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| Mr. Yi Xiaozhun's portfolio covers the Department of International Trade and Economic Affairs, Department of WTO Affairs, and China Asia-Pacific Association for Promoting Economic and Trade Cooperation. |
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| Statement by Mr. Yi Xiaozhun, Assistant Minister of Commerce At the 5th Donor Coordination Meeting on Development Cooperation Follow up to Shanghai Conference on Poverty Reduction and Meeting the Millennium Development Goals |
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| 2005-02-01 08:34 |
Ladies and gentlemen,
Good morning. I am very pleased to have the opportunity to meet you again and discuss issues related to poverty reduction. Prior to this current meeting, the Ministry of Commerce has convened several similar meetings on different subjects. This coordination mechanism prove to be remarkably effective in promoting better communication and common understanding between Chinese Government and multilateral as well as bilateral donors to China. I’d like to take this opportunity to extend, on behalf of the Ministry of Commerce, our heartfelt thanks to donor agencies and the Chinese counterpart as well for your contribution to making our coordination effective and also our warm welcome to all of you for your participation at this meeting.
Ladies and gentlemen,
Twenty-five years since China adopted the policy of reform and opening up, China’s economic and social development has achieved significant progress following a strategy that takes the policy of opening up as a key to promote reform and development. In 2003, China’s GDP has exceeded USD 1400 billion with a GDP per capita of more than USD1000 for the first time in history and the total import and export volume of more than USD850 billion. China’s achievements have won world-wide recognition.
Sustained economic growth has provided strong boost to our national effort on poverty reduction. Since 80s of the 20th century, the Chinese Government has made unremitting effort and implemented effective poverty reduction programmes of a massive scale. These programmes helped to provide food and clothing to meet the needs of more than 200 million people living at the subsistence level. In May this year, at the very first global gathering in Shanghai on poverty reduction, the Chinese Government shared its experiences in poverty reduction. The participating countries and international agencies all commended China for its achievements in this field.
However, poverty reduction in China is a long-term endeavour. While we have successfully solved the problem of providing adequate food and clothing to our people, currently 30 million people still remain in extreme poverty. Even more disturbing is the fact that this number has been persistent without decline for years and this year we even saw a slight increase in number, making the problem even more hard to deal with. Further more, problems which come about as the economic transition progresses have made the poverty reduction effort even more rigorous and complex. For example, some people have returned to poverty, people fall into poverty trap due to health problems or loss of jobs and vulnerable groups have emerged such as urban population relying on minimum welfare support. All these problems have brought new challenges to our poverty reduction effort. The Chinese Government all along attaches great importance to poverty reduction as this has great bearings on sustainable economic development and long-term social stability of our country and the Government has taken concrete steps to improve the situation. The “Policy Statement of Poverty Reduction” pronounced by the Chinese Government and the “Shanghai Agenda on Poverty Reduction” adopted at the Global Conference have put on our shoulders new responsibilities and tasks for international collaboration to fight against poverty.
That is why we have chosen poverty reduction again as the theme of the current session of donor coordination on development cooperation and as our concrete follow-up to the Shanghai Conference in order to deepen our cooperation with donors and international agencies through policy dialogue. I am convinced that such dialogue will play an active role in further strengthening poverty reduction effort and earlier achievement of MDGs by China.
In order for us to have enhanced understanding of some preliminary thinking on poverty reduction during the 11th five year plan period as well as during the implementation of the regional development strategy for the West of China and the strategy for revitalization of the old industrial base in the North East China, we invited representatives from the Office for Poverty Reduction under the State Council and from the Offices for Regional Development of West China and for Revitalization of the Old Industrial Base in the North East China to speak on the subject. I hope that their interventions will enable us to have a comprehensive and clear understanding on the challenges, approaches to be adopted and priorities for international cooperation in areas of poverty reduction. I also hope that through discussions this afternoon, we will also have an adequate reading of the comparative advantage of our donors in terms of knowledge and skills and resources for poverty reduction so that we can direct international support more effectively to reinforce China’s own effort and to turn the solemn pledge of the Chinese Government at the Shanghai Conference into concrete actions.
We are fully aware that for a large developing country such as China, only can we ensure that majority of people enjoy economic benefits, can we realize a true development. Meanwhile, we also come to realize from the lessons learned that economic growth does not necessarily lead to poverty reduction and some times it even further widens income gaps constraining development process. Therefore, to achieve poverty reduction cashing in on economic growth and realize a balanced economic and social development, we not only need policy guidance of the Government but also exchange of international experiences and lessons learned as well as continued support from international communities through development cooperation.
I also hope that today’s discussion will enable us to reach an objective assessment of China’s national situation. This is because in recent years with sustained growth of our national economy, questions arise as to whether or not China still needs foreign aid. Should China graduate? Being a Chinese and a government official, I am as a matter of fact pleased to see the increased world attention on China’s development and related discussions on the subject for it confirms that China is truly developing and that international community’s support through development cooperation over the last 25 year has borne meaningful results. Nonetheless, if we look at the country’s situation with a sober mind, we believe that for quite some time in future, China will still be in need of assistance from the multilateral as well as bilateral aid agencies. And in turn, the world development will be indispensable from China’s success. Therefore, China will continue and intensify its development cooperation with the international communities.
First, as a low and medium income developing country, China still needs increased support from the international communities. According to the UN criteria, the low and medium income countries have been classified as to have per capita income ranging from US$799 to US$2990. China’s per capita income has only reached a little over US$1000 far from the threshold of graduation. China’s large population, weak economic base, low productivity and uneven regional development as well as emerging issues driven by rapid economic growth, particularly social problems associated namely with widening disparities in regional development, growing number of people living with HIV/AIDS, increasing trend of population ageing and mounting number of migrants and inadequate capacity in provision of social security and protection. All these features China’s reality and therefore, while China will continue its own tireless effort, it needs continued attention and support from the international communities.
Second, international assistance from multilateral as well as bilateral agencies will continue play with the same vigor an irreplaceable role in China’s development process. Since the beginning when China first received grant aid from UN agencies and from the west, China’s development pursuit has benefited from the world proven experiences, appropriated technologies, necessary means and new ideas and concept through diversified modalities of cooperation, such as consultancies, research and development and technical training. International development cooperation has allowed China’s development effort to avoid many detours. In future, we will still need to collaborate with multilateral and bilateral agencies on all front, at all levels and in broader areas of development, such as reducing poverty, balancing regional development, strengthening public health system and disease control, promoting ecological conservation and sustainable environment, developing human resources, enhancing and building capacities and strengthening and improving legal and social security system. I am confident that development assistance will continue to play the role no other form of assistance can challenge in supporting China’s reform and opening up pursuit.
Third, the new scientific concept for development put forward by the Chinese Government has given new prospect to further China’s engagement in development collaboration with international communities. Taking stock of experiences and lessons learned over the last 25 years in reform and opening up as well as experiences of the international communities particularly those of the developed countries, the Chinese Government has come up with a new scientific concept last year for an all round, coordinated and sustainable development that put people at the core of the development process to promote a sound development that balance the national economy with society and people. In order to translate this new concept into reality, the Chinese Government has further called upon the country to embark on a road of development that will maintain “five balances” between rural and urban areas, across regions, between economic and social development, between man and nature and between domestic development and opening up. No matter whether it is a call for a “people centred approach”, or for keeping balances between urban and rural development, across region and between social and economic development, these are all in line with our development cooperation effort and so, the new scientific concept for development and the goal for building a moderate affluent society for all Chinese people has clearly spelled out the future direction for China’s effort towards sustainable development and presented us with opportunities for further international development cooperation.
Fourth, China’s record for quality implementation of programmes is the best grantee for anticipated results of international cooperation as the Chinese Government attaches great importance to its collaboration with donor communities and international agencies. Over the years, the Government at all levels of administration as well as agencies have acquired a team of highly committed and capable professionals and management personnel for programme implementation and project execution. This has ensured the smooth implementation of cooperation programmes with most desired result. China’s quality performance in this respect has been fully recognized by donors and international agencies. If we regard development cooperation as a form of investment, I trust that China’s environment for such investment is favourable as it absolutely ensures the highest return of our donors’ support. Besides, the improvement in terms of policies, human resources and management through development cooperation, will also provide an environment and business opportunities conducive to foreign investment.
I have spoken to some of you present here today in Shanghai earlier this year that you are not only the witness of China’s reform and opening up process but, more importantly, you are the participants. In the years ahead, the Chinese Government will earnestly pursue the new scientific concept for development, give priority to continue implement regional development strategy for the Western Region, revitalize the old industrial base of the North Eastern Region and support the rise of central China, The Government will continue to give priority to assist ethnic populated areas, border areas as well as underdeveloped areas. These are also the areas of focus where we will strengthen our relations with multilateral as well as bilateral agencies and intensify our development collaboration with them. The Ministry of Commerce together with other agencies of the Chinese Government will continue consultations with all of you present here today to ensure that international assistance link closely with our overall plan for national social and economic development and go hand in hand with China’s effort in building a well off society for all Chinese people.
Ladies and Gentlemen,
Peace and development is still the order of the day. A country that is stable and prosperous such as China will be a great contribution to the regional as well the world development. Consequently, further collaboration in the field of development with international communities will help China to sustain stability and prosperity. Assist China even in a modest way, she will surprise the world with great success. Let’s make joint efforts, strengthen our cooperation and persevere with our efforts for shared achievements by all countries and for a bright future for the whole world.
I thank you all for your attention.
(source: Department of International Trade and Economic Affairs)
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