Dismantle urban-rural divide

The first formal document of the new year, dubbed the "No 1 Document" and which has been released every year since 2004, presents the rural policies of the Communist Party of China and the State Council over issues of agriculture and peasants. The most attractive aspect in the document this year is the aim to "empower and benefit rural residents, and facilitate the allocation of resources into the countryside."

Attracting economic resources into rural areas is crucial for its development. Since the 1990s, urban development has consumed most of the financial credits, and consequently it has become more and more difficult for rural residents to obtain loans to the detriment of the rural economy. The No 1 Document encourages the development of village and township banks, small corporate lenders and rural credit unions. It seeks an orderly growth of micro-credit projects. It aims to alleviate the dearth of financial institutions and enhance the seeding of growth in rural areas.

Though rural development is crucial, the government must make more efforts to promote the rural inhabitants' move to urban areas. Consensus should be reached to accelerate the urbanization process, and there is an urgent need for policies that accomplish this goal.