Siddharth Peter de Souza
Can the Communist Partys third plenary script a new story?
Unlike in the past,the reforms this year are expected to be more comprehensive and not simply focused on GDP-based economic growth. Despite being the second largest economy in the world,China is ranked 101 on the UNDPs human development index. This contradiction is combined with an economic slowdown and increasing income inequality,confirmed by a Gini Index of around 42.1 higher than Indias as estimated by the World Bank in 2009. There are also increasing disparities between the provinces and between rural and urban areas,in terms of access to healthcare,employment opportunities and other basic services. These growing disparities have led Premier Li Keqiang to emphasise that urbanisation would be key to Chinas growth in the next decades. The UNDP,in its National Human Development Report 2013 for China,also emphasised the need for sustainable and liveable cities. The report mentions that there is a need to transform rural-urban relations in China,while ensuring equal access to public services. The report suggested that to guarantee better governance,public participation and disclosure of information should be encouraged. It was also important to develop a performance monitoring indicator for urban governance that factored in issues such as resource conservation,environmental protection and social development along with growth.
At a recent conference for emerging economies,Chi Fulin,director of the China Institute for Reform and Development,outlined three key elements for action. First,there is a need to move from the unsustainable resource intensive growth model to a more consumption-based economy. Second,government-dominated growth cannot be maintained and there is a need to realign the relationship between government and market. Third,there is need for a public service-oriented government.
The optimism around this session has gathered momentum with the recent publication of a report by the Development Research Centre,a policy research and consulting institution directly under the State Council chaired by the premier. It highlighted an ambitious reform agenda,under the moniker 383 Plan. The report highlighted that institutional and policy reform was imperative in order to achieve a moderately prosperous society. It also held that there was a need to transform,recalibrate and balance relations between the market,government and business corporations. It mentioned eight key areas that needed reform,including financial,land,administrative and innovative-green development. To facilitate reform,the report proposed three broad approaches increasing competition by promoting market access,creating a national basic social security package and allowing collective land market transactions.
For several years,experts and reformers have urged changes in the Hukou household registration system,providing more independence to the judiciary and a rethinking of the one-child policy. But it remains to be seen whether there will be transformative change.
Regardless of whether the third plenary session heralds radical and groundbreaking reform,the far-reaching agenda for change being proposed by policymakers is heartening.
The writer is a law graduate interning with the UNDP in China. Views are personal.
