Coordinating Regional Development as a Solid Foundation for Common Prosperity

Zhang Qizi* and Ye Zhenyu

Institute of Industrial Economics (IIE), Chinese Academy of Social Sciences (CASS), Beijing, China

Abstract: Coordinating regional development is a key step for China to achieve the goalof common prosperity for all. From the era of the planned economy to the development,consolidation and improvement of the socialist market economic system after reform andopening up since 1978, as a key target of economic development, China has been committedto balancing regional development, and after decades-long explorations and relentlessefforts made great progress. Coordinated regional development – as manifested in narrowedregional development gaps, more equal access to basic public services and eradicationof regional absolute poverty – has paved the way for more substantive progress to bemade in delivering common prosperity for all. Despite the progress, China still needs tofurther improve institutional systems for regional coordination and undergird the regionalfoundation for common prosperity according to the requirements of its new developmentstage. Specifically, China should focus on the following priorities: (i) Strengtheninstitutional infrastructure, smooth regional internal and external circulations, and developa unified domestic market at a higher level; (ii) give full play to the role of the governmentin equalizing access to basic public services, promoting infrastructure connectivity andprotecting basic living standards; (iii) optimize integrated urban-rural developmentmechanisms, take solid steps to revitalize the countryside, and further coordinate urban andrural development; (iv) improve the layout of the industrial chain and advance interregionalindustrial chain upgrade and social progress.

Keywords: Common prosperity, coordinated regional development, industrial chainupgrade, social progress

JEL Classification Code: R38

DOI: 10.19602/j.chinaeconomist.2022.07.02