Research On Problems And Countermeasures Of Government-led Investment Promotion And Capital Introduction

Investment promotion and capital introduction is an important measure to promote the development of regional econom y. Strating from 1979 and after 30 years of investm ent development by the governm ent, the export-oriented industrial system was for med in the southeast of China. Moreover the industry has changed from labor-intensive industries to technology intensive and capital intensive industrys.China’s investment promotion and capital introduction has been dom inated by the government. The emergence of this phenom enon and the particular stage of developm ent in our country have a certain connection. Since the founding of new China, and because of the original plan for the econom y, the government is now leading all aspects of things. In a certain period of tim e, during our country’s internal funds shortage, it was difficult to support regional economic development and urbanization construction, therefore, it become an important way of regional developm ent by introducing foreign capital. After the 90’ s, investment promotion and capital introduction gradually turned to domestic capital. In order to promote the enthusiasm about governm ent investment, the state formulated a series of policies, driving around the development of the economy in terms of performance appraisal, investment promotion and capital in troduction and the cadre perform ance, linked to job promotions, etc. Combining the investment promotion and capital introduction, the main methods of some local government investment promotion and capital introduction are: tax cuts, new infrastructures, the strengthening of the measures for public service, low-cost transfer of land, the provision of cheap labor, the lowering of the standard of environmental protection at the expense of the environment, etc.Through this m assive investment promotion and capital introduction work, truly objective economic benefits were obta ined. Although this way m ay have had, in a certain historical period of tim e, its advantages, with the developm ent of m arket economy in China, the government’s leading investment promotion and capital introduction work had its shortcomings gradually exposed. These di sadvantages to the social and econom ic development brought a huge risk and resistance and also caused the waste of resources.Such as the destruction of the social economic order, the abuse of power, the decrease of the government’s credibility, investment promotion and capital introduction quantity of low quality, increase in cos t, reduction o f efficiency, corruption, decrease in the government’s service level; all of this causin g false prosperity, vicious competition, redundant construction, etc. This kind of vicious competition for projects, blind incentives, destruction of balanced de velopment of m arket economy, brought serious harm to the region.This paper holds that the root of the defects and problems has, mainly, the following aspects: the first is the legacy of planned economy where the governm ent dominates everything. This way of thinking has been part of the culture for such a long time, that it will take some time until the government can change the eco nomic construction. Though at present, our country has been advocating re form of the adm inistrative system, but the administrative system has lagged far behind in the economic development of the practice, not a good service of the soci alist market economy. We will reform of the adm inistrative system to make it compatible with the socialist market that the economy still needs over time. The second aspect is that for the past ten years, the development of the economy as the central concept of the system of cadre assessm ent has been linked to investm ent promotion and capital introduction amount. At that time, the central government, in order to develop the economy, put forward the administrative appointment with economic development in a system, which caused the government to concentrate on economic construction from region to region. Ignoring that the other governm ent should have som e responsibility and also ignoring the quality of the investm ent promotion and capital introduction, resulted in poor quality of the investment project, causing serious environmental pollution. The third is the lack of necessary supervision and r estraint mechanisms. With this system, if there is no corresponding constraint mechanism, or the constraint mechanism regulation does not reach the designated position, then power will becom e the ca rrier of corruption. N o one is responsible, liable and no one is able to put forth inquiries. If the investment promotion and capital introduction process supervision does not reach th e designated position, the policy and the system becomes a decoration, so some low quality and unnecessary projects appear, then corruption becomes a big problem. But when som ething happens, the staff run away and nobody will be held responsible for that. Government. Then there is no result.The fourth is profession al quality leads to the lack of long-term development planning and investment plan. T hat generates a lot of unqualified of ficials and corruption, these people in terms of investment professional knowledge and practice, a lot of times make decisions without scientific planning and survey, obeying the arrangement of the regional head of security. Investment promotion department didn’t do investment promotion and capital introduction of professional staff responsibilities, leading to the final decision being unreasonable,unscientific, and even damaging to the region’s long-term interests.According to the analysis above, this paper discusses the meaning of the service-oriented government and the position of the government in the investmentThe author believes that the governm ent should change ideas, change from universal government to lim ited government, service government, take a back seat, no longer directly involved in th e investment promotion and capital in troduction work, but the government service function and guidance functi on. Being supporters and supervisors of the investment. Let the market and enterprises play a more important role. The governm ent should consider what to im prove, such as the government policy formulation, the policy guidance, city advertisement, environment building and other aspects, The government should change the trad itional business to attract projects, industrial investment, abandon the blind investment, mining local characteristic brands. Invest with purpose, and make its own brand bigger and stronger.