Chillin' out till it needs to be funded
The new 5 year plans discussed a t the week long People’s Congress seem like any “Western” Power point exercises, broad strokes with all the “Good stuff” Even these plans underline the need for growing domestic demand, urbanisation at the top among China’s many development plans for the period till 2016. Over 25 million new Chinese would need jobs every month in this period according to estimates while the current growth in the economy also caps availability at 14 million .
Of the new 25 million jobs, 12 million are likely to go to College educated grads and with 10 million new unemployed itting the streets everyday, the picture is nlikely to sooth any nerves. Domestic consumption remains less than 50% of the Chinese GDP and is another hard target for policy makers with the 5 year plan asking for a tilt towards western nations with 70% consumption in the documents that did pass muster.
Income distribution and improved social security are among other state sponsored objectives for the plans in their final discussions this week that would likely optimise the consumption environment even as inflation continues to threaten that progress. China has already suspended nuclear power development plans in light of the Fukushima plant’s near disaster situation in Sendo in NE Japan
The city of Shanghai in the mean time became one of the first to post a commitment to a basic healthcare system online. With many cities straddling the real estate boom with western finance, it is likely to get adequate municipal funding for development and reform even as economic surpluses dry up and more reports on currency action become front page news