Economists Discuss 10th Five-Year Plan

The Government is now mapping out the Tenth Five-Year Plan, to begin next year and run until 2005, according to Chinaese leading Chinese economist, Wu Jinglian

The mapping out of the Tenth Five-Year Plan is being widely discussed at the current meetings of the CPPCC and NPC in Beijing.

Wu Jinglian is China's leading advocate of the market economy. He says the role of the plan for China's economy needs to be fundamentally changed. "We should simplify the plan. Instead of being a concrete plan, it should only play the role of a source of information for decision-makers."

The five-year plan dates back to 1953. They were an important part of the command economy. But in a market system, the whole idea is to take politics out of economic decision making, except at the national level. Supply and demand will sort out the details. The five-year plan should only serve as a macro-economic guideline.

Wu says the 10th five-year plan should map out the framework for a market economy in China and further restructure the ownership system. The development of western China should be an important part in the plan.

Wu says administrative methods are not the right way to implement the plan. Too much emphasis on growth can even damage the economy in the long run if the environment and natural resources are not protected.

SOT: "We should rely on the market, and not use direct quotas or targets, or use too much direct administration to allocate resources."

Other economists disagree. Although the allocation of resources is inefficient, they believe too much strain on the system too soon is also not a good idea.

Zhu Junyi, NPC deputy (Director, Shanghai Labour & Social Security Bureau)Said: "The number of redundant employees from state-owned enterprises will continue to rise. Plus labourers will continue to flow into the cities from the countryside. This will put tremendous pressure on the country's social security system."

Zhu Junyi opposes the rapid closure of labour intensive enterprises in favour of high-tech industries. He says the government should also take more responsibility for creating new job opportunities.

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