The end of the year is a traditional time for review and reflection. And the start of a year is a time of hope and expectation.

Devoid of catastrophic events like SARS (severe acute respiratory syndrome), China, nevertheless, saw profound changes take root. And they offer a reason to celebrate.

It is fair to say the year 2004 was one of adjustment for China. The concept of "scientific development" and the theme of "people first" were applied in our country's social and economic policies.

The runaway economy early this year prompted the policy-makers to rein in white hot investment and tighten loose credit.

The fruit of these efforts is now being seen after months of regulation and stands as a testament to the quick thinking of the top brass in handling the complicated economy, whose growth is subject to a slew of factors.

Major economic indices are on the decline, indicating the economy is running at a healthier pace. The growth of China's gross domestic product is likely to be a little lower than that of 2003, when it stood at 9.3 per cent. Fixed asset investment has slumped. An economic soft-landing is around the corner.

Thanks to the finesse of the policy-makers, the national economy is expected to enter a stage of steady growth in the coming years. It will contribute to balanced development between the economy and the environment, which has been overstretched in undue economic expansion.

The greater significance of the macroeconomic regulations lies in the change of mentality in cooling down the overheated economy.

Heavy-handed administrative measures work, but they cannot be sustained. The interest rate hike in late October - the first in nine years - marked a shift towards using market-oriented tools to guide the economy. It carries far-reaching significance and is more than just a measure to temporarily cool the overheated economy.

By leaving the rate capping for loans and floor rate for deposits open, the banking authorities were laying the groundwork for further market reforms.

The country's market economy is gradually maturing.

However, we have to remain cool-headed as there are still many problems which demand thorough scrutiny and an urgent need to plug loopholes.

The country added articles on human rights and the protection of private property to the amended Constitution in March to better safeguard individual interests, a milestone in the path of progress.

People's well-being has been placed high on the government's agenda.

Premier Wen Jiabao bore a hand in retrieving salaries for migrant workers, practising the "people first" approach. While Wen's deeds merit applause, we cannot afford to let the problem linger. Efforts have been stepped up to help farmers-turned workers get their defaulted money. But new defaults arise.

Steps have been taken to help the arms of the law reach the needy.

Coal mine workers suffered the most calamities in 2004, with 314 lives lost in the two largest mine accidents of the year in Henan and Shaanxi alone.

Strict rules need to be set down to better regulate the mining sector and protect miners' interests and lives.

What has been discussed here is only the tip of iceberg in a sea of events that took place last year. But they suffice when summing up our collective joys and pains.

They show us which efforts need to be sustained and in which areas we must improve.

(China Daily January 2, 2005)