【正文】
ban migration will slow as the regional ine gap and the ruralurban ine gap both narrow. The parative advantage from cheap labor will decline as education levels rise, increasing the number of skilled workers and as wages rise even for unskilled workers. China must now adopt a new strategy in order to avoid the socalled “middleine trap”. The middle ine trap refers to countries that grow due to cheap labour or natural resources, reach middle ine levels and then stall This means fundamental changes in the role of government in the economy. In terms of the role of government: ? There needs to be greater emphasis on the role of private sector development. ? There needs to be emphasis on innovation in technology. Developing technology is not the same as adopting technology. Most significantly, innovation is not something that can be achieved through government planning. One of the important roles for government will be enhancing human capital. This means better education, health care and social security. It also means encouraging horizontal mobility of labor, including ruralurban, provinceprovince, citycity, and across occupations And vertical mobility through the social, economic and political hierarchies. Government has a key role to play in provision of public services, institutions to support efficient market development, protection of the environment and promotion of equality of opportunity. This is an indirect role for government. Government should reduce its role in direct production and distribution activities. There are five characteristics that are seen as underlying the new development strategy: 1. Improving the quality of growth while continuing to increase ines. 2. Achieving balanced and sustainable growth, consistent with market forces 3. Strengthening innovation and creativity 4. Unleashing China