Fellow Deputies,

　　On behalf of Jiangsu Provincial People’s Government, I now submit a report on the work of the government for your deliberation and approval and also for comments and suggestions from members of the Provincial Committee of the Chinese People's Political Consultative Conference.

　　I. Review of the Work in 2006

　　2006 is the first year of the “11th Five-Year Plan” period. Under the leadership of Jiangsu Provincial Committee of the Communist Party of China, the people of Jiangsu held high the great banners of Deng Xiaoping Theory and the important thought of Three Represents, conscientiously implemented the decisions and arrangements adopted by the CPC Central Committee and the State Council, comprehensively put into practice the Scientific Outlook on Development, coordinated progress in socialist economic, political, cultural and social development and achieved a sound beginning for the “11th Five-Year Plan”.

　　Major objectives set by the 4th Session of the 10th Jiangsu Provincial People’s Congress were met in an all-round way. The economy maintained stable and rapid growth. Jiangsu’s GDP reached 2154.8 billion yuan, an year-on-year increase of 14.9%. Per capita GDP exceeded $3,500. Total government revenue rose by 26% to 393.6 billion yuan (61.23 billion yuan of customs taxation not included). Of this sum, the budgetary revenue of local governments was 165.7 billion yuan, up 25.3%. Trade volume hit $284 billion, a rise of 24.6%, and export was $160.4 billion, up 30.5%. People’s living standard was further improved. Disposable income of urban residents and net income of farmers climbed to 14,084 yuan and 5,813 yuan, increased by 14.3% and 10.2% respectively. 1.108 million new jobs were created in urban areas and the registered urban employment rate was kept at 3.4%. The overall consumption price rose 1.6%. New achievements have been made in various social undertakings, including science and technology, education, culture and public health.

　　Over the past year, we took the Scientific Outlook on Development as the principle guiding socioeconomic development, conscientiously carried out the macro-control policies and measures of the central authorities, pressed ahead with leading development, scientific development and harmonious development, and put priority on improvement in people’s livelihood, scientific and technological development, environmental protection and resource conservation. The concept of scientific development played a more important role in guiding our overall work, featuring better-defined focuses, more effective measures and more fruitful results. The economy maintained rapid growth, sound economic returns and stable prices. With improved comprehensive strength and development environment, Jiangsu province is leaping forward along the track of sound and fast socioeconomic development.

　　1. Quality and efficiency of economic growth were remarkably raised with accelerated economic restructuring and change of the pattern of economic growth.

　　We must take a new road toward industrialization and step up efforts to restructure the economy. The output value of the high-tech sector exceeded one trillion yuan with a rise of 30.8%, quadrupling the 2002 benchmark figure 4 years ahead of schedule. The electronic information industry realized an output value of 943.3 billion yuan, up 30.5%, growing into the largest industry. We will speed up the process of improving industrial geographical distribution. New progress has been achieved in building up the industrial belts along Shanghai-Nanjing route, along the Yangtze River, along the East Longhai Railway and along the coastal area. Economic returns of enterprises and concentration in industries have been elevated with efforts focusing on improving industrial and corporate competitiveness and encouraging intensive mode of economic growth. Growth of profits of major industrial companies outpaced that of sales revenue, and 58 companies realized a revenue of over 10 billion yuan. Efforts have been made to accelerate the development of the service sector with priority on modern services. As a result, the service sector took up 0.8 percentage points higher of the whole economy. New services have been growing fast. For example, the software industry registered a turnover of 51.2 billion yuan, an increase of 60%. Traditional services witnessed fresh development. For instance, the added value of the tourism sector went beyond 100 billion yuan, up by more than 20%. The policy of expanding domestic needs has been implemented to strengthen the role of consumption as a driving force to economic growth. The total retail sales of consumer goods increased by 16.2%. As we strive to adjust investment structure and boost effective investment, fixed asset investment totaled 1006.4 billion yuan last year, up 20.3%. Investments in key monitored industries have been kept under effective control and construction of key infrastructure and industrial projects have been intensified. Jiangsu coastline highway, Nanjing-Huai’an highway and Yancheng-Xuzhou highway have been open to traffic. The total mileage of highway in Jiangsu reached 3,355 kilometers with 469 kilometer newly constructed last year. Jiangsu is among the first to build up a relatively complete highway network within its boundary. Investments in water transport and port construction grew by large margins. The freight volume of ports in Jiangsu reached 850 million tons and that of containers came to 4.24 million TEU, increased by 12.6% and 38.8% respectively. The flood-control project to re-direct the flow of Huai River to sea was completed. Smooth progress was also made in the first stage of South-to-North Water Transfer East Line, a new round of treatment of Huai River, renovation of key dams, expansion of the Grand Canal, Sutong Bridge, the River-crossing Tunnel and Line 2 Subway of Nanjing. A number of key industrial projects went into operation, including the Hynix Integrated Circuits Plant in Wuxi and Longteng Optic-electronics Co. in Kunshan. Pressure on the tight supplies of coal, electricity, and petroleum and on the overloaded transportation system have been considerably eased. Newly installed power generation capacity was 8.4GW, bringing the total to 53GW. Supply of electricity was maintained, stock of coal was raised and the supply of key materials and resources was guaranteed. The supply of factors of production played a more supportive role in sustained and stable economic growth.

　　We pressed ahead with the building of a resource-conserving and environment-friendly society and stepped up efforts to conserve resources, reduce energy consumption and protect the environment. We implemented the system of accountability in good faith and focused our work on key industries and enterprises. We accelerated the construction of sewage treatment plants and desulfurization of power plants. We strengthened prevention and treatment of pollution in key waters and comprehensive treatment of regional environment. Pilot work was carried out in developing a circular economy. Remarkable progress was made in resources conservation, energy consumption reduction and pollutant discharge. According to preliminary estimates, energy consumption per GDP unit dropped by 4.02%. The discharge volume of major pollutants was down 3.3%. Emission of COD and SO2 was reduced by 3% and 3.6% respectively. The environment of some cities and regions was improved. We insisted on economical and intensive use of land. The amount of idle land for construction purposes that were brought back into the market accounted for 1/4 of the total annual supply of land in the province. We pushed forward the afforestation drive and building of an ecologically sound province. 103.2 thousand hectors of forests were planted. The city of Yangzhou won the “UN Habitat Award”. Zhangjiagang, Changshu, Kunshan and Jiangyin were recognized as ecological cities at the national level, making Jiangsu province home to 2/3 of China’s ecological cities. Another 4 cities in Jiangsu were recognized as model cities of environmental protection, bringing the total number to 19, that is, 1/4 of the national total. Jiangsu’ development was in good shape and characterized by sustained economic growth coupled with improved environment.

　　2. Stable and balanced development achieved by following the approach of coordinated development.

　　Efforts were intensified to coordinate development in urban and rural areas and the drive of “building a new socialist countryside” achieved initial success. Work related to agriculture, rural areas and farmers remained the top priority of our overall agenda. Supportive and favorable policies and measures were fully implemented. The provincial fiscal budget allocated 18 billion yuan, an increase of 20%, to work related to agriculture, rural areas and farmers. With increasing inputs, grain production, agricultural efficiency and farmers’ income have been on the rise for 3 years in a row. Adjustment of agricultural structure scored considerable progress. Cost-effective farmland and fishery grew by 200 thousand hectors and 50,000 hectors respectively. Export of farm products was up 33.1%. An additional 626 thousand farm laborers were employed in urban areas. A new package of projects was launched to bring tangible benefits to farmers. In the countryside, 11,000 kilometers of highway was built up and 1,050 medium and big-sized bridges were reconstructed. 2.79 million rural laborers received training. Renovation of clinic centers in towns and townships, construction of cultural centers, dredging of river embankment and environment treatment were carried out as set by the annual objectives. Production and living conditions in rural areas changed for the better. Initial success was achieved in poverty reduction in 1,011 underdeveloped villages. Urban planning work was further improved. Major cities played a greater role in stimulating the development of surrounding areas and the urbanization rate of Jiangsu reached 51.9%.

　　Efforts were stepped up to coordinate regional development so that the northern, central and southern parts of Jiangsu could complement each other with their respective strengths and pursue common development. We will increase the scale of industrial relocation, transfer payment and other supportive steps, press ahead with building development zones in north Jiangsu with the joint efforts from both sides of the Yangtze River and speed up the economic growth of north Jiangsu. Last year, the provincial government invested a total of 36.6 billion yuan in north Jiangsu, up 20.8%. Meanwhile, the number of relocated industrial projects with an investment of over 5 million yuan exceeded 2,000, with total investment topping 80 billion yuan. North Jiangsu exhibited faster growth than the provincial average in terms of major economic indicators, such as fiscal revenue and paid-in foreign direct investment. Industrialization of north Jiangsu was gaining momentum and endogenous growth was playing an increasingly prominent role. Backed by development and opening up along the Yangtze River, central Jiangsu accelerated the development of its competitive industries and stepped up efforts to attract FDI, picking up its overall development speed. South Jiangsu strived for industrial upgrading and independent innovation. The economic strength and comprehensive competitiveness of south Jiangsu was further enhanced as indicated by its per capita GDP as high as $7,400. 7 counties (cities) of Jiangsu ranked among the top 10 counties in China.

　　Efforts were intensified to coordinate economic growth and social development and more significance was attached to progress in social undertakings. Jiangsu allocated 54.97 billion yuan from its budget for investment in various social programs, 14.06 billion yuan from the provincial government, a year-on-year increase of 27.4%. To develop various types of education at different levels constituted a priority in our work. Jiangsu eliminated tuition and miscellaneous fees for all rural students receiving compulsory education and further improved the condition of school-running in the countryside. Vocational education was further developed. 1.45 million students were in vocational school. For the first time, the enrollment of secondary vocational training outnumbered that of regular senior high schools. As gross enrollment ratio climbed to 35.6%, higher education became more widely available in Jiangsu. We granted more support and assistance to rural health care services. Over 90% of rural population joined the new type of rural cooperative medical care system. 25,900 rural medical professionals and staff received training. We worked hard to develop a community-based system of urban medical and health care services, which covered 65% of urban residents. We further improved policies and measure with regard to the development of cultural undertakings and the cultural industry. Fresh achievements were accomplished in literature, art, radio and television, film, mass media, publishing, philosophy and other humanities. Jiangsu successfully held the 3rd All-China Games and the 16th Jiangsu Provincial Games. The level of competitive sports and mass sports were further raised.

　　3. Deepen reform and opening-up and remarkably improve the drive for sustainable development

　　We deepened reform in key areas and key process and further enhance the development drive. We pushed forward the reform of administrative system, gave priority to transform administrative functions, and reinforced the administrative and managing capacity of the government.  We gave priority to service-oriented governance by improving the working style, public administration and public service, and increasing the level of service and administration. We continued to step up the reform of state-owned enterprises and remarkably level up the operation and economic return of state-owned enterprises, with a view to increasing the profit of province-owned enterprises by 63% and strengthening their capital and vitality. We basically accomplished the reform of the shareholder structure of state-owned listed companies, continued support for the faster growth of private economy with 600 thousand private companies, up by 93 thousand, and developed a diversified economy with the development of state-owned, private and foreign-invested enterprise well coordinated. We deepened fiscal and financial reform with unified management of no-tax revenue in all provincial departments, kicked-off of pilot reform of “direct control of township budget by county government” in northern part of Jiangsu, deepened reform of rural credit cooperatives, and Jiangsu Bank starting business. The fundamental construction for capital market was strengthened, with 138 listed companies, up by 21. Insurance industry maintained a stable growth with a total premium of 50.2 billion, ranking No.1 in China. We actively promoted the comprehensive reform in rural areas, started the pilot reform of township governance, improved the financial assurance mechanism for compulsory education in rural areas, enhanced the guarantee for grass-root fiscal revenue, and further injected new vitality to the development in rural areas.

　　We insisted on the strategy of economic globalization, and upgraded the open-oriented economy. We optimized the structure of exported products with remarkable and faster growth of electromechanical, high-tech, agricultural products than other products. We improved the quality and level of utilized foreign capital, with large-scale expansion of foreign investment in modern service and high-tech industries, and rocketing FDI in middle and southern part of the province. The FDI last year reached USD$17.43 billion, up by 32.3%, contributing over 1/4 to the nation total. The “Go Global” strategy was proven productive, with the total turnover of international project contract and labor cooperation reaching USD$4.35 billion, up by 36.2%, and total overseas investment reaching USD$330 million, up by 61.7%. The intensive growth of development zone was further consolidated, with increased technological innovation ability and leading role in driving development.

　　4. Great promotion in innovation, remarkable progress in building an innovative province

　　We laid out the overall arrangement for the construction of an innovative province, organized the implementation of the 11th-Year plan for the development of science and technologies, set forth 50 policies to encourage scientific and technological innovation, and set scientific and technological innovation as the top priority of the past year. We increased input in scientific and technological research in all social sectors, with R&D investment accounting for 1.55% of the provincial GDP, the provincial specialized fund for the industrialization of scientific and technological research up by 60%, and over 10 billion yuan social investment. We gave priority to the research of applicable technology, the initiative of enterprises, closer links among research, study and relative industries, greatly developed independent innovation, and accelerated industrialization of research achievements. The provincial government has established a cooperative coordination mechanism with the National Ministry of Science and Technology and the National Ministry of Information Industry, and set up a overall cooperative relation with the Chinese Academy of Science and the Chinese Academy of Engineering. We promoted the construction of high-tech development zones, various scientific and technological parks, key labs, engineering research centers, and other innovation incubators, launched key projects including Nanjing Software City Program, Taizhou Medical City Program and Suzhou National Nano Technology R&D Base Program, and created public service platforms for technical assistance, result trade, enterprise financing, socialized headhunting and other services. We took substantial steps in IP protection, with the total number of patent application and approval up by 53% and 42.5% respectively, among which patent certificates for invention up by 55.2%.

　　5. Actively building up harmonious society and scoring remarkable achievements in enriching people and social construction.

　　We abided by the principle of “people first and enrich people first” and attached great importance to solving the problem affecting people’s livelihood. The income of urban residents has maintained an over 10% growth for three consecutive years and people’s life standard was further upgraded. The re-employment efforts have effectively decreased the registered unemployment rate in the past four years. The coverage of social security network were expanded, with the number of endowment policy, basic medical insurance, and unemployment insurance for enterprises employers increasing by 1.074 million, 1.477 million, and 626 thousand respectively. 1.485 million urban and rural residents entitled to basic living allowances are fully guaranteed. We raised the minimum salary standard, basic pension benefits for retired enterprise employees, subsidies for entitled groups，and subsistence allowances for urban residents. We comprehensively extended the system for rewarding and supporting rural families following the family planning policy. We added 25,000 new beds in the geracomiums and incorporated 52% childless and infirm rural residents into the system for providing food, clothing, medical care, housing and burial expenses. We basically established the emergency system for providing living and medical relief to urban and rural residents. We invested 6.65 billion yuan in social security at provincial level and alleviation of families in difficult situation, up by 37.7%, among which inputs in poverty relief, education assistance, and the aged and disabled assurance were doubled.

　　We strengthened social management and public service, and promoted social harmony and stability. We greatly encouraged entrepreneurship, innovation and quality excellence, consolidated the spiritual cultivation, and further developed the ideology of taking leads in modernization and building Xiaokang society among the general public. We promoted the “Law-based Governance” program, and continued efforts in improving democratic and legal systems. We pushed forward the “Safe Jiangsu” program, enhanced administration in social order and public security, ensured the sense of security of common citizens, and played a leading role in public security undertaking nationwide. We have preliminarily set up the emergency reaction system and decreased the incidence rate in production. We seriously and appropriately addressed people’s petition. We made new progress in corruption prevention of government officials. We scored new achievements in improving the system and mechanisms for national defense mobilization, civil air defense, and the quality of the militia and reserve forces, and promoting mutual support between the military and civilians, as well as the special care and placement policy for demobilized army forces. We made new progress in ethnic group affairs, religious affairs, foreign affairs and Taiwan affairs. We carried forward the population and family planning policy and made new progress in women affairs, child and juvenile adult affairs, aged care, Red Cross, charity, disabled care and other social causes.

　　We owe these successes to the correct leadership of the Central Committee with Comrade Hu Jintao as General Secretary and to the concerted efforts and hard work of government employees and the general public. On behalf of the provincial people’s governemnt, I would now like to express our sincere thanks to all the people in Jiangsu, to all deputies, to members of the Provincial People’s Consultative Conference, to members of democratic groups, to members of the federation of industry and commerce, to all people's organizations, to people from all walks of life, to the people’s liberation army, to the armed police quartered in the province, to all police officers, to all national ministries and commissions, and to other provinces. I would like to sincerely thank our compatriots from the Hong Kong and Macao special administrative regions and Taiwan, as well as overseas Chinese.

　　Dear Deputies,
　　We are now in the key period for the construction of the Xiaokang society in an all-round way, for accelerating the transforming of economic growth pattern, and for the overall upgrade of the economic globalization. The continuing rapid growth of world economy, international trade and transnational investment, provide us with new opportunities, while the floating currency exchange, oil price, rising trade protectionism, and the uncertainty of international economic environment impose us severe challenges upon us. As the national macro control continues its positive effect, the improvement of supporting conditions for development, optimized industrial structure, upgraded consumption structure, and enhanced innovative ability create favorable conditions for our future development. It is fair to conclude that we face more opportunities than challenges. Meanwhile, we should be aware that there are still problems and difficulties to be addressed. First, inconsistency of economic structure still exists, industrial structure is not rational enough, investment structure is not optimized enough, investment and consumption is not well coordinated, development in different regions are not balanced, and what’s most important, the problem of inadequate contribution of service industry to provincial economy and low added-value in industrial products remains major challenges. Second, increasing contradictions between social and economic development, and resources and ecological environment intensifies. The development of provincial economy still imposes heavy pressure on resources and ecological environment and the transformation of extensive growth pattern has not been completed yet. It remains a formidable task for us to reach indicators listed in the 11th-Year Plan for energy saving, low energy and resources consumption, low pollution and environment-friendly development. Third, Agriculture development and enrichment of farmers becomes more challenging. In the past several years, development in rural areas and agriculture has scored considerable progress. However, agriculture industrialization does not advance fast enough, public service in rural areas need further improvement, income increase for farmers is not stable, which requires more commitments. Fourth, social development lags behind economic development despite increasing investment in social undertaking. Our people are not completely satisfied with medical care, education and housing and some still struggle to live. Fifth, reform of government function fails to match the scientific development approach, law-based governance and scientific administration require more efforts, and corruption cases have not been completely eliminated. We will pay enough attention to these problems and take concrete and effective measures to solve them so as to do all government work better.

　　II. Major Economic and Social Tasks of 2007

　　As the year to hold the 17th CPC National Congress and the first year to implement the tasks of the 11th CPC Party Congress, the year of 2007 bears great significance. The general requirement for this year’s work is to insist on Deng Xiaoping Theory and the important thought of Three Represents as our guide, fully implement a scientific concept of development, promote sound and fast development at all our best, accelerate the construction of a socialist harmonious society, and with the mission of “achieving prosperous life and building a new Jiangsu” to focus on economic restructuring and change of the pattern of growth, strengthen resources conservation and environmental protection, accelerate reform and opening up and stimulate independent innovation, facilitate social development and improve people’s life to create a new scenario of scientific development.

　　The major targets for economic and social development in 2007 are as follows: local GDP is to grow by about 11%, and energy consumption per unit of GDP fall by 4.2%, while the total emission volume of major pollutants decrease by 3.3%. The local fiscal revenue is to increase by 15%, the total volume of foreign trade go up by above 15%, the per-capita disposable income of urban residents increase by 9%, and the net income of farmers mount up by 8%, the rise in consumer prices be kept under 3%, urban registered unemployment rate be kept under 4%, and the natural growth rate of population be kept under 4‰. Among these targets, the indexes of resources conservation and energy consumption decrease are compulsory and should be obtained by all means, while those indexes concerning about economic increase are anticipative and could be adjusted according to conditions, and the indexes of improving people’s living standard are guidelines and should be accomplished even better.

　　Evident progress will be achieved on the following five aspects this year:
　　--New advancement should be obtained on the change of the pattern of growth. We will focus on promoting the restructuring and upgrading of industries, and pay close attention to resources conservation and environmental protection to coordinate the relations among speed, quality and benefits; consumption, investment and export; economy, resources and environment.

　　--New scenario will be made in coordinated development. We will intensify our efforts to agriculture, rural areas and farmers, social causes, social security system and development of North Jiangsu, promote the mutual construction between new countryside and urban areas, accelerate common development of southern, central and northern Jiangsu, and develop construction in economic, political, cultural and social sectors in an all round way.

　　--Great strides in reform and opening up will be made. We will promote the reform in major and key areas, and further enhance the level of open economy to form a more vigorous and open environment for development and to provide system guarantee for sound and fast development.
　　--New breakthroughs will be achieved in innovation. We will give priority to science and technology and innovation, making innovation the key part of competitiveness upgrade. We should accelerate the set up of scientific and technological innovation system by strengthening the role of enterprises to make them the main source of innovation and build a market-oriented system for technological innovation integrating the efforts of enterprises, universities and research institutes to achieve economic and social development based on scientific and technological development and laborer quality enhancement.

　　--New effects will be achieved in the construction of harmonious society. We will put people at the first place and give priority to making people rich. We need to do a good job related to people’s life and solve practical problems concerning public interests mostly cared by the people and affecting people directly. We need to keep in mind benefits of all sectors, maintaining the justice and right of the society and enabling people to share the fruits of reform and development so as to inspire the social energy and further the social harmony.

　　III. Go all out to promote sound and fast economic development.

　　To achieve sound and fast economic development is an essential requirement to implement the scientific concept of development. We will balance the quality and the speed of development, attach greater importance to the change of the pattern of growth, and promote the economic development manner from a fast-and-sound way to a sound-and-fast way.

　　1. Restructure economy and upgrade the comprehensive competitiveness of economy.

　　We will pay close attention to develop advanced manufacturing industry and modern service industry, aiming at improving industrial competitiveness and the added value of product to further restructure economy and accelerate the process of new-style industrialization.  

　　We will promote the development of hi-tech industry and accelerate the upgrade of manufacturing industry. We will inaugurate a new development strategy for hi-tech industry to double the production value. We will pay close attention to the development of three pillar industries, namely electronic information, equipment manufacturing and petrochemical industry, and try every means to accomplish over one trillion yuan for their sales revenue. We will upgrade the electronic information industry to the higher end of the industrial chain, expand R&D and service sectors and enhance its added value. We will speed up Nanjing’s construction as a well-known software city in China, encourage a batch of software parks and enterprises to grow stronger and larger, develop the software outsourcing industry and make frog-leap development in software industry. For equipment manufacturing industry, we will develop competitive products, which have huge potential for further development and can act as driving force for the industry, and strengthen the capabilities of independent design, manufacturing and matching to enhance the core competitiveness of this industry. We will upgrade some traditional industries like textile, light industry, metallurgy and building material, create well-known brands and improve industrial added value by using high-and-new technology and advanced appropriate technology. We will accelerate the development of sunrise industries, like new resources, new pharmacies, new material and biology to be the new highlight of economic increase. Large-sized enterprises and groups should be encouraged through merger and acquisition. Through qualified products, competitive enterprises and strong industries, a batch of corporations and groups with independent intellectual rights, well-known brands, strong competitiveness and leading place in the industry can be established. We will also strengthen the comprehensive competitiveness of architecture industry and enhance the intensive development level of this industry.

　　We should promote the development of modern service industry, accelerate its development speed and enhance its ratio. We should speed up the development of production service industry and sunrise service industry, and make great efforts to enhance “three ratios”, namely the ratio of added value of service industry in local GDP, the ratio of investment for service industry in the total fixed asset investment of urban areas, and the ratio of taxation of service industry in the total local taxation. We should try to make breakthrough in three sectors. Firstly is to make breakthrough in the development of production service industry. Great efforts should be made to develop industries of logistics, finance, information, business and science and technology, and continue to develop and upgrade the development of consumption service industries like trade, tourism, culture and sports. Secondly is to make breakthrough in the construction of service industrial parks. Large cities should give priority of development to service industry, and attach great importance to the construction of modern logistics parks, science and technology parks, software parks, innovation industry parks, trade markets and CBD. Major modern service projects, which have close relations with and can provide support to other service projects, should be accomplished to enhance the radiation effects. Thirdly is to make breakthrough in the business and foreign investment attraction. We should guide all kinds of capital invested to modern service industry, accelerate the development of outsourcing industry and promote the innovation of managerial concept, administrative mechanism and brand name of service industry.

　　We will adhere to the strategy of expanding domestic demand, further strengthening the role of consumption in fueling economic growth. We need to accelerate the adjustment of income distribution, raise the proportion of people’s income in GDP as well as the income standard of farmers and low-income earners, and gradually enlarge the proportion of people with medium-income. We will support the increase of legal income and enhance the income standard and consumption capacity of urban and rural residents. We will endeavor to make a sound consumption policy, lead the consumption expectancy, orient the consumption focus and improve the consumption environment so as to better satisfy the diversified consumption demand of urban and rural residents. We need to continue upholding the development priorities for some sectors, optimize the industrial structure and maintain a reasonable growth of fixed assets investment. We will increase investment in modern services, advanced manufacturing and export-oriented agriculture of high efficiency, raise funding for independent innovation, resource conservation and environmental protection, and increase input to social cause and human resources development. We need to strengthen the overall plans to balance the development of infrastructure, increasing investment in water conservancy, harbor, channel, railway, airport, urban public transportation and environmental protection. We will continue to promote the construction of such projects as South-to-North Water Diversion Phase I, seawall standardization, urban flood control, regional river regulation, and basically accomplish Huai River pollution control project. We will build a 150,000 DWT deepwater channel in Lianyungang, and accelerate efforts to launch Taizhou, Nanjing and Chongming-Qidong cross-river tunnels, Tongyu Canal Northern Section Project, Nanjing Railway hub, and the Beijing-Shanghai high-speed railway Jiangsu section. Further promotion should be made in pre-construction work of 300,000 DWT deepwater channel in Lianyungang, deepwater channel from Nanjing to the mouth of the Yangtze River, Shanghai-Nantong, Nanjing-Hangzhou, and coastal railways, as well as Shanghai-Nanjing inter-city railway. We will enhance the service capacity of Nanjing Lukou International Airport and finish the expansion of the airports in South Jiangsu. We will continue to attach great importance to the construction of expressway, cross-river bridge and electric power projects. We will speed up the promotion of Foxconn Science & Technology Town in Huai’an, Hynix integrated circuit Phase II in Wuxi, Oji Paper in Nantong, natural gas reserve and power generation in Rudong, wind power base in Yancheng, extra-high voltage transformer and China Post air express logistics center in Changzhou, as well as approved key projects with regards to automobile and shipping.

　　We will promote the common development among regions at a higher level and enhance the integrated economic development. Holding tightly the opportunity brought about by the nation’s development strategy of the Yangtze River Delta, we will accelerate the advancement of southern Jiangsu’s international competitiveness and the promotion of the rise of central Jiangsu. We will make an advantageous combination between our regional common development strategy and the development of the Yangtze River Delta for the benefit of a more promising outlook. We will promote a balanced development of industry belts along Shanghai-Nanjing railway, Yangtze River, East Longhai railway and the coast. Amendments will be made to improve the overall plan for coastal development followed by the launch of a new round of coastal development as well as the promotion of major coastal infrastructure projects and key industry layout. We will speed up the development of Lianyungang, gradually bringing into play its leading role in energizing the coastal area and rejuvenating northern Jiangsu, and its function as a hub to connect the Yangtze River Delta, Bohai Sea circular economic belt and Longhai Railway economic belt, so that a river-sea linkup as well as development interactions along the sea and the Longhai Railway will be shaped up. We will carry forward the implementation of various policies on accelerating the rejuvenation of northern Jiangsu, push forward in depth the “Four Transfers” while enhancing the endogenous development impetus, actively support the north-south jointly-built development zone, and accelerate the new-style industrialization of northern Jiangsu. We will focus on helping Suqian score greater breakthrough. We will continue our efforts to promote the construction of 3 major urban circles centered around Nanjing, Suzhou-Wuxi-Changzhou and Xuzhou, whose radiating and driving effect will be brought into play for the enhancement of urbanization and urban modernization. We will intensify urban management, adhere to public transportation priority, and commit strenuous efforts to develop public transportation to relieve traffic congestion. We will strengthen the construction of comprehensive urban functions, actively carry out the development of urban underground space and building energy efficiency, optimize the urban habitat environment and enhance the quality of urban development.

　　2. Accelerate the development of agriculture and rural economy, and promote the building of a new socialist countryside.

　　We will keep the focus on developing rural economy with the increase of farmers’ income as the core, and fully promote 10 major projects in the course of building a new socialist countryside. We need to enrich farmers through industrialization, drive the development of the countryside through urbanization and advance agriculture through industrialization. We will promote constant enhancement of agricultural efficiency, increase of farmers’ income and development of the countryside.

　　We will strengthen investment in and support for agriculture, rural areas and farmers. Policies supporting and benefiting agriculture will be reinforced, which is characterized by preferential and favorable treatment to agriculture, rural areas and farmers in terms of development arrangement, distribution policies as well as budget expenditures. We need to actually offer more, take less and manage in a more flexible manner. First is to increase investment in agriculture, rural areas and farmers from the government budgets. We will ensure “Three Exceeds”- the increase in budget expenditure will exceed last year, the increase in fixed assets invested in the countryside will exceed last year, and the increase in land transfer fees used for the development of the countryside will exceed last year. Provincial government budget expenditures for agriculture, rural areas and farmers will total 21.12 billion yuan, an increase of 3.12 billion yuan, which will be put to use mainly in agricultural subsidies, the construction of a new socialist countryside, comprehensive development of agriculture and the enhancement of comprehensive productivity of agriculture. Second, we will intensify efforts to get industry to support agriculture and cities to support the countryside. We will actively support the linkup between the countryside and enterprises, and attract more investment in agriculture, rural areas and farmers from various social sectors for the building of a new socialist countryside. Third is to strengthen financial support. It is of necessity that financial institutions shall improve the service, actually enlarge the credit input to agriculture, rural areas and farmers, carry on expanding the scale of rural small loans and resolve rural families’ difficulties in getting loans. The pilot sites of agricultural insurance will be expanded so as to enhance the risk-resisting capability of agriculture.

　　We will work hard to develop modern agriculture. We will accelerate the agricultural restructuring and develop export-oriented agriculture of scale and high efficiency. On the basis of a steady development in grain production, we will increase a highly-efficient planting area and a fishing area of 2.4 million Mu and 600,000 Mu respectively. The animal husbandry cultivation of scale will increase by 5 percent. We will actively develop pollution-free agro produce, and enhance the competitiveness of agricultural products as well as agricultural efficiency. We will speed up the comprehensive agricultural development of hilly area in Zhenjiang and other regions. We will implement the rejuvenation plan for exporting agricultural products in an all-round way and set up a series of export bases. We will promote the industrialized management of agriculture, develop fine processing of agricultural products, strengthen the building of a market system for agricultural products and foster leading enterprises. We will take an active part in developing farmers’ professional cooperative organizations of various types so as to promote the cooperative economic development in the countryside. We will improve farmers’ quality, helping more and more farmers become educated and skilled in technology and management. We will adhere to the strategy of reinvigorating agriculture through science, technology and education, and will strengthen the technological innovation, promotion and application of agricultural research achievements. To carry forward the transfer of rural labor, we will adhere to local transfer, non-local transition and private business start-ups in a balanced manner. The secondary and the tertiary industries will be developed strenuously to increase the farmers’ income.

　　We will continue our efforts to accomplish 5 new tasks that really matter to farmers’ interests. This year, 10,000 kilometer of rural road will be built, 1000 large and medium-sized bridges will be renovated, a rural labor body of 2.4 million will receive training, and a new type of rural cooperative health care system will achieve a population coverage rate of 92 percent. The renovation and construction of township clinic centers, comprehensive cultural stations as well as cable TV in less-developed regions will be continuously supported. The water sanitation improvement, dredging project of pools and the administration of rural environment will all be promoted. Subsidies from the provincial government will total 6.17 billion yuan, 1.12 billion yuan more than last year. We will endeavor to achieve “Four Implements”-implement responsibility, planning, capital and policy so as to guarantee our service quality and highlight the effectiveness. We will continue the “Help and Support Thousands of Villages and Households Project” to help people in less-developed villages shake off poverty and become better off.

　　3. Accelerate the improvement of the pattern of economic growth through energy conservation and environmental protection

　　We will carry on assigning priorities to conservation and environmental protection, implement the strictest environmental protection policy as well as land management system, and enhance the sustainable development.

　　We will accomplish in a firm and steady manner the energy conservation and the reduction of resource consumption and pollution emission. First, we will stress work obligation. The targeted mission of saving energy and resources will be assigned to regions, departments, and work units so that responsibilities, policies, supervision and evaluation will be ensured in good operation and practice. Second, we will highlight the work focus. Emphasis on energy conservation and pollution reduction will be attached to key industries and enterprises such as metallurgical industry, building materials industry, chemical engineering, electric power industry and textile industry. We will make reducing energy consumption and pollution emission as well as economizing on land utilization the mandatory threshold for market access. We will exercise a strict control of high energy-consuming projects, prohibit pollution-intensive projects, proceed with the concentrated administration of small chemical groups, and prevent pollution transfer in the course of industry transfer. We will eliminate equipments of high energy consumption, heavy environment polluting, safe production endangering and backward in techniques. Third, we need to accelerate the technological advancement. The research and promotion of technologies on energy conservation and environmental protection will be strengthened, and the technological renovation of high energy-consuming and pollution-emitting industries will be accelerated. We will make efforts to develop the circular economy and actively promote clean production. Fourth, we will innovate the system and mechanism. We will bring into full play the lever effect of price, and develop energy conservation and environmental protection service of various types. We will achieve a pattern characterized by joint efforts from government guidance, market promotion and full public participation to conserve energy and reduce pollution emission.

　　We will strengthen the implementation the measures for land use control and management. The government should shoulder more responsibilities in land resources administration, enhance protection on farmland, safeguard the legitimate rights and interests of farmers, and level up the intensive utilization of land resources. We will regulate the management of land use revenue and expenditure and seriously enforce the law and regulations on land uses.

　　We will actively improve the ecological environment, pace up the treatment of key polluted water areas, comprehensively prevent the pollution occurring during the South-to-North Water Diversion Project, and increase the quality of Huai River, Taihu Lake and Yangtze River Jiangsu part. We will intensify drink water protection and realize unified eater supply in the region. We will continue treatment of air pollution, the pollution derived from agriculture and soil pollution, so as to improve environment in both urban and rural areas and people’s living standard. We will accelerate the “Green Jiangsu” program and promote the tree-plating activities, with 1.5 million Mu new forests land, a forest coverage rate of 16.8% and green land coverage rate of 41% in urban area.

　　4. Greatly promote the building up of an innovative province and upgrade innovation capabilities.

　　To promote innovation is the key part of restructuring economy and change of pattern of growth and will accelerate the transformation from investment-driven economy to innovation-driven economy, from resources-based growth pattern to science-and technology-based growth pattern, and from Jiangsu manufacturing to Jiangsu innovation. Firstly is to strengthen the role of enterprises to make them the main source of innovation. We will give enterprises preferential innovation polices, concentrate innovation fruits at enterprises, and encourage innovation talents working at enterprises to put large enterprises’ role as innovation backbone into a full play, to inspire private enterprises’ innovation and to strengthen the support to hi-tech enterprises. Secondly is to closely integrate the efforts of enterprises, universities and research institutes. We will support enterprises, higher learning institutions and research institutes to carry out comprehensive cooperation, and based on major projects, explore key technology and promote the application of innovation fruits. This year, we will increase the scientific and technological fruits transformation fund to one billion yuan, so as to encourage more social capital to invest in scientific and technological innovation. Thirdly is to encourage re-innovation after introduction, digestion and absorption. We will combine technological introduction and independent innovation to strengthen the international exchanges and cooperation and enhance the re-innovation capability. Fourthly is to speed up the new carrier of scientific and technological innovation and the construction of service platform. We will promote the construction of all kinds of scientific and technological parks, support the development of key labs and engineering research centers, consolidate the construction of scientific and technological innovation platform and provide qualified service for varied innovation activities. Fifthly is to further optimize innovation environment. We will implement policies supporting scientific and technological innovation, strengthen the protection of intellectual property rights, speed up the development of business risk investment, create a social atmosphere encouraging and supporting innovation and inspiring the innovation of whole society. Sixthly is to focus on building an innovation-talent team. We will attach great importance to the training, introduction and utilization of talents and implement introduction and training programs for senior innovation talents. We will not stick to one pattern to employ talents, train middle-aged and young talents, and introduce innovation talents to construct various talent teams with innovation capability and to accelerate the transformation from populous province to a strong province in talent resources.

　　5. Deepen reform on major fields and build a system promoting scientific way of development

　　We need to deepen reform in all fields to meet the demand of socialist economy system. Firstly is to deepen reform on administration system. We will transform the function of government, improve the economic administration of government, aid the work of social and public administration, further separate administration from enterprise, state-owned companies and public institutions, take various reforms in public institutions according to classifications, further reform in wage system for civil servants to standardize the income distribution system. Secondly is to deepen reform on state-owned companies. We will attract state-owned assets to strategic fields, important industries and competitive companies, improve enterprise legal person responsibility system, enhance capability of innovation, profit making and competition in state-owned companies, strengthen supervision and administration on state-owned assets, regulate strictly transfer of property rights to prevent loss of state-owned assets. Thirdly is to deepen reform in agriculture. We need to expand reform in township institutions focusing on transforming function of township governments in order to provide better service for rural areas, agriculture and farmers. We will advance reform in compulsory education in rural areas focusing on establishing a system ensuring adequate education fund. We will deepen reform in financial administration in township level, consolidate and improve the financial administration mechanism of “Township finance is administered by county and used by town”, and to clean debts, in particular debts relating to rural compulsory education. Fourthly is to deepen reform in financial system. We need to introduce the financial administration system of “Township finance is under the direct administration of province” to boost township economy. We need to deepen reform in non-tax income collection and management to ensure that the income shall go to national treasury or special accounts. We need to put into practice the gist of National Working Conference on Finance and advance reform in finance, namely, to improve financial service and structure of credit and loan, promote innovation in financial products and services, increase financial support to agriculture, economic restructuring, innovation, energy saving, environmental protection, small and medium sized enterprises and north Jiangsu. We need to develop capital market, further increase the size of direct financing, develop insurance sector and improve its service, attract more domestic and international financial institutions and agencies and speed up reform and development of local financial industry. Fifthly is to boost the development of non-state-operated economy. We will implement all related policies in order to build an environment advocating fair competition, and give full support to the economic sector in technological upgrading and its cooperation with foreign companies to help the non-state-run enterprises develop stronger and better. 

　　6. Upgrade Jiangsu’s economic globalization by further promoting the open economic restructuring.

　　Jiangsu is to improve the quality of foreign direct investment (FDI) by selectively rather than unselectively attracting foreign investment. Efforts are to be made in the following areas: combining foreign investment with Jiangsu’s industrial restructuring and optimization; laying emphasis on introducing projects in the fields of modern service industry and developed manufacturing, introducing advanced technologies and managing experience and high-level talents, and directing more FDI to middle and northern Jiangsu; speeding up the planning and building of international service outsourcing bases to introduce R&D and distribution and make breakthrough in attracting foreign investment in the service industry.

　　Jiangsu is to further optimize foreign trade structure by enhancing the quality and profitability of import and export trade. Efforts to be made include: building export brands, expanding export of hi-tech and highly-added-value products and increasing the proportion of products with their own intellectual property rights and brands in export goods; speeding up the building of export bases for mechanical and electronic products, software, medicine, agricultural products and services; encouraging and supporting the development of service trade; expanding the import of advanced technologies, critical equipments and resources in short supply; strengthen and improve the administration and services in customs offices; and building and bettering the anti-crisis mechanism against trade frictions.

　　We will combine the strategy of inviting foreign partnership with that of going global in economic cooperation and further speed up the pace of going international. Efforts to be made include: exploring new areas for development with an opening-up strategy aiming at win-win and reciprocity; laying emphasis on the processing industry, energy and resources and offering supports to competitive enterprises to set up overseas production bases, resources bases, distribution networks and R&D centers; speeding up the building of overseas economic cooperation zones; expanding overseas engineering contracting and labor service cooperation; and strengthening efforts in guiding, coordination and supervision to take strict precautions against risks in overseas investments and operations.

　　We will promote the upgrading of overall environment in development zones to further enhance their competitiveness and radiating capacity. Efforts are to be made in the following areas: building the pilot Comprehensive Bonded Area in Suzhou Industrial Park; further improving the service environment in all development zones to strengthen their supporting functions, lowering business costs, developing featured industries, upgrading the level of intensive development of industries and enhancing abilities in innovation.

　　IV. Work Hard to Build a Harmonious Society

　　We need to continue to put people first and attach more strategic significance to social development and people’s living standards improvement. Governments at all levels must increase investment in social programs and people’s living standards improvement both in quantities and in proportions. This year, 17.2 billion yuan from provincial government, a 25.9% increase from previous year, will be allocated for the most concerned, direct and practical problems affecting the vital interests of the people, to facilitate the building of a harmonious society.

　　1. Strive to increase employment and improve social security work. We will put creating more jobs high on our agenda and ensure an increase of 800 thousand persons in urban employment and an increase of 250 thousand jobs for laid-off workers. We will extend coverage of social security programs to more employees of enterprises under all forms of ownership and to self-employed people and people without fixed employment in urban areas and gradually establish a social security system which covers residents both urban and rural and combine social security, social assistance, public welfare and charity programs. We will primarily improve “four systems”. Firstly is to improve employment service system in urban and rural areas. We will improve work for laid-off workers and focus on residents with special needs such as families with double unemployment or non-employment. We will pay close attention to help university graduates find jobs. Labor contract mechanism should be improved to effectively protect the lawful rights and interests of workers, especially rural laborers. We will strive to establish a harmonious labor relation. Secondly is to improve the system of old-age social guarantee. We should continue to raise basic pension for retired employees. Governments in localities where conditions permit should make pilot studies on personal account, working out a transfer solution for people without fixed employment whose social guarantee accounts are able to transfer across regions within the province, looking for ways to set up endowment insurance system suitable for public service institutions and gradually establishing new type of rural old-age insurance system. Thirdly is to improve medical security of various levels and forms. We should comprehensively improve overall basic medical security system and expand coverage of the new type of rural cooperative medical security system. Fourthly is to improve the system of subsistence allowances for urban and rural residents. We need to raise the subsistence allowance standards along with the increase of residents’ income and shift of prices of commodities. We need to raise minimum salary standards to suit the economic development.

　　2. Make a success of the work in ten projects involving the interests of the people. We will focus on helping poor families, students having difficulty paying educational expenses, old-aged residents and disabled people, and strive to solve problems people faced in various aspects such as education, medical care and housing. We need to achieve ten goals involving the interests of the people. Firstly is to completely eliminate tuition and miscellaneous fees for all urban and rural students receiving compulsory education, raise the level of budgetary guarantees for common expenditures for compulsory education in both rural primary and secondary schools, eliminate tuition fees and provide residing accommodation and living allowance to senior high school students from poor families, and subsidize poor students for professional education. Secondly is to raise standards of grants and scholarship in universities, increase credit support for students having difficulties paying educational expenses. Thirdly is to comprehensively improve medical security for unemployed residents in urban areas by combining personal payment and government subsidies. Fourthly is to establish mechanisms for workers’ compensation and medical security for rural laborers. Fifthly is to promote the building of low-priced hospitals and provide cheap or free medical care and assistance for poor residents. Sixthly is to fully implement increasing mechanism for basic living allowances and temporary assistance, covering all seriously disabled people. Seventhly is to improve the standards and service of the system for providing food, clothing, medical care, housing and burial expenses for childless and infirm rural residents. Eighthly is to intensify recovery support for disabled people by building 50 county-leveled recovery centers for disabled people and providing free rescuing recovery training for disabled children under the age of six from poor families and social charity houses. Ninthly is to establish a system for renting affordable housing covering all the county-leveled cities and build 5.5 million square meters of economically affordable housing. Tenthly is to make steady progress in legal assistance system and provide efficient support for poor residents engaged in a lawsuit. Provincial government will allocate 4.82 billion yuan-a 50.5% increase compared with the previous year-to the ten above-mentioned projects and pensions for employees in poor areas, the new type of rural cooperative medical security and public health service subsidies. Through common efforts of governments at localities, we will achieve four major goals: to ensure that every poor family shall be guaranteed for basic living, to ensure that every student from poor family shall stay on campus, to ensure that all the urban and rural residents shall be covered by basic medical care system and to ensure that the lawful rights and interests of poor residents shall be protected with efficient and in-time assistance.

　　3. Priority is given to education development. We will keep making advances in education system, promote fair education, implement quality-oriented education and intensify development of a well-trained workforce of teachers, so as to improve the overall quality of education. We will continue to allocate more public education resources to rural and less developed areas, improve insurance system for compulsory education expenses, continue to increase the level of compulsory education and expand coverage of senior high school education. We need to put training of highly skilled personnel high on our agenda and intensify development of professional education and training in both urban and rural areas and increase support to development of training base and various types of vocational training schools. We need pay more attention to internal development of high education, promote development of major universities and key subjects, intensify in personnel training, scientific and technologic innovation social service, and develop innovative ability and practical skills. 7.97 billion yuan will be allocated from provincial government this year, a 20.1% increase compared with the previous year. Governments at localities must implement Compulsory Education Act, carrying out the responsibility of education as a public service, and ensure that the growth margin of the educational budge shall be remarkably higher than that of the regular revenue of the local finance.

　　4. Accelerate the development of medical care and public health. We need to focus on establishing a basic medical care system covering both urban and rural residents, intensifying government’s responsibility, increasing investment in medical care and public health, deepening reform of medical care system, striving to provide safe, efficient, convenient, cheap public health and basic medical care service for people, and gradually solving the problem of difficulties and high expenses in medical care. We will accelerate restructuring and building of town-leveled health centers, intensify training for rural medical personnel and promote development of the new type of rural cooperative medical care. We will speed up the development of medical care service system in urban communities, and try to divert patients to community health center and hospitals according to their illness. We will establish the double transfer mechanism between urban and rural hospitals and between community health centers and hospitals. We will promote the reform of the system of medical care, medical insurance and medicine purchasing and sales, strengthen public service function of public hospitals and introduce social funds into building medical care organizations by laws. We will promote the regulation of medical morals and virtues and develop a harmonious doctor-patient relationship with common efforts. We need to do a good job in the work of population and family planning, maintaining the birth rate in a low level, raising the quality of the new-born, facing the aging of the population positively and working out with balance the issue of population.

　　5. Advance the program of building a leading province in culture. We will adhere to the direction of advanced culture, accelerate the development of harmonious culture, carry forward the fine traditional culture and raise the overall functions of culture in terms of guiding, service, competition and innovation. We will deepen reform of the cultural system and balance cultural undertakings and industrial development. We will improve the system of culture-related services for the public, promote the development of the system of public cultural service, pay particular attention to cultural development at the local level in rural areas and organize activities of popularizing science and culture. We will comprehensively promote the development of mass media, publishing, radio and film, television, literature, art, philosophy and social science, train more talented people and produce more fine works of art. The media need to build up the sense of social responsibility, adhere to the right direction, carry forward social justice and develop a suitable media environment for steady reform. We need to protect historical and cultural heritage while expanding foreign cultural exchanges. We will promote development of new cultural industries such as cultural innovation, animation, digital transportation, and support the development of provincial cultural corporation groups, encourage non-public capital to enter cultural industries, develop entities of cultural enterprises and industrial base, promote the development major cultural projects and famous cultural brands and accelerate the development of cultural industries. We will improve management of the culture market and steadfastly fight against pornography and illegal publications. We will launch extensive fitness programs for the general public, launch the nationwide physical fitness campaign and raise the level of competitive sports.

　　VI. Strive to Build a Harmonious and Stable Society

　　Moral and ethnic education should be strengthened. We will continue to educate cadres and people with Deng Xiaoping Theory, the important thought of Three Represents and the scientific outlook on development, guide the people with correct theories, unite the people with common aspirations, and inspire the people with industrial and innovative spirit and the spirit of striving for the best. We will stick to the core values of socialism, enhance socialist spiritual civilization, and encourage patriotism, collectivism and socialism to lay a solid spiritual foundation for the construction of a relatively prosperous society in all aspects and a New Jiangsu. We are to foster the Socialist Concept of Honour and Disgrace featuring “Eight Honours and Eight Disgraces”, launch social morality education, vocational morality education and family virtue education, intensify moral and ethical education for youngsters and improve people’s civility in urban and rural areas. We will do a better job in national defense mobilization, improve the work of reserve forces and promote mutual support between the military and the civilian. We will launch various campaigns to encourage everyone’s participation in the construction of harmonious communities, harmonious villages, harmonious institutions, and harmonious families.

　　Democracy and legal system should be strengthened. We will earnestly implement the Guidelines on the Construction of Legal Jiangsu, and adhere to the principles of “There must be laws to go by, the laws must be observed and strictly enforced, and lawbreakers must be prosecuted”. Series of law education campaigns will be carried out to improve people’s legal awareness. We will adopt various measures on judicial and legal reforms and improve legal services and assistance. We will improve the legal system and explore multiple channels of democratic participation to encourage people’s participation in politics at various levels and in an orderly way. People’s legitimate rights of democratic election, democratic decision-making, democratic administration and democratic supervision will be insured. Grass-roots democracy and transparency is to be expanded and both urban and rural dwellers’ self-governance will be fully developed. We will also further promote the ethnic and religious work. 

　　Social integrity should be strengthened. We will actively encourage the integrity construction at government, company and individual levels to promote administrative integrity, business integrity and social integrity. We will accelerate the construction of a trustworthy service system as well as a credibility supervision system. We will enhance Intellectual Property Rights protection, for example the protection of technological patents and trade marks, intensify market supervision and administration, crack down on fake and inferior commodities, and safeguard market credibility and a sound market order. By launching mass education of honesty and integrity, we aim at creating an honest and trustworthy society.

　　The program of “Building a Safe Jiangsu” will be advanced. We will do a better job in the comprehensive control of social order, improve conflict mediation system, rectify situations detrimental to the people’s interests and resolve conflicts among the people promptly and effectively. We will improve the “mass protection and control system” to secure public order, accelearte the establishment of community and rural police offices, and severely crack down on all kinds of crimes in accordance with law. By improving the responsibility system for the handling of people’s complaint letters and visits, we hope to create a system for the people to submit their complaints legally and rationally. A most strict supervision and administration system for production safety will be applied and great importance will be attached to production safety, transportation safety and food & drug safety. We will carry out special inspections in key sectors such as chemical industry and transportation to reduce major accidents. By creating a safe development system, improving emergency response system and enhancing emergency response ability, we will effectively deal with emergencies and risks to safeguard people’s life and properties and maintain social stability.

　　V. Intensify Resolutely the Government’s Self-improvement Efforts

　　To achieve sound and rapid development and to build a socialist harmonious society will increase the demands on government’s self-improvement at all levels. Focusing on the transform of government functions, we aim at improving administrative efficiency, enhancing the government’s ability to perform its duties and strengthening public trust. We will earnestly advance institutional innovation and administrative innovation to build a clean government committed to service, accountability and the rule of law.

　　1. Adhere to the principle of “government for the people” and building a service government

　　To serve the people is the sacred responsibility for governments at all levels. The current priorities for a service-oriented government are to create a better environment for economic development and to strengthen social management and public service. In line with the new trend of socialist economic development, the government’s function of economic administration mainly means to serve the main players in the market, enhance fair market competition, formulate stable and transparent policies, create a sound legal system and provide high-quality and efficient services. We will make better use of economic and legal means to regulate economic activities, upgrade market-based resource allocation, and increase economic development through better services and policies. With the development of institutional transition, system change and social transformation, we will improve the government’s function of social management and public service, and devote more energy to social development and management, shift more financial and material resources to public services, and work out policies that help better solve people’s livelihood issues. By improving administrative management and administrative efficiency, we will help enterprises resolve their difficulties, perform real services for the general public, and work diligently for the interests of the people.   

　　2. Adhere to the principle of “law-based administration” and building a law-based government

　　A government would not win public trust without law-based administration. We should bear the principle of “law-based administration” in mind during the whole process of policy-making, policy implementation and supervision, exercise power and perform duties within the stipulated scope of authority and on the basis of the procedures defined by laws and accept oversight. We will manage economic and social undertakings in accordance with the law, adjust interest relations in accordance with the law and resolve conflicts and troubles in accordance with the law. Legislation work will be enhanced to promote social harmony. We will speed up the construction of an administrative law enforcement system featuring clearly defined powers and responsibilities, uniform standards of conduct, effective oversight, and adequate resources. We will standardize law enforcement activities, intensify the management on law enforcement team, and adopt a responsibility system for administrative law enforcement to make law enforcement strict, fair and professional.

　　3. Adhere to the principle of “being realistic and pragmatic” and build a government of accountability

　　Being responsible to the people is a basic conduct for the government. We will maintain a scientific outlook on development and a correct attitude toward our performances, integrate our aspirations with those of the people’s, include the people’s comments into the government’s performance evaluation system, and be responsible both to authorities at the higher level and to the general public. In the spirit of “doing practical work and emphasizing practical results”, we will be committed to serving development, serving the grass-roots, and bringing more benefits to the people. Our work will stand up to the examination and inspection of the practice, the people and the history. Adhering to the principle that “power is matched with responsibility and subject to supervision, whoever breaches the law or infringes upon people’s interests will be held accountable”, we will strengthen the administrative accountability system and integrate it with administrative supervision and auditing supervision.

　　4. Adhere to the principle of “running the government strictly” and building a clean government

　　We will strive to build a clean, pragmatic and service-oriented government. We will improve various institutions, so as to restrain power within the institutions’ limitation, perform duties in accordance with the institutions and use the institutions to manage personnel. These measures will help prevent and tackle corruption at its source. The running of the government, the exercise of power will be more transparent and the development of an electronic government will be accelerated. We will resolutely crack down on corruption such as commercial bribery and the illegal collusion between government officials and business people, and effectively prevent the abuse of power. We will continue to work hard, conserve resources, combat waste and extravagance and turn the public servants into a diligent, responsible, honest, and well-behaved team. 

　　Fellow Deputies,
　　Now this government is in its fifth year of term. We are fully aware of the high responsibilities we are shouldering, and we will spare no effort to achieve the term targets and fulfill the promises we have made to the people. Under the leadership of the CPC Central Committee with Comrade Hu Jintao as General Secretary, let us uphold Deng Xiaoping Theory and the important thought of Three Represents as our guide, implement a scientific outlook on development in an all-round way, strive for innovation with a pioneering spirit, and continue our unyielding and down-to-earth efforts to realize our goal of “building a relatively prosperous society in all aspects and constructing a New Jiangsu”. Let’s salute the forthcoming 17th National Congress of CPC with our sound and fast development and with our new achievements!