and the energy and resources it uses are supplied by other parts of China.

Another issue is environmental restrictions, Han said, as the city's dense population of 20 million is concentrated in merely 6,340 square kilometers.

The mayor said it was a "breakthrough" nationwide to include in government plans the new indices of assessing government work to officially announce focuses on investment in environmental protection, R&D and growth of spendable income of people.

(People's Daily January 29, 2004)