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The right shift for economic development

By Liu Junhong | China Daily | Updated: 2009-04-22 07:49

When the severest global financial crisis since the Great Depression directly affects the Chinese economy, economic transition stands out as a crucial measure to surmount the turmoil and create opportunities to ensure China's sustainable economic growth.

However, a black-and-white view of economic transition is not an option. The more critical the transition, the more important a scientific approach on development is needed. We should make clear what to abandon, what to maintain, and what to develop, so that the baby will not be thrown out with the bath water. The following issues should be objectively assessed.

First is the recognition of market principle. In the financial crisis, with the shrinking world market and the diving global economy, the idea of an omnipotent market comes under scrutiny. Policies including government guidance, fiscal stimulus, and employment subsidies are widely applied around the globe. It is without doubt that necessary and effective measures to deal with the crisis and revive the economy as soon as possible are needed.

The right shift for economic development

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