International   

Wen pledges to bridge the rich-poor gap

Beijing: Addressing rising inflation and preventing economic overheating are the two most pressing tasks facing China, Premier Wen Jiabao said in his opening address to the annual gathering of China’s Parliament, the National People’s Congress (NPC).

Speaking to the almost 3,000 delegates assembled in the Great Hall of the People, located on the western edge of Tiananmen Square, Mr. Wen presented a government work report, outlining both the achievements and future goals of the administration.

Mr. Wen’s speech dwelt at length on the issue of inflation, reflecting public anxiety over rising prices, particularly for foodstuff. In January inflation hit an 11-year high of 7.1 per cent, a situation that was aggravated by unusually harsh snow storms in southern China, leading to a further increase in the price of vegetables.

“The current price hikes and increasing inflationary pressures are the biggest concern of the people,” Mr. Wen said. In 2007, consumer inflation averaged 4.8 per cent, well above Beijing’s 3 per cent target. He said the government would try to cap inflation at 4.8 per cent this year as well, but added that this would not be an easy task.

Mr Wen also announced a relatively modest GDP growth target of 8 per cent for the coming year, expressing anxiety over the potential for “fast growth turning into overheated growth.” Similar targets were also announced at the last few meets of the NPC but China’s roaring economy has thus far always proved them inadequate. The country’s GDP has in fact averaged a 10.6 per cent growth rate over the last five years.

The Premier’s speech touched upon several familiar themes that have come to form the current administration’s policy priorities: measures to reduce the gap between the urban rich and the rural poor, healthcare, education, investment in science and technology and environmental protection.

Mr. Wen announced that more than 156 billion yuan ($21.6 billion) of Central government funding will be spent on education in 2008, an increase of 45 per cent over the previous year, while the budget for healthcare will be increased by 25.2 per cent to reach 83.1 billion yuan ($11.5 billion).

Spending on science and technology will also see a 26 per cent hike with 113.39 billion yuan allocated for the sector in 2008. China plans 10 space launches this year including the launch of the manned spaceship, Shenzhou VII.

The country’s rapidly deteriorating environment was another issue that Mr Wen spent considerable time addressing. He said heavy polluters would be a particular target of government efforts to stifle excessive investment and that Beijing would close down “backward production facilities in the electricity, steel, cement, coal and paper-making industries.”

Plans to upgrade the status of China’s environmental watchdog, the State Environmental Protection Agency, to that of a full-fledged ministry will be discussed by the NPC over the next two weeks as will proposals to create other “super-ministries” in areas such as energy, industry and transport. The idea behind the proposed administrative re-haul is to enable Beijing to exert greater control in carrying out government policy.

Mr Wen touched upon these plans in his address, saying they would “explore ways to establish larger departments that organically integrate” smaller bureaucracies. However, he offered few details. With only five months to go for the Olympic Games, the Premier also stressed the importance of the event to China’s international image. “They [the Olympics] will be of great importance in promoting China’s economic and social development and increasing friendship and cooperation,” Mr Wen said.

The NPC will meet over the next two weeks to deliberate on the guidelines and targets announced in Mr Wen’s address, amongst other issues. The meeting will conclude on March 18.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

PPP decision on prime minister nominee likely today
Migrants challenge U.K. visa regime
Wen pledges to bridge the rich-poor gap
Colombo overcomes language problem

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu