Let There Be Further Release of Productive Forces

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Last updated at: (Beijing Time) Thursday, November 14, 2002

Let There Be Further Release of Productive Forces

The 16th CPC Congress, the first Party congress in the new century, opens Nov. 8 at the Great Hall of the People. Jiang Zemin, on behalf of the 15th CPC Central Committee, delivered a report to the 16th National Congress of the CPC. The following article discusses the future development trends of China�s economy as seen from the Report.

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The following article discusses the future development trends of China's economy as seen from the Report delivered to the 16h CPC National Congress.

In the history of the momentous modernization drive, the great liberation and development of social productive forces each time are deeply engraved in the hearts of the people:

As the reform and opening up drive surged ahead in 1978, China's productive forces gained unprecedented liberation and development, the problem of feeding and clothing the people, problem that had been plaguing us for thousands of years, was readily solved, and there appeared a magnificent prospect for national rejuvenation;

After the publication of Deng Xiaoping's talks given during his inspection tour of south China in 1992, a reform goal was set by the 14th CPC National Congress for the establishment of a market economic structure. This pioneering undertaking of world-shaking significance led to another unprecedented liberation of China's social productive forces and brought about a brand-new situation.

The Party's 16th National Congress was convened successfully on November 8, 2002. The report made by Comrade Jiang Zemin on behalf of the 15th CPC Central Committee, raised high the great banner of Deng Xiaoping Theory, comprehensively implemented the "three represents" important thought, and thus bringing about new major breakthroughs in many aspects.

Delegates pointed out that the ongoing congress will surely promote the great liberation and great development of China's social productive forces and will welcome in a new upsurge in China's economic development!

"Let All Sources Creating Social Wealth Flow Fully"

The report to the 16th CPC National Congress points out, "Boldly allow the vigor of all labor, knowledge, technology, management and capital to vie in bursting out, and let all sources creating social wealth flow fully, so as to bring benefits to the people."

To get rich as quickly as possible, to feel relieved to become affluent and to become wealthy boldly-these are the greatest aspirations of the people as well as the resounding voice transmitted by the said report.

"The start-ups and technical personnel of private scientific and technical enterprises, the managerial and technical personnel employed by foreign-funded businesses, self-employed, proprietors of private enterprises, employees of intermediaries, professionals and other social strata emerged in social changes are all builders of socialism with Chinese characteristics. This passage of sentiment-filled words given in the report stirred up a warm current in the hearts of the people," said Delegate Sang Jiejia, chairman of the Qinghai provincial committee of the people's political consultative conference.

Sang Jiejia said people are the main source creating wealth. These personnel originally called "off-staff" are engaged in work of clearly defined nature. The mass foundation of our Party has been enhanced, the force creating social wealth has grown stronger.

"This is another emancipation of the mind." Delegate Guo Fenglian from Dazhai in Shanxi Province told reporters, "Anyone who creates wealth and works for construction, irrespective of where he or she comes from, is a builder of socialism with Chinese characteristics. These words are really well put! Now honest labor, legal businesses and active efforts to get rich by the ordinary people are encouraged, because by doing so they are making contributions to society."

Speaking of the development of non-public economic sectors, Delegate Su Zengtian from Fujian Province said, "The report to the 16th CPC National Congress unequivocally sets forth two 'without the least vacillations': One is that we must unswervingly consolidate and develop the publicly-owned economy, second we must encourage, support and guide the development of non-public sectors without the least vacillation; At the same time, the report sets forth a 'unification': persisting in upholding public ownership as the mainstay and promotion of the development of the non-public sectors must be unified into the process of the socialist modernization drive. This stipulation provides greater space and conditions for the development of the private economy in the new stage and will surely promote the great development of social productive forces."

To let the sources of creating social wealth flow fully, it is necessary to further deepen reform of the distribution system. The report points out, "Establishing the principle of participation in distribution in accordance with contribution in the aspects of labor, capital, technology, management and other production elements, and perfecting the distribution system with distribution according to work as the mainstay and the coexistence of various other methods of distribution."

"Recognizing the contribution of production elements in the creation of wealth, allowing production elements to participate in distribution in accordance with the degree of contribution, at the same time, it is clearly stated that attention should be paid to efficiency in primary distribution, and to fairness in redistribution, this represents an important breakthrough made by the report on the question regarding the distribution system," said Delegate Lang Guoqing from 'Qinghai Province. In his opinion, capital, technology and management are the rare elements for the development of China's productive forces at the present stage, and an important driving force for the development of productive forces. The report further acknowledges the status of these elements in distribution, which will fully activate these elements and thereby boosting rapid accumulation of social wealth.

The expositions full of the spirit of the times are surging in the hearts of the delegates who firmly believe that so long as we adopt more effective measures, break the barriers to the creation of social wealth, mobilize various active factors, invigorate various economic mainstays and allow the vigor of various kinds of production elements to burst out, the tremendous development potential held in store among the masses will spurt out like fire.

China's Economy Enters a New Period of Change"

"A new flavor of reform and innovation is overflowing in-between the lines of the said report," this is repeatedly referred to in the delegates' discussions on the report.

The report stresses, "In development, it is essential to uphold and deepen reform. All ideas and concepts standing in the way of development must be broken down resolutely, practices and stipulations hindering development must be resolutely changed, and structural defects hampering development must be done away with resolutely."

"It goes without saying that reform is the motive force of development," said Delegate Xu Rigan, vice-chairman of the Chinese Association of Science and Technology. Advancement of the reform and opening-up drive has completely changed the appearance of China.

The initial establishment of a socialist market economic structure has opened up the way for us to further accelerate development. But delegates clear-headedly notice that China's existing system still falls far short of the requirements of a genuine socialist market economy, particularly the requirements of the rules of the World Trade Organization (WTO), the task for perfecting the socialist market economic system remains quite arduous.

Delegate Yan Aiying, secretary of the Shanxi provincial enterprise working committee, holds that WTO rules will pose a challenge to and make impact on China's current economic system and the operational mechanism, they also provide a rare opportunity for us to accelerate reform, we should say that reform has come to a crucial juncture.

Delegates pointed out in their discussions that to liberate and develop productive forces, we must constantly engage in explorations and innovations, incessantly deepen reform, and fundamentally remove all obstacles to the development of productive forces. Emancipating the mind, seeking truth from facts and keeping pace with the times-all are a prominent feature of the report to the 16th CPC National Congress.

Reform, how close a word it is to us! Delegate Zhu Yuming, director of Anhui provincial finance department, personally took part in the rural tax-for-fee reform. "This reform has benefited tens of millions of farmers since it was tried out in Anhui Province in the past three years. Preliminary estimate shows that each farmer of the province had their burden reduced by about 200 yuan annually, the range of burden reduction exceeded 30 percent. Fundamentally speaking, the advancement of reform has promoted social stability in rural areas and expedited the liberation and development of rural productivity," he said.

Reform of State-owned enterprises (SOEs) is the central link in the reform of China's economic system. The Handan Iron and Steel Company is a banner of the reform and development of SOEs. Delegate Wang Guoxing, just stepped down from his post as Party committee secretary of the Handan Iron and Steel Company, read time and again that part of the report expounding reform of SOEs. He said, "At the moment, Handan Iron and Steel Company, like many other SOEs, has reached the crucial moment of reform. How to maintain its superiority and keep its glory from mitigation? The way to achieve this is to follow the orientation of reform as indicated in the report, go along with the tide of economic globalization, quicken the pace of reform, readjust the idea on development and enlarge and strengthen the enterprise as soon as possible."

Delegates from Zhejiang, Jilin, Gansu and other provinces noted in their discussion the need to adopt measures to break the monopoly of trades and regional blockade, and encourage competition, and the need to demolish the "wattle walls" in trades and localities, abrogate the various stipulations that hinder the formation of unified markets, and promote the free circulation of commodities and production elements on markets nationwide.

It is the view of the delegates that reforming the administrative management system and transforming government functions are the important contents on further improving the socialist market economic system. Current government management has not yet completely shaken off the framework of the planned economy, it has governed many things which it shouldn't and can't govern or cannot properly manage, whereas it has failed to govern or properly manage some other things which it should have managed. The report outlines the need to improve the functions of the government's economic regulation, market supervision, social management and public service, and the need to reduce and standardize the procedures of administrative examination and approval, to raise the question to the point, this means the need to speed up implementation.

"China's Economic Growth Enters a Brand-new Starting Line"

In the opinion of delegates, currently China's economy has stepped on to two major brand-new platforms: one is the new platform for own economic growth. By the end of this year, China's per-capita GDP will step on to the stage of US$1,000, which means an important strategic starting point. Second is a new platform of external environment for economic growth. Accession to the WTO has enabled China's economy to advance proudly to the world arena.

Delegate Wang Mengkui, director of the State Council Development and Research Center, said, "China is currently in the period of rapid economic expansion. New technical revolution has given industrialization a new content, promoting industrialization with informationization makes it possible to bring about a leaping development. Just as the adjustment and upgrading of industrial structure, the development of urban and rural infrastructure construction and the progress of science and technology will all create new points of economic growth, so will the entry of people's living standards from having adequate food and clothing to leading a relatively comfortable life, the increase in incomes for urban and rural residents, the upgrading of the consumption pattern and the rise in the consumption level. Economic globalization and implementation of the policy of opening to the outside world have provided us with a broad international space for development. China's economy has tremendous potential for growth."

Comrade Jiang Zemin noted the need to have new ideas for development. Delegates said in their discussions that the term "new ideas" is fully embodied in the report.

--It states the need to follow the road to new-type industrialization, it stresses "promoting industrialization with informationization, and propelling informationization with industrialization".

--It notes the need to break through the convention of discussing "san nong" (meaning agriculture, farmers and the countryside) for the sake of "san nong", instead, it sets forth a new idea for solving the "san nong" problem from the plane of the whole situation regarding the national economy and from the angle of overall planning for urban and rural economic and social development.

--It makes a timetable for the large-scale development of the western region, "striving for breakthrough progress in 10 years".

--It notes the need to try every possible means to expand employment, and puts employment in a prominent position as "the foundation of people's livelihood"...

Developing on the new platform requires a world foresight and compliance with the tide of our times. Delegate Wu Boda, Party committee secretary of Jilin University, said economic globalization has brought us a severe challenge, at the same time, it has provided us with a huge opportunity, adding that we should firmly grasp the period of this rare important strategic opportunity, properly utilize this good opportunity for structural adjustment of the world economy and make the best use of the good chance of global capital flow to expedite the greater development of social productive forces through our own reform and structural adjustment.

Delegates hold that implementation of the "going out" strategy is a major move in opening up to the outside world in the new stage of development, as well as the key point of the need to have a new situation for opening. At present, China's overall national strength has notably augmented, a batch of industries have fairly strong international competitiveness, some enterprises have built up their capabilities to resist international stormy waves and to battle with their strong rivals. The "going out" strategy will greatly expand new space for China's economic development.

New objectives, new ideas and new prospects. Wang Mengkui said, "China's economy has possessed material conditions, a structural foundation and political guarantee for sustained growth. So long as we maintain steady development, we will certainly be able to achieve our objective of basically realizing modernization in the middle of this century."

As we try to fulfil our dream of making China powerful, our surging thoughts and emotions race one higher than another. The report to the 16th CPC National Congress, full of the consciousness of the times and the spirit of innovation, inspires the people, boosts morale and urge people to forge ahead. As they look forward into the future, delegates are convinced that guided by the "three represents" important thought, we will certainly be able to work new miracles!

By People's Daily Online

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