First, the advantage of the socialist system with Chinese characteristics. China is a socialist country under the leadership of the Communist Party of China. China’s state system ensures that people are the masters of the country and the interests of the people prevail over everything else. Governance is based on the lofty philosophy of putting people first and governing for the interests of people. This system has ensured unity among all ethnic groups. As a powerful cohesive force that draws together the 1.3 billion Chinese people, it has mobilized to the greatest extent the enthusiasm, initiative and creativity of the people. It has made concerted national efforts possible to concentrate on major tasks with high efficiency. One important reason that we have been so effective in handling the aftermath of this severe earthquake is that we have brought into play the advantage of the socialist system with Chinese characteristics. With a keen sense of responsibility toward our people, we have done whatever is takes to save people’s lives and minimize casualties as long as there is a gleam of hope. We mobilized the whole nation and ensured that policies and decisions made at the central level are followed through and acted upon at all local levels. We organized as quickly as possible more than 139,000 soldiers and officers from the People’s Liberation Amy and the Armed Police, over 28,000 police officers, fire fighters and special police officers, 75,600 militia and reservists, 96,800 medical workers and over 5,200 Chinese and foreign professional earthquake rescue workers in an unprecedented endeavor to race against time to save people’s lives in the disaster regions. More than 200,000 volunteers from across the country rushed to the quake zones to join the rescue and relief efforts. President Hu Jintao, Premier Wen Jiabao and other state leaders went personally to the frontline and fought side by side with the affected people. At such a critical juncture, officials at various levels in the affected regions, those at the grassroots in particular, were the first to rush to the scene at the risk of their own safety. They have won the trust of the people and become their backbone in the relief and reconstruction efforts.
Second, the foundation laid by 30 years of reform and opening up. China has been growing fast. During the last 30 years, we have been focused on growing the economy and taken development as the Party’s top priority. This has brought historic changes to China. Between 1978 and 2007, China’s GDP grew by 9.6% per annum from US$216.5 billion to US$3,230 billion, contributing substantially to China’s enhanced overall national strength. In the same period, per capita GDP increased more than eight-fold from US$226 to US$2,100, resulting in significantly higher living standards. Meanwhile, fiscal revenue grew over 44-fold from 113.2 billion yuan to 5,130 billion yuan, greatly swelling the nation’s coffers. We have been able to respond effectively to the recent devastating earthquake mainly because of the strong material foundation laid by 30 years of reform and opening-up. By 17 June, governments at all levels had allocated over 53.9 billion yuan for the rescue and relief effort, including over 49 billion yuan from the central government. More than 1.4 million tents and over 360,000 prefabricated houses had been sent to the quake-hit areas. More than 4.8 million cotton-padded quilts and over 14 million items of clothes had been sent to the quake zones, together with large amounts of grain, food and medicine. These relief materials have met the needs of the relief effort and the affected populations. In view of the special nature of the disaster, the Standing Committee of the National People’s Congress has decided to promptly adjust the national budget for 2008 and establish a rehabilitation and reconstruction fund to fully meet the financial needs of the relief and reconstruction operations.