>>reporter: pengshui clearly isn't at the forefront of china's economic boom. but like thousands of other backwaters across the country, it has big plans for the next five years as it seeks to boost incomes by at least 14 percent annually. >>the most meaningful economic decisions are made far away from beijing, in places like here - pengshui - over 1500 km south west of the capital. few if any here are interested in cooling economic growth or slashing investment plans as this is the only model they know that can provide jobs, spread more money around and, it's hoped, keep the people content. >>reporter: and in this belief, the local authority plans to plough some 2 billion us dollars every year into investment in buildings and infrastructure. >>the pace of our development is very fast - but we are very poor, we are backward, we are under developed, we're coming from a very low starting point. that's why, in our new five year plan our growth could reach 20 percent. >>reporter: one of pengshui's big ideas is to build a new city centre on this farmland, a 20 minut

>>reporter: one of pengshui's big ideas is to build a new city centre on this farmland, a 20 minute drive away. in a couple of years' time, the billion dollar project will be linked to the old districts via a tunnel through the mountain. investors are supposed to provide 23 percent of the cash, the banks 60 percent with the balance coming from central, regional and local governments. >>those facing relocation don't really care if this is a rash development or if it makes sound economic sense - so long as their pay-off is worth it. >>us farmers can benefit from the development and construction. but if the government goes ahead with the project and we're worse off, who will agree? >>reporter: the trouble is, as the people's bank of china knows only too well, the real value of compensation risks being diluted by inflation - which, despite three interest rate hikes over four months, accelerated in january to 4.9 percent year-on-year >>the spur was a four trillion dollar stimulus package - which cushioned china's export-reliant economy from the global financial crisis. in turn, this opened up