On The Function Of Local Government Investment And The Future Adjustments

To develop economy is the most significant task for China during this period in which the economic system is making swift transition.Most regional governments are pushing economic development as their primary task under the direction of the central government in about 30 years of innovation and openness.Foreign and domestic experiences proved that inviting investment is one of the most useful methods for development of regional economy.To carry on effectual investment promotion is a key problem for regional governments under such special circumstances.This text points out the ways for regional governments to fulfill their functions efficiently and analyze present situations of domestic investment promotion.In this special period,all the regional governments in Zhejiang province are paying most of their efforts on inviting investment and get great results as well as a lot of new problems.By analyzing on current development and origin of regional governments' inviting investment in China and the writer' s experience in inviting investment in Gongshu district,Hangzhou,Zhejiang,it puts an emphasis study into effects,influence factors and present problems in inviting investment and introduces experiences of America and European countries.The article illustrates that the problems exiting in the investment promotion are offside and dislocation of authority and absence from authority.Offside of authority means local governments take place of enterprises to make investment promotion.Dislocation of authority is that local governments have done what they should not do. Absence from authority means local government is not doing their bound duty.The primary principal for local governments is to give first place to the market regulation while make authority action subsidiary in investment promotion.Local governments should guide investments following plans,key industries and industrial policy.To fulfill the good government image and providing investment platform,and to fulfill the function of supervisor by controlling the enterprises' operation, competition,protecting environment and land resources is the main course for local governments to solve the present problem.