Video

Chi Fulin: Social security net key to spurring domestic consumption

(chinadaily.com.cn)
Updated: 2009-09-24 13:36

"It is quite obvious that while launching anti-crisis measures, the government should also consider reform on other major issues, especially basic public utilities," Chi said. Beijing has already begun to do that in some areas, Chi noted, especially in social welfare, and that could bring about more reforms in the future.

"The achieved consensus and proposed reform measures could serve as a basis for a basket of reforms at a later time," he said.

These reforms are vital, Chi said, because China has one of the highest savings rates in the world, and that prevents it from consuming enough to keep its economy running smoothly. To fight that, a strong social safety net is necessary to people do not feel compelled to save as much, he said.

As China approaches its sixtieth anniversary, Chi said one key lesson was that a stable environment is crucial for the country's development, Chi said.