State Council Think Tank Proposes '383 Plan' for Reform
An influential, government-affiliated think tank has released a comprehensive reform blueprint it submitted to the Communist Party's 18th Central Committee for the coming third plenary session to be held in November.
The plan in Chinese, published by the Development Research Center of the State Council, aims to set up a vibrant, innovative, inclusive market economy protected by the rule of law. It listed a reform trinity – the market, government and corporations – eight key sectors and three packages for likely breakthroughs, and has thus been dubbed the "383 Plan." Among the trinity, the key is to set up the right relationship between government and market, the report said.
Part of the blueprint contains specific policy suggestions, such as allowing major electricity users to directly buy from the generator, and the government to stop setting the price of oil products.
The plan also suggests using the state's share in state-owned enterprises to set up several sovereign investment funds, following the model of Singapore's Temasek Holdings. Funds with social security purposes would be aimed at securing and increasing the value of the fund; the public-service type will be prepared to have an operating loss, but with set standards to limit costs and evaluate the services its investments provide; funds in designated strategic industries and promoting innovation should have as their goal profits; and funds with national security purposes should serve national security goals and have their own performance evaluation methods.
The plan also separates the overall reform into three phases with 2013-2014 defined as the near term, 2015-2017 as the mid-term and 2018-2020 as the long term. An excerpt of the report was published in the October issue of China Reform, a sister publication of Caixin Online. The full report will be published in book form by Citic Press.
Eight Key Sectors
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