Low Carbon Green Growth Roadmap for Asia and the Pacific CASE STUDY Guiding the shift to a new economic system China’s National Development and Reform Commission Key point • The National Development and Reform Commission in China is an example of a well-performing inter-ministerial organization that could be a model for other developing countries to adapt for implementing green growth policies There was an institutional gap… The State Planning Commission was established in 1952 as a central economic planning and management agency However, the transition of the Chinese economy from a command system to the socialist market economy system in the late 1990s called for establishing an institution to coordinate between the macroeconomic and microeconomic affairs, to create a competitive but fair market environment and to draft national development strategies for adapting to the new economic system.1 What was done? In 1998, the National Development and Reform Commission2 was launched as the government agency devoted to generating economic and social policies while maintaining a balance between economic arrogation and economic restructuring With supervision from the State Council, the National Development and Reform Commission has 26 functional departments, bureaus and offices Figure 1: Historical development of the NDRC 1952 State Planning Commission established 2003 1998 State Development Planning Commission established Merging of the State Council Office for Restructuring the Economic System and State Economic and Trade Commission NDRC Source: People’s Republic of China, National Development and Reform Commission official website “Brief Introduction of the NDRC” Available from http://en.ndrc.gov.cn/brief/default.htm (accessed 15 March 2012) The major functions of the National Development and Reform Commission: • Establish and implement national economic and social development strategies, long-term and annual plans, and industrial and price policies China Daily, “National Development and Reform Commission”, November 16, 2006 Available from www.chinadaily.com.cn/bizchina/2006-11/16/content_734828.htm (accessed 27 February 2012) People’s Republic of China, National Development and Reform Commission website “Main Functions of the NDRC” Available from http://en.ndrc.gov.cn/mfndrc/default.htm (accessed October 2011) Low Carbon Green Growth Roadmap for Asia and the Pacific : Case Study - China’s National Development and Reform Commission • • • • • • Monitor and adjust the performance of the national economy, maintain the balance of economic aggregates and optimize major economic structures Examine and approve major construction projects Guide and promote the restructuring of the economic system Perform strategic readjustments, upgrade industrial structures, coordinate the development of agriculture and the rural economy and guide the industrial development Establish energy sector development plans and manage the national oil reserve Promote the sustainable development strategy, including social development and coordination of regional development Results The National Development and Reform Commission is treated as a “super ministry” due to its broad scope of authority over national medium- to long-term economic plans, approving foreign investment projects and coordinating and monitoring various other economic development policies The National Development and Reform Commission developed the Twelfth Five-Year Plan (announced in March 2011), which leans heavily towards environmentally sustainable growth as well as equitable wealth distribution and increasing domestic consumption