of the Communist Party of China (CPC) Central Committee for
Formulating the 10th Five-Year Plan (2001-05) for National Economic
and Social Development urges localities to actively expand employment,
improve the social security system and the livelihood of the
The proposal was examined and approved by the Fifth Plenary
Session of the 15th CPC Central Committee last week.
The proposal said that expanding employment is required to further
stimulate economic development and safeguard social stability.
It is an important part of macro-economic control.
It is necessary to speed up economic growth and further develop
labour-intensive industries and collectively and privately owned
businesses, according to the proposal.
As an important pillar of the socialist market economy, an overall
social security system has a significant bearing on the reform,
development and stability of the nation.
The central authorities encouraged an early establishment of
an independent social security system, which will no longer
belong to businesses themselves, but will attract funds through
The proposal also stressed the need for modern and strict management
of the social security system, and the need to pursue a proper
pension system for urban employees.
Meanwhile, medicare and unemployment insurance for urban workers
are underlined by the proposal.
China plans to gradually adopt a system of unemployment benefits
to help laid-off workers in State-owned enterprises, according
to the proposal.
The final target of economic growth is to improve the material
and cultural conditions of the people, which will also provide
momentum for the sustainable development of the economy, the
The central authorities want to see more improvement in living
standards, with increased housing space, a cleaner environment,
an effective network of public facilities, increased ability
to buy personal computers and cars, a high-level of infrastructure,
enjoyable entertainment activities, efficient medicare and good
In addition, the proposal stressed the importance of raising
the income of people nationwide, especially those with low incomes.
It is necessary to pursue the principle of making efficiency
a priority while also taking fairness in distribution into account,
according to the proposal.
The proposal said it is essential for people with capital or
technology to have a share in earnings.
It called for pilot reform measures to be used in the form of
annual salary or options for outstanding managers and technicians.
China will further adjust the distribution system by improving
the tax policy, initiating an inheritance tax and preventing
the income gap from further expanding.
Meanwhile, the proposal emphasized socialist ethical and cultural
progress throughout the country. It urged a modern socialist
culture with Chinese characteristics when the nation is confronted
with Western ideologies and cultures.
The proposal also urged the raising of people's overall quality
of life, both materially and culturally, and called for increased
(China Daily 10/19/2000)