TNAG-2804-FCO40-4044-National-People-s-Congress-and-Chinese-People-s-Political-Co-1993 — Page 26

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MDHIAN 3378

GROWTH (LI SET THE SPECIFIC TARGET OF RAISING AVERAGE PER CAPITA INCOME BY ABOUT 5 PER CENT ANNUALLY IN REAL TERMS IN URBAN AREAS AND 4 TO 5 PER CENT IN RURAL AREAS)

(VIII) TACKLE POVERTY IN REMAINING AREAS (LI DID NOT USE THIS TERM BUT SPOKE OF ''LACK OF ADEQUATE FOOD AND CLOTHING'' IN A FEW REGIONS).

8"

FOCUSSING ON 1993 LI SET OUT THE KEY ISSUES AS ESTABLISHING A SOCIALIST MARKET ECONOMY AND OPENING WIDER TO THE OUTSIDE WORLD: ENSURING A STEADY INCREASE IN AGRICULTURAL PRODUCTION: IMPROVING MANAGEMENT OF STATE COUNCIL ENTERPRISES AND MAINTAINING A BASIC BALANCE BETWEEN SUPPLY AND DEMAND AND BETWEEN GROWTH RATE AND ECONOMIC RETURNS. GOVERNMENT DEPARTMENTS AND LOCAL AUTHORITIES WERE WARNED TO KEEP A FIRM CONTROL OF THEIR FINANCES AND TO ACCEPT MACRO-ECONOMIC CONTROL BY THE STATE, AND SOLVE ECONOMIC PROBLEMS PROMPTLY, SO AS TO HELP ENSURE HEALTHY GROWTH OF THE ECONOMY AS A WHOLE. FUNDS FOR KEY CONSTRUCTION PROJECTS SHOULD BE ENSURED AND THE NUMBER OF NEW PROJECTS SHOULD BE CONTROLLED.

9. A FINAL SET OF OBJECTIVES WERE GROUPED UNDER THE HEADING ''SPEEDING UP THE ESTABLISHMENT OF A SOCIALIST MARKET ECONOMY.'' LI CALLED FOR ''OUTSTANDING ACHIEVEMENTS'' IN THE FOLLOWING AREAS:

(I)

(II)

SPEEDING UP THE CHANGE IN THE WAY STATE ENTERPRISES OPERATE: DEVELOPING ALL KINDS OF MARKETS:

(III) REFORMING THE PRICING SYSTEM:

(IV)

(V)

(VI)

REFORMING THE EMPLOYMENT AND WAGE SYSTEM:

REFORMING THE SOCIAL SECURITY AND URBAN HOUSING SYSTEMS: STRENGTHENING MACRO-ECONOMIC MANAGEMENT.

10.

IN THIS LATTER RESPECT LI SAID STATE PLANNING WAS AN ESSENTIAL MEANS OF MACRO-CONTROL AND SHOULD BE FURTHER REFORMED. IN FUTURE THE PRINCIPAL FUNCTIONS OF THE STATE IN THIS AREA WOULD BE TO FORMULATE LONG-TERM, MEDIUM-TERM AND ANNUAL ECONOMIC DEVELOPMENT PLANS, FORECASTING, CONTROLLING TOTAL SUPPLY AND DEMAND AND ENSURING CONSTRUCTION OF KEY PROJECTS. TAX AND FINANCIAL SYSTEMS WOULD HAVE TO BE IMPROVED, AND DEEPENING REFORM OF THE BANKING SYSTEM WAS ESSENTIAL, MORE ECONOMIC LAWS AND REGULATIONS WOULD HAVE TO BE DRAFTED. HOWEVER, LI SAID, THE SOCIALIST MARKET ECONOMY WAS A NEW INVENTION AND ALTHOUGH SOME EXPERIENCE HAD BEEN ACQUIRED, IT WAS STILL NECESSARY TO ''FIND OUR WAY FORWARD THROUGH PRACTICE."

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