Economic Development and Environmental Sustainability
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2011 10th issue: Liu Yanhua: Fundamental Direction of the 12th Five-Year Plan is Development, Reform, Innovation and Livelihood

Liu Yanhua, Counselor of the State Council, former Vice Minister of the Ministry of Science and Technology

Time: 10/10/2011                                Source: IEEPA

"Development, reform, innovation and livelihood", as the essence of "the 12th FYP", represent China's fundamental development direction. China's GDP, after the realization of "the 12th FYP" by 2015, will reach up to 55.8 trillion Yuan from present 39.8 trillion Yuan, which means China's per capita GDP will reach 6,000-7,000 dollars by 2015, close to global average level. Another index during "the 12th FYP" is China's urbanization rate will arrive at 51.5% from present 47.5%, which is a fundamental turnover, means urban residents will surpass rural residents. Besides, non-fossil energy during "the 12th FYP" will reach 15%, and the utilization of non-fossil energy will be an important issue for the whole restructuring.

1. Development

Economic growth pattern were frequent words mentioned in traditional Chinese documents. However, it was replaced with economic development pattern during the 12th FYP period, namely, rapid growth can not represent true development and more attention shall be paid to harmonious development. Harmonious development focused on "sound and fast" rather than "fast and sound", quality growth rather than quantity growth. In order to achieve sustainable and harmonious development in an all-round way, we shall lay stress on two-oriented Society and green development. In the process of economic development, such aspects shall be considered: (1) Chinese government shall attach great importance to addressing climate change, controlling the greenhouse gas emission, and taking some measures to launch the work like carbon trading market. For developing countries, addressing climate change does not mean some questions will be solved. Our important work is how to adapt to climate change, and positively carry out international cooperation. (2) We shall lay stress on resource economy and management like water resources, land resources, mineral resources. We shall put stress on environmental protection, which was launched by developed countries in 1970s, and reduce carbon dioxide emission. Besides, we shall emphasize ecological security, clear off ecological barrier, solve environmental problem through ecological compensatory mechanism.

2. Reform

Reform is interlaced with adjustment. China shall solve macroscopical structural adjustment, industrial restructuring, and regional restructuring. The key point lies in: first, solve the agricultural problem. The settlement of China's grain problem equals the largest contribution to the world; second, we shall reform traditional industry and develop emerging industry. China's traditional industry has developed for so many years, many of which fails to realize their profit cycle, so, we shall compress such cycle. In the meanwhile, we shall lay stress on the development of emerging industry. Service industry needs to be adjusted in industrial restructuring, we shall change traditional consumption into modern one. The improvement of the level of service industry, and reduction of investment driving will generate beneficial effect on green energy.

3. Innovation

Innovation is a great driving power for the development of China and the world. At present, various countries in the world have made numerous studies on innovative problem. As for China, we shall implement major projects, enhance the construction of technology and infrastructure, train talent team via innovative activity, and strengthen the management in particular.

4. Livelihood

China paid close attention to the people's livelihood during its development, including public service, employment, social security, medical treatment and housing and so on. According to "the 12th FYP", our income growth shall keep pace with the development, remuneration growth shall keep pace with the production efficiency. We shall encourage general public to improve their living conditions via green development and actual action. "The 12th FYP" lay special emphasis on shortening the income gap, including between urban and rural area, essentially improving basic living conditions and guarantee, and establishing sound public service, which cover health, old-age care, housing and employment and so on. Simultaneously, we shall pay attention to green economic service industry while developing new energy and boosting green economy. The production and profit potential, development space of each industry and product will become larger and larger only after they were widely accepted.

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