Human resources

The newly released national population report conveys mixed messages on China's demographic situation.

The high-profile report said China has held back its population growth momentum over the past 30 years.

However, it pointed to a series of problems lurking ahead that may derail the country's long-term development.

The population will continue to grow, there will be more elderly people and the gender imbalance will worsen.

The list of problems is a long one. It is impossible to select the "biggest one", the solution of which could improve the overall demographic situation.

But one strategic issue is often undervalued: The sound development of our human resources.

It is fair to claim that China, which is expected to have a population of 1.5 billion by 2033, is a large human resource base, but is yet to become a strong one.

China's labor force seems unlimited, at least in the short term. Their general deficiency in educational background and technical expertise has further reduced China's labor costs. But that apparent competitiveness can hardly be sustainable in the decades to come.

Economists agree that education, savings and increased labor force participation are factors behind the so-called "Asian miracle" witnessed in recent decades.

China has had a high savings rate. What it needs is to absorb the large number of rural laborers moving to its cities.

Given the poor educational facilities in rural areas, these laborers are held back by their inadequate education. China must increase its educational spending to ensure these people are equipped with more skills before they enter urban areas.

And health spending, as demographers have rightly pointed out, is also what the government must strengthen in the coming decades to ensure our human resources can create wealth, not simply consume it.

Unfortunately, there are signs that China has not invested adequately in either aspect.

The family planning workers are, obviously, unable to accomplish that. It should be part of a national strategy that accentuates not only the number, but the caliber, of our population.

Source: China Daily