The Chinese government has already issued another 5-year plan. We’d like to learn from Chinese statesmen the very essence of this initiative.
Before we proceed with the 5-year plan, we should remind what has made it so crucial for this Asian country. Evidently, China still appears to be a low-income country, especially considering its per capita GDP of $14,000, which is approximately one fourth of that in the USA.
Though Shanghai and Beijing are relatively prosperous, China still boasts a great deal of poverty across the country. The number one objective of the newly introduced five-year plan is to eliminate poverty by 2020. The plan suggests cutting the number of poor people by about 55 million.
Though the new plan features an endless list of specific objectives and projects, the key theme is the so-called supply-side restructuring. The term stands for a wide array of policies pursued with the only purpose to boost economic growth as well as living standards.
One of the top priorities of the new plan is to eliminate some of the excess capacity of the country’s state-owned companies in the coal and steel industries. The measure suggests shedding up to four million employees. A special fund will be created to provide the required assistance to those who lost their jobs.
Secondly, millions of people will be shifted from low-productive agricultural areas to new cities. All of this is backed up by ambitious plans to build up to 50 new airports, not to mention thousands of miles of new railroads and roads across the country.