The Study Of Industrial Economical Development Of Jilin Province

The 3rd Session of the 11th Conference of the Communist Party of China made the decision that China's central development course should focus on the reform and open-door, and economic construction, which pointed the way out for the national economic development and filled it with vigor. For more than 20years ever since then, China's industrial economy has achieved the fastest development in the history. The coastal areas such as the deltas of the Yangtze River and Zhujiang River have seen extremely rapid growth, and become new economic centers of the country. However, the three northeastern provinces—Jilin, Liaoning and Heilongjiang, which used to be proud of their traditional powerful industrial base of the country, have been suffering from slow economic development due to inadequate national investment, long-term planned economy systems and out-of-dated ideas; the percentage of the national industrial economy has been decreasing steadily, from the 25% in the 1950s to less than 7% at present, what is worse, the amount of the industrial economy of Jilin Province is less than 2% of the total. The industry of Jilin Province has experienced ups and downs: from nothing to large-scale, and from one of the important industrial bases to the present less-than 2% of the national industry, from glory to depression. It has undergone a lot of hard times in the course of its development. The development of Jilin industrial economy has its unique advantages. First, it has a better base of the industry, especially in manufacturing. The vehicle making and petrochemical industry are among the best ones, with output of vehicle production occupying the first place in the country, which is truly the pillar industry of the province. The processing of farm produce, medicine and electronic industry has been steadily growing, which have been becoming the new growth and pillar points in the province. Second, Jilin Province has a lot of advantages in its scientific development and education. It has many research institutes belonging to both the country and the province such as Changchun Optic Machinery institutes, and it has many national key laboratories like that of Macromolecule Chemistry. It has 41 universities with 340,000 students, 640 doctorate supervisors and 22 academicians, which evidently indicates the advantage of a large number of researchers. Third, Jilin Province lies in the middle of the Northeast Asia, with superior location, neighboring Russia, North Korea and Mongolia, facing South Korea and Japan over the sea. It has frequent trade contacts with Japan and South Korea and other countries in recent years, the trade has been growing fast, which is the favorite conditions fro export-oriented economy. However, the development of Jilin industry has been accompanied by many serious problems such as inadequate marketization, lack of internal motivation for the economic development, heavy pass-down burdens of state-owned economy; traditional industries like machinery manufacturing has been developing slowly, while the percentage of the new high-tech industry is too small, inadequately open the outside. The backward outcomes of Jilin industry have resulted from various factors, but the fundamental ones derived from the system and mechanism, that is, against the law of economy. It is nearly 30years since the reform started, unfortunately the state-owned industry still occupies over 80% of the total, and the state-owned enterprises can hardly survive the market economy due to inert mechanism and heavy pass-down burdens. The solution lies in the abolition of the old-fashioned management system and inert mechanism in the industry economy in order to speed up the slow industry economy of Jilin Province within a short time, unloading all the burdens and leading it onto the right course. The following are necessary measures for this goal: first, the reform of state-owned enterprises must be sped up. The system of state-owned economy cannot fit the development of market economy; in some areas and to some extent, state-owned economy system has been backward and should be abolished. State-owned economy must move out of the general areas ofcompetition as soon as possible. Second, the state-owned economy of the province should take its advantages to establish the five big industrial bases quickly, especially of vehicle making and petrochemical industries. Vehicle making industry has a great effect on other industries; a research result released by the state council research center indicates, because of the strong effects on the growing of other related industries, the total investment of all industries is twice as much as that in vehicle industry. From the angle of value growth, one unit of value created by the vehicle industry can bring more than twice to the related industries, and over three times to the whole society. Third, private-owned enterprises should be greatly encouraged and supported. According to the requirement of market economy, only if non-state-owned economy is supported and strengthened on a large scale, the environment for market economy can be fostered and the outside environment for the reform of state-owned enterprises can be improved. The development of non-state-owned economy comprises the major part of the market economy on the one hand, and it provides employment and investors for the state-owned enterprises on the other. It is rather difficult to keep the old system intact within the state-owned enterprises and reinvigorate them in areas of fierce competition. Thus, for rejuvenation of the traditional industry in Jilin Province, individually run enterprises must be supported and strengthened, and they should be provided equal priority as the state-owned enterprises in all economic areas. Only when the individually run enterprises have grown strongly, can the state-owned enterprises have larger space for their development. This has been shown by the experience of the well-developed southeastern coastal areas and the traditional industrial bases. Finally, they must be open to the largest extent. This paper is an overall review of the history of Jilin industry, and qualitative and quantitative analysis of it, pointing out both problems and advantages in the present course of its development and putting forward some constructive suggestions and measures on how to further the reform in the state-owned enterprises and to build the 5 bases in Jilin Province, to support...