World Bank2013-07-292013-07-292003-09-15https://hdl.handle.net/10986/14643International experience suggests that the effect of globalization on economic growth, poverty and income distribution can vary significantly among countries, and that its impact depends crucially on national policies. This report assesses the possible patterns of inequality in China in the future, and outlines policy options that could help accomplish China's objective of growth with equity. For sustaining growth, the report emphasizes the freer flow of resources and goods and services in the economy, to be achieved by domestic market integration and flexibility. The report suggests that the cost of market fragmentation and rigidities is high, and highlights measures to reduce local protectionism, facilitate migration, and commercialize the banking sector. To optimize the results of domestic market integration and promote growth with equity, the report proposes a package of policy actions that would promote new job opportunities, especially in the less developed regions, and raise returns on farm labor and land. Among these, the report highlights investing in people, promoting the diffusion of technology, facilitating urban agglomeration, expanding services and enhancing farmers' prospects. Finally, the report tackles the social, economic and fiscal risks that may threaten future growth and distributional performance. In particular, it suggests extending different types of formal social security in both urban and rural areas, for fixing the inter- government fiscal system in order to facilitate the provision of public services, and for managing fiscal risk beyond the government budget and officially recognized debt.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGADMINISTRATIVE CAPACITYAGRICULTURAL OUTPUTALLOCATION OF CAPITALAUDITINGAUTHORITYAUTONOMYBANKING SECTORBANKING SYSTEMBASIC EDUCATIONCENTRAL GOVERNMENTCENTRAL PLANNINGCENTRALIZATIONCITIESCOLLATERALCOMMERCIAL BANKSCOMMUNISTCOMMUNIST PARTYCOMPETITION POLICYCONSOLIDATIONCONSTITUENCIESCORPORATE GOVERNANCEDEBTDECISION MAKINGDECISION MAKING PROCESSDEFICITSDISTRIBUTION OF INCOMEECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC SHOCKSECONOMIES OF SCALEEMPLOYMENTENFORCEMENT MECHANISMENTERPRISE OWNERSHIPENVIRONMENTAL POLICIESENVIRONMENTAL PROTECTIONEQUALIZATIONEXECUTIONEXPENDITUREEXPENDITURE RESPONSIBILITIESEXPENDITURESFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SECTORSFINANCIAL SERVICESFINANCIAL SUPPORTFISCALFISCAL CONTRIBUTIONFISCAL EQUITYFISCAL MANAGEMENTFISCAL PRESSURESFISCAL RESOURCESFOREIGN DIRECT INVESTMENTFOREIGN ENTRYFOREIGN INVESTMENTFORMAL EDUCATIONFORMAL SYSTEMGOVERNMENT ACCOUNTABILITYGOVERNMENT FINANCEGOVERNMENT OBLIGATIONSGOVERNMENT PERFORMANCEGOVERNMENT POLICIESGOVERNMENT REVENUESHOUSINGHUMAN CAPITALHUMAN DEVELOPMENTIMPORTSINCOME DISTRIBUTIONINCOME INEQUALITYINFORMATION DISCLOSUREINSTITUTIONAL CAPACITYINSTITUTIONAL DEVELOPMENTINSTITUTIONAL REFORMSINSURANCEINTEREST RATESINTERGOVERNMENTAL TRANSFERSINTERNATIONAL FINANCIAL MARKETSINVESTMENT CLIMATELABOR FORCELABOR MARKETLABOR MARKETSLABOR MOBILITYLAND DEVELOPMENTLAND USELAWSLEVELS OF GOVERNMENTLOCAL ENTERPRISESLOCAL GOVERNMENTLOCAL GOVERNMENT ACCOUNTABILITYLOCAL GOVERNMENT REVENUESLOCAL GOVERNMENTSLOCAL TAXMACROECONOMIC CONDITIONSMACROECONOMIC STABILITYMARKET DISTORTIONSMICROFINANCEMIGRATIONMINISTRY OF FINANCENATIONAL POLICIESPENALTIESPENSIONSPRIVATE SECTORPRODUCERSPRODUCTIVITYPROFITABILITYPROVISIONSPUBLIC FINANCEPUBLIC FUNDSPUBLIC HEALTHPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICESPUBLIC SUPPORTPUBLIC TRANSPORTRECAPITALIZATIONRESOURCE ALLOCATIONRETIREMENTSAVINGSSOCIAL COSTSOCIAL INFRASTRUCTURESOCIAL SECURITYSOCIAL SERVICESSTATE SECTORSTATE-OWNED ENTERPRISESSTRUCTURAL ADJUSTMENTSUSTAINABLE DEVELOPMENTTAX CAPACITYTAX RATESTAX REVENUESTECHNICAL ASSISTANCETELECOMMUNICATIONSTRANSPORTUNEMPLOYMENTUNEMPLOYMENT RATESURBAN INFRASTRUCTUREURBANIZATION GLOBALIZATIONPOLICY ANALYSISPOLICY MAKINGPOLICY PLANNINGPER CAPITA INCOMEINEQUITYREGIONAL DISPARITYRURAL-URBAN DIFFERENTIALSRURAL-URBAN RELATIONSALLOCATION OF RESOURCESDOMESTIC MARKETSMARKET INTEGRATIONINCOME INEQUALITIESMARKET FRAGMENTATIONRURAL-URBAN MIGRATIONURBANIZATIONPROTECTIONISMBANKING SYSTEMSCOMMERCIALIZATIONJOB CREATION POLICIESEMPLOYMENT CREATIONFARM LANDSHUMAN RESOURCES STRATEGIESHUMAN CAPITAL INVESTMENTSTECHNOLOGY DIFFUSIONAGGLOMERATIONPUBLIC SERVICE DELIVERYSOCIAL SECURITY SYSTEMSFISCAL MANAGEMENTCAPITAL MARKETSWorld Bank10.1596/14643