OECD Prescriptions for China

In its survey of China  OECD has stated that China's growth has moved from a trajectory of extraordinary development to a slower, sustainable growth.

OECD suggests the following: 

Reforms for sustainable growth. 

·         a level playing field with regard to finance, regulation, taxation and public procurement.

·         liberalize deposit interest rates while enhancing financial stability

·         increase fiscal transparency and sustainability.

Urbanisation and services as drivers of growth. 

·         should extend public service provision and social security coverage to all migrant workers and make social security benefits portable across the country.

·         scale down state-ownership in commercially-oriented service enterprises b

Nurturing the right skills. 

·         establish an effective countrywide virtual education system,

·         evaluate universities and university staff on the quality of academic output

·         bolster merit-based promotion

·         stronger intellectual property rights.

·         boost public spending on education, including by

·         increase teacher compensation to improve education quality  

Agricultural reforms. 

·         land-use rights and well-designed exchange platforms for land operation rights.

·         improvements in access to finance in rural areas

• education and training for farmers, the pricing of natural resources and rural infrastructure.  

Source: OECD  “Better Policies” Series CHINA STRUCTURAL REFORMS FOR INCLUSIVE GROWTH MARCH 2014