Wu Jinglian: Confidence In Reform To Solve Problems

Wu Jinglian, a famous economist and Research Fellow of the State Council Development Research Center, said 29, in 2012 and 2013, the reform of the "small test knife" was effective.

This year's practice has also reinforced the confidence that reform can solve the problem.

If the overall deepening reform can be smoothly promoted, it can help us solve the problems we face.

On the platform of Southwest Associated University held by Yunnan Normal University, 2014 is the first year of comprehensive deepening reform.

The current financial reform is advancing, and the decentralization and decentralization has achieved initial results. The interest rate and exchange rate market is progressing smoothly. The financial reform is being implemented in accordance with the plan, and some consensus has been achieved in the farmland reform. The Shanghai free trade area is of great significance.

This is only a comprehensive deepening.

Prelude.

Wu Jinglian said that the experience since 2012 has enhanced our confidence in solving problems through reform.

For example, our country has called for many years to optimize the structure and develop the service industry without obvious achievements, but in recent years this situation has suddenly changed.

Wu Jinglian analysis, this is because the camp changed to increase.

Reform measures such as facilitation.

"Although the growth rate of GDP has been decreasing in recent three years, the employment situation is good, the structure has improved, and the service industry has been developing speedfully. The main reason is that structural optimization has emerged, which proves that reform can solve the problem."

Wu Jinglian said.

In the current situation, enterprises should make their own efforts.

Wu Jinglian sent a message to enterprises: "the time of making quick money has passed, we must improve our core competitiveness to survive and develop in the fierce competition.

We should be good at discovering and grasping business opportunities, attracting talents, giving full play to the potential of talents, and improving the ability to adapt to the new normal and new rules.

Wu Jinglian stressed that historical experience shows that the key to success in economic pformation lies in whether we can establish a set of systems and policies that are conducive to innovation and entrepreneurship through reform. "The economy should develop well, the first is to deepen various reforms, to release creativity and entrepreneurship, the second is to raise efficiency and third, to achieve effective moderate growth in the case of deceleration.

We should all contribute to this effective new normal. "

Related links:

The main driving force of economic growth under the new normal will shift from the past factor scale expansion to innovation driven.

From the perspective of institutional guarantee, to achieve innovation driven, we must solve two problems: first, establish the "positive incentive" (gettingincentivesright) mechanism; and two, "straighten out the price" (gettingpricesright).

In other words, we must implement the "decisive role of the market in the allocation of resources" in the process of innovation driven.

"Positive incentive" means reconstruction and innovation incentive mechanism.

The mechanism of our country has obvious defects, not only in the lack of full play of the incentive function of the intellectual property system, but also in the lack of a sound incentive mechanism for human capital salaries and property rights.

In response to this situation, it is urgent to further improve the system of intellectual property protection, increase punishment for offenders, raise the cost of illegal activities, and form a credible deterrent force. At the same time, we should build a scientific evaluation and effective incentive mechanism for talent innovation activities, such as the implementation of Technology stock and technology right system, and vigorously promote "technology capitalization", so that technicians can gain strong innovation power.

"Straightening out the price" means guiding the price of elements into full play.

Practice has repeatedly proved that under the perfect market mechanism, the relative prices of various production factors will change flexibly and guide the rational allocation of resources, and the mode of economic growth will gradually grow from extensive to intensive.

But at present, China's reality is that due to the lack of marketization of factors, the price of key elements is distorted and underestimated, which directly stimulates the market bodies to use relatively less tangible elements with less power and pressure to invest in independent innovation.

The key to rectify the situation is to straighten out the price signals and to form an effective pricing mechanism of elements by continuously promoting the development and improvement of factor markets, so that factor prices can "approach" the true equilibrium level of supply and demand decisions.

On this basis, micro enterprises can establish rational expectations and constantly correct their main behaviors, so as to establish a mechanism for continuous innovation.

In addition to giving play to the decisive role of the market in innovation drive, we should "better play the role of the government".

On the one hand, it should be admitted that in the process of innovation, some external effects can not be fully considered by the market. For example, enterprise innovation and upgrading will provide public knowledge for other enterprises, and infrastructure construction will reduce paction costs and increase investment returns.

Because these external effects can not be internalized entirely through market channels, it is necessary for the government to play its due role in industrial upgrading and technological innovation.

But at the same time, it should be emphasized that the government should not overintervene in the choice of industry and the choice of technology, and it is not suitable for themselves to "go to battle in person".

The recent turmoil experienced by some emerging industries represented by the photovoltaic industry is closely related to the technical direction of betting errors under the government led background and the massive duplication of investment.

We believe that if we want to implement the industrial policy, in order to overcome the government failure, it is necessary to distinguish the difference between the selective industrial policy and the functional industrial policy (Lall, 1994), and to clarify the dividing line between direct intervention and indirect inducement industrial policy.

The core point here is that industrial policy should be a tool for correcting market failure rather than an alternative to market arrangement. It is a positive incentive framework for guiding corporate behavior, rather than a genuine case of government participation in economic activities.