Towards a New Model of Development
Working Paper #117
China is about to adopt its 11th five-year plan, setting the stage for the continuation of what is probably the most remarkable economic transformation the world has ever seen, improving the well being of almost a quarter of the world’s population. The author argues that part of the key to China’s long run success has been its exceptional combination of pragmatism and vision, constantly adapting to the changing needs and circumstances, but keeping a view of the road ahead. With this plan, even the nature of what is meant by planning is changing. This is not a plan, as this term was understood in the days of Central Planning. It recognizes that, as China moves to a market economy, a plan is not about material balances or directions about how much of each commodity should be produced. Rather, it concerns a vision of the evolving nature of the economy, and of the role of government; it indicates the priorities both for expenditures, and institutional and policy development; and provides a framework for coordinating economic activities.
About the Author
Initiative for Policy Dialogue (IPD)
Joseph E. Stiglitz is President of the Initiative for Policy Dialogue, and Chairman of the Committee on Global Thought at Columbia University. He is University Professor at Columbia, teaching in its Economics Department, its Business School, and its School of International and Public Affairs. He chaired the UN Commission of Experts on Reforms of the International Monetary and Financial System, created in the aftermath of the financial crisis by the President of the General Assembly. He is former Chief Economist and Senior Vice-President of the World Bank and Chairman of President Clinton’s Council of Economic Advisors. He was awarded the Nobel Memorial Prize in Economics in 2001.