Why must change the mode of economic development must rely on reform and innovation? - "The problem is this way."
The famous economist Wu Jinglian recently said in Shenzhen that only by accelerating institutional innovation, technological innovation, and relying on the market to optimize the allocation of resources can we ensure that the strategic intent of transforming the mode of economic development will not fail.
Wu Jinglian believes that if we still consume a lot of land, capital, and other resources to promote economic development, it means that our country has not deviated from the traditional growth model. For example, he once said that Hong Kong has developed for more than 100 years, and developed land has taken up less than one-third of the available land; Shenzhen has more land available than Hong Kong; Shenzhen's GDP is only one-sixth that of Hong Kong, but land shortage occurs. There are hard constraints on the resources that have been used up in the land.
In terms of economic development, China is faced with various constraints of long-term and rigid factors. At present, China is already in a period of sharp contradiction where the rapid economic development is severely challenged by the resources and environment. Establishing new development concepts and selecting new development paths are major issues that must be answered in changing the mode of economic development.
Why to change the mode of economic development must rely on reform and innovation - "how to solve the problem"
The core of transforming the mode of economic development is to increase efficiency and increase the added value of products. Wu Jinglian said that the change in the economic development mode was proposed during the "Ninth Five-Year Plan" period. However, over the past decade or so, the goal of changing the mode of economic development has not been achieved.
Wu Jinglian: This year is the last year of the 11th Five-Year Plan. Again and again, it stresses that it must be accelerated. ... Why have you talked for so many years and haven't turned it yet? We must study where the root knot is. Because we are now an urgent task. If we want to enable our 12th Five-Year Plan to be successfully realized, we must conclude that the past 10 years and 15 years have been slow to change.
After the outbreak of the global financial crisis, the economically developed countries have accelerated the pace of technological innovation and technological upgrading. Wu Jinglian believes that the successful experience of economic development shows that the results of technological innovation must be motivated by the market before it truly becomes the driving force for changing the mode of economic development.
Wu Jinghao: After 30 years of development, in many areas, China has already met the conditions for participating in high-level international competition and nurturing its fist industry with international competitiveness. The problem is that we do not have to meet these conditions to make him industrialized. After this financial crisis, we should actually try to seize this opportunity. According to the history of world economic development, after each major economic crisis, new technologies have emerged. Industry **, the global financial crisis is no exception. After combing through the front-end, there are some areas where it is possible to realize the division of labor in China's emerging industries to participate in the world. Therefore, the State Council has identified seven areas as areas for us to develop strategic emerging industries.
Why to change the mode of economic development must rely on reform and innovation - "how to solve the problem"
Wu Jinglian believes that the realization of the goal of transforming the mode of economic development, the application and promotion of technological innovation achievements, and the cultivation of strategic emerging industries must all rely on systems. The effective operation of the market system cannot be separated from the support of policies, laws, intellectual property protection and education.
Wu Jinglian: We have greatly improved our technological innovation. However, the industrialization of technological innovation can be said to be difficult. The reason for this is the lack of an environment conducive to innovation and entrepreneurship. Including economic environment, legal environment and social environment. When we discussed the 11th Five-Year Plan, we made a summary. The crux of the problem was found in the system. For example, institutional obstacles have not been eliminated. However, there are roughly four institutional obstacles. The first is the allocation of land-credit critical resources. The second is the performance standard based on GDP growth. Third, from the perspective of our fiscal and taxation system, the asymmetry of fiscal power and expenditure responsibilities has encouraged local governments to pursue GDP. Otherwise, the days will not go. Fourth, price distortions. Especially natural prices. The low price of the means of production encourages wasteful activities that destroy the environment.
Why to change the mode of economic development must rely on reform and innovation - "how to solve the problem"
Wu Jinglian emphasized that reforms and innovations are a powerful driving force for transforming the mode of economic development. Only by insisting on reform and innovation can we eliminate the institutional obstacles to transforming the mode of economic development, so that all systems can be more in line with the requirements of economic development.
Wu Jinglian: In the past two years, governments at all levels have increased their own actions in the development of strategic emerging industries in transforming their economic development methods. But there is still a question of what the government should do and what it should not do. What we need to do is to establish a good system environment and we must arrange a good business environment for enterprises. However, something must be done. In the past, we used to be a planned economy. The government was accustomed to giving orders to cross its borders and engage in activities that were not conducive to technological innovation. The main task of the government is to provide public goods and a good institutional environment. The public offering provided by the government is an institutional environment. Therefore, the government must realize its own functions in order to promote the transformation of our economic development mode.
The famous economist Wu Jinglian recently said in Shenzhen that only by accelerating institutional innovation, technological innovation, and relying on the market to optimize the allocation of resources can we ensure that the strategic intent of transforming the mode of economic development will not fail.
Wu Jinglian believes that if we still consume a lot of land, capital, and other resources to promote economic development, it means that our country has not deviated from the traditional growth model. For example, he once said that Hong Kong has developed for more than 100 years, and developed land has taken up less than one-third of the available land; Shenzhen has more land available than Hong Kong; Shenzhen's GDP is only one-sixth that of Hong Kong, but land shortage occurs. There are hard constraints on the resources that have been used up in the land.
In terms of economic development, China is faced with various constraints of long-term and rigid factors. At present, China is already in a period of sharp contradiction where the rapid economic development is severely challenged by the resources and environment. Establishing new development concepts and selecting new development paths are major issues that must be answered in changing the mode of economic development.
Why to change the mode of economic development must rely on reform and innovation - "how to solve the problem"
The core of transforming the mode of economic development is to increase efficiency and increase the added value of products. Wu Jinglian said that the change in the economic development mode was proposed during the "Ninth Five-Year Plan" period. However, over the past decade or so, the goal of changing the mode of economic development has not been achieved.
Wu Jinglian: This year is the last year of the 11th Five-Year Plan. Again and again, it stresses that it must be accelerated. ... Why have you talked for so many years and haven't turned it yet? We must study where the root knot is. Because we are now an urgent task. If we want to enable our 12th Five-Year Plan to be successfully realized, we must conclude that the past 10 years and 15 years have been slow to change.
After the outbreak of the global financial crisis, the economically developed countries have accelerated the pace of technological innovation and technological upgrading. Wu Jinglian believes that the successful experience of economic development shows that the results of technological innovation must be motivated by the market before it truly becomes the driving force for changing the mode of economic development.
Wu Jinghao: After 30 years of development, in many areas, China has already met the conditions for participating in high-level international competition and nurturing its fist industry with international competitiveness. The problem is that we do not have to meet these conditions to make him industrialized. After this financial crisis, we should actually try to seize this opportunity. According to the history of world economic development, after each major economic crisis, new technologies have emerged. Industry **, the global financial crisis is no exception. After combing through the front-end, there are some areas where it is possible to realize the division of labor in China's emerging industries to participate in the world. Therefore, the State Council has identified seven areas as areas for us to develop strategic emerging industries.
Why to change the mode of economic development must rely on reform and innovation - "how to solve the problem"
Wu Jinglian believes that the realization of the goal of transforming the mode of economic development, the application and promotion of technological innovation achievements, and the cultivation of strategic emerging industries must all rely on systems. The effective operation of the market system cannot be separated from the support of policies, laws, intellectual property protection and education.
Wu Jinglian: We have greatly improved our technological innovation. However, the industrialization of technological innovation can be said to be difficult. The reason for this is the lack of an environment conducive to innovation and entrepreneurship. Including economic environment, legal environment and social environment. When we discussed the 11th Five-Year Plan, we made a summary. The crux of the problem was found in the system. For example, institutional obstacles have not been eliminated. However, there are roughly four institutional obstacles. The first is the allocation of land-credit critical resources. The second is the performance standard based on GDP growth. Third, from the perspective of our fiscal and taxation system, the asymmetry of fiscal power and expenditure responsibilities has encouraged local governments to pursue GDP. Otherwise, the days will not go. Fourth, price distortions. Especially natural prices. The low price of the means of production encourages wasteful activities that destroy the environment.
Why to change the mode of economic development must rely on reform and innovation - "how to solve the problem"
Wu Jinglian emphasized that reforms and innovations are a powerful driving force for transforming the mode of economic development. Only by insisting on reform and innovation can we eliminate the institutional obstacles to transforming the mode of economic development, so that all systems can be more in line with the requirements of economic development.
Wu Jinglian: In the past two years, governments at all levels have increased their own actions in the development of strategic emerging industries in transforming their economic development methods. But there is still a question of what the government should do and what it should not do. What we need to do is to establish a good system environment and we must arrange a good business environment for enterprises. However, something must be done. In the past, we used to be a planned economy. The government was accustomed to giving orders to cross its borders and engage in activities that were not conducive to technological innovation. The main task of the government is to provide public goods and a good institutional environment. The public offering provided by the government is an institutional environment. Therefore, the government must realize its own functions in order to promote the transformation of our economic development mode.