Xiao Zhuoji
 

10 Suggestions Concerning Western development
I). To accelerate western development, the government should map out more preferential policies for foreign investment in the

 
 

 

 

west than in the east. Meanwhile, attention should be paid to the attraction of eastern investment. The government should grant preferential treatment not only to foreign investors but also to investors from central and eastern China, and not only in the public economic sector but also in the non-public economic sector. The development of the western areas should make use of foreign resources and markets as well as the resources and markets of eastern and central China. Persistence in the two kinds of opening is an inevitable choice in the endeavor to develop the west.

II). Give full play to the functions of government as well as the market. The current campaign for western development should be propelled by the market. Development projects and investment modes, enterprise organization and administration, and production and marketing services should all conform to market laws, and competition must be conducted according to the principles of fairness, openness and justice. But it should be noted that the government plays a vitally important role in such a great strategic movement as western development. Laws and policies should safeguard the legitimate rights and interests of market participants. The combination of the "invisible hand" and the "visible hand" will speed up the pace of western development.

III). Attach equal attention to speed and quality. In developing the west, speed is most important. To narrow the gap between the east and the west, development of the west must be accelerated. But the development speed must be combined with quality improvement, which has five implications: (1) The economic structure should be rational to meet market demands. Products should be marketable and competitive. (2) The economic system should be rational, and a modern enterprise system should be established in line with the requirements of the market economy. The quality of management should be enhanced. (3) Efforts should be made to promote technical progress and technological innovation. (4) Resources allocation should be optimized and resources advantages given full play, so that the minimum input can yield the maximum returns. (5) The general quality of enterprises, the market and the local economy should be enhanced through the mechanism of "the survival of the fittest."

IV). Develop the non-public economy. The non-public economy is an important component of the socialist market economy. The development of the non-public economy, as the only way in the current endeavor to develop the west, is of great significance. Therefore, the non-public economic sector should enjoy the same treatment as the public economic sector with respect to market entry, tax policy, fund-raising and social responsibilities, in line with the spirit of the 15th CPC National Congress and related provisions in the revised Constitution.

V). Pay special attention to the protection of the environment and resources. Wanton felling of trees is common in the western areas, which has aggravated soil erosion and desertification. Predatory exploitation of mineral resources has also resulted in serious problems. While developing the western areas, special attention must be paid to the protection of the environment and resources, so as to maintain ecological equilibrium and achieve sustainable development.

VI). Accelerate infrastructure construction relating to transportation, communication networks, and water and power supply. Developed railways and highways can not only reduce transportation cost, shorten transportation time, decrease consumption of materials and improve the investment environment, but also enhance the economic ties with the eastern area and facilitate technical and personnel exchanges.

VII). Develop education and scientific undertakings. Statistics show that the number of enrolled college students in the western areas is higher than the national average. But the distribution is uneven, and except for Chongqing and Xinjiang, the level in other localities is lower than the national average. Since the adoption of the reform and opening policies, the west has suffered seriously from a brain drain. The top priority task at present covers the following aspects: (1) Developing basic education and improving the overall cultural and technical quality in the region; (2) Developing special education by taking advantage of available conditions and increasing the proportion of enrolled college students; (3) Drawing up preferential policies to attract talented people; and (4) Inviting domestic and foreign experts to develop new projects. Some of the western provinces, such as Shaanxi, Gansu and Sichuan, have relatively sound scientific and technological strength. The current issue is how to transform scientific and technological achievements into actual productivity, transform laboratory advantages into productive advantages, and proceed from product advantages to market advantages, from market advantages to economic return advantages, and from domestic advantages to international advantages.

VIII). Exchange resources for funds. Under the current circumstances, increased government investment is necessary, but has limited potential. Self-funding by localities should be the primary mode. The western areas are abundant in resources, and the exchange of resources for funds and technologies can be an important option. For instance, preferential conditions relating to land use, resources exploitation and industrial development can be provided in order to attract overseas investors as well as investors from other parts of China.

IX). Enhancing financial support for western development. (1) Establishing a western development bank that will provide special capital support to western projects and enterprises. (2) Establishing a western development fund to support long and mid-term development projects. (3) Establishing a west venture capital fund to support the development of high-tech and new-tech industries in western areas. (4) Issuing investment bonds to back the infrastructure construction in western areas. (5) Creating conditions to enable more western enterprises to be qualified for listing so as to raise funds on the capital market. (6) State commercial banks should increase loans to projects in western areas, especially loans to small and medium-sized enterprises.

X). Accelerating small-town construction. The western development should not only develop a group of big and medium-sized cities, but small towns as well. That will help increase the GDP in the areas, fully utilize various resources, massively absorb surplus rural labor, raise the income level of residents, expand investment demand and consumer demand, and eventually contribute to the national economy. The construction of small towns involves less investment and brings into play the initiative of all sides.

close window