1、REPORT ON THE WORK OF THE GOVERNMENT Delivered at the First Session of the 11th National Peoples Congress on March 5, 2008 Wen Jiabao Premier of the State Council Fellow Deputies, On behalf of the State Council, I would now like to deliver to you a report on the work of the government over the past
2、five years and on the arrangements for its work this year for your deliberation and approval and also for comments and suggestions from the members of the Chinese Peoples Political Consultative Conference (CPPCC). I. Review of the Work of the Past Five Years The past five years since the First Sessi
3、on of the 10th National Peoples Congress was a momentous period. Under the leadership of the Communist Party of China (CPC), governments at all levels and people of all the ethnic groups in China diligently followed the guiding principles set out at the 16th CPC National Congress and worked in conce
4、rt and with dedication. We vigorously responded to the complex and volatile international environment, strove to overcome various difficulties hindering economic and social development, and prevailed over the sudden and severe outbreak of SARS and catastrophic natural disasters such as the recent sn
5、ow and ice storms in the south that the region has rarely seen before. We made major achievements in reform, opening up and modernization, which attracted the attention of the world. - The economy reached a new high. Chinas GDP in 2007 reached 24.66 trillion yuan, an increase of 65.5% over 2002 and
6、an average annual increase of 10.6%, rising from the sixth highest one in the world to the fourth. Total government revenue reached 5.13 trillion yuan, a 171% increase over 2002. Our foreign exchange reserves exceeded 1.52 trillion U.S. dollars. - The agricultural tax was rescinded, ending the centu
7、ries-old practice of farmers paying taxes. Chinas grain output rose four consecutive years to reach 501.5 million tons in 2007. - Major progress was made in the reform of state-owned enterprises (SOEs), the financial system, fiscal and taxation systems, the system of foreign trade and economic coope
8、ration, and the administrative system. China has entered a new stage in developing a more open economy. Total volume of imports and exports reached 2.17 trillion dollars in 2007, raising China from the sixth largest trading nation in the world to the third largest. - Good progress was made in effort
9、s to make China more innovative, and a number of major scientific and technological innovations with international impact were made. Manned space flights and our first moon exploration project were successfully carried out. - Free compulsory education was made available to all rural students, markin
10、g an important milestone in the history of the development of education in China. The basic frameworks for a public health system and a system of basic medical services covering both urban and rural areas have been put in place. - Steady improvement was made in the urban and rural system of public c
11、ultural services. Significant progress was made in reform of the cultural management system, and the development of cultural programs and cultural industries was accelerated. The Shanghai Special Olympics was successfully held. Preparations for the 2008 Olympics and Paralympics in Beijing and the 20
12、10 World Expo in Shanghai proceeded smoothly. - Progress was made in developing democracy and the legal system and in enhancing law-based government. Greater efforts were made to safeguard peoples rights and interests and ensure social fairness and justice. - Peoples living standards improved signif
13、icantly. Fifty-one million urban jobs were created over the past five years. Urban per capita annual disposable income rose from 7,703 yuan in 2002 to 13,786 yuan in 2007, and rural per capita annual net income rose from 2,476 yuan to 4,140 yuan during the same period. The basic framework for a soci
14、al safety net for both urban and rural areas was put in place. The number of people living in poverty was reduced every year. All these improvements fully demonstrate that during the past five-year period great strides were made in carrying out reform and opening up and building a moderately prosper
15、ous society in all respects. During this time the productive forces and overall national strength were significantly improved, social programs were comprehensively developed, people received even greater benefits and Chinas international standing and influence constantly grew.During the past five ye
16、ars we established and put into practice the Scientific Outlook on Development, worked hard on economic development, deepened reform and opening up, ensured the wellbeing of the people, improved their lives, and promoted social harmony. We made great efforts and accomplished a great deal. 1. Improvi
17、ng macroeconomic regulation to promote steady and rapid economic development. We endeavored to make macroeconomic regulation more proactive, responsive and effective, with the focus on resolving major problems affecting economic operation. Over the past few years, we tightened controls on the suppli
18、es of land and credit, raised market access requirements, adjusted financial and monetary policies as needed, improved industrial policies and the land policy, adjusted the economic structure, shored up weak links and effectively regulated economic operation to address problems such as overheated gr
19、owth in fixed asset investment, excessive supplies of money and credit, excessively large trade surplus, and weakness in agriculture, the foundation of the economy, which could cause economic development to become unstable, unbalanced and unsustainable. In response to changes in the economy, we have
20、 repeatedly made timely adjustments in the required reserve ratio and the benchmark interest rates for savings and loans in financial institutions and rescinded or reduced export tax rebates for resource products and products whose production is energy intensive or highly polluting. These macroecono
21、mic regulatory measures produced significant results, and Chinas economy maintained steady and rapid development throughout the five-year period, without experiencing major fluctuations. We adopted a series of major measures related to institutions, policies and investment to increase grain producti
22、on and rural incomes as a matter of priority and strengthen agriculture as the foundation of the economy. We completely rescinded the agricultural tax, livestock tax and tax on special agricultural products throughout China, reducing the burden on farmers by an average of 133.5 billion yuan per year
23、. In addition, we set up a subsidy scheme for agriculture, instituting direct subsidies for grain producers, subsidies for superior crop varieties, subsidies for the purchase of agricultural machinery and tools, and general subsidies for agricultural production supplies and providing incentives to m
24、ajor grain-producing counties and subsidies to counties and townships with serious financial difficulties. Investment in agriculture and rural areas was greatly increased. Central government allocations for agriculture, rural areas and farmers reached 1.6 trillion yuan over the past five years, incl
25、uding nearly 300 billion yuan that was used for developing rural infrastructure. Local governments also substantially increased their input. During the five-year period, an additional 6.667 million hectares of farmland was equipped with water-saving irrigation facilities, methane gas was made availa
26、ble to 16.5 million more households, 1.3 million kilometers of rural roads were built or upgraded, and safe drinking water was provided to an additional 97.48 million rural residents. A system for the prevention and control of major animal diseases was set up, and the spread of highly pathogenic avi
27、an influenza was prevented. These measures greatly encouraged farmers to grow more, gave a strong impetus to the development of a new socialist countryside and brought historic changes to rural China to the great satisfaction of hundreds of millions of rural people. Agricultural development played a
28、n important role in ensuring the overall stability and development of Chinas economy and society. We formulated the Outline of the National Program for Long- and Medium-Term Scientific and Technological Development, which contains comprehensive plans for the development of science and technology in
29、China from 2006 through 2020 and calls for the launching of a number of major projects. This will have an important and far-reaching impact on efforts to strengthen Chinas capacity for independent innovation and make it an innovative country. Work in basic research and research in leading-edge techn
30、ologies was intensified; a number of major innovations such as high-performance computers, third generation mobile communications, and super-hybrid rice were achieved; and a number of products that are competitive and carry Chinese intellectual property rights were developed. The central government
31、spent 340.6 billion yuan on science and technology over the past five years. Chinas total investment in research, experimentation and development rose from the 128.8 billion yuan of 2002 to 366.4 billion yuan in 2007, with its share in the GDP rising from 1.07% to 1.49%. Major progress was made in d
32、eveloping a system for technological innovation in which enterprises play a key role. The capacity of scientific and technological innovation to sustain and boost economic and social development was markedly increased. We formulated and implemented a series of industrial policies and special plans designed to improve and upgrade the industrial structure. Development of new and high technology industries in information, biology, aerospace, new energy sources, new materials and oceanography was accelerated. Efforts to boost the equipment manufacturing industry produced
