China has great potentials in resources conservation and improvement of efficiency. China can take a new road to industrialization as long as clear guideline and proper methods are applied, said Wu Jinglian, an eminent economist of China at a penal discussion of the CPPCC March 7.

According to Wu, at the crucial moment for drafting "the 11th five-year plan" China must think in a cool-headed manner in order to resolve the problems concerning road to industrialization and growth pattern.

The new road to industrialization refers to the road the industrialized counties take after the second industrial revolution. A distinctive feature of modern economic growth is economic growth is mainly dependent on accumulation of human capital (capitals and capability of human being) and improvement of efficiency, rather than input of capitals and other resources, Wu said.

The current economic growth of China, which relies on high input, high energy consumption and high capital accumulation has resulted in grave negative effects on sustainable and stable growth of the national economy. This growth pattern has given rise to a series of social and economic problems.

He proposed the following measures:

-Do away with the stereotyped of thinking formed under traditional industrialization; carefully set up scientific development concept, making resources conservation, efficiency improvement and sustainable growth as the point of departure for our work.

-Vigorously promote prosperity of science and advancement of technology.

-Vigorously develop the service industry. Pursue biggest value at least resources consumption.

-Turn the tendency to emphasize on "hardware' but neglect "software" , emphasize production but neglect service in development of the IT sector.

-Speed up reform of the economic system, eliminate price distortion, weaken government's rights in distributing resources, and bring market's fundamental role of distributing resources into play.

By People's Daily Online