Research On The Recognition And Compensation Of Benefit Damage In The Process Of Industrial Transformation In Shanxi Province

Shanxi Province, as an important national resource and energybase, has made a great contribution to the national economicconstruction for a long time. However, Shanxi’s industrialdevelopment also has a series of problems, such as, irrationalindustrial structure, industrial heavy-duty problems, poor economicperformance, and serious environmental pollution. The relevantdepartments of central government and Shanxi government at alllevels attach great importance to the issues arising in the processof industrial development. After Shanxi Province established as theComprehensive Reform Pilot Area of a national resource-basedtransitional economy, the industrial transformation of ShanxiProvince has obtained certain effectiveness under the support ofrelevant national policies.However, industrial transformation is a complex project. The research on the time, the way of the transition, the selection of thedirection of the transformation, and the problems of solving thebenefit of transformation are far from mature and perfect. Amongthem, the problem of conflict of interests among the various benefitmain bodies caused by the industrial transformation has become akey factor which affects the smooth implementation of theindustrial transformation. However, researches on industrialtransformation conducted by scholars at home and abroad aremainly concentrated on the resource-based industrialtransformation, barriers of industrial transformation and patternsof industrial transformation; those on the benefit problem andbenefit compensation in the process of industrial transformationare still relatively weak. Identifying the benefit main bodies and thedegree of benefit damage in the process of industrialtransformation and formulating different manners of benefitcompensation for different benefit damage to ensure the smoothimplementation of industrial transformation are the focus and goalsof this study.This article, on the basis of elaborating the theory of industriallife cycle, models of industrial transformation, and barriers ofindustrial transformation, analyzes the existing problems ofindustrial structure and the status of development of major industries in Shanxi province, and then puts forward the route ofindustrial transformation, in order to achieve diversified industrialdevelopment and promote Shanxi to achieve industrialtransformation and development. On this basis, it analyzes a seriesof problems in the process of industrial transformation, such as, theexit of declining industries, the support of emerging industries, theplacement of laid-off workers and the eco-environmentalgovernance. And then it recognizes the direct benefit main bodiesand indirect benefit main bodies of the industrial transformation,and discusses further the degree of benefit damage of the directbenefit main bodies from three angles: the dominant loss, halfhidden loss and hidden loss, and puts forward the appropriatemeasurement model of benefit damage.It puts forward the implementation of benefit compensation onthe basis of above analysis. Firstly, it expounds the principles whichthe implementation of the benefit compensation should follow andthe subject of benefit compensation and the compensation object.Due to the relative more benefit main bodies indirectly affected byindustrial transformation and the more complex benefit relations,the situation of benefit damage is difficult to measure anddetermine. In reality it is not feasible that compensating all of thedamaged benefit main bodies for their situation of benefit damage. Therefore, this article only takes the direct benefit main bodies ascompensation objects. Secondly, it puts forward further that thediversified manner of compensation should be established, givingpriority to government compensation supplemented by marketcompensation, and concentrating on the transfusion-stylecompensation for a short period of time and the hematopoietic typecompensation for a long period of time. And then, it presents toestablish a diversified financing channels, so that provide additionalfunds for the benefit compensation of the industrial transformation.Finally, it analyzes the problems faced in the implementation ofbenefit compensation. Researches on the recognition andcompensation of benefit damage in the process of Industrialtransformation, can provide appropriate compensation for thebenefit main bodies and solve the problem of conflict of interestsamong the various benefit main bodies, so that all benefit mainbodies cooperate actively with the works of industrialtransformation and promote the smooth implementation ofindustrial transformation of Shanxi.