China - Promoting Growth with Equity : Country Economic Memorandum

World Bank

China - Promoting Growth with Equity : Country Economic Memorandum

Autores

World Bank

Editor

Washington, DC

Descripción

International experience suggests that the effect of globalization on economic growth, poverty and income distribution can vary significantly among countries, and that its impact depends crucially on national policies. This report assesses the possible patterns of inequality in China in the future, and outlines policy options that could help accomplish China's objective of growth with equity. For sustaining growth, the report emphasizes the freer flow of resources and goods and services in the economy, to be achieved by domestic market integration and flexibility. The report suggests that the cost of market fragmentation and rigidities is high, and highlights measures to reduce local protectionism, facilitate migration, and commercialize the banking sector. To optimize the results of domestic market integration and promote growth with equity, the report proposes a package of policy actions that would promote new job opportunities, especially in the less developed regions, and raise returns on farm labor and land. Among these, the report highlights investing in people, promoting the diffusion of technology, facilitating urban agglomeration, expanding services and enhancing farmers' prospects. Finally, the report tackles the social, economic and fiscal risks that may threaten future growth and distributional performance. In particular, it suggests extending different types of formal social security in both urban and rural areas, for fixing the inter- government fiscal system in order to facilitate the provision of public services, and for managing fiscal risk beyond the government budget and officially recognized debt.

Palabras clave

ACCOUNTABILITY, ACCOUNTING, ADMINISTRATIVE CAPACITY, AGRICULTURAL OUTPUT, ALLOCATION OF CAPITAL, AUDITING, AUTHORITY, AUTONOMY, BANKING SECTOR, BANKING SYSTEM, BASIC EDUCATION, CENTRAL GOVERNMENT, CENTRAL PLANNING, CENTRALIZATION, CITIES, COLLATERAL, COMMERCIAL BANKS, COMMUNIST, COMMUNIST PARTY, COMPETITION POLICY, CONSOLIDATION, CONSTITUENCIES, CORPORATE GOVERNANCE, DEBT, DECISION MAKING, DECISION MAKING PROCESS, DEFICITS, DISTRIBUTION OF INCOME, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, ECONOMIC SHOCKS, ECONOMIES OF SCALE, EMPLOYMENT, ENFORCEMENT MECHANISM, ENTERPRISE OWNERSHIP, ENVIRONMENTAL POLICIES, ENVIRONMENTAL PROTECTION, EQUALIZATION, EXECUTION, EXPENDITURE, EXPENDITURE RESPONSIBILITIES, EXPENDITURES, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SECTORS, FINANCIAL SERVICES, FINANCIAL SUPPORT, FISCAL, FISCAL CONTRIBUTION, FISCAL EQUITY, FISCAL MANAGEMENT, FISCAL PRESSURES, FISCAL RESOURCES, FOREIGN DIRECT INVESTMENT, FOREIGN ENTRY, FOREIGN INVESTMENT, FORMAL EDUCATION, FORMAL SYSTEM, GOVERNMENT ACCOUNTABILITY, GOVERNMENT FINANCE, GOVERNMENT OBLIGATIONS, GOVERNMENT PERFORMANCE, GOVERNMENT POLICIES, GOVERNMENT REVENUES, HOUSING, HUMAN CAPITAL, HUMAN DEVELOPMENT, IMPORTS, INCOME DISTRIBUTION, INCOME INEQUALITY, INFORMATION DISCLOSURE, INSTITUTIONAL CAPACITY, INSTITUTIONAL DEVELOPMENT, INSTITUTIONAL REFORMS, INSURANCE, INTEREST RATES, INTERGOVERNMENTAL TRANSFERS, INTERNATIONAL FINANCIAL MARKETS, INVESTMENT CLIMATE, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LABOR MOBILITY, LAND DEVELOPMENT, LAND USE, LAWS, LEVELS OF GOVERNMENT, LOCAL ENTERPRISES, LOCAL GOVERNMENT, LOCAL GOVERNMENT ACCOUNTABILITY, LOCAL GOVERNMENT REVENUES, LOCAL GOVERNMENTS, LOCAL TAX, MACROECONOMIC CONDITIONS, MACROECONOMIC STABILITY, MARKET DISTORTIONS, MICROFINANCE, MIGRATION, MINISTRY OF FINANCE, NATIONAL POLICIES, PENALTIES, PENSIONS, PRIVATE SECTOR, PRODUCERS, PRODUCTIVITY, PROFITABILITY, PROVISIONS, PUBLIC FINANCE, PUBLIC FUNDS, PUBLIC HEALTH, PUBLIC SERVICE, PUBLIC SERVICE DELIVERY, PUBLIC SERVICES, PUBLIC SUPPORT, PUBLIC TRANSPORT, RECAPITALIZATION, RESOURCE ALLOCATION, RETIREMENT, SAVINGS, SOCIAL COST, SOCIAL INFRASTRUCTURE, SOCIAL SECURITY, SOCIAL SERVICES, STATE SECTOR, STATE-OWNED ENTERPRISES, STRUCTURAL ADJUSTMENT, SUSTAINABLE DEVELOPMENT, TAX CAPACITY, TAX RATES, TAX REVENUES, TECHNICAL ASSISTANCE, TELECOMMUNICATIONS, TRANSPORT, UNEMPLOYMENT, UNEMPLOYMENT RATES, URBAN INFRASTRUCTURE, URBANIZATION GLOBALIZATION, POLICY ANALYSIS, POLICY MAKING, POLICY PLANNING, PER CAPITA INCOME, INEQUITY, REGIONAL DISPARITY, RURAL-URBAN DIFFERENTIALS, RURAL-URBAN RELATIONS, ALLOCATION OF RESOURCES, DOMESTIC MARKETS, MARKET INTEGRATION, INCOME INEQUALITIES, MARKET FRAGMENTATION, RURAL-URBAN MIGRATION, URBANIZATION, PROTECTIONISM, BANKING SYSTEMS, COMMERCIALIZATION, JOB CREATION POLICIES, EMPLOYMENT CREATION, FARM LANDS, HUMAN RESOURCES STRATEGIES, HUMAN CAPITAL INVESTMENTS, TECHNOLOGY DIFFUSION, AGGLOMERATION, PUBLIC SERVICE DELIVERY, SOCIAL SECURITY SYSTEMS, FISCAL MANAGEMENT, CAPITAL MARKETS