Download or read book China written by World Bank and published by Poverty Reduction and Economic. This book was released on 1999 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report builds on the framework laid out in the 1997 Country Economic Memorandum, "China 2020: Development Challenges in the New Century, " and its companion reports, which remain largely valid. This report focuses on the near term. The difficulty of dealing with China's main macroeconomic challenge, weakened domestic demand, has been compounded by the Asia crisis and the global economic slowdown. These challenges come at a critical juncture in China's structural reform program. Unemployment and demand for social protection has increased, and corporate debt pressures are building, in line with the transition to a more market-based economy. However, the country's large and partly insulated domestic economy has inoculated it to some degree against contagion from its less fortunate neighbors. Having weathered the storm so far, China can learn lessons from other countries that have experienced difficulties and, hence, mitigate against the risk of a crisis. The major policy issue for China is how to respond to near-term growth pressures in ways that reinforce structural reform and economic development. Policymakers have to focus on pro-growth reforms that support the development of the labor-absorbing service sector. Also, enterprise restructuring and corporate governance strengthening must remain high priorities. Finally, China needs to support structural measures that increase household demand by raising rural incomes and supporting safety net programs.