Guizhou Speeds up Transformation

XU YING

IN the first month of 2012, the beating of festival drums heralded exciting news for Southwest Chinas Guizhou Province.

A government report released on January 10 at the Guizhou Provincial Peoples Congress revealed that in 2011, Guizhous GDP had grown rapidly to RMB 570.2 billion, an increase of RMB 100 billion, or 15 percent, over the previous year.

This is Guizhous best performance in 20 years. Previously Guizhous economic fortunes were lackluster compared to other Chinese provinces and regions. But last year the province surpassed the national average growth in eight major economic indicators including GDP, industrial added value and imports & exports. In two of the categories, Guizhou came in at number two and number three nationwide. Two days after the release of the government report, the State Council published documents focusing on supporting and promoting rapid and sound economic development in the province.

These documents aim at creating policy that provides opportunities for less developed provinces and ensures that Chinas economic growth spreads away from the countrys coasts. Growth has obviously already spread to Guizhou. There, the question is not such much how to create growth as how to sustain it.

“For Guizhou, the central governments 12th Five-year Plan (2011-2015) offers strategic opportunities for historically significant economic and social development. Seizing these opportunities should speed up the building of a prosperous, middle-income society. This period of time (2011-2015) will also be critical for changes in the economic structure of the province and the orientation of its industries.It is vital– and wholly realistic – for Guizhou to continue to take the initiative in solving development problems and pushing its economy forward. Its an exciting time,”commented Li Zhanshu,Secretary of CPC Guizhou Provincial Committee, during our interview in which the usu- ally solemn official couldnt suppress his enthusiasm for Guizhous prospects.

Li Zhanshu remarked that Guizhou has historically been less developed and its resources unexplored. Its disadvantages include a small economy with low per capita income and a relatively boasts abundant natural resources, and rich mineral deposits and abundant raw materials are waiting to be exploited. Tapping these industries should give a massive economic boost to the province.

“So, how do we actually go about changing the economic fortunes of Guizhou?” Li posited. “Our provincial government believes there are two issues to be tackled. One is to sustain a growth dynamic amid a global economic slowdown, and the other is to continue to transform the pattern of growth. To do these things, we need to be open-minded to new business opportunities, innovate and take stock of our strengths. Given our economys low starting point, we have to stay above the national and regional growth rates to close the gap with the economically vibrant regions.”

“Speeding up transition and sustaining growth” is the guiding principle for all aspects of the provincial governments targets during the 12th Five-year Plan period, and dominates all its economic and social programs.

Guizhous 2012 government report also stressed the importance of urbanization in building up an industrial province, the stability and diffusion of growth, controlling inflation, and the development of hi-tech industries. The goal is to improve livelihoods of the residents in an equitable way, and quickly.

According to the plan, 2012 will see a 14 percent rise in local GDP, and a 50 percent increase in fixed assets investments, equating to an investment of RMB 765 billion in fixed assets by the province – RMB 255 billion more than in 2011.

Ten items are raised as targets for increased investment, including urban planning, infrastructure and the provision of public services. Further reforms are specified in the areas of transportation, modern agriculture, industrial zones, attracting outside investment, local government efficacy, healthcare and others. In the plan, stability and sustainability are emphasized as the key to economic development. The foci above are in line with key development imperatives nationwide, which include continuing industrial restructuring, balancing development between urban and rural areas, boosting education, promoting science and technology, and furthering the “opening-up” mission.

“Speeding up growth is important for Guizhous development, but the quality and efficiency of that growth should not be ignored; these are the things that bring substantial benefits to our people. There are many relics of the past in Guizhou – industries that dont take full advantage of the latest technologies and lack the ability to compete on the national and world stage. These are the industries on which we need to focus our transformation efforts,” Li said.

The State Council has positioned Guizhou as a national base for energy production, deep processing of natural resources, light industry, aviation equipment manufacturing and land route transit. It has also promoted the province as a model of poverty alleviation, tourism development and ethnic solidarity. The local government is pressing ahead on all these fronts to seek sound and comprehensive development.

Ecological and environmental protection is also outlined as a vital imperative in Guizhou, which sits on the upstream of the Yangtze River and the Pearl River. Modernization of agriculture and the building of new countryside are further stressed as key to promoting the balanced development of urban and rural regions. Being people-oriented is important for benefiting residents in the province. Guizhous people, Li said, have experienced the hardships of poverty, and their steadfast spirit and cando attitude should enable them to catch up with Chinas better-off regions.

“We will prove that Guizhou is no longer a backward province. This outdated stereotype, still prevalent in China, needs to be abandoned. By focusing on our strength, were planning a stepby-step effort to build a better future for the multitudinous ethnic groups that form the patchwork quilt of our diverse province,” Li said.

Scientifically sustaining Guizhous development and speeding up the process of building a better-off society are Guizhous goals. They are reminiscent of Li Zhan-shus remarks during a recent provincial conference on openingup and reform, “We should maintain our determination and courage to make progress towards a more prosperous future for Guizhou and get ready to welcome the 18th National Congress of the Communist Party of China this autumn.

Guizhou is ready, and its bright future is plain to see.