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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (1241)	11/6/2003 11:53:36 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

"China has indeed made impressive achievements, but we will fail if we ignore the problems ahead," said Wu Jinglian, an economist with the Development and Research Center, a think-tank under the State Council. Safeguarding good market order was one of the most important roles for a government to play. "But now the major role of the government is to spur economic investment and growth," said Wu. "Output is huge, but efficiency is at a very low level." In developed countries, investors can gain $1 of output from $1 of investment, but in China, investors needed up to $7 in inputs to achieve the same level of output. "Enterprises, instead of government, should play a major role in investing and economic activities. That's the basic rule of a market economy," said Wu. His call was echoed by a group of officials and economists. ... Official statistics indicate the per capita income in the cities was 3.1 times that of the countryside in 2002, compared to a maximum of 2.2 times in 1990. "The gap is widening too fast," warned Pieter Bottelier, former World Bank representative in Beijing. "If we don't give enough emphasis on poverty relief and inequality in the countryside, many problems will occur." At the celebration, some economists also expressed their concern at deterioration of the nation's ecological system, which has mainly resulted from the country's one-side emphasis on economic growth in the past years. The country's desert area has been expanding at an annual rate of 2,460 square kilometers since the early 1990s, threatening the livelihood of about 400 million people. If the shortsighted growth-first strategy cannot be changed in a reasonable length of time, China will gradually lose its development dynamism, and may even suffer social instability, these economists said. ... koreaherald.co.kr