Using unconventional discount methods to "dig the bottom of the wall"? "Internal competition style" investment promotion is not worth it! Local | Government | Investment Promotion
Since the beginning of this year, there has been a wave of "focusing on major projects" in many regions, promoting sustained economic recovery. Among them, attracting investment has become an important lever for stabilizing the economy in many regions. In my research, the author found that some places have shown signs of being eager for quick success and instant benefits, adopting unconventional preferential methods to "dig corners", and even introducing non-standard tax and other preferential policies, leading to vicious competition.
In a market economy, the behavior of enterprises is profit driven. Surprisingly favorable conditions can indeed make some companies tempted. "Internal competition" investment may attract companies in the short term, but it may not necessarily retain them in the long term. For investment projects, strict argumentation is required and multiple questions should be asked. For example, whether the project meets the local development positioning and resource endowment, whether it has long-term development potential, whether there are nearby supporting projects, and how convenient transportation is, etc.
At a deeper level, the "internal competition" investment promotion breaks the free flow law of market factors and is harmful to resource allocation. Due to geographical and financial constraints, this type of investment attraction is not conducive to the gradient transfer of industries from economically developed areas to underdeveloped areas, which can easily lead to a vicious cycle.
The "internal competition" investment attraction often comes from impulsive investment by some local governments. Without sufficient justification, they compete with each other and blindly invest, sometimes leading to project completion and overcapacity. It should also be noted that some local governments may prioritize promises over fulfillment, limited by funds or resources, leading to a credit crisis and ultimately losing both sides.
Only look at the results, regardless of the process; Only emphasizing numbers, ignoring structure; Focusing only on the present, disregarding the long-term... The "internal competition" investment attraction reflects the distorted performance view of some local governments, exposing the short-sighted mentality of some local officials who are eager to achieve success and have great achievements. To eradicate the chaos of "internal competition" investment attraction, in addition to improving relevant assessment mechanisms, more efforts should be made in scientific evaluation of investment attraction, strengthening special governance and spot checks, and avoiding blind attraction and ineffective investment caused by impulsive political performance.
To fully compete in the economy and accurately attract investment, it is necessary to deeply explore and expand resource advantages, location advantages, and industrial advantages. The fundamental purpose of attracting investment is to develop the economy. For local governments, they should carefully analyze the advantages and disadvantages of local industrial and supply chains, and formulate investment policies tailored to local conditions. For enterprises, choosing an investment location should combine immediate benefits with long-term development, and not overshadow short-term benefits, leading to the loss of development opportunities.
