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China seeks advice of foreign economists on economic blueprint

By ZHAO YINAN/ZHAO HUANXIN (China Daily) Updated: 2015-12-09 08:10

What they say

Editor's Note: Six experts put forward their suggestions for the Chinese economy at a seminar on Monday. Premier Li Keqiang presided over the seminar, which solicited advice on the 13th Five-Year Plan (2016-20).

The government no longer directly controls large fractions of the economy; that is part of the success of the move to market economy. But the government has large impacts on what the private sector does, through tax and expenditure policies, and most importantly, through rules and regulations-the institutional infrastructure. As China moves toward the market economy, this needs to be adapted.

Joseph Stiglitz, professor at Columbia University

According to our estimates, moderately rapid growth during the 13th Five-Year Plan is feasible. The World Bank has estimated that, with continued implementation of reforms, GDP could grow by an annual average of about 6.5 percent in the coming five years. ... It indicates the growth target would provide policymakers the space to balance reform and demand management.

Bert Hofman, World Bank's country director for China, Korea and Mongolia

The implementation of the plan is the key, so it is necessary to increase the number of inflexible targets in the plan. These targets should be broken down into small, quantifiable tasks and be dispatched to organs of the governments and other institutions.

Huang Haizhou, managing director of China International Capital Corp

China's external environment presents new challenges. China and the world's demographics are aging.... The geopolitical environment is increasingly complex. China's own development model faces stress as well. ...We believe there is an opportunity to increase productivity.

Jonathan Woetzel, director of McKinsey's Shanghai office

The shift of economic engines is a process accompanied by the creative destruction of jobs, which means traditional jobs will die out as new jobs are created.... As a result, policies of social security must be strengthened to protect the workers being affected by the trend, and better education and training should be provided to them.

Cai Fang, vice-president of the Chinese Academy of Social Sciences

Housing and other life pressure is great for young academics, especially those in government-backed institutions. Such a situation has badly impaired the nation's creativity. The 13th Five-Year Plan should clarify that the work of academics, researchers and teachers must be respected, and the income distribution system of these people should be reformed to encourage their initiatives.

Xue Lan, professor of public policy and management at Tsinghua University

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