Basic Elements of Economic and Social Policy, Macroeconomic...

16.3. The main elements of economic and social policy

Macroeconomic Planning

Recall that according to the Constitution, China is a socialist state, where the main means of production - the largest industrial enterprises, land, pipelines, banks - are people's property, which the state owns, manages and controls. But since the constitution recognizes the right of private property, a significant part of the economy is the property of individuals, cooperatives, shareholders, etc. Thus, the Chinese economy by forms of ownership is mixed. Therefore, the impact on it is in many ways, but the decisive importance is a single directive state planning ; it is carried out for five-year periods. Defining development priorities and concentrating resources on development programs, the state involves the private sector in its economic plans. This reinforces the effect of programs and plans, since all economic agents act purposefully in achieving common goals, rather than in different directions, as happens in developed countries in which central planning has never been carried out, or indicative planning has been abandoned in the 1980s. under the onslaught of a neoliberal-monetary ideology.

Economic policy rests on the constitutional position to achieve the basic social goal - the prosperity of society, the high level of material and cultural provision of people through the socialist market economy. All economic policy throughout the period since the beginning of the reform was subordinated to the tasks of creating a complex infrastructure of the modern market system in the above-mentioned basic purposes of society.

The highest state bodies are mainly engaged in planning at the macro level, developing a strategy for economic and social development, regulating the main macroeconomic proportions, calculating the main macroeconomic indicators, creating conditions for the development of market relations. The main attention is paid to the preparation of laws, various regulatory documents that determine the relationship between commodity producers. In March 2001, at the IV session of the National People's Congress, the draft of the "Basic Provisions of the 10-Five-Year Economic and Social Development Plan of the PRC" was approved. " According to this plan in 2001-2005. The average annual GDP growth rate was 7%, the share of agriculture in GDP decreased, and the share of industry and services increased, the employment of industrial and service workers increased, and the number of workers in agriculture declined significantly. These targets were realized, and, moreover, the annual GDP growth exceeded 7% and amounted to 8.2% over the decade.

In 2005, the NPC approved the draft of the "Basic Provisions of the 10-Five-Year Economic and Social Development Plan of the PRC (2005-2010)". This plan has its own peculiarities: first, the task was to dramatically expand the domestic market, including through durable goods; secondly, to improve the quality of manufactured goods, including export destination; thirdly, to ensure such growth of the economy, which would give a real improvement in the material conditions of life of the population. The GDP growth during this last five-year plan was envisaged at the level of 8-9.5, but in the decade 2001-2010, growth was at an average annual rate of 10% annually, and the directive 2005-2009. were exceeded by real indicators of achievements.

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