BEIJING, Feb. 22 -- China can achieve more inclusive and sustainable development with coordinated reforms that maximize development impact and address its development challenges, according to a report from the World Bank Group.
China's growth has been slowing to a "new normal" and economic rebalancing is underway. Managing this transition in a sustainable manner will be critical to achieving the country's development goals, the report "Towards a More Inclusive and Sustainable Development" said.
Policy to increase productivity-led growth through innovation, market competition and the private sector will support these goals, said the report.
"China's remarkable progress in reducing extreme poverty has significantly contributed to the decline in global poverty," noted Hoon S. Soh, World Bank Program Leader for economic policy for China.
The official said the World Bank Group will continue to support China's goals to eliminate extreme poverty and ensure inclusive and sustainable growth.
Despite the rapid reduction of extreme poverty, China's remaining poor population remains large.
The report projected continued progress towards eliminating extreme poverty with the extreme poverty rate to fall below one percent in 2018, based on the international poverty line of PPP 1.90 U.S. dollars per day.
The challenge for China will be to target assistance to the remaining poor while paying attention to those who are vulnerable to falling into poverty, the report said, adding further improvements to the social security net would help.
Although inequality has been steadily declining since 2008, more can be done to address inequality, the report said, suggesting reforms of the intergovernmental fiscal system and the household registration system.
Other recommendations for China include a greater reliance on market mechanisms and mobilizing more private financing to boost green innovation and reduce environmental costs and waste.
The World Bank Group undertakes a Systematic Country Diagnostic for all its client countries to identify key challenges and opportunities in ending poverty and boosting shared prosperity. The Diagnostic forms the basis for the Country Partnership Framework, which determines the World Bank Group's activities in a country over a four to six year period.
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