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China's 11th five-year plan is another major step in China's transition to a market economy, Joseph E. Stiglitz, a Nobel Prize laureate said in Beijing on Sunday.

Addressing the China Development Forum 2006, Stiglitz said one of the distinctive aspects of China's development plan is its comprehensiveness, which is indispensable for a successful strategy.

China in its 11th five-year plan reiterates construction of a "harmonious society", which put an emphasis on balance, said Stiglitz.

He said the Chinese government has recognized the transition of its role in a market economy and one of its main responsibilities is to establish the institutional infrastructure for a market economy.

Stiglitz said it is clear that China is seeking a distinctive form of the market economy, noting there is more than one form of market economy.

A market economy with Chinese characteristics emphasizes balance, including limiting disparities between urban and rural areas, between the advanced and less advanced regions, between the rich and poor, which is necessary for both social and political stability and economic progress, he said.

As for China's policy of building new socialist countryside, he said that the policy will contribute a lot not only to the harmony of the society but also to stimulating China's domestic demand.

The new policy will help increase farmer's income and establish the medical and educational systems in rural areas, he said.

(Xinhua News Agency March 20, 2006)