The Scientific Outlook on Development takes development as its essence, putting people first as wits core, comprehensive, balanced and sustainable development as its basic requirement, and overall consideration as its fundamental approach.
——We must regard development as the top priority of the Party in governing arid rejuvenating the country. Development is of decisive significance for building a moderately prosperous society in all respects and speeding up socialist modernization. We must firmly commit ourselves to the central task of economic development, concentrate on construction and developing the productive forces. We must better implement the strategy of rejuvenating the country through science and education, the strategy of strengthening the nation with trained personnel and the strategy of sustainable development. We must grasp the law of development, make innovations in our thinking, transform the mode of development, crack hard issues and. raise quality and efficiency to achieve: sound and rapid development, so that we can lay a solid foundation for developing socialism with Chinese characteristics. We must strive for scientific development by putting people first and making it comprehensive, balanced and sustainable; we must strive for harmonious development by integrating all undertakings and promoting unity and amity among all members of society; and we must strive for peaceful development in the course of which China develops itself by safeguarding world peace and contributes to world peace by developing itself.
-——We must always put people first. Serving the people wholeheartedly is the fundamental purpose of the Party, and its every endeavor is for the well-being of the people. We must always make sure that the aim and outcome of all the work of the Party and the state is to realize, safeguard and expand the fundamental interests of the overwhelming majority of the people. We must respect the principal position of the people in the country's political life, give play to their creativity, protect their rights and interests, take the path of prosperity for all and promote their all-round development, to ensure that development is for the people, by the people and with the people sharing in its fruits.
——We must pursue comprehensive, balanced and sustainable development. In accordance with the overall arrangements for the cause of socialism with Chinese characteristics, we will promote all-round economic, political, cultural and social development, coordinate all links and aspects of our modernization drive, and balance the relations of production with the productive forces and the superstructure with the economic base. We must adopt an enlightened approach to development that results in expanded production, a better life and sound ecological and environmental conditions, and build a resource-conserving and environment-friendly society that coordinates growth rate with the economic structure, quality and efficiency, and harmonizes economic growth with the population, resources and the environment, so that our people will live and work under sound ecological and environmental conditions and our economy and society will develop in a sustainable way.
——We must persist in overall consideration. We need to correctly understand and handle the major relationships in the cause of socialism with Chinese characteristics and balance urban and rural development, development among regions, economic and social development, relations between man and nature, and domestic development and opening to the outside world. We must take into overall consideration the relationships between the central and local authorities, between personal and collective interests, between interests of the part and those of the whole, and between immediate and long-term interests, so as to fully arouse the initiative of all sides. We must take both the domestic and international situations into consideration, develop a global and strategic perspective, be good at seizing opportunities for development and coping with risks and challenges in a changing world, and work far a favorable international environment. While planning our work from an overall perspective, we need to work hard to make breakthroughs on the key issues that affect the overall situation and on the major problems that affect public interests.
To thoroughly apply the Scientific Outlook on Development, we must always adhere to the Party's basic line of taking economic development as the central task and upholding the Four Cardinal Principles and the reform and opening up policy, known as "one central task and two basic points." As the lifeblood of the Party and the country, this basic line provides the political guarantee for scientific development. Taking economic development as the central task is vital to invigorating our nation and is the fundamental requirement for the robust growth and lasting stability of the Party and the nation. The Four Cardinal Principles are the very foundation for building our country and the political cornerstone for the survival and development of the Party and the nation. Reform and opening up are the path to a stronger China and the source of vitality for the Party and the nation in development and progress. We will continue to apply the line of "one central task and two basic points" in its entirety in our great endeavor to develop socialism with Chinese characteristics; we will never deviate from this line.
To thoroughly apply the Scientific Outlook on Development, we must work energetically to build a harmonious socialist society. Social harmony is an essential attribute of socialism with Chinese characteristics. Scientific development and social harmony are integral to each other and neither is possible without the other. Building a harmonious socialist society is a historical mission throughout the cause of socialism with Chinese characteristics, as well as a historical process and the social outcome of correctly handling various social problems on the basis of development. It is through development that we will increase the material wealth of society and constantly improve people's lives, and it is again through development that we will guarantee social equity and justice and constantly promote social harmony. To realize social equity and justice is the Chinese Communists' consistent position and a major task of developing socialism with Chinese characteristics. In accordance with the general requirements for democracy and the rule of law, equity and justice, honesty and fraternity, vigor and vitality, stability and order, and harmony between man and nature and the principle of all the people building and sharing a harmonious socialist society, we will spare no effort to solve the mast specific problems of the utmost and immediate concern to the people and strive to create a situation in which alI people do their best, find their proper places in society and live together in harmony, so as to provide a favorable social environment for development.
To thoroughly apply the Scientific Outlook on Development, we must continue to deepen reform and opening up. We need to incorporate the spirit of reform and innovation into all links of governance; unswervingly adhere to the orientation of reform, and have more scientific decision-making and better coordinated measures for reform. We will improve the socialist market economy, promote institutional reform and innovation in various sectors, accelerate reform in important fields and crucial links, improve opening up in all respects and make our systems and mechanisms full of vigor, highly efficient, more open and conducive to scientific development, so as to provide a powerful driving force and an institutional guarantee for developing socialism with Chinese characteristics. We will always take improving people's lives as a pivotal task in balancing reform, development and stability and ensure that our reform always has the endorsement and support of the people.
To thoroughly apply the Scientific Outlook on Development, we must strengthen our efforts to build the Party in earnest. As is required by the Party's lofty mission of governing and rejuvenating the nation, our efforts to improve the Party's governance capability and maintain and develop its vanguard nature must serve our task of directing scientific development, promoting social harmony, guiding development and progress in China arid better representing and realizing the fundamental interests of the overwhelming majority of the people. In this way, the Party's work and our efforts to build the Party will better meet the requirement of the Scientific Outlook on Development and provide a reliable political and organizational guarantee for scientific development.
All Party members must fully understand the content and grasp the essence of the Scientific Outlook on Development, be more conscious and determined in applying it, change notions that are not in line with it, work hard to solve major problems that affect or constrain scientific development, direct the whole society's enthusiasm for development to scientific development, and apply this outlook to every aspect of economic and social development.
IV. New Requirements for Attaining the Goal of Building a Moderately Prosperous Society in All Respects
We have made steady progress toward the goal of building a moderately prosperous society in all respects set at the Sixteenth Congress, and we will continue to work hard to ensure its attainment by 2020.
In keeping with changes in domestic and international situations and in light of the expectations of the people of all ethnic groups for a better life, we must follow the trend and laws of economic and social development, uphold the basic program consisting of the basic objectives and policies For economic, political, cultural and social development under socialism with Chinese characteristics, and set new and higher requirements for China's development on the basis of the goal of building a moderately prosperous society in all respects set at the Sixteenth Congress.
——Promote balanced development to ensure sound and rapid economic growth. The development pattern will be significantly transformed. We will quadruple the per capita GDP of the year 2000 by 2020 through optimizing the economic structure and improving economic returns while reducing consumption of resources and protecting the environment. The socialist market economy will be improved. We will greatly enhance our capacity for independent innovation, enabling scientific and technological advancement to contribute much more to economic growth and making China an innovative country. The ratio of consumption to GDP will increase steadily, and consumption, investment and export will be coordinated to boost economic growth. A mechanism for urban and rural areas and for different regions to have balanced and interactive development and a layout of development priority zones will be basically in place. Efforts to build a new socialist countryside will make significant headway. The proportion of urban residents will notably increase.
——Expand socialist democracy and better safeguard the people's rights and interests as well as social equity and justice. Citizens' participation in. political affairs will expand in an orderly way. The rule of law will be carried out more thoroughly as a fundamental principle, public awareness of law will be further enhanced, and fresh progress will be made in government administration based on the rule of law. Primary-level democracy will be improved. The government will markedly enhance its capability of providing basic public services.
——Promote cultural development and notably enhance the cultural and ethical quality of the whole nation. Socialist core ＆#118alues will prevail among the people, and fine ideological and ethical trends will be encouraged. A basic system of public cultural services will cover the whole society, the cultural industry will account for much more of the national economy and become more competitive internationally, and a more abundant supply of cultural products will be available to meet the people's needs.
——Accelerate the development of social programs and improve every aspect of the people's well-being. The modern system of national education will be further improved, a basic system for lifelong education will be in place, the educational attainment of the whole nation will rise to a much higher level, and the training of innovative personnel will be improved markedly. Employment will be further expanded. A basic system of social security will cover both urban and rural residents so that everyone is assured of basic living standards. A reasonable and orderly pattern of income distribution will be basically in place, with middle-income people making up the majority and absolute poverty basically eliminated. Everyone will have access to basic medical and health services. The system of social management will be further improved.
——Promote a conservation culture by basically forming an energy- and resource-efficient and environment-friendly structure of industries, pattern of growth and mode of consumption. We will have a large-scale circular economy and considerably increase the proportion of renewable energy sources in total energy consumption. The discharge of major pollutants will be brought under effective control and the ecological and environmental quality will improve notably. Awareness of conservation will be firmly established in the whole of society.
When the goal of building a moderately prosperous society in all respects is attained by 2020, China, a large developing socialist country with an ancient civilization, will have basically accomplished industrialization, with its overall strength significantly increased and its domestic market ranking as one of the largest in the world. It will be a country whose people are better off and enjoy markedly improved quality of life and a good environment. Its citizens will have more extensive democratic rights, show higher ethical standards and look forward to greater cultural achievements. China will have better institutions in all areas and Chinese society will have greater vitality coupled with stability and unity. The country will be still more open and friendly to the outside world and make greater contributions to human civilization.
The following five years will be a crucial period for building a moderately prosperous society in all respects. We must enhance our confidence and work hard to lay a more solid foundation for success in building a moderately prosperous society of a higher level in all respects to the benefit of over one billion people.
V. Promoting Sound and Rapid Development of the National Economy
To attain the objectives for economic development, it is essential to significantly accelerate the transformation of the development pattern and improve the socialist market economy. We need to vigorously push forward strategic economic restructuring and make greater efforts to improve China's capacity for independent innovation as well as energy and environmental conservation, and to enhance the overall quality of the economy and its international competitiveness. We need to deepen our understanding of the laws governing the socialist market economy, introduce institutions to give better play to the basic role of market forces in allocating resources, and form a system of macroeconomic regulation conducive to scientific development.
1. Enhance China's capacity for independent innovation and make China an innovative country. This is the core of our national development strategy and a crucial link in enhancing the overall national strength. We need to keep to the path of independent innovation with Chinese characteristics and improve our capacity for independent innovation in all areas of modernization. We need to conscientiously implement the Outline of the National Program for Long- and Medium-Term Scientific and Technological Development (2006-20), increase spending on independent innovation, and make breakthroughs in key technologies vital to our economic and social development. We will speed up forming a national innovation system and support basic research, research in frontier technology and technological research for public welfare. We will step up our efforts to establish a market-oriented system for technological innovation, in which enterprises play the leading role and which combines the efforts of enterprises, universities and research institutes, and guide and support the concentration of factors of innovation in enterprises, thereby promoting the translation of scientific and technological advances into practical productive forces. We will deepen reform of the system for managing science and technology, optimize the allocation of relevant resources, and improve the legal guarantee, policy system incentive mechanism and market conditions to encourage technological innovation and the application of scientific and technological achievements in production. We will implement the strategy for intellectual property rights. We will make the best use of international resources of science and technology. We will continue to create conditions conducive to innovation, train world-class scientists and leaders in scientific and technological research, inspire creative wisdom and bring forth large numbers of innovative personnel.
2. Accelerate transformation of the mode of economic development and promote upgrading of the industrial structure. This is a pressing strategic task vital to the national economy as a whole. We must keep to the new path of industrialization with Chinese characteristics, pursue the policy of boosting domestic demand, particularly consumer demand, and propel three transitions in the mode of economic growth: the transition from relying mainly on investment and export to relying on a well coordinated combination of consumption, investment and export, the transition from secondary industry serving as the major driving farce to primary, secondary and tertiary industries jointly driving economic growth, and the transition from relying heavily on increased consumption of material resources to relying mainly on advances in science and technology, improvement in the quality of the workforce and innovation in management. We will develop a modern industrial system, integrate IT application with industrialization, push our large industries to grove stronger, invigorate the equipment manufacturing industry, and eliminate outdated production capacities. We will upgrade new- and high-technology industries and develop information, biotechnology, new materials, aerospace, marine and other industries. We will develop the modern service industry and raise the level of the service sector and its share in the economy. We will step up efforts to improve basic industries and infrastructure and accelerate development of a modern energy industry and a comprehensive transport system. We will ensure the quality and safety of products. We will encourage formation of internationally competitive conglomerates.
3. Balance urban and rural development and build a new socialist countryside. As resolution of issues concerning agriculture, rural areas and farmers has an overall impact on building a moderately prosperous society in all respects, we must always make it a top priority in the work of the whole Party. We will strengthen the position of agriculture as the foundation of the national economy, take a path of agricultural modernization with Chinese characteristics, set up a permanent mechanism of industry promoting agriculture and urban areas helping rural areas, and form a new pattern that integrates economic and social development in urban and rural areas. We will continue to take developing modern agriculture and invigorating the rural economy as a primary task, strengthen infrastructure in rural areas, and improve the system of rural markets and that of services for agriculture. We will increase policy measures to support and benefit agriculture, rural areas and farmers, strictly protect arable land, increase spending on agriculture, promote advances in agriculture-related science and technology, and improve overall agricultural production capacity to ensure food security for the nation. We will intensify efforts to prevent and control animal and plant epidemic diseases and improve the quality and safety of agricultural products. To increase farmers' income, we will develop rural enterprises, expand county economies, and transfer rural labor out of farming through various channels. We will enhance poverty reduction through development. We will deepen the comprehensive rural reform, promote reform and innovation in the rural banking system, and reform the system of collective forest rights. We will uphold the basic system for rural operations, stabilize and improve land contract relations, improve the market for transferring land contract and management rights in accordance with the law and on a voluntary and compensatory basis, and develop various forms of appropriate large-scale operations where conditions permit. We will explore effective forms of collective economic operations, develop specialized farmers' cooperatives, and support the industrialized operation of agriculture and the development of leading agribusinesses. We will train a new type of farmers who are educated and understand both agricultural techniques and business management, and encourage hundreds of millions of farmers to play the major role in building a new countryside.
4. Improve energy, resources, ecological and environmental conservation and enhance China's capacity for sustainable development. Adhering to the basic state policy of conserving resources and the environment is vital to the immediate interests of the people and the survival and development of the Chinese nation. We must give prominence to building a resource-conserving, environment-friendly society in our strategy for industrialization and modernization and get every organization and family to act accordingly. We will improve laws and policies to promote energy, resources, ecological and environmental conservation, and speed up the formation of systems and mechanisms for sustainable development. We will implement the responsibility system for conserving energy and reducing emissions. We will develop and extend advanced and appropriate technologies for conserving, substituting and recycling energy and resources, develop clean and renewable energy sources, protect land and water resources and set up a scientific, rational system for using energy and resources more efficiently. We will develop environmental conservation industries. We will increase spending on energy and environmental conservation with the focus on intensifying prevention and control of water, air and soil pollution and improving the living environment for both urban and rural residents. We will improve water conservancy, forestry and grasslands and promote restoration of the ecosystems. We will enhance our capacity to respond to climate change and make new contributions to protecting the global climate.
5. Promote balanced development among regions and improve the pattern of land development. To narrow the gap in development among regions, we must work to ensure their equal access to basic public services and guide a rational flow of factors of production between regions. Following the general strategy for regional development, we will continue to carry out large-scale development of the western region, rejuvenate northeast China and other old industrial bases in an all-round way, boost the development of the central region and support the eastern region in taking the lead in development. We will strengthen land planning, improve policies for regional development and adjust the geographical distribution of economic operations in accordance with the requirement to form development priority zones. In compliance with the laws governing the market economy, we will work beyond administrative divisions to form a number of close-knit economic rims and belts that will provide a strong impetus to the development of other areas. In locating major projects, we must give full consideration to supporting development of the central and western regions and encourage the eastern region to help them develop. We will give more support to the development of old revolutionary base areas, ethnic autonomous areas, border areas and poverty-stricken areas. We will help transform the economies of areas where natural resources are exhausted. We will have the special economic zones, the Pudong New Area in Shanghai and the Binhai New Area in Tianjin play a major role in reform, opening up and independent innovation. Taking a path of urbanization with Chinese characteristics, we will promote balanced development of large, medium-sized and small cities and towns on the principle of balancing urban and rural development, ensuring rational distribution, saving land, providing a full range of functions and getting larger cities to help smaller ones. Focusing on increasing the overall carrying capacity of cities, we will form city clusters with megacities as the core so that they can boost development in other areas and become new poles of economic growth.
6. Improve the basic economic system and the modern market system. We need to uphold and improve the basic economic system in which public ownership is dominant and different economic sectors develop side by side, unwaveringly consolidate and develop the public sector of the economy, unswervingly encourage, support and guide the development of the non-public sector, ensure equal protection of property rights, and create a new situation in which all economic sectors compete on an equal footing and reinforce each other. We will deepen the reform to introduce the corporate and shareholding systems in state-owned enterprises, improve the modern corporate structure and optimize the distribution and structure of the state sector of the economy to enhance its dynamism, dominance and influence. We will deepen the reform of industries by introducing competition, and strengthen government regulation and public oversight of them. We will accelerate development of a budget system for managing state capital and improve systems and regulations for managing all types of state assets. We will press ahead with the reform of collective-owned enterprises and develop various forms of collective and cooperative economic operations. We will promote equitable market access, improve the development of individually-owned businesses and private companies as well as small and medium-sized enterprises. We will develop the economic sector of mixed ownership based on the modern system of property rights. We will accelerate the formation of a modern market system that is unified and open and that allows orderly competition, develop markets for factors of production, improve the pricing mechanism for factors of production and resources to reflect changes in market supply and demand, resource scarcities and environmental costs, regulate and develop industry associations and market-based intermediaries, and improve the social credibility system.
7. Deepen fiscal, taxation and financial restructuring and improve macroeconomic regulation. We will improve the public finance system as we work to ensure equal access to basic public services and establish development priority zones. We need to deepen reform of the budget system, tighten budgetary management, improve the system whereby both the central and local governments have financial resources proportionate to their duties and responsibilities, accelerate the establishment of a unified, standardized and transparent system for transfer payments, enlarge the size and proportion of general transfer payments, and increase input in public services. We will improve fiscal systems at and below the provincial level to enhance the capacity of county and township governments to provide public services. We will adopt fiscal and taxation systems conducive to scientific development and set up sound compensation systems for use of resources and for damage to the ecological environment. We will proceed with financial reforms to develop various types of financial markets and build a modern financial System that is inclusive of different forms of ownership and different ways of operation and that features a reasonable structure, complete functions, efficiency and security. We will make our banking, securities and insurance industries more competitive. We will improve the structure of the capital market and raise the proportion of direct financing through multiple channels. We will strengthen financial supervision and control, and forestall and defuse financial risks. We will improve the RMB exchange rate regime and gradually make the RMB convertible under capital accounts. We will deepen reform of the investment system and improve and strictly enforce market access rules. We will improve the state planning system. We will give play to the guiding role of national development plans, programs and industrial policies in macroeconomic regulation and combine the use of fiscal and monetary policies to improve macroeconomic regulation.
8. Expand opening up in scope and depth and improve our open economy. Adhering to the basic state policy of opening up, we will better integrate our "bring in" and "go global" strategies, expand the areas of opening up, optimize its structure, raise its quality, and turn our open economy into one in which domestic development and opening to the outside world interact and Chinese businesses and their foreign counterparts engage in win-win cooperation, and one that features security and efficiency, in order to gain new advantages for China in international economic cooperation and competition amid economic globalization. We will deepen the opening up of coastal areas, accelerate that of inland areas 'and upgrade that of border areas, so that opening up at home and opening to the outside world will promote each other. We will expedite transformation of the growth mode of foreign trade, stress quality, adjust the mix of imports and exports, promote transformation -and upgrading of processing trade, and energetically develop service trade. We will make innovations in the way of using foreign capital, improve the structure of foreign investment utilized, and let the use of foreign capital play a positive role in facilitating independent innovation, industrial upgrading and balanced development among regions. We will make innovations in our way of overseas investment and cooperation, support domestic enterprises in carrying out international operations of R&D, production and marketing, and accelerate the growth of Chinese multinational corporations and Chinese brand names in the world market. We will vigorously carry out mutually beneficial international cooperation in energy and resources. We will implement a strategy of free trade zones and expand bilateral and multilateral trade and economic cooperation. We will adopt comprehensive measures to maintain a basic equilibrium in the balance of payments. We must guard against international economic risks.
By ensuring sound and rapid growth of the economy, we will further enhance China's economic strength, and enable our socialist market economy to exhibit its great vitality.
VI. Unswervingly Developing Socialist Democracy