Research On The Development Of Privately Operated Economy And Government Function In Wenzhou And Taizhou

When observing the development of regional economy in Wenzhou and Taizhou (Zhejiang province) after the reforming and opening-up policy, it is noticed that with the development of marketing reformation, the domestic market has become more competitive after joining in WTO, the integrated regional competition and cooperation in Chang San Jiao area has strengthened. The privately operated economy in Wenzhou and Taizhou which grew fastly in the 1980s and 1990s, revealing its advantages by comparing to stated-owned economy in other areas. However, after 1990s, the speed developed economy slowed down and economical forms lost it's advantages. The"Nei Yuan Shi"privately operated economy in Wenzhou and Taizhou shows its inferior position gradually, in contrast to"foreign-funded economy"and"reformed privately operated economy". The following years after 2002, the speed of economy development in Wenzhou and Taizhou ranks back in Zhejiang province, which raises worries from all walks of life on the economy in Wenzhou and Taizhou.This paper does the research on the basis of privately operated economy's formation and development, which represents the interaction relationship between government and privately operated economy in Wenzhou. In addition, I delve further into government's function on the course of its development through"Wenzhou pattern"and"Taizhou phenomenon". On one hand, since the reforming and opening-up policy, the municipal government of Wenzhou and Taizhou takes the lead in doing reformation on partial economic system, which prepares a good condition for the development of privately operated economy. On the other hand, with the growing of the economy, its requirement on the system alteration leads government to do the recreation on economic system gradually. The interaction relationship between government and privately operated economy during the developing process promotes the full scale development on regional economy in Wenzhou and Taizhou.This paper analyzes the difficult situation of Wenzhou and Taizhou economy. Some related policy suggestions are given as well. In this paper, it points out that in order to keep high development position in a new round economy competition, it is necessary to give free rein to the advantage of privately operated economy. As for government, it is also important to give a fresh impetus to the economy. Government should elaborate its functions on structure reforming, public resource distribution and public policy formulation. Also, in order to recreate the core competition of economy in Wenzhou and Taizhou, it is necessary to straighten the relationship among government, enterprises and market.