Shengzu: Private investment relay public investment is the key to getting out of crisis

Xinhua Beijing, October 31 (Yi Pandenko) The 11th meeting of the NPC Standing Committee of the National People's Congress 29th, the Committee considered the State Council on this year's government's major public investment and its implementation of the report and the National Standing Committee Special research Group on the implementation of some major public investment projects, the NPC Standing Committee, The vice chairman of the DAB, economist Shengzu, pointed out that the government's public investment played an irreplaceable role in the process of coping with the global financial crisis, and our economy was able to take the lead in stabilizing the world. In the post-crisis period, making private investment relay public investment is the most important strategic choice to maintain sustainable economic growth. Compared with public investment, folk investment has the characteristics of mechanism living, high efficiency, great potential, strong sustainability, favorable to entrepreneurial innovation and strong employment effect, and is the key to enhance the endogenous power and vigor of economic growth and realize sustainable development.　　The current need to broaden the field of private investment, smooth investment and financing channels, strengthen fiscal support, improve service system, innovative investment methods, and actively encourage entrepreneurial innovation, stimulate consumption, and thus effectively promote private investment to achieve the relay of public investment. Shengzu pointed out that the government's public investment in the process of coping with the global financial crisis, China's economy in the world to take the lead in stabilizing the recovery. Government public investment is an effective way to stimulate economic growth in a short period of time. Public investment in government is a "fast" variable to regulate macro-economy. The "Troika", which promotes economic growth in consumer demand, investment demand and export demand, cannot be "neck and neck", stimulating consumption is a long-term process, the need for long-term mechanism, consumption is a "slow" variable, compared to private investment, the government public Investment adjustment economic operation of the external time lag short, quick effect, strong directivity, The multiplier effect is large and the effect is obvious in the government-led macro-control. After the outbreak of the global financial crisis, our Government in time, effective implementation of the "growth, expansion of domestic demand, structural adjustment" policy, through a strong government public investment effectively curb the economic downturn, fully boosted market confidence, and successfully made our economy gradually stable to the good, and achieve the first three quarters of the economic growth of 7.7% year-on-year. According to experts, if there is no central stimulus package, this round of adjustment of the economic growth of the lower point may be reduced to about 1%. The stage achievements of China's current economic growth are mainly attributed to the promotion of government public investment. According to statistics, investment in the first quarter of this year to stimulate economic growth of 4.3%, the first half to stimulate economic growth of 6.2%, the first three quarters to stimulate economic growth of 7.3%. Among them, the government public investment contribution is huge, the first half of the government and state-owned enterprises fixed investment growth rate reached 50.7%, far higher than the social growth level.　　In addition to achieving growth, public investment in government embodies the requirements of structural adjustment and Huiminson, and makes a positive contribution to the transformation and promotion of consumption. Shengzu that the government's public investment plays a great role and has its limitations, while the folk investment has the mechanism to live, effectiveThe characteristics of high rate, great potential, strong sustainability, favorable entrepreneurial innovation and strong employment effect are the key to enhance the endogenous power and vitality of economic growth and achieve sustainable development. Although the public investment of Government has the remarkable effect of "the tide", but from the force point of view, the government public investment is like a dose of "strong heart Needle", although the force is strong, but can only be short-lived, difficult to endure. The current budget constraint and the inadequacy of local government's financial supporting ability have formed certain restriction to government investment. Especially under the current administrative system, the local government's investment impulse is too strong, the governmental investment is apt to cause the duplication construction and the economy overheating, will eventually aggravate the current overcapacity problem. Compared with public investment, private investment has six characteristics: first, the mechanism is flexible and adaptable. Private investment is based on the market economy, with a high degree of decision-making autonomy, a high degree of asset control, a high degree of choice of personnel, a high degree of internal distribution, responsive to the market, can be adjusted flexibly according to market changes, rapid transfer of funds, adapt to market change ability, followed by clear property rights, high efficiency. Private investment self-financing, self-inflicted, self-management, self-financing, self-discipline, self-development, clear property rights, to profit as the goal, investors for their own investment is responsible for the investment to maximize the profits, conducive to the improvement of investment efficiency; China's private investment has accounted for the majority of the social investment, has become the focus of expanding investment needs. In the 2008, private investment accounted for more than 70% of the whole society's fixed assets investment. At the same time, China's private funds have great potential and provide ample sources for private investment. Statistics show that China's private funds are currently about 46 trillion yuan, including 20 trillion yuan personal savings, and 26 trillion yuan enterprise and social capital, and the last is the source of the driving force for sustainable growth. Private investment is the fundamental driving force to achieve sustained economic growth, and the lack of private investment is bound to be weak foundation and unstable foundation. The endogenous impetus and economic vigor of economic growth depend on active nongovernmental investment and sufficient market mechanism. Private investment and entrepreneurial innovation are closely related, the large number of small and medium-sized enterprises are the important power of China's technological innovation, and the most dynamic part of our innovation system, and finally the main channel of protecting people's livelihood. The carrier of the folk investment is small and medium-sized enterprise, have extremely important function to the employment. 2008 China's private investment arranged 70% of urban employment and 90% of new employment. Private investment is conducive to increasing employment, employment is the guarantee of increased employee income, employees can only have income to promote consumption. In turn, consumption can promote the virtuous circle of private investment.　　The virtuous circle of the folk investment can realize the wealth-rich people truly. Shengzu stressed that the private investment relay public investment is an important way to build endogenous dynamic mechanism of economic growth, is the key to maintain sustainable economic growth, at present, it is urgent to take eight measures to actively expand private investment. At present, government public investment mainly concentrates on energy, transportation,Infrastructure, such as state-owned and state-controlled enterprises dominate the industry, private capital still faces higher market access threshold and more restrictive conditions, especially in some monopolistic industries, private capital participation in less opportunities. In the general field of traditional competition, private investment is still very cautious. According to statistics, the proportion of urban investment accounted for nearly one-third, private investment more concentrated manufacturing investment January-August growth of 27.3%, down 5.7% year-on-year. To realize the sustainability of economic development, it is urgent to change the impetus of economy, so as to make folk investment become the endogenous impetus of economy. To this end, the following measures need to be taken: first, to broaden the field of private investment, and properly guide government investment gradually out of the general competition area, to prevent the extrusion effect. To speed up the reform of the monopoly industry, gradually eliminate the administrative barriers, reduce the threshold of private investment market access, broaden the field of private investment, guarantee the equal competition of different market subjects, prevent large-scale "country into the People retreat". To guide government investment to gradually withdraw from the general competition field, to prevent the excessive expansion of government investment and the crowding out effect on private investment. To promote private enterprises and other ownership enterprises in the investment approval, land, foreign trade, finance and tax support of fair treatment. Allow and encourage private capital to enter the fields of railways, aviation, telecommunications, energy, municipal utilities, finance and social undertakings. At the same time, through preferential policies to encourage the transfer of private investment across the region, and actively build a platform to encourage private capital to participate in international competition; Secondly, we should establish a cooperative mechanism between public investment and private investment, so that public investment and people benefit without competing with the people for profit. At present, it is necessary to give full play to the power of private capital and to carry out the development of some projects with the help of folk investment. For example, in urban development and construction, it is necessary to form the pattern of cooperation between government and civil power to invest in urbanization. Some urban public goods, such as infrastructure, schools and hospitals, which were originally provided by the Government, have gradually participated in non-government diversified funds and achieved good results. Therefore, we can actively innovate the investment model, take the direct participation of private capital, franchising, construction-operation-Transfer, construction-ownership-operation-transfer, construction-transfer-management, and so on to build the mode of public sector and private enterprise cooperation, and establish and perfect the new mechanism of public investment. For example, the Hangzhouwan Bridge estimates a total investment of about 11.8 billion yuan, of which private capital accounted for the total investment of the bridge about 30%. For example, Beijing metro line Line 4 by the government to provide 70% of the project funds, the remaining 30% through the financing of the project to raise, by private capital to form the Beijing Subway Line 4 line franchise Company; Third, we should increase the innovation and support to the enterprise, and guide the transformation and upgrading of enterprises. Who holds the direction of technology development, who will be able to lead the next round of economic growth. Scientific and technological innovation investment is the most important strategic investment, the new industry will become the leading force to promote the world economic development. At present, we should actively adjust the structure of government public investment, increase the capital arrangement of technical renovation and scientific and technological innovation projects and pay close attention to implementation. To actively guide private capital into new energy, environmental productionIndustry, biomedicine, new materials, electronic information and other emerging strategic industries. To increase the transformation and upgrading of enterprises, the support of equipment renewal and technology research and development, improve the funding intensity of innovation fund, enlarge the scope of subsidy, strengthen the investment of local finance to innovation fund; four to smooth the private investment and financing channels, construct multi-level capital market and banking system, and transform the folk savings into private investment in time and effectively V. To activate private investment in entrepreneurship, the implementation of the "entrepreneurial and enriching" strategy, and actively guide the formation of a new wave of entrepreneurship; Six to the consumption of private investment, expand investment market demand, advocate moderate debt and consumption of new ideas, strengthen the government procurement of small and medium-sized enterprises, as soon as possible to formulate "SME government procurement management measures" Seven, we should construct the finance and taxation support system of nongovernmental investment and improve the return on investment. For the country to encourage the development of areas and areas of private investment projects, through subsidies, tax relief, discount loans and other preferential policies to support; Eight, we should perfect the private investment service system and create a good market environment. We should straighten out the relationship between the government and the business, transform the functions of Governments, and promote the transformation of "omnipotent government" and "control government" to "limited government" and "service government". To further standardize and reform the investment examination and approval, audit, filing system, reduce the scope of government approval, expand the Project record authority. To streamline the vetting process and strengthen the Government's support and services for private investment.