Low Carbon Green Growth Roadmap for Asia and the Pacific

CASE STUDY
Guiding the shift to a new economic system
China’s National Development and Reform Commission

Key point

• The National Development and Reform Commission in China is an example of a well-performing

inter-ministerial organization that could be a model for other developing countries to adapt for
implementing green growth policies.

There was an institutional gap…

The State Planning Commission was established in 1952 as a central economic planning and management
agency. However, the transition of the Chinese economy from a command system to the socialist market
economy system in the late 1990s called for establishing an institution to coordinate between the macroeco-
nomic and microeconomic affairs, to create a competitive but fair market environment and to draft national
development strategies for adapting to the new economic system.1

What was done?

In 1998, the National Development and Reform Commission2 was launched as the government agency
devoted to generating economic and social policies while maintaining a balance between economic arroga-
tion and economic restructuring. With supervision from the State Council, the National Development and Reform
Commission has 26 functional departments, bureaus and offices.

Figure 1: Historical development of the NDRC

1952 1998 2003

State Planning State Development Merging of the State Council

Commission Planning Commission Office for Restructuring the
NDRC
established established Economic System and State
Economic and Trade Commission

Source: People’s Republic of China, National Development and Reform Commission official website “Brief Introduction of the NDRC”.
Available from http://en.ndrc.gov.cn/brief/default.htm (accessed 15 March 2012).

The major functions of the National Development and Reform Commission:

• Establish and implement national economic and social development strategies, long-term and annual
plans, and industrial and price policies

1China Daily, “National Development and Reform Commission”, November 16, 2006. Available from
www.chinadaily.com.cn/bizchina/2006-11/16/content_734828.htm (accessed 27 February 2012).
2 People’s Republic of China, National Development and Reform Commission website “Main Functions of the NDRC”. Available from
http://en.ndrc.gov.cn/mfndrc/default.htm (accessed 4 October 2011).
Low Carbon Green Growth Roadmap for Asia and the Pacific :
Case Study - China’s National Development and Reform Commission

• Monitor and adjust the performance of the national economy, maintain the balance of economic
aggregates and optimize major economic structures
• Examine and approve major construction projects
• Guide and promote the restructuring of the economic system
• Perform strategic readjustments, upgrade industrial structures, coordinate the development of
agriculture and the rural economy and guide the industrial development
• Establish energy sector development plans and manage the national oil reserve
• Promote the sustainable development strategy, including social development and coordination
of regional development.

Results

The National Development and Reform Commission is treated as a “super ministry” due to its broad scope of
authority over national medium- to long-term economic plans, approving foreign investment projects and coor-
dinating and monitoring various other economic development policies. The National Development and Reform
Commission developed the Twelfth Five-Year Plan (announced in March 2011), which leans heavily towards
environmentally sustainable growth as well as equitable wealth distribution and increasing domestic consump-
tion.