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Since the 18th National Congress of the Communist Party of China （CPC）， General Secretary of CPC Central Committee Xi Jinping has made a series of important remarks on development， connecting it closely to the realization of the Chinese Dream. In an article published on People’s Daily， Li Wei， Director of the State Council’s Development Research Center， said that the foundation for the great revitalization of the Chinese nation has been laid. Edited Excerpts follow：
history proves that while economic development is a decisive factor in a country’s prosperity， it is not the only condition that matters. General Secretary of CPC Central Committee Xi Jinping said that socialism with Chinese characteristics is based on all-round development. On the basis of continuous economic growth， coordinated development in other areas should also be promoted.
Historically， economic development is a decisive condition for national prosperity and strength， as in Britain， the United States， Germany， Japan and so on. But， economic growth is not equal to a country’s growth and power， let alone its lasting stability and success. Countries that failed in competition tend to be those that are rich， but not strong. In retrospect， China’s economic aggregate long surpassed that of Europe， and until 1870， it was still the world’s largest economy. However， this did not prevent China from being invaded by Western powers.
In more recent times， the former Soviet Union， Eastern European countries as well as Iran， Argentina and Libya， all slipped into recession when they stepped into the middleincome country club， with some having witnessed the overthrow of regimes， social disorder and state disintegration.
History tells us that， apart from an economic foundation， many factors are important to a country’s lasting stability and prosperity， including profound reform and innovation within the political， livelihood， military， science and technology as well as cultural fields.
During the Great Depression of the 1930s， by producing a series of social relief and security policies， the United States managed to relieve class conflict and revitalize the capitalist system. After the World War II， in the face of an unprecedented social crisis， Britain， Sweden and other European countries set up state welfare systems， which greatly helped relieve social conflict， restore economic growth and consolidate political foundations.
Today， China particularly needs to strengthen its construction of social security systems on the basis of economic development， so as to promote social progress and harmony. Xi said that the CPC always puts forward goals in accordance with the people’s will. Based on new challenges at home and abroad， and in line with China’s economic and social development as well as people’s expectations， the goal of building a welloff society was further enriched during the 18th CPC National Congress. More detailed policies have been suggested to cope with difficulties in the process of development and better serving the people’s will.
During the early days of the People’s Republic of China， the Chinese economy was centered on agriculture， with its indus-trial base quite weak. In the face of Western economic pressure and the threat of military attack， China’s industrialization could only give priority to heavy industry. Within a short period of time， China managed to set up a relatively well-developed industrial and national economic system. However， such a mode of industrialization comes at a price. In particular， living conditions among people in both rural and urban areas have improved very slowly. During the early years of reform and opening up that started in the late 1970s， China still had more than 250 million people living in absolute poverty. At a time when the people fervently expected rapid improvement in living conditions and China’s relationship with major Western powers seemed to improve， China has entered a new stage of development， which has created a number of miracles.
China is now the second largest economy in the world， but it still has some conditions for further development， such as a strong and consolidated government， which provides a basic and stable social environment for development； expanding industrialization and urbanization as well as underdeveloped central and western regions， which will be a huge driving force for economic growth. Various problems arising in the process of development are undergoing extensive and deep changes， posing severe challenges.
On one hand， Western countries hope to see stability and development in China， so that they can share the development fruits. On the other hand， they are not so willing to see a strong and prosperous China， and thus use obvious or hidden measures to contain China. Meanwhile， when a big country begins to enjoy more rights in the world， it takes on more responsibilities. This is a new and severe challenge facing China.
It is urgent to transform China’s current economic development model. With the rapid expansion of its economic aggregate， problems that lead to unbalanced， uncoordinated and unsustainable development， and conflicts that curb China’s sustainable and sound development become increasingly striking. Rising labor costs， shrinking demographic dividends， excessive dependence on energy and foreign core technologies， sharply increasing ecological environmental pressure， all highlight the importance， urgency and difficulty of transforming China’s economic development model. At the same time， there is still no essential progress in various structural reforms designed to cope with the global financial crisis. We still have to wait and see whether great technological revolutions that could restore rapid global economic growth will appear in the coming five to 10 years. Low growth might be a common situation for quite a period of time during the following years， when trade and investment protectionism will become increasingly serious.
While proud of the great achievements we have made， we must be clear on the issues posing severe challenges to social development. We must speed up methods to resolve conflicts and problems that affect social harmony and justice， which further hinder our efforts to build a society of common prosperity. We should not equal development to economic development. When drastic changes occurred in Eastern Europe， the per-capita income， technological capability， military strength and living standards in those countries were much higher than those of China. What led to the rapid collapse of these countries？ It taught us a lesson that development results must equally benefit the whole of society and we should pay equal attention to social as well as economic development.
Over the past 60 years and more， the CPC has accumulated rich experience in governing the country. However， under new circumstances， it has a lot of problems to deal with. Improving the Party’s leadership and governing capability is key to China’s growth. Xi said that the Party must always be ready to listen to the people’s voice and respond to their expectations while safeguarding social justice， so as to realize the objective of common prosperity.
Apart from economic growth， development also includes social progress. The major factor affecting development is economic growth， while the transitional period from medium income toward high income hinges on the method and quality of social development. China is now moving toward a high-income society， and thus while trans- forming the economic development model， we must also further promote social equality， improve policies and push forward systemic reform.
More attention should be paid to the balance of economic growth and social development， while the acceleration of social development should be given more priority， so as to realize tolerant， sustainable and efficient development.
Xi said that reform and opening up is the source to push forward China’s development and progress as well as a key to ensuring the Party and people catch up with the times. China’s reform is facing many difficulties， so we must seize this opportunity to deepen efforts in key areas with political courage and wisdom. Accelerating transformation of the economic development model and pushing forward coordinated social and economic growth depends on the establishment and improvement of certain mechanisms. The current task is to transform the government’s function and make clear the relationship between itself and the market.
In order to set up a more efficient， standardized and fairer market system， we need to draw a clearer line between the government and market. Unnecessary administrative approval procedures should be cancelled， while some administrative rights should be deregulated to local authorities.
Distributing financial and administrative power between central and local governments remains a priority. It’s important to stimulate local government enthusiasm for economic and social progress. The current appraisal system should be further improved by breaking the worship of the GDP and guiding governments at various levels toward the road of scientific development.
Meanwhile， we need to set up an efficient social security network that covers the whole population. The people should be guided to participate in community and public affairs management. There should be a platform for the demand of legitimate rights and interests. If well done， these efforts will help lay a solid foundation for lasting peace and prosperity.
history proves that while economic development is a decisive factor in a country’s prosperity， it is not the only condition that matters. General Secretary of CPC Central Committee Xi Jinping said that socialism with Chinese characteristics is based on all-round development. On the basis of continuous economic growth， coordinated development in other areas should also be promoted.
Historically， economic development is a decisive condition for national prosperity and strength， as in Britain， the United States， Germany， Japan and so on. But， economic growth is not equal to a country’s growth and power， let alone its lasting stability and success. Countries that failed in competition tend to be those that are rich， but not strong. In retrospect， China’s economic aggregate long surpassed that of Europe， and until 1870， it was still the world’s largest economy. However， this did not prevent China from being invaded by Western powers.
In more recent times， the former Soviet Union， Eastern European countries as well as Iran， Argentina and Libya， all slipped into recession when they stepped into the middleincome country club， with some having witnessed the overthrow of regimes， social disorder and state disintegration.
History tells us that， apart from an economic foundation， many factors are important to a country’s lasting stability and prosperity， including profound reform and innovation within the political， livelihood， military， science and technology as well as cultural fields.
During the Great Depression of the 1930s， by producing a series of social relief and security policies， the United States managed to relieve class conflict and revitalize the capitalist system. After the World War II， in the face of an unprecedented social crisis， Britain， Sweden and other European countries set up state welfare systems， which greatly helped relieve social conflict， restore economic growth and consolidate political foundations.
Today， China particularly needs to strengthen its construction of social security systems on the basis of economic development， so as to promote social progress and harmony. Xi said that the CPC always puts forward goals in accordance with the people’s will. Based on new challenges at home and abroad， and in line with China’s economic and social development as well as people’s expectations， the goal of building a welloff society was further enriched during the 18th CPC National Congress. More detailed policies have been suggested to cope with difficulties in the process of development and better serving the people’s will.
During the early days of the People’s Republic of China， the Chinese economy was centered on agriculture， with its indus-trial base quite weak. In the face of Western economic pressure and the threat of military attack， China’s industrialization could only give priority to heavy industry. Within a short period of time， China managed to set up a relatively well-developed industrial and national economic system. However， such a mode of industrialization comes at a price. In particular， living conditions among people in both rural and urban areas have improved very slowly. During the early years of reform and opening up that started in the late 1970s， China still had more than 250 million people living in absolute poverty. At a time when the people fervently expected rapid improvement in living conditions and China’s relationship with major Western powers seemed to improve， China has entered a new stage of development， which has created a number of miracles.
China is now the second largest economy in the world， but it still has some conditions for further development， such as a strong and consolidated government， which provides a basic and stable social environment for development； expanding industrialization and urbanization as well as underdeveloped central and western regions， which will be a huge driving force for economic growth. Various problems arising in the process of development are undergoing extensive and deep changes， posing severe challenges.
On one hand， Western countries hope to see stability and development in China， so that they can share the development fruits. On the other hand， they are not so willing to see a strong and prosperous China， and thus use obvious or hidden measures to contain China. Meanwhile， when a big country begins to enjoy more rights in the world， it takes on more responsibilities. This is a new and severe challenge facing China.
It is urgent to transform China’s current economic development model. With the rapid expansion of its economic aggregate， problems that lead to unbalanced， uncoordinated and unsustainable development， and conflicts that curb China’s sustainable and sound development become increasingly striking. Rising labor costs， shrinking demographic dividends， excessive dependence on energy and foreign core technologies， sharply increasing ecological environmental pressure， all highlight the importance， urgency and difficulty of transforming China’s economic development model. At the same time， there is still no essential progress in various structural reforms designed to cope with the global financial crisis. We still have to wait and see whether great technological revolutions that could restore rapid global economic growth will appear in the coming five to 10 years. Low growth might be a common situation for quite a period of time during the following years， when trade and investment protectionism will become increasingly serious.
While proud of the great achievements we have made， we must be clear on the issues posing severe challenges to social development. We must speed up methods to resolve conflicts and problems that affect social harmony and justice， which further hinder our efforts to build a society of common prosperity. We should not equal development to economic development. When drastic changes occurred in Eastern Europe， the per-capita income， technological capability， military strength and living standards in those countries were much higher than those of China. What led to the rapid collapse of these countries？ It taught us a lesson that development results must equally benefit the whole of society and we should pay equal attention to social as well as economic development.
Over the past 60 years and more， the CPC has accumulated rich experience in governing the country. However， under new circumstances， it has a lot of problems to deal with. Improving the Party’s leadership and governing capability is key to China’s growth. Xi said that the Party must always be ready to listen to the people’s voice and respond to their expectations while safeguarding social justice， so as to realize the objective of common prosperity.
Apart from economic growth， development also includes social progress. The major factor affecting development is economic growth， while the transitional period from medium income toward high income hinges on the method and quality of social development. China is now moving toward a high-income society， and thus while trans- forming the economic development model， we must also further promote social equality， improve policies and push forward systemic reform.
More attention should be paid to the balance of economic growth and social development， while the acceleration of social development should be given more priority， so as to realize tolerant， sustainable and efficient development.
Xi said that reform and opening up is the source to push forward China’s development and progress as well as a key to ensuring the Party and people catch up with the times. China’s reform is facing many difficulties， so we must seize this opportunity to deepen efforts in key areas with political courage and wisdom. Accelerating transformation of the economic development model and pushing forward coordinated social and economic growth depends on the establishment and improvement of certain mechanisms. The current task is to transform the government’s function and make clear the relationship between itself and the market.
In order to set up a more efficient， standardized and fairer market system， we need to draw a clearer line between the government and market. Unnecessary administrative approval procedures should be cancelled， while some administrative rights should be deregulated to local authorities.
Distributing financial and administrative power between central and local governments remains a priority. It’s important to stimulate local government enthusiasm for economic and social progress. The current appraisal system should be further improved by breaking the worship of the GDP and guiding governments at various levels toward the road of scientific development.
Meanwhile， we need to set up an efficient social security network that covers the whole population. The people should be guided to participate in community and public affairs management. There should be a platform for the demand of legitimate rights and interests. If well done， these efforts will help lay a solid foundation for lasting peace and prosperity.