Local Government and Regional Development: On the Economic Development of Jiangxi

Author: Luo Laiwu
Publisher:
Publish Date: 2004-11-01
Features: Before the Reform and Opening-Up, Jiangxi held a quite favorable position in the national development. After the Reform and Opening-Up, it became clear that Jiangxi fell behind the coastal open areas in the early 1980s, which was understandable. However, starting from the 1990s, Jiangxi began to fall behind central provinces with similar or even worse conditions, a phenomenon that is hard to understand and deeply regrettable. How to explain Jiangxi's backwardness after the Reform and Opening-Up? Can Jiangxi rise from the shadows and how? These questions have long haunted the author, who has strived to explore them theoretically or implement them to some extent, addressing issues that concern all Jiangxi people. This book is the theoretical outcome of such exploration and a summary of certain practical experiences.
The fundamental reason for Jiangxi's economic backwardness after the Reform and Opening-Up lies in: First, the government's core capacity has never been effectively in place, lacking the ability to guide the formation of market mechanisms and provide key services such as good public goods, which are essential for driving local economic development. Second, due to the influence of a weak government, the competitive capacity of the profit-driven corporate sector is relatively weak. The fundamental solution to changing Jiangxi lies in first altering the game rules, aligning its institutions with those of developed regions, and vigorously developing transportation to truly highlight Jiangxi's geographical advantages.