Manufacturing Empire in the Valley

Chapter 1367 Future Development Bottleneck

At present, the domestic investment promotion work is still in full swing, and the special economic zones in the coastal areas have shown very good economic activity, and great changes have taken place in just a few years.

These are all obvious situations. As long as you are not blind, you can see the huge benefits of attracting investment.

In order to develop the national economy better and faster, relevant departments must further provide more favorable measures for attracting investment.As long as more foreign businessmen can be attracted to invest in the country, the domestic economy will definitely continue to develop rapidly in a good direction.

What is the most appropriate way?In Niu Xiaoqiang's view, the answer to these two questions is to devalue the national currency.

This is not just a measure that needs to be taken domestically. In fact, any economy in the initial stage of development needs to rely on the trick of currency devaluation to stimulate the rapid growth of export trade.

The more goods you export, the more money you will make from foreigners, which means your country will become richer.

With the huge capital scale of primitive accumulation, the country can make large-scale investment.For example, increase investment in infrastructure construction, or use money to invest in some more important projects.These are good measures that can drive the rapid development of the country's economy.

After World War II, Germany did this, and Japan did this. Now it is China's turn. Niu Xiaoqiang does not believe that the country will not fail to learn from other people's successful experience.

And once the country really learns from other people's successful experience, then the depreciation of the renminbi is a certainty.Niu Xiaoqiang is currently lending money to the district at an exchange rate of 500:500. After a few years, the exchange rate of the US dollar to RMB may become [-]:[-], calculated based on the loan amount of [-] million US dollars. It is necessary to repay him [-] million, which is double the original repayment amount.

Niu Xiaoqiang's request seemed a bit like digging a hole for Wu Ping, but in fact he just didn't want to make himself suffer too much.It is already a very outrageous behavior for private lending money to the district for construction, and Niu Xiaoqiang borrowed US dollars, and the repayment interest is still calculated according to the deposit interest rate. If the currency exchange rate is calculated according to the current ratio, Niu Xiaoqiang It's definitely a big loss.

Wu Ping didn't realize the tricks hidden in this request, she looked at the river in a comfortable mood, and asked with great interest as she walked: "Xiaoqiang, do you think it is possible for our district to surpass Qingjiang City in terms of economic aggregate?" ah?"

Niu Xiaoqiang nodded without thinking, "As long as the Fang Group's new projects are put into practice, it will definitely happen that the new district surpasses Qingjiang City in terms of economic output."

Wu Ping believed in Niu Xiaoqiang's words, and she almost burst into laughter: "If this is the case, our district will definitely be famous all over the country!"

After she was happy, Wu Ping had the idea of ​​looking forward to Sichuan, and she asked, "Do you think it is possible for the economic scale of our district to surpass that of the provincial capital?"

The provincial capital is the economic, cultural, and political center of a province, and its status in the province is equivalent to that of the capital in the country.At present, the economic scale of the provincial capital of Jiangdong Province is almost 200 billion yuan. This figure is a bit out of reach even for Niu Xiaoqiang now.

Niu Xiaoqiang couldn't help laughing: "Sister Ping, your ambition is quite big."

Wu Ping asked persistently, "Hurry up and answer my sister's question, is it alright?"

Niu Xiaoqiang thought carefully for a moment, and then replied: "As far as I am concerned, this possibility is not impossible, but it is quite difficult."

Wu Ping asked a little disappointed: "Can you tell me the reason?"

Niu Xiaoqiang talked eloquently: "There are three main reasons. First, the size of our district cannot be compared with the provincial capital. No matter what the conditions are, there is a huge gap with the provincial capital. Take the population as an example. Our entire district now has a total population of only a few hundred thousand, but the provincial capital has a population of more than 10 million. Don’t think that population is unimportant. When the economy develops to a certain level, population is a very critical factor. The larger the population, the more we can Provide more labor force, and the scale of consumption will also be larger, which is related to the development potential of a place and is a key basic element.”

Wu Ping questioned: "You're not right, China has a population of more than one billion, but why is there such a big gap economically with Western developed countries with a small population?"

Niu Xiaoqiang explained: "The reason why China's economy is much worse than that of Western powers is because we have taken some detours in the past 30 years. Once we get on the right track and develop the economy wholeheartedly, we will definitely be able to surpass it. This is very confident.”

Wu Ping snorted: "Then what are the two reasons behind?"

Niu Xiaoqiang went on to say: "The second reason is the restriction of policies. After all, the provincial capital is the provincial capital, and its status in the province is equivalent to that of the capital in the country. Many preferential policies in our province will inevitably move towards the provincial capital. In addition to the strong appeal and consumption scale of the provincial capital, many companies will definitely choose the provincial capital as their investment destination, which our district cannot catch up with."

Wu Ping nodded approvingly: "What you said is reasonable. No matter how you look at it, the province's policies will definitely favor the provincial capital. Our district will not enjoy the same treatment."

Niu Xiaoqiang hummed: "The final reason lies in the objective gap in economic size between the two. At present, the provincial capital's economic aggregate is as high as 180 billion yuan, and our district is only 5.00 million yuan when it is full. Standing still, it will take at least ten years for us to catch up with them. Can they really lie still? This is obviously impossible. When we are developing rapidly, provincial capitals will also rely on various policies Even if our economic scale increases by [-]% every year, as long as the provincial capital grows by [-]% every year, it will be difficult for us to catch up with them.”

Niu Xiaoqiang paused at this point, and then continued: "I said before that the resource gap between our district and the provincial capital is huge. This is a natural shortcoming. When the economy develops to a certain level, it will definitely There will be a bottleneck, and if we don’t solve this bottleneck, we will never go beyond the provincial capital.”

Wu Ping became interested when she heard this: "I understand the bottleneck you are talking about. It refers to the limitation of resources. According to your opinion, how should we solve this bottleneck?"

(End of this chapter)