China 2020: Development Challenges in the New Century

The first volume in the China 2020 seven-volume set, China 2020: Development Challenges in the New Century, provides an overview of the country's strengths and weaknesses as well as its obstacles and options. The report argues that China can meet these challenges and sustain rapid growth, mainly because of its strengths including its relative stability, a remarkably high savings rate, a strong record of pragmatic reforms, a disciplined and literate labor force, a supportive Chinese diaspora, and growing administrative capacity. These strengths have driven the country's growth for the past two decades and can continue to do so over the next two. To nurture these strengths and use them effectively, however, reforms must develop in three related areas: the spread of market forces must be encouraged; the government must begin serving markets by building the legal, social, physical, and institutional infrastructure, and integration with the world economy must be deepened.