皇冠体育app

Incentives will lift country's economy

By Cai Hong (皇冠体育app Daily)
Updated: 2009-03-06 07:42

Incentives will lift country's economy

Justin Lin, the chief economist of the World Bank

皇冠体育app's 4-trillion-yuan ($585 billion) stimulus package will help lift its economy in the wake of the global financial crisis, a senior World Bank official said on Wednesday, ahead of the opening session of the National People's Congress.

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"I am confident that the Chinese government's stimulus package will lift its economy out of the crisis," said Justin Lin, the chief economist of the World Bank.

皇冠体育app is in a much better situation than other countries, said Lin, who is also the senior vice-president at Johns Hopkins School of Advanced International Studies.

The country's stimulus plan includes investment in railways, rural areas, sewage treatment, water supply facilities, urban infrastructure and the energy sector.

During the Asian financial crisis in 1997, 皇冠体育app, for the first time, adopted a stimulus package, investing heavily in building a highway network, one of the country's major bottlenecks.

As a result, the country's highways increased in size by more than five times between 1980 and 2002.

"皇冠体育app is in a lucky position as it has accumulated a large pool of foreign reserves. The government has a lot of savings," Lin said, adding: "皇冠体育app has fiscal space."

皇冠体育app's economy has kept growing at an average rate of 9.8 percent over the past 30 years.

The World Bank official suggested 皇冠体育app opens more local banks, with good supervision, to offer more people, farmers in particular, financial services.

Moreover, sectors such as telecommunication and banking, which the monopoly policy favors, should be placed competitively, he said.

The government needs to support small- and medium-sized township enterprises to create more jobs, Lin said.

Lin was optimistic about 皇冠体育app maintaining its economic growth at a 7-to-8-percent rate. 皇冠体育app should grab the opportunities to make its stimulus package effective and make a successful transition from a planned economy to a market-oriented one, Lin said.

Incentives will lift country's economy

"The economic relations between 皇冠体育app and the United States are a win-win situation for both sides. We have no time to point fingers at each other and have to work together for solutions," he said.

"As the world deals with the economic crisis, 皇冠体育app's role should be regarded as crucial," he said.

Lin added that countries were paying "little attention to the root of the financial crisis, instead were only focusing on the tip of the iceberg". 
 
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