Wen's address, however, didn't specify details of the $586-billion stimulus package, something that many have called for. It remains unclear how much of the package includes previously existing projects and how the money will be channeled.
A vice minister of the National Development and Reform Commission pledged this week to release more details. The commission also is sending teams of inspectors to local areas to monitor expenditures.
But Du Guang, 80, a former director with the Central Party School, an elite training institution, said he doubted Beijing could effectively supervise local spending. He said a major hindrance was the lack of a free media and other institutions that he and others regard as crucial in providing accountability for economic programs and broader social development. Du and 15 other former party elders expressed these and other concerns in a letter to China's leadership.
Other analysts have criticized the stimulus package for its heavy focus on infrastructure works such as highways and railroads -- capital-intensive projects that are not large job generators. Only a tiny fraction of the funds are earmarked for healthcare, housing and other social programs.
China's weak social safety net is seen as a primary reason for the nation's high savings rate and the relatively small role that consumer spending plays in economic growth. Now with the nation's exports flattened by the global downturn, economists see this time as a chance to push for a restructuring of the economy to rely more on domestic components.
In his address, Wen said China would seek to boost domestic demand and further stimulate consumer spending. The government has introduced programs to subsidize rural residents' purchases of appliances and cars.
Mao Yushi, a prominent economist in Beijing, said he hoped the legislative session would provide a forum to carefully consider which policy was best to cope with the economic crisis. He contended that the government's current approach was misguided.
"The government is targeting the economic growth rate," Mao said. "But another target is more important -- employment. The government should help businesses create jobs, eliminate barriers on job creation, not just help businesses increase production."
To realign China's economy, Mao said, officials should loosen the government's monopolistic hold on sectors such as energy, telecommunications and financial services. That would open up the market to enterprises and spread the wealth to the private sector.
--
don.lee@latimes.com
