Financial Support On West Exploration

Abstract: West Exploration (WE) is one major strategic decision of the Communist Party of China (CPC) and the government at the cross of the centuries. Given the new situation and regional grid, the State Council published the Some Options on Further Pushing the WE in March, 2003, requiring us to further raise the awareness of the great strategic decision, research and deeply understand the law of the WE tasks, constantly improve and strengthen the leadership to the WE, fully mobilize the enthusiasm of all aspects, and create the new situation of WE.During the recent four years of WE, with the powerful support of the national policy, each province, autonomous region and Directly Governed City has achieved great progress in the infrastructure and eco-environment construction. Total investment in fixed assets has kept high-speed increasing and some industries such as characterized agriculture, energy construction, tourism and Chinese traditional medicines have emerged rapidly. However, with the macro-background of the high increasing of national economy, the gap between the east and west has been extending, industrialization and urbanization has been developing slowly, the industrial competence is still weak, Agriculture, Countryside, and Farmer issue is still sharp, and the long-time development of the western region lacks powerful industrial support. Though the eco-environment has been improved in some districts, the tendency of deterioration in the whole country has not changed. The funding shortage is still the bottle-neck issue that the WE faces. How to raise money and fill in the funding gap and fully use the funding is the key to constantly promote theWE. Currently, during the regional economy's process of changing from budget-oriented to finance-oriented, the capital of WE cannot only rely on the fiscal investment, but to seek financial support.The general analysis of the financial development shows that the financial development and economic growth have strong correlation in many regions in our country. Financial development is beneficial to the formation of the stable, fast and high-quality economic growth and financial development gap can partially explain the economic growth gap. However, the financial development of our country shows the characteristic of high increasing and low efficiency. In the whole reform, the financial market just passively adapts to the need for financing in western development. It. doesn't effectively play the corresponding roles of the modem finance in resource allocation, risk management, enterprises supervising, and information-transmission. Currently, with the reality of the uniform deposit and loan interest rate, the investment revenue is higher in the developed eastern part, which objectively leads to flood-channeling typed flow from the west to the east, and that the western economic situation becomes worse and worse. The severe reality requests the government to issue some new financial policies to support the WE when increasing the transfer payment, to perfect the finance support system, create an excellent financial environment, and fully exert the functions of finance in financing, economic adjustment and resource allocation, in order to support the WE. Therefore, research on the finance support in the WE has strong practical significance.WE is a long-term process. Since China is in the course of marketization, we have little experience in the regional development policy in this background. Therefore, we have to thoroughly research on the regional policy of the countries with mature market economy, the current situation of the economy gap between east and west, and the deficiency of the current policies. By reviewing the international experience, we build a reference for the policy-making, and the analysis on the current situation of east and west will offer a congruence and an access of the policies and measures for finance support, to construct a theoretical basis for thefinance support in the WE. Therefore, research on the finance support in the WE is of great pra...