Western Development And The Capital Market

One of the most important strategic decisions made by the Chinese central government in the 21th century is to implement the big development of the western region. The essence of the strategy is to reduce the great gap between the east and the west, thus promoting the persistent increase and the healthy development of the general national economy. Capital is the most basic element in the development of the western economy and the shortage of fund will be the problem that the west faces in the long run. Therefore capital plays an important role in this big exploitation.How to collect fund that is needed in such development through a market_oriented way? The best choice seems to make full advantage of the capital market through the market mechanism. This article will discuss three main points as follows:1. The background and the significance of the western region development.2. The comprehensive analysis of the economic gap between the east and the west.3. The discussion of the connection between the western development and the prosperity of the capital market. Part 1 It has been argued for long both in the theoretical circle and in the actual departments of how to define the limits of the western region. According to the characteristic of this big development, it is much more reasonable to define such limits by the objective economic criteria. By this standard, there are altogether 12 provinces and autonomous regions in the west. The west is rich and abundant in natural resources, among which energy, minerals and living things occupy an important place in China. These resources are the important material base and the reserve for the west. For fifty years, the Chinese central government always aims to change the imbalance of the productive power distribution nationwide and strives to reduce the gap among the different regions. It never gives up the determination of opening up the west. Generally, the history of the western development can be divided into three periods: The first period is the 30 years before the reform and the opening to the outside world and the "evenly_ distributed" policy had been carried out. It is the period in which the state gave the strongest support to the west. The second period is the 20 years from the end of the 1970s to the end of the 1990s and the "non_evenly distributed" policy has been implemented. It is the period in which the focus of the national construction transferred from the east to the west so that the supporting strength to the west and the central parts grew weaker and the gap between the east and the west became larger. The third period is the so_called new period at the end of the 1990s ,characterized by the "coordinated development of the regional economy". The process of the three periods above marks the maturity and the perfection of the regional development policy in China. Part 2 A deep research into the strategy of the western development has been made. Through the results of the research , the practical, scientific and concrete economic policy has been drawn up. This policy will keep the west in pace with the development of the costal regions in the east.Through the statistical analysis of the indicator systems reflecting the regional economic development, we can have a clear understanding about the characteristics of the gap between the east and the west. These characteristics are as follows: First, an apparent " Matai effect" has appeared in the Chinese regional development. It shows that the level of the regional developments from east to west appears to be gradually decreasing. Second, the difference of the industrial growth index is bigger than that of the other indexes. The capacity of industrial output in the west is obviously lower than that of the east. Third, the difference of the average per capita consumption is larger than that of the average per capita income. Especially the difference o...