The Supply Side Reform Should Focus On Improving The Efficiency Of Capital Formation.

The central economic work conference was held in Beijing on December 18th ~21.

The meeting stressed that promoting the structural reform of supply side is a major innovation to adapt and lead the new normal development of the economy. It is an active choice to adapt to the new situation of comprehensive national strength competition after the international financial crisis and is an inevitable requirement to adapt to the new normal of China's economic development.

It can be seen that advancing the supply side reform is fundamental to the pformation of China's economic growth momentum.

China is entering the "new normal". Some new features which are different from the past are becoming more and more obvious.

Quantitative expansion of the economic model has been difficult to support such a huge economic volume to achieve rapid growth, especially with the reduction of demographic dividend, production factor costs, resource allocation efficiency, factor supply efficiency and potential growth rate decline, more than ever, China needs to enhance national competitiveness through innovation.

First, "high input".

Take capital investment as an example, China has maintained a relatively high capital formation rate for more than 30 years. Especially after 2000, the capital formation rate showed a rapid upward trend, almost two times the world average.

The two is "high consumption".

Unit GDP energy consumption has declined, but it is still 1.8 times higher than that in high-income countries, 1.2 times in middle-income countries, and 1.5 times the world average.

The three is "low efficiency".

In terms of marginal capital output efficiency, it has risen from 3.7 times in 1978 to about 5 times today.

At the same time, the total factor growth rate has been declining in recent years, and the main motive force of economic growth depends on capital investment.

Secondly, we should improve the efficiency of government investment and give play to the important role of government investment in technological innovation and R & D.

Third, we should deepen the negative list system to stimulate the vitality of private investment.

Through the negative list system, we can effectively ensure market access and stimulate market potential.

We should restrain local governments' competitive investment, stimulate the vitality of private capital market, and further improve the efficiency of social capital formation and allocation.

Finally, we need to increase the number of pairs.

Sustainable investment.

We should focus on the development of economic industries and production services that are conducive to increasing employment and developing and utilizing human resources.

In the input of factors, we should pay attention to promoting economic growth through the full exploitation and utilization of human resources. On the goal orientation, we should pform the process of sustained and healthy economic development into promoting the continuous expansion of employment, and turn the process of economic structural adjustment into the process of increasing the ability of stimulating employment.

Specifically, one is to change the neglect of basic education, vocational education and specialist education, lay stress on the imbalance of high academic education, conduct large-scale training and quality improvement of migrant workers, and pay attention to the full exploitation and utilization of human resources in order to meet the needs of future industrial upgrading and economic structural adjustment, that is, matching economic growth with employment, and also achieving the upgrading of labor force and pformation.

Two is based on

In the process of operation, the consistency and exclusivity rule between the investment subject and the income body can be used to construct a reasonable mechanism for human capital investment and return.

The three is to create new sources of savings through social security and pension arrangements, and to expand the stock of labor resources and human capital in the aging population through institutional arrangements in the labor market.

At present, China's economic reform and economic growth are not mutually dependent. The reform should not be understood as growth inhibition. We must increase the supply side and take the new supply instead of the old supply.

Truly create new institutional dividends and efficiency dividends.

Saving is still an advantage. If we can convert savings into efficient investments, we will form a long-term capital stock, which is beneficial to the high quality growth of the economy.

In the next five years, the supply side reform calls for the improvement of capital formation efficiency as the core to promote reform in related fields.

First of all, we should further deepen the reform of the investment system, break down the segmentation and market segmentation, and effectively protect the investment autonomy of enterprises and individuals.

We should change the mechanism of price formation and eliminate the phenomenon of "multi track system" of factor prices, and accelerate the formation of a "unified, open, competitive and orderly" market system, and release the vitality of market investors.