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Nation's development priority changes tack

By Qin Xiaoying (China Daily)
Updated: 2006-12-20 10:53

The country's goal of catching up with developed countries on the one hand and the demonstrative effects of "letting some people and some regions get rich first" on the other, directly resulted in double-digit GDP growth over the last three decades.

Moreover, the fast-growing Chinese economy has become a dynamo that has helped boost the world economy.

It was against this background that "faster development speed" naturally dominated the minds of the central and local authorities in dealing with economic work.

This speed-obsessed mentality is fuelled by the prevailing GDP-first "outlook of accomplishments" in gauging officials' performances. As a matter of fact, those who made sure their areas or sectors achieved high GDP growth have really managed to climb the ladder of officialdom.

Now, why is "better" put before "faster" in the economic development strategy?

It is because very limited room is now left for speed-oriented economic development. Only better economic results can assure sustainable development. So, in the opinion of this author, only by improving the quality of economic development can healthy and fast development take place in the 21st century.

In the past nearly three decades since the reform and opening up were launched, the speed of the Chinese economy's development has been somewhat based on extensive growth. In some localities and sectors, high-speed growth was made for the sake of speed.

This extensive-growth model has cost China dearly, while helping enhance the country's overall strength and raise the standard of living.

The tangible cost is enormous energy and resources consumption, environmental pollution and damage to the ecosystem.

The intangible cost is that the defective industrial structure and distribution remain hidden and masked.

As a result, the model whereby economic growth relies exclusively on investment has remained unchanged for a long time. Production overcapacity, therefore, becomes a Sword of Damocles hanging overhead. When this "sword" falls, the country's unemployment rate will shoot up sharply, the urbanization process will grind to a sudden halt and the outlet for the nation's 200 million surplus rural labourers will be blocked.
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