Reforms In Mainland China.

Content.

▪ Brief introduction of china.

▪ Reform.

▪ Administrative reform.

▪ Economic reform.

▪ Health reform

▪ Education and curriculum reform.

▪ Science and technology reform.

▪ Conclusion.

Introduction of China.

Formation:

▪ Unification of china: 221 BCE.

▪ Slavery abolished and overthrew dynasty rule 1910.

▪ Republic established 1st January 1912(Slavery abolished and overthrew dynasty rule 1910).

▪ People’s Republic proclaimed 1st October 1949.

▪ Physically located in East Asia

▪ Capital: Beijing

▪ Official language: Standard Chinese

▪ Currency: Renminbi (Yuan)

▪ Total area: 3,705,407 sq mile

▪ Total population: 1,339,724,852 (according 2010census)

▪ Gdp: $9,469 trillion

What is Reform?

Reform means an induced, permanent improvement in system.

~Wallis.

▪ Administrative reform

Administrative Reform.

▪ Introduction.

The Chinese administrative system has been experiencing periodical organizational restructuring and reform since the early 1980s Administrative reforms in post-Mao China have unfolded in the period of large-scale socioeconomic transformation, that is, transition from a central planned economy to a market economy, and transition from a traditional agricultural society to a modern and industrial one. Such a transformation not only affects the economic conditions of Chinese people, but also reshapes the parameters for political governance in China.

Table 1. Major administrative reforms in the 1980s

Period performance outcomes

Table 2. Major administrative reforms in the 1990s

Table 3. Major administrative reforms in the new century.

Conclusion.

▪ Though China’s attempt to make the administrative system suitable for the emerging market economy has been serious, there is still a long way to go before China can establish a modern public administration.

▪ Economic reform

Economic Reform.

▪ Introduction:

▪ In 1949 china was one of the poorest and most undeveloped countries in the world. 99% of the economy was owned by state. Less than 13 % lived in the cities, most of the population worked in the agriculture. Although government tried to push industrialization productivity was very low. So because of these reason the reformist started to restructure the economy from a command to a market economy, from an economy based on agriculture to one based on manufacturing and services.

Economic Reforms.

▪ 1978

▪ Economic Reform - Socialism with Chinese Characteristics

The Central Committee decides to substantially increase the role of market mechanisms in the system and reducing (but not eliminating) government planning and direct control. The first reforms consisted of opening trade with the outside world, instituting the household responsibility system in agriculture, by which farmers could sell their surplus crops on the open market, and the establishment of Town Village Enterprises (TVE).

▪ Duel Track System

▪ China opens up to foreign trade establishing the Yuan as its foreign trade currency and the renmenbi as its domestic currency. PRC sets up one price for State Owned Enterprises (SOEs) and another price for private sector goods with SOEs enjoying lower prices than the private sector.

Economic Reform.

▪ 1979

▪ Law on Sino-Foreign Equity Joint Ventures

▪ Marked the official welcoming of foreign investment in China

▪ Deng lays out the Four Cardinal Principles upholding the socialist road, the people’s democratic dictatorship, the leadership of the CCP, and Maxis-Leninist-Maoist Thought. Deng states that these are essential to China’s advance, to achieving the Four Modernizations and reasserts legitimacy of the CCP

Economic Reform.

▪ April 1980

PRC becomes member of the International Monetary Fund

▪ May 1980

PRC becomes member of World Bank

▪ August 1980

Creation of the four special economic zones in Zhuhai, Xiamen, Shenzhen, and Shantou in order to increase Foreign Direct Investment (FDI)

▪ 1980 - 1990

TVEs become the most vibrant part of the economy and experience significant expansion throughout the decade

Economic Reform.

▪ 1981

Household Responsibility Reform: Farmers can retain surpluses from their individual plots of land rather than surrendering them to the collective. Increases efficiency.

▪ 1982

Drafting completed on the 6th Five-Year Plan. this is the first plan put forth under full leadership of Deng Xiaoping, Hu Yaobang, and Zhao Ziyang. Premised on progress towards a market economy, sustaining economic growth.

▪ 1984

Policy to open 14 coastal cities and three regions as “open areas” for foreign investment. These regions enjoyed less “red tape” and tax benefits to further attract FDI.

Economic Reform.

▪ 1986

General Principles of Civil Law Passed, providing the basic legal principles for the operation of a market economy.

▪ 1987

Thirteenth Congress of the Chinese Communist Party recognizes the private sector as a necessary supplement to the state sector.

▪ 1987 – 1994

Coastal Development Strategy to overcome China’s overvalued exchange rate and the semi-reformed character of domestic prices.

Economic Reform.

▪ 1988

Provisional Regulations on Private Enterprises: These regulations, still in effect today, legitimize sole proprietorships, partnerships, and limited liability corporations.

▪ 1990

Stock Markets open in Shanghai and Shenzhen

▪ 1992

Fourteenth Congress of the CCP: Officially endorses, “socialist market economy” as the goal of reform.

Economic Reform.

▪ 1993

▪ Banking Reform- The economy begins to overheat with high inflation and the CCP reacts by controlling lending and restructuring bad loads allowing China to weather the 1997 financial crisis

▪ 1994

▪ Official renmenbi exchange rate starts a market-based, but managed floating rate system.

▪ China and ASEAN

▪ Establishment of the ASEAN-China Joint Committee on Economic and Trade Cooperation and the ASEAN-China Joint Committee on Science and Technology in July 1994

▪ Tax Reform - A comprehensive management system is set up to coordinate tax service and auditing operations and unifying taxes paid by local and international firms. Tax revenue grows as a result.

▪ Nation-Wide Liberalization- the CCP permits all of China, not just coastal regions, to attract FDI, private business, etc

Economic Reform.

▪ 1995 - 1996

▪ 30% of TVEs go bankrupt-Sparks massive push towards privatization

▪ 1996

▪ Daily price-limit regulation

▪ 1997

▪ Reforms in response to the Asian Financial Crisis

▪ China provides Thailand and other Asian nations with over $4 billion (US) in aid.

▪ China decides not to devaluate Renminbi to maintaining stability and development.

▪ President Jiang Zemin adopts a policy that attempts to boost domestic demand and stimulate economic growth.

▪ Price Law passed -prices will be set by the market, but CCP retains right to intervene.

Economic Reform.

▪ 1999

▪ Implementation of new PRC Securities Law

▪ China and the U.S. start to reach a bilateral agreement on China’s accession to the WTO

▪ 2001

▪ Removal of trading restrictions- allowing domestic residents to trade B-share stocks.

▪ Jiang Zemin announces that private entrepreneurs can become party members.

▪ China becomes a member of the WTO and is forced to revise existing laws and enact new legislation in compliance with the WTO.

▪ - Eliminate price controls to protect domestic industry

▪ - Eliminate export subsidies on agricultural products.

Economic Reform.

▪ 2003

▪ Opening A-share markets to foreign investors.

▪ 2004

▪ Constitution amended to provide rhetorical support for the protection of private property.

▪ China reaches open-market agreement with 10 Southeast Asian nations.

▪ ASEAN reached a consensus on an “ASEAN+3″ (China, Japan, South Korea) trade framework.

▪ 2005

▪ First Sino-US Strategic Economic Dialogue (SED) in Beijing.

▪ Bush and Hu Jintao establish Cabinet-level forum in order to develop strategies to reach shared long-term objectives while managing short-term challenges in the US-China economic relationship.

Economic Reform.

▪ 2007

▪ Wen Jiabao admits faults in Chinese economic growth: “China’s economic growth is unsteady, unbalanced, uncoordinated, and unsustainable.”-Annual meeting of China’s legislature (March 2007).

▪ May: -Both countries agree to increase market access, open financial sector, foster energy security, protect the environment, and strengthen the rule of law.

▪ Dec: -Both countries agree to a ten-year cooperation on environmental sustainability, climate chance, and energy security.

▪ 2008

▪ June: -Both countries sign 10 year Energy and Environmental Cooperation Framework, laying out concrete steps to address environmental sustainability climate chance, and energy security.

▪ Chinese Stimulus Package

▪ China plans to invest $586 billion in infrastructure and social welfare by the end of 2010. The stimulus package will be focus on key areas such as housing, rural infrastructure, transportation, health and education, environment, industry, disaster rebuilding, income-building, tax cuts, and finance.

Conclusion.

▪ Despite all the complications, several features of the Chinese economy in 1978 made it particularly ripe for change:

▪ The economic disruption of the Cultural Revolution, and that of the Great Leap Forward before, had undone many of the early economic benefits following the funding of the People’s Republic.

▪ China enjoyed the advantages of backwardness. More than two-thirds of the population lived in the countryside. For them, the uncertainties of the reform were less alarming than the difficulties of the present system. Agriculture’s surplus labor meant that rural industry could achieve rapid, uninterrupted growth for almost two decades without facing wage pressures.

▪ Planning was less entrenched in China than it has been in other transitional economies. So when commercial activities were legalized, Chinese entrepreneurs needed little encouragement to expand.

▪ The reality is that China’s experiment with market reform has propelled her into the top 10 trading nations in the world.

▪ Over the past two decades, China has achieved the fastest economic growth of any national economy.

▪ If that growth continues, China could become the world’s largest economy during the first half of the 21st century.

▪ The World Bank estimates that by 2020 China could be the world second largest exporter and importer and its consumers may have a purchasing power larger than all of Europe’s

▪ She is becoming the biggest economy in the planet with a population whose main objective in life is to become prosperous.

▪ The fact is that China is changing so fast that is difficult to keep abreast of developments.

▪ Furthermore, China is a maze of intricacies, complexities and contradictions.

▪ As Deng Xiaoping declared in 1985: “(The Chinese reform) is a great experiment, something that is not described in books.”

▪ Health reform by

Daniyal Shaikh

Health Reform.

▪ By the time of Mao’s victory over the Nationalist Party in 1949, the year when the People’s Republic of China was founded, China had “one of the world’s poorest health-care delivery systems.

Health Reform.

Two features of the political economy of the Mao Era might have facilitated China’s success in improving health outcomes.

▪ Centralized planning:

Which provided the state with the political capacity to achieve a cost-effective measure to redistribute medical resources and organize nationwide campaigns against common and epidemic diseases.

▪ Creation of a rural community.

Collective income to fund rural community health programs, including insurance.

▪ A symbol of this program was the training of “barefoot doctors” in the countryside.

Summary demographic indicators, China.1950-2000.

Year indicator 1950 1982 1990 2000

Population size

(millions)

551.96 1,016.54 1,144.33 12,65.83

Percent urban 11.18 21.31 26.41 36.22

Birthrate (per

thousand)

37.0 22.28 21.06 14.03

Death rate 18.0 6.6 6.67 6.45

Rate of natural

increase

19.00 15.68 14.39 7.58

TFR _ 2.9 2.3 1.6

Mean age at first

marriage (F)

_ 22.4 22.1 24.15

Life expectancy

(M)

42.2 66.43 69.91 71.01

Life expectancy

(F)

45.6 69.35 69.99 74.77

Infant mortality

rate (M)

145.85 36.47 32.19 20.78

Infant mortality

rate (F)

130.18 34.54 36.83 29.15

Mean household

size

_ 4.41 3.96 3.44

Leading Causes Death.

Order Urban Rural

1 Cancer COPD

2 Stroke Cancer

3 Heart Dis. Stroke

4 COPD Heart Dis.

5 Injury Injury

Health Reform

▪ China turning point April 2009

China began planning for healthcare reform at the start of the twenty-first century, after several decades of market opening yielded a fixed decline in the scope and quality of healthcare services. Chinese citizens had become increasingly dissatisfied with the healthcare system—which suffered from long-lasting government underfunding, urban and rural inequalities, and overpriced, low-quality products and services. The system had therefore left much of the population without access to medical care.

Health Reform

▪ PRC (people republic of china) leaders have made significant progress in a relatively short period to improve the healthcare system.

▪ PRC State Council in 2008 initiated a formal drafting process for reform, which included soliciting draft healthcare plans from domestic, foreign, and multilateral actors.

▪ ¥850 billion ($124 billion) in 2009 to 2020.

▪ In the first phase of the plan (2009) the central government set a ¥139 billion ($20.9 billion) healthcare budget for 2010, and the PRC Ministry of Finance (MOF) in November 2010 announced it was allocating an additional ¥12.3 billion ($1.8 billion) for local healthcare reform initiatives

Health Reform.

CHINA’S IMMEDIATE HEALTHCARE REFORM GOALS.

▪ China outlined five major programs to achieve healthcare reform in its 2009 implementation plan:

▪ Broaden basic healthcare coverage;

▪ Establish a national essential drug system;

▪ Expand infrastructure for grassroots medical networks;

▪ Provide equal access to basic public healthcare services;

▪ Implement pilot reform of public hospital

▪ Universal coverage of basic medical insurance:

The government aims to extend each of the three main medical insurance schemes to cover 90 percent of the population.

▪ Urban Employed Basic Medical Insurance scheme.

scheme will be expanded to cover students, migrant rural workers, temporary contract workers, and retirees from closed-down and bankrupt enterprises.

▪ Urban Resident Basic Medical Insurance.

▪ Rural Cooperative Medical Insurance schemes.

The government also raises subsidies for health insurance premiums to ¥120 ($18) per participant in the Urban Resident Basic Medical Insurance and New Rural Cooperative Medical Insurance schemes, which together cover 900 million people.

▪ Establishment of an essential drug system

▪ National Essential Drug List (NEDL), expected to contain 400-700 items with many low-cost generics and traditional Chinese medicines.

▪ The central government will guide prices.

▪ Provincial governments will be responsible for procurement and distribution.

▪ Basic medical insurance will cover prescriptions.

▪ Common healthcare providers may not rates a surcharge on drug sales.

Provincial governments may replace up to 10 percent of the drugs on the NEDL to tackle diseases that are more common in their locality.

▪ Improved primary care infrastructure

▪ China will construct and renovate district hospitals and health centers.

▪ Train and rotate healthcare professionals to staff them.

▪ To improve the quality of China’s grassroots healthcare professionals, a training program will cover 360,000 healthcare professionals for township health centers, 160,000 for community health centers, and 1.4 million for village clinics.

▪ The university fees and student loans of medical graduates who choose to work in township health centers will be subsidized.

▪ Doctors in urban hospitals will earn promotions only if they have practiced 1 year in rural regions.

▪ Urban hospitals must support rural hospitals on a long-term basis to transfer expertise.

▪ To make stronger the primary care system, patients will be encouraged to visit health centers as a first point of consultation, and be referred to hospitals only if they have secondary care needs.

Equitable access to public health services

▪ The government will support the avoidance and control of disease with various community-level programs, as well as the launch of a new television station for health education.

▪ To make stronger mother, newborn, and old care, pregnant women will receive prenatal and postnatal checkups.

▪ Those younger than 3 and older than 65 years old will be entitled to regular examinations.

▪ China will also continue or launch major public health programs to prevent or control major diseases.

▪ Programs to be continued include the national vaccination program and the avoidance and control of HIV/AIDS.

▪ Programs to be launched include the provision of folic acid for pregnant women to help prevent birth defects and supplementary vaccination against hepatitis B for those under 15 years old.

Pilot reform of public hospitals

▪ The government will attempt to improve the governance of public hospitals and slowly reform their revenue structure. Important here will be the reduction in drug surcharges and shift to government subsidies and fees-per-service only.

Investment opportunities:

▪ China’s healthcare reform has emphasized attracting private and foreign investment to healthcare institutions.

▪ In December 2010, several PRC government agencies released Opinions on Further Encouraging and Guiding Healthcare Institutions Set Up by Social Capital, and the State Council announced that it would encourage privatizing state-run hospitals and abolish the 70 percent foreign ownership cap to allow wholly foreign-owned hospitals.

▪ Because China’s healthcare infrastructure and services have traditionally been strong in the country’s eastern region and in medium and large urban areas, the central government aims to provide more financial subsidies to central and western provinces and build and upgrade more facilities in those regions.

Conclusion.

▪ China’s healthcare reform is a challenging task because china’s healthcare reform is just a beginning. The speed of China’s healthcare reform has matched the government’s goals so far, indicating that China will likely reach its targets. The quality of medical services remains to be seen, however, and efforts to develop a social healthcare plan are still in progress. The details of results have yet to be revealed to the public.

▪ Education and curriculum reform by

Mohammad Qasim Lakhani.

Why education reforms were necessary?

▪ The mathematics of illiteracy has challenged Chinese leaders and educators since the turn of the 20th century, when China’s illiteracy rate stood at roughly 85-90% of the total population. Fifty years later that figure remained virtually unchanged. In contrast, literacy rates from the 1950s onward chart an upward climb, with most estimates indicating that on average 4 million people per year became literate.

▪ By 1959 rates among youths and adults (aged 12-40) fell from 80% to 43%. By 1979 this figure had dropped to 30%, by 1982 to 25%, and by 1988 to 20%.

Education and curriculum Reform.

▪ Introduction.

▪ Development of a legislative frame work.

▪ The Government have been using educational legislatives as instruments in macro-management of education.

▪ Since mid-1980’s more than eighty educational laws and major regulations have been developed and under implementation. These include:

●Compulsory Education Law;

● Education Law;

●Teachers Act;

● Higher Education Act;

●Academic Degrees Regulations;

● Private and Non-governmental Education Promotion Act;

● National Act on Languages and Scrip system;

● Regulations on China-Foreign Joint Educational Institutions and Programmed.

▪ The development of private/non-governmental education.

The public authorities encourage, support, guide and manage the development of all kinds of private/individual-run schools and are in favor of diversification in education.

▪ . The Private and Non-governmental Education Act of the People’s Republic of China and the Regulations on Implementation of the Act have provided better legal and institutional environment for private/non-governmental education.

▪ System of educational investment/financing.

China has been improving a national system of educational investment. In 2002, state-financed educational expenditures accounted for 3.41% of Gross Domestic Product (GDP); meanwhile societal and individuals” contributions have been increasing, accounting for 1.97% of GDP in 2002.

▪ Systematic educational reform.

Massive reforms have been undertaken in the education system in China at national level since early 1980’s.

▪ Universalizing 9 year of compulsory education.

▪ Universalizing primary and lower secondary education has been a major policy goal of educational development of China. International organizations like UNESCO, UNICEF, the World Bank and European Union, and bilateral donors like DFID of United Kingdom, have all contributed to the universalization of 9-year compulsory education and adult literacy in China.

▪ In 1993 the Chinese government issued Chinese Educational Reform and Development Programmed.

▪ And the series of policies was being defined for the achievement of strategic goals.

▪ – Policy-making in a programmatic approach in regionally/locally-specific contexts/conditions;

▪ – Planning by regions/provinces;

▪ – Guidance by category of schools, programs, and geographic areas;

▪ – Implementation by steps.

▪ Decentralization of management and administration of basic education.

The Compulsory Education Law stipulated that basic education at primary and secondary level (including lower and upper) shall be decentralized to Provincial and county levels, and that compulsory education rural area shall be “administrated under the leadership by the State Council, with responsibilities by local governments.

▪ Local community participation in and contribution to the universalization of compulsory education.

During 1996-2000, donations from civic society to compulsory education amounted to over 31 billion Yuan. The “Hope Project” launched by China Youth and Juvenile Development Foundation collected over 2 billion Yuan, contributing to the construction of 8,300 primary schools in poor rural areas, and training 2,300 primary school teachers in poor counties

Technical Assistance of the International community.

▪ In early 2000 there have been growing needs for expansion vocational education.

▪ VTE has a major responsibility for the training of highly qualified skilled labor force and apply technical specialist for creating and improving productivity.

▪ Expansion of higher education.

Since higher education’s continuous expansion in 1998, China’s higher education institutions’ enrolments reached 19 million in 2003, becoming the largest higher education system in the world. The gross enrolment ratio was increased from 9.8% in 1998 to 17% in 2003, an indication of mass higher education.

▪ Diversification of sources of financing of education:

In 2002, the national financial investment in education reached 3.41% of GDP, 0.91% higher than 1997. Social and personal investment is also improved a lot. In 2002, the social investment in education covered 1.94% of the GDP, 1.04% higher than 1997.

▪ Decentralization of educational administration and management.

Basic education, including primary and secondary education (K-12), has been largely decentralized to provincial and county levels, with the central authority responsible for over-all planning, major policy-making, monitoring and funding to nine-year compulsory education.

▪ Teacher education policy change:

Teacher education is the footstone for preparing high quality teachers. The teacher group shall be a model learning organization. It is necessary to improve the teacher education system.

▪ 3 basic education curriculum reform.

In a country with such a large population like China, it is necessary to improve the quality of basic education and citizens for transforming the heavy population burden to rich human resources.

▪ Goals of curriculum reform.

For the knowledge-driven civilization, meeting the challenges of the 21stcentury would necessarily change the aims of education and the expectations people have of what education can provide.

Policy formulation of curriculum reform.

▪ Before the launching of massive curriculum reform, policy documents and development of curriculum standards and textbooks are formulated based on survey research and comparative study and issued for mobilization for participation.

▪ 2001:

▪ Basic Education Curriculum Outline Programmed;

▪ A Curriculum Framework of Compulsory Education;

▪ Development of curriculum standards of 22 school subjects for 1st-9th graders;

▪ Development of textbooks for individual subjects for K-9 schools;

▪ Provisionary Regulations on Management of Primary & Secondary School Textbook Development & Approval;

▪ Guidance on Experimentation of New Compulsory Education Curriculum.

▪ 2002:

▪ Education Ministry Notification on School Evaluation and Examination System Reform.

▪ 2003:

▪ Senior High School Curriculum Reform Programmed;

▪ Development of Curriculum Standards and Interpretation of for 15 school subjects;

▪ Development of school Textbooks for Each School Subject.

▪ Decentralization of curriculum management:

To guarantee and promote the curriculum’s adaptation to various demands of different regions, schools and students, this new curriculum reform is under the management in the national level, local level and school level.

.

▪ Evidences of success and impacts:

According to nationwide surveys in 2004 for preliminary evaluation of curriculum implementation, the results are positive and encouraging.

Table 1: A Statistical View of

Education System in China (2005) Number

Schools Teaching Staff Students Gross Enrollment Rate

Higher education 2,273 1,050,164 20,949,645 21%

Upper Secondary 31,561 2,060,383 39,900,939 52.7%

Lower Secondary 62,486 3,471,839 62,149,442 95%

Primary Education 366,213 5,592,453 108,640,655 106.4%

Pre-schooling ed. 124,404 721,609 21,790,290 41.4%

Literacy rate.

▪ Science And technology reform by

Fawad Ali Soomro.

Science and technology reform.

▪ Background of the Reform on S&T System in China

The science and technology system of China used to be a rigid one, characterized by rigid planning and separation was separated from the economy. From 1985, a full-scale reform was carried out in China’s S&T system, and its impact has been far-reaching, bringing about tremendous favorable outcomes, including improvements in the rural areas.

▪ 2. Main factors leading to the reform

▪ 1) The previous S&T system, in its tight planned fashion, proved to be inefficient in transforming R&D results to increased productivity.

▪ 2) China’s restricted S&T system negatively affected China’s competitiveness in the international community.

▪ 3) China’s overall economic reform created a favorable background for the reform on its S&T system.

▪ Objectives of the S&T System Reform

▪ Since release of the “Decisions on the Reform of Science and Technology System” in 1985, the S&T endeavors were carried out in three levels:

▪ Serving the economic construction

▪ Following and developing high Technologies;

▪ Conducting basic research.

▪ . Policies of the Reform and Their Implementation

▪ Implementation of the reform so far could be divided into three phases

▪ Phase I (1985-1992):Marked by the release of “Decisions on the Reform of Science & Technology System” in 1985.

▪ Phase II (1992-1998): Marked by a series of laws and regulations were promulgated, including Law on the Advancement of Science and Technology (1993), and Decisions on Promoting the Advancement of Science and Technology which was issued by the Central Government in 1995.

▪ Phase III (1998 to present): Marked by the national policy of “revitalizing the country through science and education”, and a series of laws including the Patent Law.

▪ Achievements

▪ Closer integration of S&T with economy

▪ Enhancement of the creativity of S&T personnel

▪ More favorable layout of the S&T activities to the economic development

▪ Set-up of a new S&T planning and management system to accommodate the requirements of market economy

▪ Establishment of a modern R&D institute system

▪ Establishment and development of High & New Tech Development Zones

▪ Enhancement of scientific literacy of the public

Achievements

Map of 54 national HNTDZs

▪ Impact of the S&T System Reform on Rural Development and Poverty Reduction.

▪ Popularization of new technologies

▪ Training of farmers

▪ Poverty reduction through science & technology

▪ Promoting the development of township enterprises

▪ Introduction of market mechanism in poverty reduction through S&T

Over All Conclusion.

Thank You.