The reform of the great times

It will be a great time. From 2011-2015, China will enter the "Twelve-Five" stage, 2012, the Communist Party will convene "18 big".　　After 30 years of reform and opening up, China is experiencing a new economic transition, social transformation and cultural transformation in the context of the global financial crisis and the lingering expectations and worries from all over the world.　　Yesterday, Xinhua was authorized to release the October 18 17 v Plenary session of the CPC Central Committee on the formulation of national economic and social Development of the 12th five-year Plan (hereinafter referred to as the "recommendations"), the full text of the "proposal", the information is very rich, meaning is extremely broad. The "Twelve-Five" period is the key period for building a well-off society in an all-round way, and it is a crucial period for deepening reform and opening-up and speeding up the transformation of economic development mode. The 17 session of the V plenary communiqué also noted that "reform is a powerful engine for accelerating the transformation of economic development, and that reform in all areas must be comprehensively promoted with greater determination and courage". "This emphasis on reform attracts attention.　　While the two historical tasks of reform and transformation of economic development are brought together in the period of "Twelve-Five", it is necessary to accelerate the solution of some deep-seated contradictions in China's economic and social development, to push forward reform with greater determination and courage, and the key to change the mode of economic development is to deepen the reform. Reform has been carried out for more than 30 years, but there is still a certain distance from the establishment of a relatively perfect socialist market economy system. As economist Mr. Wu, market economy is not sufficient to guarantee economic prosperity and people's happiness, many countries fall into bad market economy, or power dominate the market economy.　　China must take the market economy path of the rule of law under the political civilization, and the rule of law is the only way to regulate power. In the past more than 30 years of development process, can be in the accumulation of contradictions, the exposure process of gradual reform.　　But today, some problems may not be too much time and space for manoeuvre, but also for the adjustment of major interest patterns, which requires us to make greater determination and courage. The essence of reform lies in the reconstruction of the interest pattern, which inevitably meets the obstruction of interest groups.　　More importantly, as the Nobel laureate Stigler's "Capture theory" cautions, lawmakers and regulatory agencies are also seeking to maximise their own interests, and special interest groups "capture" legislators and regulators, allowing governments to provide control that favours them. In the current reform of our country, there is a great overlap and crossover between the rules makers and some reformed objects, which makes the reform need "the revolution in the Soul".　　For example, the crux of the problem lies in the reform of income distribution, the reform of central enterprises, the reform of securities market and the reform of local government's land finance. "The goal of collective action by a variety of social organizations is almost invariably to try to redistribute wealth rather than to increase total output--in other words, they are the ' profit group '," says Olsen, author of the Logic of collective action. "Therefore, the interest groups will be in order to benefit from the spread of profit competition, through a variety of activities to affectGovernment decisions. Under the condition of market economy, the active existence of interest group will become the normal state, and the more imperfect the system and the bigger the rent-seeking space, the more active the interest group. Compared with the dual track of the 80 's, China's rent-seeking activities are more subtle in methods and more alarming in scale.　　For example, some interest groups through PE corruption, in the company before the listing of a quick share, the use of relations to help companies listed, can be a short period of time to obtain a surprising risk-free profits. Another hot area for rent-seeking is real estate. Recently, the shareholder's public report of a city in a central urban real estate project, about 400 owners, more than 50 households have received more than 10% of the purchase discount, of which 22 buyers received a discount of up to 30%-50%, the discount amount of hundreds of thousands of to millions of dollars, most of them are government officials.　　This is just the tip of the iceberg. Another obstacle to reform is that the costs and risks of reform are in the current period, while the main gains are in the long term.　　This trans-period distribution of income and cost often leads to the main negative incentive of reform omission. "Twelve-Five" reform is not only related to China's development in the next 5 years, but also for China's next 10 years, 20 years and even 30 years have far-reaching impact, is a decisive key for 5 years. Therefore, the next stage of reform is crucial to the future of China. Right now, we have seen the direction of reform and the urgency of reform. But the strong resistance of interest groups, the cycle of decision-making, have decided that the road of reform will not be smooth.