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Case Study: chinas national development and reform commission

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Key point• The National Development and Reform Commission in China is an example of a well-performing inter-ministerial organization that could be a model for other developing countries

Trang 1

Key point

• The National Development and Reform Commission in China is an example of a well-performing

inter-ministerial organization that could be a model for other developing countries to adapt for

implementing green growth policies

There was an institutional gap…

The State Planning Commission was established in 1952 as a central economic planning and management

agency However, the transition of the Chinese economy from a command system to the socialist market

economy system in the late 1990s called for establishing an institution to coordinate between the

macroeco-nomic and microecomacroeco-nomic affairs, to create a competitive but fair market environment and to draft national

development strategies for adapting to the new economic system.1

What was done?

In 1998, the National Development and Reform Commission2 was launched as the government agency

devoted to generating economic and social policies while maintaining a balance between economic

arroga-tion and economic restructuring With supervision from the State Council, the Naarroga-tional Development and Reform

Commission has 26 functional departments, bureaus and offices

Figure 1: Historical development of the NDRC

Source: People’s Republic of China, National Development and Reform Commission official website “Brief Introduction of the NDRC”

Available from http://en.ndrc.gov.cn/brief/default.htm (accessed 15 March 2012).

The major functions of the National Development and Reform Commission:

• Establish and implement national economic and social development strategies, long-term and annual

plans, and industrial and price policies

• Monitor and adjust the performance of the national economy, maintain the balance of economic

aggregates and optimize major economic structures

• Examine and approve major construction projects

• Guide and promote the restructuring of the economic system

• Perform strategic readjustments, upgrade industrial structures, coordinate the development of

agriculture and the rural economy and guide the industrial development

• Establish energy sector development plans and manage the national oil reserve

• Promote the sustainable development strategy, including social development and coordination

of regional development

Results

The National Development and Reform Commission is treated as a “super ministry” due to its broad scope of authority over national medium- to long-term economic plans, approving foreign investment projects and coor-dinating and monitoring various other economic development policies The National Development and Reform Commission developed the Twelfth Five-Year Plan (announced in March 2011), which leans heavily towards environmentally sustainable growth as well as equitable wealth distribution and increasing domestic consump-tion

1 China Daily, “National Development and Reform Commission”, November 16, 2006 Available from

www.chinadaily.com.cn/bizchina/2006-11/16/content_734828.htm (accessed 27 February 2012).

2 People’s Republic of China, National Development and Reform Commission website “Main Functions of the NDRC” Available from

http://en.ndrc.gov.cn/mfndrc/default.htm (accessed 4 October 2011).

State Planning

Commission

State Development Planning Commission established

Merging of the State Council Office for Restructuring the Economic System and State Economic and Trade Commission

Guiding the shift to a new economic system

China’s National Development and Reform Commission

CASE STUDY

Low Carbon Green Growth Roadmap for Asia and the Pacific

Trang 2

Key point

• The National Development and Reform Commission in China is an example of a well-performing

inter-ministerial organization that could be a model for other developing countries to adapt for

implementing green growth policies

There was an institutional gap…

The State Planning Commission was established in 1952 as a central economic planning and management

agency However, the transition of the Chinese economy from a command system to the socialist market

economy system in the late 1990s called for establishing an institution to coordinate between the

macroeco-nomic and microecomacroeco-nomic affairs, to create a competitive but fair market environment and to draft national

development strategies for adapting to the new economic system.1

What was done?

In 1998, the National Development and Reform Commission2 was launched as the government agency

devoted to generating economic and social policies while maintaining a balance between economic

arroga-tion and economic restructuring With supervision from the State Council, the Naarroga-tional Development and Reform

Commission has 26 functional departments, bureaus and offices

Figure 1: Historical development of the NDRC

Source: People’s Republic of China, National Development and Reform Commission official website “Brief Introduction of the NDRC”

Available from http://en.ndrc.gov.cn/brief/default.htm (accessed 15 March 2012).

The major functions of the National Development and Reform Commission:

• Establish and implement national economic and social development strategies, long-term and annual

plans, and industrial and price policies

• Monitor and adjust the performance of the national economy, maintain the balance of economic

aggregates and optimize major economic structures

• Examine and approve major construction projects

• Guide and promote the restructuring of the economic system

• Perform strategic readjustments, upgrade industrial structures, coordinate the development of

agriculture and the rural economy and guide the industrial development

• Establish energy sector development plans and manage the national oil reserve

• Promote the sustainable development strategy, including social development and coordination

of regional development

Results

The National Development and Reform Commission is treated as a “super ministry” due to its broad scope of authority over national medium- to long-term economic plans, approving foreign investment projects and coor-dinating and monitoring various other economic development policies The National Development and Reform Commission developed the Twelfth Five-Year Plan (announced in March 2011), which leans heavily towards environmentally sustainable growth as well as equitable wealth distribution and increasing domestic consump-tion

Low Carbon Green Growth Roadmap for Asia and the Pacific :

Case Study - China’s National Development and Reform Commission

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