Releasing growth potentialChinese lawmaker calls for national rare earth reserve_2

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boosting domestic demand while coordinating balanced development between urban and rural ranks. It is a key source of growth for domestic demand. It is a historic change that China’s urban population exceeded 50 percent of its total population in 2011. Yet, as a whole, China’s urbanization still lags behind not only that of developed countries but also the world average. Related statistics show that developed countries usually have an urbanization rate of 80 percent, while developing countries with similar per capita income as ours boast an urbanization rate of more than 60 percent. China is undergoing a development period of rapid urbanization that will not only help expand investment but also promote consumption to considerably stimulate domestic demand. International economists once predicted that China’s urbanization and the United States’ high technology would serve as the "two key growth engines" for the world economy in the 21st century. Related statistics show that the ratio of urban consumption to rural consumption was 3.6:1 in 2010 with the annual consumption of urban and rural residents standing at 15,900 yuan ($2,525) and 4,455 yuan respectively. According to this, it is estimated that the transformation of a rural resident into an urban one will increase consumption by more than 10,000 yuan. And an increase of the urbanization rate by one percentage point a year will absorb more than 10 million rural residents into the cities, thus increasing consumption by over 100 billion yuan and creating far more related investment opportunities. At present, the number of farmers-turned-migrant-workers in China totals 240 million among whom 150 million have left their country homes to seek jobs. Since there are still plenty of laborers in rural areas, the country’s urbanization still has a great potential for boosting domestic demand. Even before the urban-rural gap is fundamentally narrowed, a new wealth-gap between the urban rich and the urban poor is looming. Addressing the dual gaps will facilitate balanced urban and rural development, reduce social conflicts and bring into full play the role of urbanization in boosting domestic demand. Urbanization should be advanced stably on the basis of fully respecting the will of farmers, firmly safeguarding farmers’ rights and strictly protecting arable lands. The government should draw up mid- to long-term plans on urbanization development and comprehensive policy measures. Urban planning and administration should be strengthened to guide the population flow and industrial transfer and to ensure reasonable distribution and complementary development of towns and cities of all sizes. Policy measures should be urgently formulated and orderly carried out to absorb farmers-turned-migrant-workers into cities. Migrant workers should not only be included in, but also gradually guaranteed equal access to basic urban public services like social security, healthcare, education and culture. And the government should help solve their practical problems regarding employment, housing, healthcare and education