Publisher's Synopsis
After more than three decades of average annual growth close to 10 percent, China's economy is transitioning to a "new normal" of slower but more balanced and sustainable growth. Its old drivers of growth - a growing labour force, the migration from rural areas to cities, high levels of investments, and expanding exports - are waning or having less impact.
China's policy makers are well aware that the country needs new drivers of growth. Innovative China proposes a reform agenda that emphasizes productivity and innovation to help policy makers promote China's future growth and achieve their vision of a modern and innovative China. The reform agenda is based on the three Ds:
- Removing Distortions to strengthen market competition and enhance the efficient allocation of resources in the economy
- Accelerating Diffusion of advanced technologies and management practices in China's economy, taking advantage of the large remaining potential for catch-up growth
- Fostering Discovery and nurturing China's competitive and innovative capacity as China approaches OECD incomes in the decades ahead and extends the global innovation and technology frontier.
