Productivity, Technology and Competitiveness
China’s phenomenal economic growth over the past two decades has gone hand in hand with the rapid expansion of the private sector and poverty reduction.
This has been made possible by combining effective government policies for development with the gradual reform of the economy. As a result, the private sector is now a powerful engine for economic growth, job creation and innovation, contributing to over half of the country’s GDP. However, there are still many obstacles for the private sector to act as an effective driver of poverty reduction. Lingering weaknesses include a scarcity of business support services and access to credit, especially for SMEs, a lack of training opportunities for people looking to start their own enterprises, and a weak business-related policy environment.
Removing such barriers is crucial to increase employment opportunities and increase the positive impacts of investment for poor people. Promoting ‘jobful’ growth is becoming a pressing imperative, as the process and pattern of the high growth has not yet sufficiently accelerated job creation, resulting in increased unemployment. Further promotion of business investment for industrialization, entrepreneurship and simultaneously encouraging accumulation of knowledge, technology upgrading and technical change will be the central tenet of UNIDO’s private sector development strategy in China in the coming period. These goals will contribute to the sustainability of the nation’s economic growth model and are in line with the Government’s drive to narrow the country’s divide between the rich and the poor and achieve its ideal goal of a ‘harmonious society’.