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Three Major Experiences of the “12th Five-Year Plan”

By Dr. GUO Wanda, Executive Vice President of CDI

During the new period of development in China, the five-year plan still plays a significant role. Yet planning priorities and policy tools need some corresponding readjustments. Regarding to the summary of the “12th Five-Year Plan”, there are three major experiences:

Experience 1: Essential to an “Innovation-Driven” Power
China’s five-year plan is not only essential to lead current development, but also future innovation. History has proven a robust economy rests with a strong nation; the stronger a nation is, the better its economy.

Even if we now boast a relative mature market, dealing with future uncertainties and competitions among global economies calls for a national development program.

Experience 2: Focus on the “Positive List” Mechanism
The 12th five-year plan focuses on social and economic development at the macro level. It suits the “positive list” management and will greatly prompts market vitality and enterprises’ creativity.

Different countries stand at different growth stages, meets various limits, thus introducing varying planning focal points. China also has its unique government- dominated growth track and adopts a “positive list” in arrangement and planning:
-the first item falls on state capacity building, including infiltrating, learning and coordinating;
-the second item relates to future and market oriented industrial policies;
-the third item offers public fundamental services to create a profitable environment for enterprise, individual and our society.

Experience 3: Stick to “Chinese-Style” Decision-Making Mode
When looking into China’s five-year plans, it is not hard to find the distinctive role of brainstorming in decision-making. It brings about a healthy and sustainable economy and society.

By pooling heads together, governments can make macro study and prudent judgment before hand, which ensures specific technologies, industrial structures and modes closely interacted and timely provided to businesses and markets.

(August 11,2016)