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The annual session of the 10th National People's Congress has
invoked a story two years ago when Li Changping, a township leader
in Hubei Province, wrote a long letter to Premier Zhu Rongji,
telling him the conflicts of interests aroused in reform, but
subsequent reform measures put him in such a troubled circumstances
that he had to flee his township as he was caught in deeper
conflicts of interests brought about by the reform.
The story serves as a reminder of even serious problems ahead and
sounds the alarm that there are yet still harder nuts to crack in
reform.
China's economic reforms first started in rural areas, bringing
great benefits to the rural folks. But as they spread to cities,
all eyes were focused on reforms in finance, foreign trade, foreign
exchange, planning, investment, price, good distribution, housing,
social security and government agencies ..., shaping up an embryo
form of a socialist market economy, thus winning worldwide
acclamation.
But, as reforms deepen, it would inevitably touch the tender points
of interests and power pattern of the society, without which what
has been achieved would be cast into the winds.
While more and more city reform beneficiaries have found themselves
increasingly affordable to private cars, their rural folks feel
betrayed: their income remaining static and even diminished, even
without the money to pay the ways of their children to school;
stocks held by the state have become a headache on the stock
market, which falls at once upon the tips that state stocks are out
for transfer; SMEs complain about reluctance of banks to part with
loans while banks are troubled with their non-performing loans;
non-governmental capital has grown in strength, but it has been
troubled by a web of restrictions, without knowing where to invest;
the state has to issue a tremendous amount of treasury bonds to put
a shot in the arms of the economy; and above all, reform of
state-owned enterprises has thrown hundreds of thousands of workers
out of work and the fledgling social security system still lacks
the strength to cover them all.
What worth special note is the fact that after becoming a WTO
member China has to abide by WTO rules and throw itself into
unprecedented international competition and that has made it more
urgent to ease the conflict of interests in the deeper layer of the
social development.
Topping the list of problems to be resolved is rural development,
which is essential if China is to achieve the goal of building a
well-off society.
It
is not a far-fetched objective for economically developed areas and
cities where the average disposable income per person has reached
7,703 yuan. But for the vast rural areas that feed more than 60
percent of the population, it would be a tall order as the current
per capita income averaged only 2,476 yuan and there are still 28
million people struggling in poverty. It is easy to increase grain
output. But when it comes to income, which grows barely at half the
speed as in cities, it would be quite another story.
Although the word "Planning" has disappeared in the former State
Development Planning Commission and the word "Reform" has slipped
in instead, according to the latest government revamping plan, it
does not necessarily mean that China has completed its
market-oriented transition. The old system dies hard. Many of the
problems that have surfaced are associated with the old system.
In
his government work report, the outgoing Premier Zhu Rongji urged
resolute steps to carry out strategic adjustment of the economic
structure as dictated by the changes in the current stage of
economic development.
In
their panel discussions over the past few days, deputies to the NPC
and members of the CPPCC have offered many prescriptions or
remedies, such as the abandoning of the dual urban-rural economic
structure and the household registration system, and correction of
the bias in education investment.
Chen Qingtai, deputy director of the Development Research Center
under the State Council and member of the CPPCC, deems it essential
to provide enterprises with incentives institutionally, with state
capital to concentrate on industries concerning state security,
natural monopoly industries and industries providing public good
and high and new technologies.
Through the successful reform over the past 20 years, the
government has exhibited its ability of macro-economic control and
won the popular trust, economists say. And it needs all the more
popular support when it comes to crack the harder nuts to come in
its reform efforts.
(Xinhua News Agency March 14, 2003)
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