1. F
5
8.
Besides aiming at sectoral balance, the Sixth Five-Year Plan was also intended to achieve an appropriate
balance between consumption and accumulation (i.e.
investment). The target split in the Sixth Five-Year Plan
was 29% for accumulation and 71% for consumption. This was an important policy target because in a centrally planned economy it is for the Government to decide how to balance the demand for resources generated by investment for the future with that arising from present consumption by the people.
Consumption and Accumulation
in National Income
Consumption (૬)
Accumulation
(૪)
1980
68.4
31.6
1981
71.5
28.5
1982
71.0
29.0
1983
70.0
30.0
Source: Statistical Yearbook of China 1984
9.
Although the accumulation ratios for the years 1981-83 are quite close to the target, there are signs
that this ratio has risen in 1984 and 1985. This is
presumably the result of more ambitious plans being adopted by the Chinese Government and enterprises.
CONFIDENTIAL #3
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