Chapter 896 Some thoughts

However, after listening to the report of the Pengzhou Standing Committee, Zhao Jianhui still put forward some of his own views on this issue. [.Com text] The specific economic operation is not director Zhao Jianhui. He just expressed his personal views on the current stage and solving local economic development from a policy perspective.

These are some of his thoughts on exams and gradually began to take shape during his studies at the Party School.

"......... In the 30 years of reform and opening up, my country's economy has continued to grow rapidly, with an annual growth rate of more than 9%, and industrialization has made rapid progress. Many foreign scholars believe that this is a "growth miracle" in modern economic history. How did this so-called "growth miracle" happen? Many experts and scholars are exploring the "mystery" in it. There may be many answers. I think the most fundamental reason is that my country has chosen a market economy and embarked on the path of market-oriented reform. This choice has changed our development trajectory and also changed the pattern of world political and economic development."

"It is not uncommon for our country to choose the development of a market-oriented system. Why can my country's market-oriented reform and its development achieve such outstanding results in just 30 years? I think one thing that is worth studying here is that my country has embarked on its own market economy development model. What is my country's market economy development model? How should this model be summarized? There are various statements in different versions. For example, the statement of the 'gradual reform model' that many people agree with. However, the 'gradual reform model' in the end is just a summary of my country's market-oriented reform in terms of policy operation characteristics. More essential things need to be studied more in-depth."

"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 strict academic arguments that can annotate my country's market economy. my country's market economy development strives to combine and compatible with the basic concepts and basic systems of socialism with the general rules of the market economy, which is very different from the previous model of any market economy..."

"...I think an important feature of our country's market economy development model is that in the process of market-oriented reform and development, we do not give up the basic policy of public ownership as the main body, and adhere to the policy of common development of multiple ownerships. Under the strong leadership of the Party, the control force of the state economy and government management have always played a leading role. Obviously, this development model is different from the market economy development model of some Central and South American countries, and is also different from the so-called government-led market economy model of Eastern European countries...."

"In my country's market economy 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 the foreign academic community, and the so-called "name of my country as "authoritative capitalism" comes from this. There are also many criticisms in the domestic academic community, and the sharpest opinions believe that this situation does not conform to the general laws of market economy development. I think the problem may not be so simple."

Hegel has an important proposition: All real existence is reasonable. Here, I would like to use the famous "Wagner's theorem" to illustrate the rationality of my country's market economy model. In the 1870s, German economist Wagner discovered that once a country fully enters the process of industrialization, the government's economic sector will expand in quantity and proportion, public finance will continue to expand, and national economic power and government management will continue to strengthen... Wagner predicted that this trend, as a regular phenomenon, will still take effect in the next 50 years and 100 years. Regarding the reasons for this trend, Wagner talked about several basic reasons: large-scale industrial development requires the expansion of public infrastructure development; fierce market competition requires the increase of public welfare projects; active economic monopoly forces require the strengthening of market management; industrialization leads to rural bankruptcy requires the comprehensive help of the government, etc.

After the publication of the "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, the United States and Germany after the 1960s to verify the empirical data. The conclusion is that although the actual situation is very tortuous and complex, the general trend of the "Wagner's Theorem" exists.

During the planned economy period, although we established a basic system of industrialization, it was reform, opening up and market-oriented reform that leveraged the comprehensive and rapid development of my country's industrialization. In this new development environment, Wagner's various situations of continuous strengthening of national economic power and government management can also find the basis for existence in my country. In addition, my country will be a developing country for a long time, and the tasks of urban-rural coordination and regional development coordination in the process of industrialization, land and resources and environmental protection, establishing an innovative country, national economic security, controlling the growth of a huge population, maintaining market order, and planning a global development strategy are very heavy. It can be said that the reasons for the existence of the "Wagner's theorem" in my country may be more sufficient.

Further investigation will reveal that in the 30 years of economic growth that has lasted for 30 years after the reform and opening up, the national-led market economy model with my country's characteristics has played a very important role.

Efficient accumulation of industrialization led by the state. One of the most basic bottlenecks in the development of modern industrial in my country is the lack of capital accumulation. During the planned economy period, the government accumulated initially through inequality exchange with agricultural products and established a basic system of industrialization. Reform and opening up introduced the competition mechanism and price mechanism of the market economy, and began the historical process of full industrialization. Now, although there are many ways to accumulate capital in the new era, the most important way to obtain capital accumulation is to rely on the introduction of funds from abroad, and the other is to accumulate land, that is, the government and developers obtain a large amount of funds through low-price expropriation of land.

The total amount of capital obtained by land accumulation is much larger than that introduced from abroad. Some research institutions estimate that its total amount exceeds 20 trillion yuan.

Research data shows that since the reform and opening up, the land transfer income of local governments at all levels has exceeded more than 35% of the fiscal budget.

Although this accumulation method is unequal to many landless farmers who have insufficient compensation, and the subsequent social contradictions it brings are also very difficult, no one can deny that it is precisely because of this extremely huge accumulation of land capital that my country's industrialization and urbanization can develop so rapidly and GDP can maintain a long-term and continuous and rapid growth level. The institutional conditions for this land capital accumulation are that since the founding of the People's Republic of China, which is actually the hardest foundation for public ownership as the main body.

If this is not the case, we will overthrow this system after the reform and opening up, implement land privatization and transformation, and completely put land ownership in private hands. This will definitely be very liberalized, and market competition will be more sufficient, but the cost of promoting industrialization and urbanization will be very high. It will definitely take longer to obtain the results of today's industrialization development.

The state manages resources, energy industry and economic stability. A country's resources and energy industry are the basic economic sectors for industrial development. Their development and supply and demand conditions play an important role in the micro operation of downstream industries, and 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 conducts unified nationalized operations.

After the market reform, the development of this economic sector faces two choices. One is that the industry enters the field of perfect competition and undergoes a thorough market-oriented transformation, with investments from domestic and foreign private capital, and the development entity (the market-oriented reforms in many developing countries have made this choice); the other is that it does not change the country's economic control and government management, but does not change the original nationalized management system, but undergoes institutional transformation. We chose the latter. Facts have proved that this choice is reasonable.

The industrial capacity and corporate appearance after the reform have undergone major changes, and many enterprise groups have entered the top 100 in the world. Especially under the coordinated management of the government, state-owned enterprises have played the strategic function of macro-stability of the national economy, assumed important social responsibilities in maintaining stable growth, and provided downstream enterprises with relatively cheap primary products. In fact, the state subsidy 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 national capital advantage can also avoid the strategic control of large foreign companies and large capital.

The powerful economic organizational power of the government. my country has two inherent shortcomings in entering the modern market economy, one is the institutional problem and the other is the public product problem. From the perspective of institutional problems, my country does not have the mercantilist tradition and the relatively developed modern industrial and commercial society foundation, and the planning system completely excludes market economic activities. In this case, my country's market economy development is not carried out spontaneously from the bottom up, but the ruling party consciously changes its concepts and promotes top-down market-oriented reforms. This kind of government organization behavior includes proposing reform policies, giving up the field of market activities, reducing the planned pricing ratio, transforming state-owned enterprises, providing a platform for market mechanism operation, managing market order, etc. It can be said that in my country, the "invisible hand" of the market is supported by the government's "visible hand". If this is not the case, market-oriented reforms held high the banner of privatization from the beginning and relying entirely on private entities to carry out spontaneously, and my country's market economy development may be a completely different result.

Judging from the public product problem, my country has a vast territory and a market economy has been fully launched. The problem of effectively providing public products is very prominent. Who will build large ports? Who will prepare for modern transportation networks? Who will invest in basic farmland water conservancy facilities? Who will manage large rivers? Who will preside over the land planning? Who will rectify environmental pollution? There are some other problems...

Of course, according to the Coase principle, these public products can also be provided by private individuals under the condition of clarifying property rights. But it is almost undisputed that if public products are provided in this way, the transaction cost will definitely be much greater, and at least the level of social infrastructure will never be what they are today.

In the 30 years of reform and opening up, the government has used its powerful economic organizational power to provide large-scale and complete public products for market development, laying a good foundation for the long-term development of our country's economy. If all our enterprises are turned into private holdings, then what will we use to promote the construction of such public products in less than a few years? This disadvantage has been revealed in some developed countries...

This chapter is very brain-consuming and may be boring, but this is a reflection of Lao Zhao's personal spirit. Please support me, please give me the flowers to vote...
Chapter completed!