Chen Yanbin: Making New Breakthroughs in High Quality Economic Development Modernization | Supply | Economy
Without solid material and technological foundations, we cannot hope to build a great modern socialist country in all respects.The report of the 20th National Congress of the Communist Party of China emphasizes that "high-quality development is the primary task of comprehensively building a socialist modernized country", which further points out the direction for future work. The next few years are a crucial period for the comprehensive construction of a socialist modernized country to begin. It is necessary to promote the construction of a new development pattern and make significant progress in building a modern economic system, promote the effective improvement of quality and reasonable growth of quantity in the economy, and make new breakthroughs in high-quality economic development.
Positions, viewpoints, and methods that need to be adhered to in promoting high-quality development
To promote high-quality economic development, we must take Xi Jinping's thought of socialism with Chinese characteristics in the new era as a guide, adhere to and make good use of the standpoints and methods that run through it.
Adhere to the principle of putting the people first. Improving people's well-being is the fundamental goal of development. To do a good job in economic work, study economic policies, and promote economic development, we must take enhancing people's well-being, promoting comprehensive human development, and steadily advancing towards common prosperity as the starting point and foothold. We should focus on solving the problem of imbalanced and insufficient development by promoting high-quality development, and better meet the growing needs of the people for a better life. At the same time, promoting high-quality development must closely rely on the people, respect their creative spirit, and gather the wisdom and strength of all the people. Only by fully unleashing the creativity of the people and forming a joint force for the unity and struggle of the entire Party and people of all ethnic groups in the country, can we effectively promote high-quality development. We must adhere to the development concept of putting the people at the center, and keep in mind that development is for the people, development relies on the people, and development achievements are shared by the people.
Persist in self-confidence and self-reliance. There is no textbook style standard answer to any major historical issue. To promote high-quality development, we must start from the basic national conditions of our country and answer it ourselves. We cannot carve a boat to seek swords, isolate and become rigid, nor can we simply copy and imitate, nor can we adapt to foreign cultures. The path of our party's over a hundred years of struggle was independently explored and painstakingly practiced step by step under the leadership of the party and the people. We must also adhere to self-confidence and self-reliance to promote high-quality development, answer the questions of the times, constantly explore and innovate.
Adhere to integrity and innovation.To promote high-quality development, only by adhering to principles can we avoid losing direction and making disruptive mistakes, and innovation can we grasp and lead the times. In the new stage of development, the economic situation is constantly evolving and changing under the influence of various domestic and foreign factors, which puts forward higher requirements for economic growth and macroeconomic regulation. To promote high-quality development, we must adhere to the fundamental principles of Marxism without wavering, adhere to the comprehensive leadership of the Party without wavering, adhere to socialism with Chinese characteristics without wavering, keep up with the pace of the times, and adapt to practical development.
Adhere to a problem oriented approach. Questions are the voice of the times, and answering and guiding problem-solving is the fundamental task of theory. Since the reform and opening up, China has created a remarkable development miracle that has attracted worldwide attention. But it should also be recognized that the traditional growth model driven by high investment is difficult to sustain, and the complexity and difficulty of driving economic growth are gradually increasing. We promote high-quality development, especially the high-quality economic development, with a focus on solving deep-seated problems in the development process. We must adhere to problem orientation and enhance problem awareness.
Adhere to a systematic concept. System concept is a fundamental idea and working method. Everything is interconnected and interdependent. Only by observing things from a universally connected, comprehensive, and evolving perspective can we grasp the laws of their development. We must make a comprehensive plan to promote high-quality development, especially the high-quality economic development. Starting from a systemic perspective, we must promote the positive interaction between effective demand and effective supply, achieve a virtuous cycle of the national economy, comprehensively coordinate and promote work in various fields and socialist modernization construction.
Persist in having a broad mind for the world. The CPC is a party that seeks happiness for the Chinese people and rejuvenation for the Chinese nation. It is also a party that seeks progress for mankind and common ground for the world. We promote high-quality development, which can benefit the Chinese people, effectively drive global economic growth, and actively respond to the common concerns of people around the world, making contributions to solving common problems faced by humanity.
Boosting Total Factor Productivity from the Supply Side
From the perspective of supply, the quality of economic development can be measured by the contribution rate of total factor productivity to economic growth.
Generally speaking, economic growth can be decomposed into an increase in labor input, accumulation of capital, and growth in total factor productivity. Among them, the accumulation of labor and capital mainly reflects factor inputs, while total factor productivity represents the part of economic growth that cannot be explained by factors such as labor and capital inputs, reflecting technological progress or efficiency improvement. Therefore, the higher the contribution rate of total factor productivity to economic growth, the higher the proportion of economic growth driven by technological progress and efficiency improvement, that is, the higher the quality of economic growth. For a long time, China's economic operation has faced problems such as insufficient quality, insufficient power, and inadequate structure. Compared with developed economies, China's total factor productivity has a lower contribution rate to economic growth. In this regard, China still has a lot of room for development.
Total factor productivity is mainly determined by two aspects: the speed of technological progress and the efficiency of resource allocation. We will deepen the supply side structural reform, focus on improving the quality and efficiency of the supply system, enhance the driving force of sustained economic growth, and effectively enhance the contribution rate of total factor productivity to economic growth. On the one hand, it can effectively improve the technological progress and efficiency level on the supply side. By increasing investment in basic research, strengthening intellectual property protection, and improving the system for transforming scientific and technological achievements, it can effectively stimulate enterprise research and development innovation activities, enhance the speed of technological progress, and promote changes in the quality, efficiency, and driving force of economic development. On the other hand, it can promote structural adjustment, reduce ineffective and low-end supply, expand effective and mid to high end supply, enhance the adaptability and flexibility of the supply structure to demand changes, help allocate more resources to high-efficiency enterprises, thereby improving resource allocation efficiency and effectively enhancing total factor productivity. Therefore, from the supply side perspective, to promote high-quality economic development, it is necessary to adhere to the main line of deepening supply side structural reform, comprehensively optimize and upgrade industrial structure, enhance innovation capabilities, competitiveness, and comprehensive strength, enhance the resilience of the supply system, form a more efficient and high-quality input-output relationship, and achieve dynamic balance of the economy at a high level.
Stimulating Demand Motivation with the Strategic Basis of Expanding Domestic Demand
From a demand perspective, the quality of economic development can be measured by the proportion of household consumption to GDP.
Generally speaking, the total economic demand includes household consumption, investment, government purchases, and net exports. Among them, investment demand is mainly to meet future production needs, government purchases are mainly to provide public goods and maintain economic order, and net exports reflect foreign demand for domestic products and services. In contrast, resident consumption reflects the expenses incurred by people to meet their various needs such as clothing, food, housing, and transportation, and is more directly related to their quality of life. From the current situation in our country, the proportion of household consumption to GDP is still relatively low. There are cyclical reasons for this, but it is more caused by structural and long-term factors. In terms of the driving force of economic growth, in the past, we relied more on high investment and high exports to rapidly drive economic growth, and the driving effect of consumer demand on economic growth was insufficient. In terms of income distribution, the proportion of labor remuneration in the initial distribution needs to be further increased, the adjustment of redistribution policies needs to be further strengthened, and the scale of middle-income groups needs to be further expanded to better promote consumption growth. In terms of social security, the total supply of service consumption such as education, medical care, elderly care, and housing is still insufficient, and problems such as difficult medical treatment and elderly care still exist. These have increased residents' preventive savings and suppressed their consumption demand. Looking towards the future, there is still significant room to improve the quality of economic operation by increasing the proportion of household consumption to GDP.
Implementing the strategy of expanding domestic demand, eliminating long-term and structural factors that hinder household consumption through reform, boosting consumer confidence, and stimulating consumer vitality is an important approach to promoting high-quality economic development. On the one hand, it can enhance the fundamental role of consumption in economic development, effectively releasing the consumption demand and potential of residents. On the other hand, it can effectively cope with economic shocks and stabilize economic operation, thereby creating a favorable macro environment for improving household consumption. Therefore, from the demand side perspective, promoting high-quality economic development requires efforts to increase the proportion of household consumption in GDP, continue to transform the economic development mode, improve income distribution structure, and improve the social security system, which should be the key tasks for the future period.
To accelerate the high-quality development of the economy, it is necessary to organically combine the implementation of the strategy of expanding domestic demand with deepening the supply side structural reform. Both supply and demand sides should work together and coordinate to form a higher-level dynamic balance of demand pulling supply and supply creating demand. If only the strategy of expanding domestic demand is implemented without promoting supply side structural reform, the expanded demand will find it difficult to find high-quality incremental supply, and the expansion of demand will be difficult to sustain; If only supply side structural reform is promoted without implementing the strategy of expanding domestic demand, incremental supply will be difficult to be fully digested by the market, leading to problems such as overcapacity and inventory backlog, and unable to continuously motivate enterprises and other departments to improve supply quality. In this regard, it is necessary to make appropriate macroeconomic policy arrangements, coordinate the use of macroeconomic policies that maintain economic stability, boost endogenous growth momentum, and optimize economic structure, effectively boost domestic demand and optimize supply, and form a good macroeconomic environment and macroeconomic regulation system.
