New age, new balance and new breakthroughs
Updated: 2016-03-22 14:35
By Wu Jiangang(chinadaily.com.cn)
The problem of excess capacity is the most important issue of transition, with a strong government's policies, the problem can be safely solved and the laid-off worker can realize their abilities in new industries.
Third, pension fund is ensured and many social policies of people's livelihood are on the way.
Premier Li has stressed that pension will be ensured and other social policies of people's livelihood, such as establishment of health insurance's networking around the country, a reduction in social insurance, an increase in peasants' income.
These policies, aiming to reduce the financial burden of low-income groups, are important in the transition of economic growth model in that they prevent social instability.
New balance policies aim to solve old economic growth model's problems while trying not to cause new problems. Since government investment can introduce new problems, it will be used carefully.
If the 13th Five-Year Plan can avoid a hard landing, solve excess capacity problem and improve low-income groups' livelihood, China can have a good start for the new age. But in order to transit to a new economic model, the economy needs some new breakthroughs. If there is only balance and no breakthroughs, the balance cannot sustain.
Premier Li stressed that finance sector should focus on helping the real economy. The government will try to reduce economic intervention and provide more services, too. Premier Li said the government will cut more approval processes and give power back to market.
However, we look forward to more breakthroughs in free market to help release creativity of its people, such as a transfer of government from economic player to a service provider, a better system of property right registration and protection, a more free education system and thought market.
These policies can help creative people to be better educated and used. After all, the human resources are far more important than natural resources and the best way to release their talents is to give them more options and protect their rights. These breakthroughs may come later after the government feels that the new balance policies can stabilize its economy.
By the way, the stock market has risen a lot after the NPC. It seems that the NPC has brought confidence back to the market.
The author is a lecturer at the Management School of the Shanghai University and a research fellow at the China Europe International Business School Lujiazui International Finance Research Center.