Wednesday, August 30, 2006

[far-east] china getting serious about balanced economic growth

From the Chinese People’s Daily comes an interesting piece about Chinese reprioritization:

The Chinese government is giving priority to job creation, as it has for the first time listed "newly created jobs" as second on its list of leading macro-economic control targets.

One of China's projected targets for this year's macro-economic control is to "create over 8 million new jobs, and confine the registered urban unemployment rate to 4.5 percent", said Zeng Peiyan, minister in charge of the State Development Planning Commission.

Mo Rong, a senior research fellow in the Research Institute of Labor Sciences, said that this indicates a major shift of the Chinese government's focus, from principally pursuing high economic growth in the past to seeking a balanced growth of economy and employment in the future.

Words like unemployment and layoffs used to be strange to the Chinese as the Chinese government, for many years after 1949, had adopted a "cradle-to-grave" employment and welfare policy that covered the entire population. Meanwhile, Chinese enterprises also suffered from overstaffing and low efficiency, and lacked vitality and market competitiveness.

Unemployment and unemployability are both issues today and a stated target of 8 million new jobs, though a tall order and virtually unrealizable, nevertheless marks a departure in the necessity the government sees in even mentioning it. Stay tuned.

No comments: