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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. |