China's economy will leap frog that of Britain,France and Italy within five years to become the third largest in hte world,while it is set to surpass even the US as the biggest exporter by the end of the decade the OECD said yesterday.
In its first economic assessment of China,already the world's seventh largest economy,the Organization for Economic Co-operation and Development praised Beijing for hold economic reforms which it said had allowed the emergence of a powerful private sector.
The OECD,the Paris-based club of 30 mainly rich industrial nations,said that it expected China to be able to maintain the rapid 9.5 percent growth of the past two decades for some time " Such an increase in output represents one of the most sustained and rapid economic transformations seen in the world economy in the past 50 years " the report said " It has delivered higher incomes and a substantial reduction of those living in absolute poverty."
But the OECD said that,despite this " extraordinary economic performance " further,wide-ranging economicj reforms were now required to allow China to keep its expansion on track
"Considerable challenges face the economy,not least of which is a rapid increase in the age of the population." it said " But continued evolution of economic policies...should ensure that this development momemtum is sustained."
Action was needed to ensure more efficient allocation of capital,boost the mobility of labour,smooth China's urban development,and strengthen the legal and regulatory framework for the private sector.
In the field of business,the OECD said that better enforcement of laws,particularly in the area of intellectual property rights was required.After Beijing moved earlier this year to loosen its currency peg to the dollar in favour of an adjustable peg linked to a basket of currencies,the OECD said that further steps to introduce even greater flexibility were still needed.
China's 21 percent revaluation on July 21 and its switch to a managed float regime represented a "step in this direction". But concluded that still greater flexibility would allow the Chinese authorities to operate monetary policy more effectively to ensure that inflation remained under control even as the economy grew space.
"Monetary policy has not always been successful in maintaining low and stable inflation " the report noted. " Overall ,a policy of allowing greater flexibility in the exchange rate would allow the authorities to guard against the risk of any further increase in inflation...to more easily adapt monetary policy to domestic concerns,and to allow market forces to determine bank interest rates to a greater extent."
A theme running through the report was the need for new laws,such as long-awaited bankruptcy and company laws. " At present,it can be very difficult to obtain judgements in court and even more difficult to obtain enforcement of that judgement " the report found.
Other key recommendations included action to tackle pollution exacerbated by China's rapid industrialisation.The OECD said Beijing had been successful in limiting pollution but noted that China still has five of the 10 most polluted cities in the world.It suggested,however,that China could realize gains in productivity by further expanding some of its cities.
China already controlled almost all the Southeast Asean countries especially when the gas hit very hard to them since the beginning of the month.But China still not want to rush its ability to control all products sent to them.
__________________________________________________
Do You Yahoo!?
Tired of spam? Yahoo! Mail has the best spam protection around
http://mail.yahoo.com
.: Forum Diskusi Budaya Tionghua dan Sejarah Tiongkok :.
.: Kunjungi website global : http://www.budaya-tionghoa.org :.
.: Untuk bergabung : http://groups.yahoo.com/group/budaya_tionghua :.
.: Jaringan pertemanan Friendster : [EMAIL PROTECTED] :.
| Indonesia | Culture | Chinese |
YAHOO! GROUPS LINKS
- Visit your group "budaya_tionghua" on the web.
- To unsubscribe from this group, send an email to:
[EMAIL PROTECTED]
- Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
