Mr. Wu: Institutional barriers are not conducive to economic restructuring

The famous economist Mr. Wu in the "Central Europe-Hua an Rui-chi salon" said that the economic restructuring is urgent, said the recent 30 years of economic restructuring has still not turned over the problem is the system. Mr. Wu that without transformation, many economic and social problems could not be solved. He pointed out that there are various ways of changing the way of economic development. In the past, the shift from investment and export-driven growth to technological progress and efficiency-driven growth has now been said to be a consumer-driven approach to consumption driven by investment-driven development. "Some of these statements make the content ambiguous. I think the core is the growth model driven by technological progress and efficiency improvement, which in essence enhances the added value of our products. "After 30 years of economic restructuring has not yet turned, Mr. Wu summary is an institutional barrier." The first is that the government has maintained the right to dispose of the important scarce resources of land and credit. The second is the achievement standard based on GDP growth rate. Third, the tax system defects, from the income point of view, is the production-oriented value-added tax-oriented income structure. In addition, the excessive shift of the important expenditure responsibility, such as the education responsibility moved to the counties and counties below, all levels of local government efforts to increase income to meet the payment responsibility, which prompted officials at all levels to pursue the rapid growth of the material production sector. The other is that factor price distortions also encourage waste of resources and inhibit the improvement of efficiency. (Jangchul Cheng Junlin)