II. Situation and Development Targets in 2009

The year of 2009 mixes severe challenges and important opportunities. We will be deeply ware of the complexity and grimness of the international and domestic economic situation and its increasing impact on Hunan province, which means the pressure on the tasks of maintaining growth, employment and stability will be heavier and heavier. The current international situation is extraordinarily complicated and volatile; the turmoil of the financial market will speed up its spread across the world; the economic recession in developed countries in the Europe and the America is cut and dried and the international deflation will be intensified. Therefore, the end of the unprecedented uncertainties, unstabilities and emergency risks in the international economic environment is still unknown.

China’s economic operation will face a harder scene with increasing pressure on economic growth; the negative effects of the global financial crisis are spreading from the eastern coast to the interior land and have incurred relatively large impact on expansion of the commodity market and development of some industries and enterprises in Hunan. Prevention is better than cure. We will correctly weigh up the situation, actively brave the challenges, unify the ideological thinking in the policy decisions of the Central Committee of Communist Party of China (CPCCC), in studying and practising the Scientific Outlook on Development and in the decisions of Hunan Provincial CPC Committee, and thoroughly understand that the general trend of economic globalization is still developing and deepening, that the market force’s basic role of distributing resources is further consolidated, that China’s economic development still maintains a favorable general trend and remains in the important period of strategic opportunities. We will strengthen our confidence of victory with the firm leadership of the CPCCC and the State Council and with the superiority of the socialist system- concentrating powers on common affairs.We will see favorable conditions for accelerating development, such as proactive fiscal policy and the properly loose monetary policy of the State, which help Hunan realize stable and rapid economic growth by grasping new development opportunities. Situated in a fast development period of new-type industrialization and new urbanization, Hunan’s infrastructure, basic industries and basic work are all consolidated, which facilitates expansion of development space in dealing with the financial crisis and difficulties. We will be mindful of the crisis and potential dangers and brace ourselves for more difficulties with joint endeavors of all Hunan people by capitalizing on advantages and avoiding disadvantages and by converting pressure and challenges into the driving force and opportunities respectively so as to propel Hunan’s reform, development, stability and modernization drive.

In order to practise the guiding principles of the 17th National People’s Congress of CPC and the 3rd Plenary Session of the 17th Central Committee of CPC, the guiding ideology of government work this year is holding the Deng Xiaoping Theory as the Party's guide to thoroughly apply the Scientific Outlook on Development, accelerate promotion of the ‘New Industrialization and Three Basics’ Strategy, persist in expanding domestic demand to keep sound and rapid economic growth, persevere in optimizing the economic structure and independent innovation to quicken transfer of the growth pattern, keeping deepening reform and opening up to enhance the driving force and vigor of economic and social development, proceed to improve people’s livelihood to promote social harmony and stability, and keep law-based administration to vigorously promote strengthening the province and making the people rich. The main targets are as follows: to realize an increase of over 10% in gross product , of 12% in the total revenue,of over 25% in investment in social fixed assets, of over 15% in the total retail turnover of social consumer goods, of over 12% and over 15%in really expoited foreign direct investment and in the total volume of imports and exports respectively, of 7% and 6% respectively in urban per capita annual disposable income and in rural per capita annual net income and of 50,000 urban employees, the rate of registered urban unemployment and the natural growth rate kept within 4.8% and within 6.8‰ respectively, the rise in the CPI held at around 4%, a decrease of 4.5% and over 2% respectively in energy consumption per 10,000-yuan of gross product and in both chemical oxygen demand and the total emission of sulfur dioxide.

To accomplish the above-mentioned tasks, we must, in view of the international and domestic economic situation and prominent problems in economic operation, persevere in guaranteeing growth, expanding domestic demand, restructuring, boosting employment, consolidating the basis, take great heed of cracking hard issues to advance building of a harmonious society.We will take guaranteeing growth as a primary task of the economic work this year, grasp opportunities for development, expand development space and try all means to overcome difficulty and anxiety for enterprises, small and medium-sized enterprises (SME) in particular, launch supportive policies and measures as soon as possible to create a relaxing environment for development of enterprises. We will grant policy support and superior services to fiscal and taxation, financing, electricity use, land use and green passage and other aspects so as to realize Hunan people’s urgent wish of accelerating development. We will bolster domestic demand as a foundamental approach to boost economic growth by effectively increasing investment and actively expanding consumption in order to form a scene of largely relying on boosting domestic demand especially consumer demand to drive economic growth. We will adjust the economic structure as the main direction of maintaining growth and bolstering domestic demand, persevering in rapid while sound development to realize coordination of the growth rate with the economic structure, quality and efficiency as well as longer, superior development of a higher level. We will pay primary attention to increasing employment in improving people’s welll-being by implementing more positive strategy of employment development to effect more job opportunities, by supporting enterpreneurship through improving services for employment, sparing no effort to assist new urban employees, college graduates, returned off-farm workers and laid-off workers in employment. We will consolidate the basis to sustain economic development by giving full play to the driving, supporting and guaranteeing roles of the infrastructure, basic industries and basic work and guide a rational flow of factors of production into fields of improving development conditions, enhancing sustainable development capability and heightening development quality.