World Bank tells China to implement reforms to save its slowing down GDP growth
Beijing (AsiaNews/Agencies) - China has reached a "turning point" in its economic development and must undertake large-scale economic and political reforms as its growth rate is expected to be halved over the next decades, said World Bank Chairman Robert Zoellick during an official visit to Beijing. Growth should slow down this year.
In a report titled 'China 2030, World Bank experts called for large-scale reforms to avoid a sudden slowdown as well as a scaling back of its state sector and an end to monopolies in strategic sectors.
After averaging 10 per cent annual growth for the past 30 years, China's export and investment-driven economic model was no longer sustainable, World Bank President Robert Zoellick said
The report is backed by Chinese Vice President Xi Jinping and Deputy Prime Minister Li Keqiang. Unless something unforeseen occurs, the two are set to replace Hu Jintao and Wen Jiabao.
"The case for reform is compelling because China has now reached a turning point in its development path," Zoellick said.
The Asian giant must overhaul its economy to avoid a sudden slowdown in growth. It should cut back its vast and powerful state-owned enterprises and break up monopolies in strategic sectors, the analysts said in the report.
After averaging 10 per cent annual growth for the past 30 years, China's export and investment-driven economic model was no longer sustainable, Zoellick added.
Instead, China needs to rely more on markets and the private sector, alter its "hukou," or residency-permit, system and provide basic social protection to all its citizens.
Under the present system, the government provides health care, schooling and welfare only to people with residency permits. Hundreds of millions of migrants are thus invisible without any protection.
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31/05/2021 11:16
