World Bank: reforms underpin China’s transition to more inclusive and sustainable growth
World Bank, 02-23-2018
China can achieve more inclusive and sustainable development with coordinated reforms across a broad range of areas that maximize development impact and address its development challenges, says the World Bank Group’s new Systematic Country Diagnostic for China.
The report emphasized that it was a wide range of reforms that made rapid growth possible in the first place. China, as a result, transformed a largely rural state-dominated and planned closed economy into one that is more open and market-based.
China’s growth has been slowing to a “new normal” and economic rebalancing is under way. Managing this transition in a sustainable manner will be critical to achieving the country’s development goals, the report indicates.
“China’s remarkable progress in reducing extreme poverty has significantly contributed to the decline in global poverty,” said Hoon S. Soh, World Bank program leader for economic policies for China, "The World Bank Group will continue to support China’s goals to eliminate extreme poverty and ensure inclusive and sustainable growth."
Despite the rapid reduction of extreme poverty, China’s remaining poor population remains large in number.
The report projects continued strong progress towards eliminating extreme poverty and expects the extreme poverty rate to fall below one percent in 2018, based on the international poverty line of PPP US$1.90 per day.
The challenge for China will be to target assistance to the remaining poor while paying attention to those who are vulnerable to falling into poverty; further improvements to the country’s social safety net program will help.
The report says rapid growth in consumption by China’s poorer households indicates that they have shared in the country’s growing prosperity. Nevertheless, more can be done to address inequality.
According to the report, reforms of the intergovernmental fiscal system and further reforms in the household registration system could reduce income disparities by closing the rural-urban income gap and ensuring equal access to quality education and health services.
The report suggested that country also prioritize better management of public resources so that incentives are better aligned with sustainable growth.
Link to the report: http://documents.worldbank.org/curated/en/147231519162198351/China-Systematic-Country-Diagnostic-towards-a-more-inclusive-and-sustainable-development
World Bank, 02-23-2018
China can achieve more inclusive and sustainable development with coordinated reforms across a broad range of areas that maximize development impact and address its development challenges, says the World Bank Group’s new Systematic Country Diagnostic for China.
The report emphasized that it was a wide range of reforms that made rapid growth possible in the first place. China, as a result, transformed a largely rural state-dominated and planned closed economy into one that is more open and market-based.
China’s growth has been slowing to a “new normal” and economic rebalancing is under way. Managing this transition in a sustainable manner will be critical to achieving the country’s development goals, the report indicates.
“China’s remarkable progress in reducing extreme poverty has significantly contributed to the decline in global poverty,” said Hoon S. Soh, World Bank program leader for economic policies for China, "The World Bank Group will continue to support China’s goals to eliminate extreme poverty and ensure inclusive and sustainable growth."
Despite the rapid reduction of extreme poverty, China’s remaining poor population remains large in number.
The report projects continued strong progress towards eliminating extreme poverty and expects the extreme poverty rate to fall below one percent in 2018, based on the international poverty line of PPP US$1.90 per day.
The challenge for China will be to target assistance to the remaining poor while paying attention to those who are vulnerable to falling into poverty; further improvements to the country’s social safety net program will help.
The report says rapid growth in consumption by China’s poorer households indicates that they have shared in the country’s growing prosperity. Nevertheless, more can be done to address inequality.
According to the report, reforms of the intergovernmental fiscal system and further reforms in the household registration system could reduce income disparities by closing the rural-urban income gap and ensuring equal access to quality education and health services.
The report suggested that country also prioritize better management of public resources so that incentives are better aligned with sustainable growth.
Link to the report: http://documents.worldbank.org/curated/en/147231519162198351/China-Systematic-Country-Diagnostic-towards-a-more-inclusive-and-sustainable-development
