How to deal with the transformation of economic growth mode

Contributing Writer/Zhou Weilin As we all know, the effect of the central government's macro-control has already been seen. However, people are still worried that the macro-control will not be hot and cold, economic growth will not be like riding a roller coaster high and low? Why are you skeptical? In the final analysis, it is because the way of economic growth in China has not fundamentally changed.　　We can understand the characteristics of the economic growth mode through the changes in the general environment. China has followed an old-fashioned path of industrialization (i.e., the industrialization model proposed by the Soviet Union) since the 1950s, which resulted in decades of a shortage economy. The implementation of reform and opening up began in the 1980s, and under the dual role of the government and the market, the economy continued to grow at a high rate, finally resulting in a situation where supply exceeded demand. Since entering this century, especially after China's accession to the WTO, the mode of economic growth has been challenged and constrained by both internal and external forces. On the one hand, the crude growth pattern of high inputs and low outputs has been unsustainable for a long time. Lack of land, electricity, water and oil has become a common phenomenon, and prices of raw materials have risen sharply due to shortages, even against the background of the existence of a large number of surplus laborers in our country, which has actually led to a "labor shortage". This shows that the scarcity of factors of production has changed, and many of the factors that support the crude growth are either not cheap or not available. On the other hand, China's economic dependence on foreign trade is very high, a considerable portion of the resources rely on imports, products are also sold abroad, encountered in developed countries using a variety of non-tariff barriers, especially the harsh "anti-dumping" punishment. And it is certain that the international market to deal with China's accession to the WTO of the two strokes (anti-dumping and anti-infringement) will intensify.　　Just look at a few figures, we will understand the traditional way of growth there are serious problems: in 2003, China's consumption of various types of domestic and imported resources of about 5 billion tons of crude oil, coal, iron ore, steel, alumina and cement consumption accounted for about the world's consumption of about 7.4%, 31%, 30%, 27%, 25% and 40%, and the creation of the GDP is equivalent to only 4% of the world's total! Can such growth be sustained? China seems to have been slower than foreign countries for several decades, and only now is the shock of the Club of Rome's warning of "the limits of growth" truly and strongly felt inside and outside the country.　　Rethinking the economic growth mode, it is inevitable not to ask the power of economic growth in the end? The "Joseph Lee Puzzle" can be seen as an interesting perspective on the issue. The question is: Why have China's technological and economic development been so far ahead of other civilizations throughout history? Why are China's technology and economy no longer ahead of the rest of the world? Justin Yifu Lin believes that the ways of technological invention in the pre-modern and modern periods are different: in the former, most technological inventions originated from the experience of artisans and farmers, and scientific discoveries were made by chance by a few geniuses in observing nature; China, because of its large population, thus had an advantage in scientific discoveries and technological inventions in pre-modern societies; and the latter, i.e., modern technological inventions, are mainly guided by scientific knowledge and obtained through the the latter, i.e., modern technological inventions, were mainly obtained through experimental methods under the guidance of scientific knowledge. Since the Chinese imperial examination system could not induce intellectuals to invest in the human capital necessary for modern scientific research, the scientific revolution failed to take place and technological inventions could only remain on the basis of direct experience. In Europe, however, through the scientific revolution of the 17th century, the mode of technological invention was shifted to rely on the basis of science and experimentation. This is very clear if we compare the different situations of Chinese medicine and Western medicine. We must admit that Chinese medicine has not surpassed the level achieved by our ancestors, but Western medicine has developed rapidly and formed a huge industry by means of its experimental science.　　In this world, a country to develop, must answer and solve the internal system, the growth mode and the external environment of this trinity of problems. These three are interlinked, each other, *** with the impact and even determine the fate and future of a country and nation. Shanghai is our country's economy, finance, trade, shipping center, in the effective transformation of economic growth, the city should work together, make a difference and set a good example.　　First of all, to establish a scientific concept of development, the essence and core is to adhere to the people-oriented. From an economic point of view, strive to achieve a reasonable allocation of various existing resources in society to obtain the Pareto optimal state. Real social progress always links economic growth with people's welfare level, and the goal of economic growth is not only the total expansion of the economy itself (manifested in GDP growth), but also the total expansion of personal happiness. Second, fostering entrepreneurship. The transmutation of the city, forging a dynamic approach to growth, requires innovative entrepreneurs. Entrepreneurship is fundamentally an ability to identify market opportunities and profit with Schumpeterian innovative behavior. Shanghai needs to utilize a variety of measures to create a business incubation atmosphere that fosters innovative entrepreneurs, with a focus on encouraging the growth of private entrepreneurs. This requires providing a level playing field. If the development of their own grassroots private enterprises is very difficult, want to cultivate independent innovation capacity and thus transform the mode of economic growth is not solid. Third, good industrial positioning. One of the deeper issues is whether Shanghai is based on an international metropolis or an administrative region. If based on the latter, due to the objective existence of employment, tax revenue and regional economic development evaluation system, still can't leave the traditional growth pattern. If it is the former, Shanghai will have a global mindset and a spirit of cooperation, allocating resources from a position of regional and thus global integration. Finally, creating urban appropriateness. The city's natural environment, culture and public **** goods are also important factors in determining a city's economic growth. Shanghai, after years of renovation of old cities, new districts and suburban expansion, has begun to turn to internal development, focusing on quality enhancement, to achieve coordinated economic and social development, including employment security, social justice, social order, social harmony and other comprehensive progress. The slogan of the World Expo, "Better City, Better Life", should become the vision and action of every citizen in this city. The author is a professor at the Department of Economics, Fudan University -