A 级 China is about to adopt its llth five-year plan, setting the stage for the continuation of probablythe most remarkable economic transformation in recent years, while improving the well-being ofalmost a quarter of the world's population. While much of the rest of the developing world has been directed at a common quest for higherGDP, China has once again made clear that it seeks sustainable increases in the people's happiness. China realizes that it has entered a phase of economic growth that is imposing enormousdemands on the environment. Unless them is a change in course, living standards will eventually becompromised. That is why the new five-year plan places great emphasis on the environment. China recognizes, too, that what separates less developed from more developedcountries is not only a gap in resources, but also a gap in science and technology. So it has laid outnew plans not only to reduce that gap, but to create a basis for independent innovation. China's role in the world and the world's economy has changed, and the plan reflects this, too. Itsfuture economical model will have to be based more on domestic demand than on exports, whichwill require increases in consumption. Strengthening social security and public education willsimultaneously increase citizens' sense of well-being, and promote current consumption. With such a clear vision of the future, the challenge will be implementation. Market econonfiesare not selLregulating. They cannot simply be left on autopilot, especially if one wants to ensurethat their benefits are shared widely. But managing a market economy is a difficult task. It is abalancing act that must constantly respond to economic changes. China's llth five-year planprovides a roadmap for that response.