ADB: China poised for economic growth & development

21 Mar '06

2 min read

The People's Republic of China (PRC) is well positioned to sustain economic growth over the next decade by further reducing poverty, improving governance, promoting stronger social development and countering the negative environmental impacts of growth, Asian Development Bank (ADB) President Haruhiko Kuroda said.

"While China has made truly amazing progress, some tough questions lie ahead," said Mr Kuroda in his keynote speech at the China Development Forum.

Poor interior regions in PRC have not benefited as much from economic growth and reforms as the east coast. "While some deterioration in income distribution is inevitable as China moves from a centrally planned to a market economy, the speed of the growing inequality is worrying," he said.

Income distribution worsened in the past two decades. Disparities also persist in education, health, social security and gender dimensions.

President Kuroda pointed to the following solutions: With about 60% of the population engaged in the agriculture sector, improving the performance of agriculture is the direct way to reduce urban-rural inequalities. Improving rural infrastructure, diversifying crop production, and adopting integrated, environmentally friendly approaches to farming are needed. Rebuilding the rural financial system would also relieve the lack of financial services that constrains farmers' investment options.

Creating sufficient job opportunities for the 150 million surplusrural laborers is critically important. This requires greater small- and medium-sized enterprises and private sector development, as well as vocational training for rural migrants.

More Asian Development Bank News... More Textiles News - Philippines...