step. It must follow the economic laws and market principles. He said that the western regions need to establish new ideas and concepts in at least three aspects:

First is the concept of market orientation. The opening up at the present stage requires market steering and competition orientation rather than resource steering and product orientation. Second is the concept of efficiency. Third is the principle of comparative advantage. For one unit, one region or even one village, the advantages are obtained in
a limited space, and as a result, they are often not true advantages. To judge whether a product has its true advantages or not, one must put it into a larger context. If people go on blindly as before, they will not have real competition ability.

Tao stressed the importance of mechanism construction and human resources accumulation in the west. In operational mechanism, he said, we have no other choice but to set up a market economic mechanism, develop all kinds of factor markets according to economic laws and make the maximum profits from limited funds by inviting bids and instituting a supervision system.

As for the accumulation of human resources, Tao pointed out that Chengdu has a large amount of human resources, but it now needs more people with modern technical talents
--those grasping core technology; people with modern management talent--those who can manage star-level hotels rather than small managers; and people with the ability to handle modern operations--those who know not only commodity operation but also capital operation.

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