Report on the Work of the Government (2011)

II. Main Objectives and Tasks for the Twelfth Five-Year Plan Period

We have drawn up the Twelfth Five-Year Plan for National Economic and Social Development (draft) in accordance with the Proposal of the CPC Central Committee for Formulating the Twelfth Five-Year Plan for National Economic and Social Development and submitted it to you for your deliberation and approval.

The Twelfth Five-Year Plan period is crucial for building a moderately prosperous society in all respects and for deepening reform and opening up and speeding up the transformation of the pattern of economic development. From an international perspective, world multipolarization and economic globalization are deepening, and peace, development and cooperation remain the current of the times. The global financial crisis is having far-reaching effects; world economic restructuring is accelerating; profound changes are taking place in global economic governance; breakthroughs in scientific and technological innovation and industrial transformation are on the horizon, and the overall strength of developing countries, especially emerging market economies, is increasing. From a domestic perspective, factors favoring China's development and the positive long-term development trend have not changed. Industrialization, informationization, urbanization, marketization and internationalization are all intensifying; there is huge potential demand in the market; the supply of funds is ample; the overall scientific and educational level of the people is rising; the quality of the workforce is improving; infrastructure is getting better by the day; the government's ability to exercise macro-control and respond to major challenges has increased significantly; and society remains stable overall. Looking at the overall international and domestic situations, we have concluded that China's development is still in an important period of strategic opportunities.

We must hold high the great banner of socialism with Chinese characteristics, take Deng Xiaoping Theory and the important thought of Three Represents as our guide, thoroughly apply the Scientific Outlook on Development, adapt to the latest changes in the domestic and international situations, and satisfy the new expectations of the people of all ethnic groups for a better life. Taking scientific development as the theme and accelerating transformation of the pattern of economic development as the main thread, we need to deepen reform and opening up; ensure and improve the people's wellbeing; consolidate and expand upon the success of our efforts to respond to the impact of the global financial crisis; promote long-term, steady and rapid economic development and social harmony and stability; and lay a solid foundation for building a moderately prosperous society in all respects.

- We will propel economic development to a new level. We have set a target of 7% annual increase in the economy over the next five years with significant improvement in the quality and performance of economic growth. Based on 2010 prices, the country's GDP in 2015 should exceed 55 trillion yuan. We will continue to strengthen and improve macro-control; keep the overall level of prices basically stable; integrate short-term control policies with long-term development policies; adhere to the strategy of expanding domestic demand; fully tap the huge potential of domestic demand; and more quickly get economic growth to be driven by a balanced mix of consumer spending, investment and exports.

- We will accelerate the transformation of the pattern of economic development and economic restructuring. We will adhere to the new path of industrialization with Chinese characteristics, strive to fully integrate informationization with industrialization, upgrade the manufacturing industry, and foster and develop strategic emerging industries. We will accelerate the development of the service sector and raise its value-added contribution to GDP by 4 percentage points. We will actively yet prudently carry out urbanization, increase its level from 47.5% to 51.5%, improve its pattern and forms, and constantly work to raise its quality. We will continue to strengthen infrastructure, and further strengthen the foundation for economic and social development. We will work hard to develop modern agriculture and accelerate the development of a new socialist countryside. We will thoroughly implement the master strategy for regional development and the strategy of development priority zones, and gradually achieve equality of basic public services. We will promote positive interaction between urban and rural areas and among regions, and the balanced development of primary, secondary and tertiary industries.

-- We will work hard to develop social undertakings. We will continue to give top priority to education, and steadily raise the educational level of the people. We will adhere to the principle of making innovations and leapfrog advances in key areas supporting development and creating a better future; improve the system of and support policies for scientific and technological innovation; and strive to make major scientific and technological breakthroughs. We will increase spending on R&D to 2.2% of GDP and promote the conversion of advances in science and technology into actual productive forces. In order to meet the demands of modernization, we will strengthen personnel training and strive to develop a large number of high-caliber personnel. We will vigorously strengthen cultural development and make another great stride forward in the reform and development of culture in order to meet the ever-growing intellectual and cultural demands of the people. We will work hard to develop sports. We will further deepen reform of the pharmaceutical and healthcare systems, improve the basic medical and health care systems, and more quickly reach the goal of making basic medical and health services available to all citizens. We will make innovations in social administration systems and mechanisms, improve the legal and institutional bases and the capacity of social administration, and ensure society is full of vitality, harmonious and stable.

-- We will effectively conserve resources and protect the environment. We will actively respond to climate change. We will strengthen resource conservation and management, become better able to ensure adequate supplies of resources, intensify the protection of farmland and the environment, strengthen ecological development and systems to prevent and mitigate natural disasters, and comprehensively build our capacity for sustainable development. The proportion of non-fossil fuels in primary energy consumption should reach 11.4%; energy consumption and CO2 emissions per unit of GDP should be reduced by 16% and 17% respectively; the release of major pollutants should be reduced by 8% to 10%; forest stock should be increased by 600 million m3; and forest cover should be increased to 21.66%. We will substantially improve water conservancy facilities; make progress in better controlling important tributaries of large rivers as well as lakes and small and medium-sized rivers; and significantly improve agricultural irrigation, the efficiency of water resources use and resistance to flooding.

-- We will comprehensively improve the people's wellbeing. We will make increasing employment the foremost objective of economic and social development, create equitable job opportunities for the entire workforce, and create an extra 45 million urban jobs over the next five years. We will uphold and improve the distribution system whereby distribution according to work is dominant and multiple forms of distribution exist side by side, strive to coordinate increases in people's incomes with economic development and increases in workers' pay with improvements in labor productivity, gradually raise the proportion of national income distributed to individuals, increase the proportion of wages in the primary distribution of income, and quickly make the pattern of income distribution more reasonable. The per capita disposable income of urban residents and the per capita net income of rural residents will rise by an annual average of over 7% in real terms. We will raise the poverty line and reduce the number of people living in poverty. We will more quickly improve the social security system, and continue to raise social security benefits. The basic pension insurance and basic medical insurance systems will cover all urban and rural residents. Participation in the basic medical insurance system for working and non-working urban residents and the new rural cooperative medical care system will increase and stabilize, and we will increase the proportion of expenses for medical treatment paid out of the medical insurance fund to over 70% in accordance with relevant policies. Low-income housing will be made available to around 20% of the country's urban households. We will adhere to the basic state policy on family planning and progressively improve it. We will promote balanced population growth in the long term and raise the average life expectancy by one year to 74.5 years.

-- We will comprehensively deepen reform and opening up. We will pay greater attention to the top-level design and overall planning of reform, vigorously press ahead with economic restructuring, actively yet prudently advance political restructuring, accelerate reform of the cultural and social management systems, constantly improve the socialist market economy, expand socialist democracy, improve the socialist legal system, make the superstructure more responsive to the development of and changes in the economic base, and provide strong assurances for scientific development. We will uphold and improve the basic economic system, and create an institutional environment under which economic entities under all forms of ownership use factors of production equally in accordance with the law, engage in fair competition in the market, and enjoy equal legal protection. We will accelerate the reform of the fiscal, taxation, and financial systems; make fiscal and taxation systems conducive to transforming the pattern of economic development; and develop a financial system that is comprised of diverse organizations, provides efficient service, exercises prudent oversight, and keeps risks within bounds. We will deepen reform of the prices for resource products and environmental protection charges, and develop a sound, flexible mechanism for setting prices for resource products capable of reflecting supply and demand in the market, resource scarcity, and the cost of environmental damage. We will implement a more positive opening up strategy, cultivate new advantages beneficial to our participation in international cooperation and competition, and bring about a new phase of opening up that emphasizes mutual benefit.

-- We will constantly strengthen the government's internal reforms and self-improvement. All the government's power is entrusted by the people, and the government must therefore be responsible for the people, work to benefit them, and accept their oversight. We must mobilize and organize as many people as possible to manage state and social affairs as well as economic and cultural undertakings in accordance with the law. We must uphold the rule of law as a basic strategy, strengthen the legal system to safeguard the people's interests, and carry out administration in accordance with the law. We must make decisions scientifically and democratically; establish a sound operational mechanism for decision making, enforcement and oversight to check each other and function in concert; and ensure that power is exercised properly. We must make institutional changes to end the excessive concentration of power and lack of checks on power, and resolutely prevent and punish corruption. We must safeguard the people's democratic rights and legitimate rights and interests, and safeguard social fairness and justice.

In short, by achieving all the targets set forth in the Twelfth Five-Year Plan through hard work in the coming five years, China's overall strength will further increase, people will live better lives, and our country will undergo more profound changes.

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