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Volume 8: Endless Love and Destiny Chapter 896 A Few Thoughts
Chapter 896 A little thought
However, after listening to the report of the Pengzhou Municipal Standing Committee, Zhao Jianhui still put forward some of his own opinions on this issue. [.Com text] Specific economic operations are not Director Zhao Jianhui’s specialty. He only expressed his personal views on local economic development at the current stage from a policy perspective.
These were all ideas that he slowly began to take shape while thinking about the exam while studying at the party school.
"...After 30 years of reform and opening up, my country's economy has continued to grow at a high speed, with an annual growth rate of more than 9%, and industrialization has advanced by leaps and bounds. Many foreign scholars believe that this is a 'growth miracle' in modern economic history. This so-called 'growth miracle' is How did it happen? Many experts and scholars are exploring the "mystery". There may be many answers. I think the most fundamental reason is that our country has chosen a market economy and embarked on the path of market-oriented reform. This choice has changed our country's development trajectory. Changed the pattern of world politics and economic development.”
"It is not uncommon for our country to choose a market-oriented system for development. Why can my country's market-oriented reform and development achieve such outstanding results in just 30 years? I think one thing that is worth studying here is that our country We have developed our own market economy development model. What is my country’s market economy development model? How should this model be summarized? There are currently various versions of it, such as the "incremental reform model" that many people agree with. But in the final analysis, the "incremental reform model" is only about the characteristics of policy operations. The summary of my country’s market-oriented reform requires more in-depth research on more essential things.”
"In the history of modern market economy, it is difficult to see cases similar to the development of my country's market economy. In the classic literature of Western economics, it is also difficult to find rigorous academic arguments that can annotate my country's market economy. my country's market Economic development strives to combine and integrate the basic concepts and basic systems of socialism with the general rules of the market economy, which is very different from any previous market economy model..."
“…I believe that an important feature of our country’s market economic development model is that in the process of market-oriented reform and development, it does not abandon the basic policy of public ownership as the main body, but also adheres to the policy of common development of multiple ownership systems. Under the strong leadership of the country, the country’s economic control Quantity and government management have always played a leading role. Obviously, this development model is different from the market economic development model of some countries in Central and South America, the marketization path of Eastern European countries and Russia, and the so-called government of Oriental countries. The dominant market economic model is different..."
"In my country's market economic model, of course the price competition mechanism plays an important role, but at the same time the control role of the national economy and the role of government management are particularly strong. In this regard, there are many critical views in foreign academic circles, the so-called This is where the term "authoritarian capitalism" comes from. There are also many criticisms from domestic academic circles. The most pointed opinions are that this situation does not conform to the general laws of market economic development. I think the problem may not be. So simple."
Hegel has an important proposition: all actual existence is reasonable. Here, I would like to use the famous "Wagner's theorem" to explain the rationality of the existence of my country's market economic model. In the 1870s, German economist Wagner discovered that once a country fully enters the process of industrialization, government economic departments will expand in number and proportion, public finances will continue to expand, and national economic strength and government management will continue to strengthen... …. Wagner predicted that this trend, as a regular phenomenon, will still be in effect in the next 50 or 100 years. Regarding the reasons for this trend, Wagner gave several basic reasons: large-scale industrial development requires the development and expansion of public infrastructure; fierce market competition requires an increase in public welfare projects; active economic monopoly power requires strengthening market management; industrialization leads to rural bankruptcy and requires the government Comprehensive help and more.
After the publication of "Wagner's Theorem", several famous economists (including Nobel Prize winner Samuelson) used the British Industrial Revolution, the development of the United States after World War II, and the comparative development of Britain and Germany after the 1960s to make experiences. After verification of the data, the conclusion is that although the actual situation is very tortuous and complicated, the general trend of "Wagner's Theorem" exists.
During the planned economy period, although we established a basic system for national industrialization, it was reform, opening up, and market-oriented reforms that spurred the comprehensive and rapid development of my country's industrialization. In this new development environment, the various situations in which national economic power and government management are constantly strengthened that Wagner talked about can also be found in our country. In addition, our country will continue to be a developing country for a long time. In the process of industrialization, coordination between urban and rural areas and regional development, land resources and environmental protection, building an innovative country, national economic security, controlling the growth of a huge population, and maintaining market order, As well as planning global development strategies and other aspects of the task is very heavy. It can be said that the reason for the existence of "Wagner's Theorem" in our country may be more sufficient.
Further inspection will reveal that in the 30 years of sustained and rapid economic growth after the reform and opening up, the state-led market economic model with Chinese characteristics has played a very important role.
Efficient accumulation of state-led industrialization. One of the most basic bottlenecks in the development of my country's modern industry is the lack of capital accumulation. During the period of planned economy, the government carried out initial accumulation through unequal exchange with agricultural products and established the basic system of national industrialization. Reform and opening up introduced the competition mechanism and price mechanism of the market economy and began the historical process of comprehensive industrialization. Looking at it now, although there are many ways to accumulate capital in the new era, the main ways to obtain the most important capital accumulation are to rely on the introduction of funds from abroad, and the other is through land accumulation, that is, the government and developers acquire large amounts of land through low-price expropriation. funds.
The total amount of capital obtained by relying on land accumulation is much larger than the capital introduced from abroad. Some research institutions estimate that the total amount exceeds 20 trillion yuan.
Existing research data shows that since the reform and opening up, the land transfer income of local governments at all levels has exceeded the fiscal budget by more than 35%.
Although this accumulation method is unequal to many landless farmers who have insufficient compensation, and the subsequent social conflicts it brings are also very difficult, no one can deny that it is precisely relying on this extremely huge accumulation of land capital that our country’s Only when industrialization and urbanization can develop so rapidly can GDP maintain a long-term and sustained high-speed growth level. The institutional condition for this kind of land capital accumulation is the consistent land nationalization system that has been adhered to since the founding of the People's Republic of China. This is actually the strongest foundation for public ownership as the main body.
If this were not the case, we would overthrow this system after the reform and opening up, implement land privatization transformation, and put land ownership completely into private hands. In this way, the degree of market liberalization will definitely be high and market competition will be more complete. However, the cost of promoting industrialization and urbanization will be very high, and it will definitely take a longer time to achieve the results of industrialization development like today.
The state manages resources, the energy industry and economic stability. A country's resources and energy industries are the basic economic sectors for industrialization development. Their development and supply and demand conditions not only play an important role in the micro-operation of downstream industries, but also have an important impact on the macro-operation of the entire national economy and national economic security. Under the planned economic system, this economic sector is completely monopolized by the state and is operated under unified national ownership.
After the market reform, the development of this economic sector faces two options. One is that the industry enters the field of perfect competition and undergoes thorough market-oriented transformation, with domestic and foreign private capital assuming the main role of investment and development (market-oriented reforms in many developing countries have been (this choice); the other is not to change the country's economic control and government management, but to carry out institutional transformation of the original nationalized operating system. We chose the latter. Facts have proved that this choice is reasonable.
After the reform, the industrial capabilities and corporate appearance have undergone major changes, and many enterprise groups have entered the world's top 100. In particular, state-owned enterprises, under the overall management of the government, play a strategic role in macroeconomic stability of the national economy, assume important social responsibilities in maintaining stable growth, and provide relatively cheap primary products to downstream enterprises. In fact, they are the state's support for Subsidies for all industrialization costs (this important cost factor cannot be ignored). In addition, domestic private capital is still unable to enter the development stage on a large scale, and the advantageous control of state capital can also avoid the strategic control of large foreign companies and capital.
The powerful economic organizing power of government. There are two inherent shortcomings in my country's entry into the modern market economy, one is an institutional problem, and the other is a public goods problem. From the perspective of institutional issues, our country does not have a mercantilist tradition and a relatively developed modern industrial and commercial social foundation, and the planning system completely excludes market economic activities. Under such circumstances, the development of my country's market economy is not carried out spontaneously from the bottom up. Instead, the ruling party consciously changes its concept and the government promotes market-oriented reforms in an organized top-down manner. This kind of government organizational behavior includes proposing reform policies, ceding areas of market activity, reducing planned pricing proportions, transforming state-owned enterprises, providing an institutional platform for the operation of market mechanisms, managing market order, etc. It can be said that in our country, the "invisible hand" of the market is supported by the "visible hand" of the government. If this were not the case, and the market-oriented reform had held high the banner of privatization from the very beginning and relied entirely on the initiative of private entities, the development of my country's market economy would have been completely different.
From the perspective of public goods issues, our country has a vast territory and a fully launched market economy, so the issue of effective provision of public goods is very prominent. Who will build the large ports? Who will organize the modern transportation network? Who will invest in basic farmland water conservancy facilities? Who will manage the big rivers? Who will be in charge of land planning? Who will deal with environmental pollution? There are some other questions...
Of course, according to the Coase principle, these public goods can also be provided by private individuals on the condition that property rights are clarified. But it is almost indisputable that if public goods are provided in this way, the transaction costs will be much greater, at least the level of social infrastructure will never be what it is today.
Over the past 30 years of reform and opening up, the government has used its powerful economic organizational power to provide large-scale and complete public goods for market development, laying a good foundation for the sustained development of our country's economy. If all our enterprises are turned into private holdings, then, within a few years, what can we do to promote the construction of such public goods? This drawback has already emerged in some developed countries...
This chapter is very brain-consuming and may be boring, but it is a reflection of the formation of Lao Zhao's personal spirit. Please support me, please bring me flowers and tickets...
【.Com text】
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