Traditional Culture Encyclopedia - Traditional stories - What is the supply-side structural reform? Why should we promote supply-side structural reform?
What is the supply-side structural reform? Why should we promote supply-side structural reform?
The supply-side structural reform is to promote structural adjustment, correct the distortion of factor allocation, expand effective supply, improve the adaptability and flexibility of supply structure to demand changes, improve total factor productivity, better meet the needs of the broad masses of the people, and promote sustained and healthy economic and social development.
The fundamental purpose of supply-side structural reform is to improve the level of social productive forces and implement the people-centered development thought. While moderately expanding the total demand, we should de-capacity, de-inventory, de-leverage, reduce costs and make up shortcomings, strengthen high-quality supply from the production field, reduce ineffective supply, expand effective supply, improve the adaptability and flexibility of the supply structure and improve the total factor productivity.
Extended data
From the perspective of China government reform, the supply-side reform can be described as the most profound transformation of government functions in China in the past 40 years of reform and opening up. The adjustment of economic structure and industrial structure requires the government to reduce the supply constraints on China's economy in many ways in the formulation and implementation of public policies, so that the natural vitality of industries and enterprises is not limited by the constraints of the government as the supplier of public policies.
reference data
Sogou Encyclopedia-Supply-side Structural Reform
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