A Study On Official Incentive Mechanism In Investment Attraction At Governments Of County And District Levels

In nowadays, with rapid economic development, investment attraction has becomean important economic method at governments of various levels; many localgovernments attach investment attraction to performance evaluation, and investmentattraction has become one of the most important governmental work. However, in orderto achieve investment targets, such problems as blind investment attraction and falseperformance arise when investment attraction is considered the major task to perform bythe local government for the sake of economic development, which makes localofficials pursue temporary profit unilaterally under present incentive system and leadsto sever imbalance between long-term and short-term profits, even confliction betweenofficials and the public. Therefore, it is necessary to change present incentivemechanism for officials.This essay focuses on studying and discussing incentive mechanism for officials ininvestment attraction at governments of county and district levels. First, problems of thepresent incentive mechanism are introduced by describing the case of pollution projectof investment attraction. Much importance is attached to quantity instead of quality ofinvestment, attraction of projects and capital instead of social and economic benefits.Little consideration is put on prospective thinking and perfect evaluation system forattribution and effect of completed investing projects on local social and environmentalresources. Second, this essay studies incentive mechanism for officials in investmentattraction and analyses the causes of the problems. Finally, an assumption is proposed inthis essay to establish and improve incentive mechanism for officials in investmentattraction.