Congress debates financial crisis

Discussion in 'Economics' started by MohdSalleh, Mar 3, 2009.

  1. the National People's Congress that is.
    <p> <b>BEIJING, China (CNN)</b> -- When China's legislature opens its annual session this week, the focus will be on jobs, the economy and social stability.
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    <p><!--===========CAPTION==========-->Delegates have begun to gather for China's annual meeting of its National People's Congress.<!--===========/CAPTION=========-->
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    <p> Every year, over 3,000 delegates to the National People's Congress meet in Beijing to review draft laws and vote on government budget and policies. Delegates come from central and local governments, the military and police, including ethnic minority representatives, who typically show up in their traditional costumes.
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    <p> In the past, the NPC has been dismissed as a "flower-vase," a largely ceremonial rubber-stamp parliament which merely endorses Communist Party decisions.<font size="5"> But in recent years, it has seen robust discussion and debate.</font>
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    <p> This year, the number one issue will be how to survive the global economic crisis and keep China's economy growing. As the global economic crisis cascades into <a href="http://topics.edition.cnn.com/topics/china" class="cnnInlineTopic">China</a>, Communist Party leaders fear a spike in unemployment could trigger social unrest and snowball into a political crisis.
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    <p> "The NPC meeting this year will be all about the economy," says Drew Thompson, a China analyst at the Nixon Center in Washington. "Surviving the global financial crisis will depend on the effectiveness of the stimulus effort, and most importantly, keeping employment numbers up."
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    <p> The unemployment picture already looks grim. The government officially says over 20 million migrants have lost jobs, laid off from thousands of factories which have closed down due to the steep drop in overseas demand for Chinese products. Analysts believe more jobs will be lost. This makes it more difficult for recent college graduates to find jobs.
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    <p> Workers disgruntled over abrupt layoffs or unpaid arrears have staged scattered protests. Some of them have turned violent. Growing labor unrest alarms China's leaders who believe that social stability is necessary to improve the nation's struggling economy. Says NPC delegate Wang Diangui, "We need to ensure employment for migrants and new college graduates."
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    <p> Premier Wen Jiabao says China is bracing up to meet the challenge.
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    <p> "We'll do whatever it takes for to fight the crisis," he declared last weekend during his first-ever online chat with the Chinese Internet users.
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    <p> "We must strengthen confidence in the face of the crisis and be ready to take firmer and stronger action when necessary."
    </p> :D