(Yicai Global) Nov. 23 -- Healthy market competition coupled with a pro-active government is the best way to achieve high-quality economic development, a former chief economist of the World Bank said yesterday.

Healthy market competition can provide a good external environment for technological and industrial innovation, Lin Yifu said at the opening ceremony of the Shenzhen Research Institute of High-Quality Development and New Structure. It can also send accurate signals to determine which industries have comparative advantages and relatively good market prospects.

But pro-active government also plays an important role in high-quality development, he added. Market failures will be inevitable. By protecting intellectual property rights and implementing other measures, the government can maintain the momentum of innovation by enterprises and the promotion of basic scientific research, he added.

Ensuring basic scientific research is an important part of effective government, Lin said. Without it, new products and new technologies won’t be possible.

China will become a high-income economy by 2025, Lin said. As long as the country continues to develop according to the characteristics of each region and each industry, China’s gross domestic product or the income of urban and rural residents will double by 2035.

Editor: Kim Taylor