Central governments famously have Five Year Plans.
China’s recently released a draft plan for the next five years is nothing short of full-blown strategy for transforming the nation’s development model.
In a first for the government’s planning process, the 12th Five-Year Plan for the 2011-2015 period outlines specific steps designed to raise consumption levels and make China a leading consumer market.
One message is clear: The Chinese government wants to foster a national transformation from ‘world’s factory’ to ‘world’s market’.
Editor’s comment:
Size is only one of many factors that determine whether a market leads the world. More important are a market’s depth and breadth, which it turn depend on a nation’s integrated development. This is why a responsible government should focus on employment, fair allocation of resources, education and public services.
As China’s per capita income approaches US$ 4,000, the vision and abilities of the central leadership are being tested.
Leaders are struggling to balance growth and income distribution, fairness and efficiency. The outcome will determine China’s development for the next five years.