Economy

China needs to strengthen social security net

(Xinhua)
Updated: 2011-03-21 10:46

BEIJING - President of Asian Development Bank Haruhiko Kuroda said Sunday that China needs to reform its redistribution and social security policies as it strives to achieve sustainable growth over the next five years.

Speaking at the 12th China Development Forum held in Beijing, Kuroda said a sound social security system could help reduce poverty and narrow income gap, which is good for long-term development.

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"The growing gap poses a major challenge to the government's inclusive and balanced development strategy," he said.

China has to properly address the issue, as it is likely to threaten economic growth, he added.

"Expanding social safety net would promote inclusive growth by easing people's vulnerability to social risk," he said, adding it would in turn stimulate domestic consumption and steer the country away from too much dependence on export.

China has recognized the problem and the government has stepped up new initiatives to solve the problem in the recently approved 12th Five-Year Plan, which states that income growth will outpace economic growth during the 2011-2015 period, he said.

The forum, with "The Ongoing Transformation of China's Growth Pattern" as its theme, runs from Saturday to Monday.