Zhu Zhixin, Director of the State Statistics Bureau

I

The Chinese government has always attached much importance to human rights and placed the rights to subsistence and development of the more than one billion people above everything else. In the fundamental interests of the broadest possible masses of people, it has adopted a series of major policy measures toward this end, thus winning the support and love of the people.

1. No wavering in making economic development its central task and a matter of the first and foremost importance in invigorating the nation and concentrating every effort on developing productivity, which is the ultimate deciding factor in social development. Releasing and developing productive forces and constantly satisfying the growing needs of the people materially and culturally is the fundamental task in building socialism. In 1978, the third plenum of the 11th Party Central Committee re-established the ideological line of emancipating the mind and seeking truth from facts and abruptly shifted the focus of the Party work from "taking class struggle as the key link" to "making economic development the central task," stressing that "development is the hard truth" and "the key to solving all the problems in China is to develop" and it is essential to solve the problems on the way of advance by development. It then went on to implement a series of effective development strategies and plans. Over the past 20plus years, China has withstood all risks and difficulties and never wavered in developing the national economy, enabling it to develop in a sustainable, rapid and healthy manner, thus laying the foundation for improving the people's rights to subsistence and development.

2. Persisting in reforms and expanding opening up to create the institutional environment for releasing and developing productive forces and for ensuring the rights of the people to subsistence and development. The traditional planned economic system was so rigid and so concentrated that it seriously bound up the development of productivity. Over the past 20-plus years, China has concentrated on market-oriented reform, creating a new situation of reform and opening up that spread from the rural areas to cities, achieving a series of major breakthroughs and establishing initially a socialist market system. China has always taken opening up as a basic national policy. From the opening of the special economic zones to opening up of coastal cities and from the borders to areas along the Yangtze River and even the whole of the country, China has created a situation of opening to the outside world across the board. On the basis of self-reliance, it has boldly imported advanced experience and technology from developed countries, made full utilization of both domestic and foreign resources and opened up both domestic and foreign markets, actively participated in international exchange in capital, labor service, products, technology and information. All these have significantly enhanced the vitality of the economy for growth and its market competitiveness and improving the level and quality of the living of the people. Toward the end of 2001, China officially became a member of the World Trade Organization (WTO), marking a new stage of development in China's reform and opening up.

3. Through the implementation of poverty relief program and by building a social security system and taking other special measures, the Chinese government put its emphasis of work on ensuring low-income families, especially those in difficulty, to enjoy the rights to subsistence and development. While carrying on with the reform of the rural economy, the government has carried out a full-scaled fight against poverty in an organized and planned manner. The number of impoverished population has been reduced from 250 million at the beginning of reform to 80 million by the end of 1993. The rest of the impoverished people are mostly living in remote and hardly accessible areas, which are lagging both economically and culturally and have harsh production and living conditions. To help these people, the State Council mapped out a povertyrelief plan, deciding to amass human, materials and financial strength and mobilize all the social quarters to put an end in about seven years to poverty once and for all for the 80 million people. All places increased investment in the fight against poverty through development and helped the poverty-stricken areas change production conditions, improve the ecological environment and helped families in difficulty by developing plant culture, breeding and associated processing industries in the hope of solving the problem of inadequate food and clothing. The governments at all levels have also tried to improve the qualities of laborers by introducing appropriate science and technology and encouraged partnership program between the east and west of the country. As a result, the number of impoverished population was reduced from the 80 million in 1993 to 29.27 million by 2001. This is a move of major importance and a great achievement in safeguarding the rights to subsistence and development of the people. At present, the Chinese government has accelerated the pace of building a social security system in order to help the poor workers and safeguard their legitimate rights and interests. This is a major policy of the Chinese government and also a fundamental principle of the government in governing the country and developing good-neighborly relations with surrounding countries and in safeguarding reform, development and stability. But as the reform of the state-owned enterprises and economic restructuring have been accelerated, the aging of the population has cropped up and more and more workers have been laid off, plus other problems concomitant with the trend of economic globalization. The Chinese government has decided to accelerate the pace of building the social security system and make it a basic project for safeguarding the basic living of the people. At present, a social security system featuring basic old-age insurance, unemployment insurance and the minimum cost of living guarantee for urbanites as well as the basic medical insurance system has basically taken shape. In 2001, the old-age insurance system covered 108.02 million workers and the number of retired people covered by basic old-age insurance system reached 33.81 million. The number of unemployed receiving unemployment relief reached 3.12 million. The minimum cost of living guarantee system has covered all that should be covered. By the end of July 2002, 19.31 million urban poor were covered by the minimum cost of living guarantee system. The improvement of the social security system has played a major role in safeguarding the lawful rights and interests of the people and in promoting social stability and reform and development.

II

The 20-plus years since reform and opening up witness a period featuring the fastest growth in the comprehensive national strength, the most benefit for the people and the biggest improvement in the people's rights to subsistence and development.

1. The national economy has developed substantially and rapidly and the economic strength and the comprehensive national strength have been enhanced significantly. The GDP rose to 9,593.3 billion yuan in 2001 from 1978's 362.4 billion yuan. The GDP in 2002 is expected to top 10,000 billion yuan. The real average annual growth in 1979-2002 was 9.4% allowing for price factors, far higher than the world average of about 3%. The country attained the target of doubling the 1980 GDP in 1987, three years ahead of schedule and went on to realize the objective of doubling again the GDP in 1995, five years ahead of schedule. Its economic aggregate ranks sixth in the world. The per capita GNP was only US$190 in 1978, but it shot up to US$780 by 1999, leaping from a low-income country into the rank of middle-income countries. The per capita GNP in 2002 is expected to reach close to US$1,000. Its per capita GNP ranking rose from 1978's 194th to 141st by 2000. The foreign exchange reserves increased sharply to reach US$274.6 billion by the end of November 2002, ranking second in the world as against only US$170 million in 1978.

2. There has been a fundamental change from shortage economy to a surplus economy in terms of the output of major industrial and agricultural products. Since the start of reform and opening up, China has put agricultural development in the first place of the national economy and, by way of a good policy, increased investment and development of science and technology, it has fired the zeal of the farmers for production and raised the comprehensive production capacity of agriculture and promoted the big development of the rural economy. The efforts have ended the situation of undersupply of grain, cotton and oils and other major agricultural and sideline products. By relying on its own efforts, China has successfully solved the inadequate food and clothing problem for one fifth of the world's population. The per capita output of most agricultural produce has reached the world's average level, slightly higher than the average of developing countries. By the end of 2001, China had ranked first in the world in terms of the output of grain, cotton, fruit, rapeseeds, vegetables, meat, eggs and fish; it ranked second in the output of wool and tea and eighth in the output of milk and milk products. Industry has developed vigorously, with its ranking in major manufactured goods significantly advanced, m 2000, China ranked first in the world in terms of the output of steel, cement, chemical fertilizers and color TV sets, second in the output of electricity, cotton cloth and chemical fibers. The home market is abundantly supplied and over 90% of the merchandize are in the state of oversupply.

3. Infrastructure has been enhanced, with bottle-necks in communications, power and telecommunications basically removed. From 1978 to 2001, the country invested 6779.3 billion yuan in the basic industries and infrastructure projects. A large number of key projects were completed. They included the Three Gorges project on the Yangtze river, the Xiaolangdi power project on the Yellow River, the Beijing-Kaoloon railway, the southern Xinjiang railway and the Beijing-Shanghai freeway. In a short span of 23 years, the country built and put into service 18,167 kilometers of new railways, 576.61 million tons of coastal port handling capacity, 160,937 kilometers of highways, giving shape to a comprehensive transportation network featuring railways, roads, waterways, airways and pipelines. The mileage of freeways increased from zero to 19,400 kilometers in 2001, ranking second in the world. Posts and telecommunications have developed rapidly. The country has built a public telecom network featuring optic cable, digital, microwave, program controlled switches and mobile communications covering the whole country and reachable to all parts of the world. The total capacity of telephone exchanges increased from 4.059 million lines in 1978 to 206 million lines by 2001. The number of mobile phone users had reached 145.22 million by 2001, ranking first in the world. The total number of fixed and mobile phone users had reached more than 400 million by the end of November 2002. These have not only boosted the power for future development but also enriched the living of the people.

4. There have been two historic leaps from poverty to a living of adequate food and clothing and from adequate food and clothing to a well-off life. Since reform and opening up, the Chinese government has always taken the improvement of the living standards of the people as a starting point and end result of releasing and developing productivity. The income level, the level and quality of living have been raised significantly with the development of the economy and the people's rights to subsistence and to development have been truly protected and enhanced.

The income level of rural and urban residents has been raised and consumption structure has been greatly optimized. In 1978, the per capita net income of Chinese peasants was only 134 yuan, but it shot up to 2,366 yuan by 2001, averaging a real annual growth of 7.3%. The per capita disposable income of families in cities and towns averaged an annual growth of 6.4%. The total amount of bank savings of urban and rural residents rose from 21.1 billion yuan in 1978 to 8,569.3 billion yuan by the end of November 2002. Food and clothing are no longer the main items of consumption. Now the people are spending more on housing, utilities, travel, cultural activities and entertainment and education. The Engel coefficient of rural residents was 67.7% in rural areas in 1978, still in the poverty stage. By 2001, it dropped to 47.7%, marking the beginning of a well-off life. The Engel coefficient in urban areas in 1978 was 57.5%, in a stage of adequate food and clothing. It dropped to 50% by 1994 and further down to 37.9% by 2001.
　　　　　　　
　　　　　　　
　　　　　　　

The living conditions and environment for residents have been greatly improved and the amount of durable consumer goods possessed by residents has increased markedly. The per capita living area in cities was 14.1 square meters in 2001, 10.5 square meters more than in 1978. The per capita living space in rural areas averaged 25.7%, 17.6 square meters more. The residents now live more comfortably. Peasants have bid farewell to low thatched houses. In cities, urban gas, LPG and LNG are available to 60.4% of the urban population in 2001 as against 13.9% in 1978. The possession of consumer durables has been increasing gradually, experiencing an evolutionary process up to constant upgrading and renewal. The "Old Four" (bicycle, sewing machine, watch and clock and radio) gave way to the "New Six" (color TV set, refrigerator, washing machine, sound equipment, camera and air-conditioner). Mobile phones, computers and automobiles have found their way into ordinary families. In 2001, there were 54.4 color TV sets, 13.6 refrigerators, 29.9 washing machines, 1.7 airconditioners, 34.1 telephones and 8.1 mobile phones for every 100 families in rural areas. In cities, the figures are 121 color TV sets, 82 refrigerators, 92 washing machines, 40 cameras, 24 component sound equipment and 13 computers.
　　　　　　　
The new strain of white gourds leads farmers in the outskirts of Chengdu to prosperity.

The medical and health services and the physic enjoyed by the people have been improved. In 2001, there were 330,000 medical organizations (including clinics), 2.98 million hospital beds and 4.51 million medics, 1.9 times, 1.6 times and 1.8 times, respectively the figures for 1978. A fairly sound medical and health service has greatly eased the difficulties in seeing doctors. Diseases that had long been threatening the health of the people have been brought under effective control and basically eliminated. The death rate of the population in 2001 was 6.43%oand the mean life expectancy in 2000 was 71.4 years, 3.5 years more than in 1981,4.4 years higher than the world's average. People's tallness and weight that are indictors of the physic have improved markedly. The people enjoy a good health with the improvement in their material life.
　　　　　　　
The first batch of "ice-cream melon" harvested at a new agricultural technology garden in Chengdu, Sichuan.

Ill

Since reform and opening up, the rights to subsistence and to development of the people of the whole country have been well protected and enhanced, thanks to the attention and the correct leadership of the Chinese government. The people have enjoyed a secure life and the society as a whole is stable and prosperous. However, we must also see that China is still in the primary stage of socialism. The well-off life is still at a low level, incomplete and uneven in development. Although China has edged into the rank of middle-income countries from a low-income country, the per capita GNP level is still at a very low level in the world. The per capita GNP is only about 3% of the average of high-income countries and 43% of the average of middle-income countries. Much remains to be done to consolidate and further improve the standards of living of the people and get the rights of the people to subsistence and development further protected and enhanced. There are still the following problems on the way ahead:

-The population is too big and the quality is low and, added to it, the tremendous pressure of unemployment and aging population. Although China has achieved a great deal in controlling the growth of population with the natural growth rate falling down to 6.95 %oin 2001 from 12 %oin 1978, the net annual growth is still about 10 million due to the massive base figure. In the meantime, with the strengthened economic restructuring and technical progress, the amount of labor needed for one percent point growth is falling. The problems of low quality of the people as a whole, the lagging behind in urbanization and uneven development among different regions cannot be resolved in a short period of time. It is a grave challenge in the next stage as to how to cope with the employment of the newly added population. By the end of 2001, the proportion of people above the age of 65 in the total population reached 7.1%, which should be termed as an aging society according to international standards.

　　　　　　　

-Shortage of resources. The major resources are far less than the world's average if calculated on the per capita basis. The per capita arable land is only 0.1 hectares, 43.7% of the world's Much remains to be done to consolidate average; the per capita fresh water resources average 2,257 cubic meters, only 27% of the world's average. The per capita forest acreage is 0.12 hectares, only 18.8% of the world's average. The amount of most mineral resources per capita is less than 50% of the world's average. The worsening water and oil shortages have already had a big impact on the normal operation of the economy.

　　　　　　　
China's largest flower cultivating base in Guanghan, Sichuan

-Environmental pollution and deterioration of the ecological environment are very serious. The generation of industrial solids and the discharge of pollutants into the air are at a very high level. The air in cities is seriously polluted; the water loss and soil erosion are serious; the land is being desertified and the desertified grassland has been expanding. The total areas suffering from water loss and soil erosion have reached 360 million hectares, accounting for 38% of the total land area of the country. The areas suffering from desertification in the whole country have reached 170 million hectares, 18.2% of the total land area of the country. The pollution of water sources and desertification of water ecology is getting worsened by the day.

Besides, we are still faced with tremendous difficulties and challenges in the course of development. China is still lagging in productivity, the development of science and technology and education; the gaps between city and town and among different regions are expanding; and the economic system and the management system in other areas remain to be improved.

But we must also see that, in a certain sense, problem means potential. Paying attention to and constantly solve problems provide the inexhaustible force behind the sustainable development of the economy. Accurately sizing up the major development trend and analyzing the international and domestic situation, the 16th National Congress of the Communist Party of China put forward on the basis of a clear understanding of the problems and favorable conditions, the program of concentrating efforts in the first two decades of the 21st century on bringing a well-off society to a higher level that will benefit the more than one billion population in all aspects of life, thus unveiling before the whole world a beautiful future of building a well-off society in all aspects and accelerating the pace of socialist modernization.

A well-off society in China means that the GDP should quadruple that of 2000 by 2020 and the people will enjoy a much richer life. This shows that China dares to face up to the tremendous difficulties and challenges and its determination and confidence in further improving the rights to subsistence and development of the more than one billion people. We should see that, despite the current problems and difficulties, they are nothing but problems on our way of advance and problems in development and they can be resolved one by one so long as we make the efforts. The objective of building a well-off society is based on the realities of the economic development in the country and can be attained.

Internationally, although there are many uncertainties in a short period of time, peace and development remain the main theme of the times in the long run. It is the great trend of the day for the world to develop toward multi-polarization and economic globalization. It is, therefore, possible to win a fairly long period of favorable international peaceful environment to accelerate the development of our own economy. Domestically, there are still great potential in terms of development space, materials and technical foundations and fund supply. First of all, China has not completed its industrialization program and the people have just lived a well-off life and there are big disparities between town and country, among different regions and different industries. The upgrading of the industrial structure, the acceleration of urbanization, coordinated development among different regions and the improvement of the people's living standards will all provide the motive force for accelerating the development of the economy. Secondly, China has a sound material and technical foundation for economic growth. Thanks to the large scaled investment and construction over the past half century, especially over the past 20-plus years, and the efforts in recent five years to strengthen infrastructure construction, the bottle-necks of energy and communications that had long restricted the economic development have been eased fundamentally and the foundation for sustaining faster economic growth has become more solid. At the same time, with China's accession to the WTO, China may better borrow and utilize the international resources, technology and advanced management experience, display its comparative advantages and the advantage as a late comer to accelerate economic development. Thirdly, there is an abundant supply of funds. The bank savings of the residents and foreign exchange reserves have assumed a sizable proportion. The stable political and economic environment, the growth potential of the tremendous market have made foreign investment grow sharply. The amount of foreign direct environment actually used in 2002 is likely to top US$50 billion. But what is even more important is that we have the staunch leadership of the Communist Party of China and the correct guidance of the basic theories, basic line and basic program that have been proven effective in building socialism with Chinese characteristics.

We believe that, with the correct leadership of the Party Central Committee, so long as we continue to hold high the great banner of Deng Xiaoping Theory, implement in an all round manner the important thought of "Three Represents," persist in the central task of economic development, persist in reform and opening up and work hard to come out with new ideas and make new breakthroughs in reform and break new ground in opening up and have new moves in all work, unite as one and work hard in a down-to-earth manner, we can certainly attain the grand goal of building a well-off society in all aspects that will benefit the more than one billion people so that the Chinese people will live a more affluent life and become happier and healthier.