The year 2009 was the toughest year for the economic development of Hunan Province, and also a fruitful year that has witnessed Hunan's significant achievements in socieconmicsocioeconomic development and a year of overcoming difficulitiesdifficulties and obstacles. Under the strong leadership of the CPC Central Committee and the State Council, the people of all ethinicethnic groups of Hunan Province have carried out in-depth study and practice of the Scientific Outlook on Development, thoroughly implemented the package plan of the nation to expand the domestic demand in order to maintain growth.
Following the decisions and deployment of the CPC Hunan Provincial Committee, the global financial crisis was positively handled, and the "One Industrialization and Three Basics" Strategy (i.e. the new-type industrialization and basic facilities, basic industries and basic work) was further propelled. Hunan has overcome the difficulitiesdifficulties and understakenundertaken various tasks in a creative way and thus has mademaking noticeable achievements in maintaining growth, promoting people's well-being and keeping social stability. The social and economic development of in Hunan has sped up remarkably, and the comprehensive economic strength, market competitiveness and its international influence in the world have been evidently strengthened. The province has realized a gross domestic product (GDP) of 1.29307 trillion yuan, up 13.6%; the fiscal revenue amounted to 150.46 billion yuan, an increase of 14.5%; investment in fixed assets came to 769.54 billion yuan, a growth of 36.2%; the total retail sales of social consumer goods reached 491.38 billion yuan, increasing by 21.1% in real terms; the overall consumer price index decreased by 0.4%; the per capita disposable income of urban residents and the per capita net income of rural residents were 15,084 yuan and 4,910 yuan respectively, an increase of 9.5% and 9.3% separately; urban employment increased by 603,000, and the registered urban unemployment rate was 4.25%; the natural growth rate of population was 6.05 ‰; forest coverage rate reached 56.43%. The targets set in the Second Session of the Eleventh People's Congress of Hunan Province hastargets set during the Second Session of the Eleventh People's Congress of Hunan Province have been fully completed.
(1) Major steps were taken in the New-Type Industrialization. The scale industries of the province realized an added value of 425.01 billion yuan, up 20.5%. The economic performances have been boosted steadily and progressively, achieving product sales rate of 98.4%, and realizing a profit margin of 57.19 billion yuan, up 46.1%. The non-public sectors of the economy have facilitated its development and realized an added value of 709.92 billion yuan, growing by 15.1%, making up 54.9% of the total output value of the province. The highlights of structural adjustment abound, and the long-term competitiveness has remarkblyremarkably risenimproved; the Plan for Reinvigorating Twelve ("9+3") Key Industries has launched, the "Four Thousand Projects" have forged forward with great vigor, and the added value of new and high-tech industries has grown by 24.6%; industries like the electronic information, new material, new energy, biopharmaceutical industry, aviation and space flight have facilitated development; Including newly added light industry and tourism industry, the industries of over one hundred billion yuan reached 7; the backbone enterprises have developed rapidly, with a batch of important industrial projects putting into operation one after another; Changfeng Group and the Guangzhou Automobile Group have made strategic reorganization; Fiat Cars of the Canton Steam Group settled in Hunan, becoming the first trans-regional reorganized project upon the implementation of the nation's plan for revigorating key industries; BYD Auto also settled in Changsha; the Changsha base of the Shaanxi Automobile Group and the Zhuzhou base of the Beijing Automobile also put into operation. Beiqi FOTO and GEELY AUTO developed rapidly as well. The Changsha-Zhouzhou-Xiangtan city cluster is expected to become China's another key production base of automobiles; the strategic reorganization of Hunan Nonferrous Metals Holding Group and China Minmetals Corporation makes the former possible to become one of the world top 500 enterprises. The pilot zone for recycling economy has progressed effectively, and various recycling modes of development have taken in shape. Treatment of heavy metals in the Xiangjiang River of Hunan has been listed on the national special treatment plan. Effects of energy saving and emission reducing are obvious. The efforts to close down small fire-generators and eliminate backward production facilities in the iron, steel or cement industry are strengthened. The annual objective of reducing oxygen needed in chemistry is accomplished above the quota. The goal of emission reduction of sulfur dioxide in the "Eleventh Five-Year Plan" was finished in advance, and the annual plan for the energy consumption reduction rate of the added value of scale industry was realized as well.
(2) Modern agriculture has developed rapidly. The policy of strengthening agriculture and benefiting farmers has been thoroughly implemented. The subsidies for agricultural production throughout the year reached 7.86 billion yuan; the financial expenditure in agriculture, forestry and agricultural hydrology was 26.26 billion yuan, an increase of 23.6%. Water conservancy has sped up its construction: 375 problematic and dangerous reservoirs were reinforced, and the comprehensive treatment of the Dongting Lake has been implemented thoroughly. The comprehensive treatment of the rural land has been vigorously pushed forward; the construction of over tens of millions mu basic farmland around the lake was initiated; the balance of taking and returning arable land has been kept for ten consecutive years. The implementation of new projects on grain production capacity has made positive progress, with the total grain output reaching 30 billion kilograms, achieving increases for six years successively. The processing industry of agro-products facilitated its development, with the whole-year sales revenue growing by 23.3%, among which 315 leading enterprises above the provincial level have achieved the sales revenue of 150 billion yuan, an increase of 25.5%. The pilot project of modern tobacco agriculture has achieved new progress; leisure agriculture has now become a new channel to make farmers rich, with the operating revenue amounting to 4.7 billion yuan, up 23.7%. The specialized cooperative organizations among farmers developed rapidly, totaling 9,275, in which 1.4 million households newly joined. The county-level economies also stepped up the development, and four counties in Changsha have successfully ranked among the top 100 counties of China. The "1000- Village Demonstrations Project" of new countryside construction was advanced progressively.
(3) The foundation for development was further consolidated. Investment increasedInvestment increased continuously. Thirty-three new expressways with the total length of 3,072 kilometers and mileage of 2,227 miles have opened to traffic in these two consecutive years. The newly built or renovated rural roads reached 24,000 kilometers; increasing towns and villages approved by the state have road access; the Wuhan-Guangzhou passenger dedicated line has officially opened to traffic, while six railway programs such as the new passenger line from Huangzhou to Changsha have started construction; the newly installed power-generating capacity amounted to 2.12 million kilowatts. The driving force effect of consumption on economic growth was strengthened; the implementation of the "appliance going to the countryside" or the "old for new" program in which household appliances, automobiles, motorcycles and home appliances were sold in the countryside with a favorable price and the old household appliances could be changed for new ones has achieved evident results. The real estate and automobile markets developed steadily, and new and hot consumption items such as tourism, communications, culture, etc. were developing rapidly. The total tourism revenue was 109.95 billion yuan, an increase of 29.1%; commercial housing sales reached 35.137 million square meters, up 32.3%; household appliances realized a sales value of 8.25 billion yuan, a growth of 30.3%; car ownership amounted to 1.782 million, among which 368,000 were added in 2009. Modern logistics of the province has become a new area of economic growth, realizing an added value of 91 billion yuan and accounting for 7.04% of the GDP. The ability of guarantee of land and resources was enhanced, and the construction land approved by law hit a record high. Geological exploration of mineral resources scored significant achievements.
(4) The pilot area for the "Two-oriented (resource conserving and environmentally friendly)" society construction in the Changsha-Zhuzhou-Xiangtan city cluster and the coordinated development among regions has made new progress. The top-level design was fully completed, and the overall reform program and the regional planning have started to put into practice. Twelve specific reform programs and 17 special plans were gradually introduced. The construction of the "3 +5" city cluster(3 refers Changsha, Zhuzhou and Xiangtan, 5 refers Yueyang, Changde, Yiyang, Loudi and Hengyang)has made significant progress, the plan of the inter-city rail construction was completed, and the planning of urban system has been passed in principle. The network communications of the three cities, i.e., Changsha, Zhuzhou and Xiangtan have achieved integration and the same fees & charges, which was the first of its kind in China and received tremendous social and economic benefits and won great brand effects. The campaign of 1,000 energy-saving hybrid buses operating in ten cities of Hunan Province is taking the lead in China to promote the use of environmentally friendly vehicles. Ten big reforms were launched in an all around way. Four cities in Hunan, namely, Changsha, Zhuzhou, Xiangtan, and Yiyang City, have joined the United Nations Global Compact. According to the 3-year plan of the comprehensive management and treatment of the Xiangjiang River, 819 enterprises were well treated. Key projects were advanced steadily, while a number of projects were completed or put into production. The "two-oriented" industries have made significant progress; Changsha-Zhuzhou-Xiangtan city cluster has been listed among the national top 7 comprehensive high-tech industry bases, with the Changsha High-tech Zone as the national innovation-oriented science and technology park, and the Xiangtan Hi-tech Zone upgraded as the national high-tech zone. We have worked to gain extensive supports to the construction of the Changsha-Zhuzhou-Xiangtan pilot area from the nation, various departments and the central-owned enterprises. With 30 ministries and commissions jointly carrying out the management, and more than 30 ministries and commissions achieving the cooperation intentions, the role of the Changsha-Zhuzhou-Xiangtan city cluster as the core growing pole is increasingly prominent. The overall GDP growth of the three cities is expected to rise by 14.5%, and that of the "3 +5" city regions to grow by 14.1%. Xiangxi Tujia and Miao Autonomous Prefecture has accelerated its development to reach a growth of 12.7%; the south Hunan region grew by 14.6%, thus becoming a new highlight and growth area of regional development.
(5) The independent innovation capacity was improved. The regional innovation capacity of foundations and major scientific and technological projects have been vigorously promoted; three state-level and 31 provincial level engineering (technology) research centers, 4 state-level and 17 provincial level key (engineering) laboratories, 2 state-level technical innovation service platforms, 5 state-level and 16 provincial level technological centers of enterprises as well as 7 provincial high-tech industrial research institutes have been newly set up; Hunan Technology Transfer Center of the Chinese Academy of Sciences has started operation. A total of 30 National Science and Technology Achievement Awards were received in the year, ranking the third across the country; the completed new product development projects above the provincial level have come to 2,841, up 116%; the amounts of patent applications and licensing were 16,000 and 8,309 respectively, an increase of 13.8 % and 35.5%; the supercomputer system "Tianhe No. 1", which is theoretically able to do more than 1 quadrillion calculations per second (one petaflop) at peak speed, was successfully developed; significant progress has been made in achieving the target for the third phase of super hybrid rice to reach 900 kg per mu. The converter technology of high-speed rail locomotive has shaped its cutting edge. Newly added well-known trademarks in China have come to 15 high-power locomotives, high-voltage shunt reactors, 220-tons electric wheel dump trucks and other new industry-leading products have been successfully put into operation.
(6) The reform and opening up have been further advanced. A number of important reforms conceived for many years have started implementing. Through structural tax cuts and abolition of administrative charges, the economic burden reaching16 billion yuan on enterprises and urban and rural residents has been reduced; the tax reform in refined oil products was progressed smoothly; the reform in medical and health system was officially launched, while the essential drugs system and the pilot reform of public hospitals began with implementation; the provincial government institutions have basically completed the reform, and the reform in municipal or prefectural government institutions are progressing; the reform in confirmation and certificate-issuing of collective forest rights system has finished more than half; the phasic basic objectives and tasks of reforming provincial state-owned enterprises have been fully completed; the transformation of value-added tax was fully implemented; the transfer of land contractual management rights was propelled in an orderly fashion. Interconnection with central-owned enterprises has achieved remarkable success, 187 projects have established cooperative relations with 70 central-owned enterprises of a total investment of more than 380 billion yuan, of which 10 enterprises and 39 projects were newly added in 2009, involving an amount of 180.8 billion yuan. Domestic and foreign businessmen thought highly of Hunan, therefore the human resources, logistics, capital and information flowed into Hunan to shape a three-dimensional port system. Changsha Huanghua International Airport has received 11.28 million passengers. The industrial transfer maintained good momentum, with 2,054 new projects undertaken throughout the year and 330 million USD enforced contracts of service outsourcing, an increase of nearly 1.8 times. The actual use of foreign direct investment of the year amounted to 4.598 billion USD, up 14.8%; the domestic investment came to 144.3 billion yuan, an increase of 17.3%. Implementation of the strategy of "going global" has brought about fruitful results, with the actual foreign investment reaching 1.01 billion USD. Valin Group's successful acquisition of the stakes of Australian mining company FMG has provided guarantee of raw materials for the production of high-quality steel; Zoomlion's merge with Italian CIFA has brought about integration effects, with the output of its concrete machinery ranking top in the world; Sany Heavy Industry has constructed its R & D center as well as manufacturing base in Germany. Hunan has successfully held important investment invitation events such as the "Guangdong, Hong Kong and Macao Business Promotion Week," Hunan Businessmen Assembly, Hunan-Taiwan Economic and Trade Fair, and the 2009 International Cooperation Forum on Resources and Environment.
(7)The supporting role of finance was enhanced. The credit availability is substantially increased, with newly added loans of 252.76 billion yuan and profits in banking sector of 20.78 billion yuan throughout the year, both hitting a record high. Breakthroughs are made in direct financing from enterprises, with a total amount of 44.22 billion yuan. Nine enterprises were newly listed, of which AIER Eye Hospital and Hunan Zhongke Electric Co.,Ltd have successfully listed on the growth enterprise market (GEM). The issuance of enterprise bonds reached 13.68 billion yuan, more than the sum of the corporate bond financing in previous years; local government bonds worth 8.2 billion yuan were issued. Construction of financing platform has achieved positive results, and three industrial venture capital funds were approved to start running. The insurance industry achieved rapid and healthy development, realizing a premium income of 34.85 billion yuan, and the pilot policy-oriented insurance in agriculture has ensured good results. The reform of rural credit cooperatives was further deepened, with village banks reaching 5 and pilot micro-loan companies officially launched. Bank of Beijing, Guangdong Development Bank and other financial institutions have settled in Hunan successively.
(8) The improvements of people's livelihood and social construction have obtained remarkable results. Financial revenue expended in such livelihood fields as education, social security, employment, health care, environmental protection and other areas has reached 121.29 billion yuan, increasing by 22.3%, such that 34 tasks and targets for the good of the people have all been accomplished or overfulfiled. A more active employment policy has been fully implemented, which has enabled disadvantaged groups to find jobs and have made 320,000 unemployed workers re-employed; cities and towns have realized dynamic zero clearing in household employment; the rate of initial employment of college graduates was basically stable; through public services posts, back-up assistance has been provided to those university graduates who have problems in employment; 5,600 fishermen have come ashore to settle down and work; 12.1 million rural labor has successfully transferred with a total labor income of 96 billion yuan. The coverage of social security was further expanded, while the pension insurance of companies and governmental organizations and institutions progressed steadily, the new-type pilot insurance in rural areas for the elderly was smoothly carried out, and the basic medical insurance and the new rural cooperative medical services for the workers and residents was accelerated, with the number of the insured or involved reaching 64.15 million, covering 94%. Urban and rural minimal guarantee allowances, funds for basic old-age insurance, and special assistance to destitute families and other personnel as well as the standard of supplement were further improved. The relief system to help those who are temporarily poor was fully established. The construction of low-rent housing system was intensified, with a total number of 285.5 thousand households covered. 39,800 households encountering disasters have restored or reconstructed their housings, while 23,300 poor households in rural areas have renovated their endangered or dilapidated buildings. The poor and people in hardships were helped, and special focuses were paid to alleviate the extreme hardships of poverty-stricken communities. The development of the whole villages, industrial means of relieving poverty, labor transference training and on-site helping have been vigorously promoted. Construction of water infrastructure was strengthened. 3.16 million rural residents have been ensured safe water drinking. To strengthen the province through education has stridden a firm step. Qualified school construction in rural areas was thoroughly propelled; vocational education and training systems were continuously improved; the financial assistance to students with economic hardship was further improved; the construction of cultural province has accelerated its pace, with a number of fine arts have been forged; public cultural service systems were improved constantly, comprehensive coverage of radio and television has come to 95%, and town and township cultural stations have reached 730, while village book houses in rural areas amounted to 4,100; the postal services have been actively promoted; basic health service systems in urban and rural areas have been sped up, and the prevention and control of major diseases such as influenza A/H1N1 have achieved significant results; low birth rate was further consolidated, while the quality of new born population was improved; the supervision of product quality and food and drug safety was strengthened. New achievements were made in works concerning ethnic affairs, religion, overseas federations, Taiwan affairs, talent introduction, the counselors, literary history, archives, security maintaining, statistics, immigration, weather, surveying and mapping, earthquake, civil air defense, the elderly, the disabled and so on.
(9) The construction of spiritual civilization has scored new achievements. Activities aimed at developing socialist culture and ethics, welcoming the National Day and promoting a new code of conduct among the people swept across the province. And the construction of civilized city, civilized villages and towns, and civilized industries was well carried out. The construction of harmonious communities was vigorously promoted. A series of activities to celebrate the 60th anniversary of the founding of the PRC as well as the commemoration of the 60th anniversary of the peaceful liberation of Hunan province, along with other major cultural events were successfully held. Activities of in-depth learning from and publicizing advanced models were widely conducted. The activity of the first "Hunan Reading Month" was held successfully. Ideological and moral construction of minors was further strengthened. The special action of cleanse and block indecent content and purify the network environment has achieved positive results, and publication markets were further purified as well. In the 11th National Games, Hunan has won 18 gold medals.
(10) Law-based administration has made remarkable headway. The supervision of the Hunan Provincial People's Congress and its standing Committee has been consciously accepted, and its resolutions and decisions have been earnestly implemented, the CPPCC and various democratic parties, federations and non-party personnel have been actively supported to participate in political consultation and deliberation, and the administration took the initiative to accept their democratic supervision. A total of 1,198 proposals from the representatives of the People's Congress of the province, 826 proposals from members of the Hunan CPPCC Committee have been answered and handled with the reply rate reaching 100%. Close ties were conducted with trade unions, Communist Youth League, women's federations and other mass organizations, while comments and suggestions of various social circles were earnestly listened to. Scientific and democratic decision-making mechanisms were further improved; the hearing system of administrative decision-making was vigorously proceededpreceded; and the legal aid network continued to be improved. The seventh general election of the community neighborhood committees were fully completed, and the scope for constructing pilot rural communities was further expanded; and the transparency of village affairs and democratic management were further promoted. Emergency response mechanisms were further improved and the establishment of provincial emergency rescue corps was completed. Emphasis was laid on highlighting information, early warning signs, weak links, to constantly improving the mechanism for investigating and mediating conflicts and disputes, and to actively preventing and properly handling mass disturbances. A variety of crimes were always strictly fought against with high-pressure, thus social order has been keeping stable in general. Safe production and law enforcement, risk management, and public education were promoted in depth, and the overall situation remained stable. The construction of clean government was further promoted, and a number of cases which violated discipline and law have been dealt with severely. The implementation of the "Regulations on Administrative Procedures in Hunan Province" has achieved noticeable effects. Reforms of administrative examination and approval system and the transformation of government functions continued to be advanced, and 74 rights of examination and approval have been transferred to the lower level; 32 projects for annual review have been streamlined or cancelled, with the reducing rate amounting to 41%. Regulated documents were more rigorously managed; 77,000 standardized documents have been cleaned-up, 11,000 abolished, 25,000 declared invalid; administrative efficiency, transparency of administrative affairs and level of government services continued to increase. Administrative enforcement and audit supervision mechanisms were further improved, while standardized administrative discretionary rights were formulated, and the government performance evaluation has steadily begun.
The national defense mobilization mechanism has been further improved and the overall construction quality of the militia and reserve forces has been enhanced. With the deepening of the National Defense Education, fresh progress has been achieved in the work of the "two-supports" (local authorities and people support the army and their relatives, and the army advocates national policies and loves people) and the solidarity between the military and the government and between the military and the people has been consolidated. The PLA garrison in Hunan, the people's armed police, the reserves and the militia actively support the local economic and social development and play an important role in handling major emergency and accomplishing urgent, difficult, dangerous and daunting tasks.
In the past year, the global economy was in a severe recession. Facing extremely difficult situation and critical challenges though, we have made hard-earned achievements, accumulated precious experience in coping with the financial crisis, in maintaining economic growth, valuing people's livelihood, and ensuring social stability; we persisted in studying and practicing the scientific outlook on development complying with the practical condition of Hunan Province, and implemented the strategies and policies of the Central CPC Committee and the State Council firmly and creatively; we adhered to the strategy of "One Industrialization and Three Basics" to preserve energy and lay foundations for future development as well as to resolve the crucial conflicts and bottlenecks in development; we insisted on integrating the function of government and market to give full play to the basic function of market and the regulation function of the government; we grasped the periodic characteristics of Hunan's development to scheme the key industries and important projects with overall impacts; we persisted in uniting contributories from all walks of life, so that under the leadership of the Hunan Provincial CPC Committee, a harmonious atmosphere for development has been formed with the joint efforts of the People's Congress of Hunan Province, the Hunan Provincial Government, the Chinese People's Consultative Conference of Hunan Province and the Hunan Provincial Military Command, as well as the work concentrating on central tasks and serving the overall development by all departments at various levels, the units of the Central People's Government in Hunan Province and all cadres and masses. Here, on behalf of Hunan People's Government, I would like to extend sincere appreciations and greetings to all workers, farmers, cadres and intellectuals, to the non-Communist democratic parties, federation of industry and commerce, personages without party affiliation, people's organizations and people from all walks of life, to the PLA garrison in Hunan Province, the armed police officers and politics and law police officers, to the units of the Central People's Government in Hunan Province, to all compatriots of the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan and all the overseas Chinese and international friends, to all administrations and departments of the state and fraternal provinces, municipalities and regions, and to all entrepreneurs and friends from all walks of life at home and abroad.
As we all know, In the past year, the global economy was in a severe recession last year. Facing extremely difficult situation and critical challenges though, we have made hard-earned achievements. We have, accumulated precious experience in coping with the financial crisis, in maintaining economic growth, valuing people's livelihood, and ensuring social stability; we persisted in studying and practicing the scientific outlook on development complying with the practical condition of Hunan Province, and implemented the strategies and policies of the Central Party CPC Committee and the State Council firmly and creatively; we adhered to the strategy of "One Industrialization and Three Basics" (new-type industrialization and strengthening the infrastructural construction, economic fundamentals and basic work) to preserve energy and lay foundations for future development as well as to resolve the crucial conflicts and bottlenecks in development; we insisted on integrating the function of government and market toin giveing full play to the basic function of market and meanwhile effectively exerting regulation and control bythe regulation function of the government; we grasped the periodic characteristics of Hunan's development to scheme the key industries and important projects of with overall significance impacts; we persisted in uniting contributories from all walks of life, so that under the leadership of the Hunan Provincial CPC Committee, a harmonious atmosphere for development hasve been formed with the joint efforts of the People's Congress of Hunan Province, the Hunan Provincial People's Government, the Chinese People's Political Consultative Conference of Hunan Province and the Hunan Provincial Military Command, as well as the work concentrating on central tasks and serving the overall development by all departments at various levels, the units of the Central People's Government in Hunan Province and all cadres and masses. Here, on behalf of Hunan Provincial People's Government, I would like to extend sincere appreciations and greetings to all workers, farmers, cadres and intellectuals, to the non-Communist democratic parties, federation of industry and commerce, personages without party affiliation, people's organizations and people from all walks of life, to the PLA garrison in Hunan Province, the armed police officers and politics and law police officers, to the units of the Central People's Government in Hunan Province, to all compatriots of the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan and all the overseas Chinese and international friends, to all administrations and departments of the state and fraternal provinces, municipalities and regions, and to all entrepreneurs and friends from all walks of life at home and abroad.
Meanwhile, we should also clearly beware of that challenges and problems still exist in the economic and social development of our province: the non-governmental investment is inactive,; citizen consumption is lack of vigor for further development and there is insufficient internal impetus driving economic growth; with great challenges in industrial structure adjustment and arduous tasks for environmental protection, the development pattern shall be further transformed; more elements causing less financial revenue and more expenditure occur, and contradiction and pressure between income and expenditure increase; import and export decline while external demands shrink; employment situation is relatively tough, and the difficulties for maintaining steady increase of farmers' income raised; the foundations for work safety is comparatively weak; tendencies towards formalism and bureaucratism among some functionaries are growing; the government functions need to be further transformed, the administrative efficiency has much room to be improved, and the development environment is pending further optimization. All the above problems shall be highlighted and resolved with stronger efforts, so as to promote a sound and rapid development of economy and society.