Currently, the “Belt and Road” construction has become an important platform for my country to deepen its opening to the outside world and participate in international economic cooperation and global economic governance. In order for the “Belt and Road” construction to benefit the people of my country and the countries along the route, we need to deepen our understanding of the practical significance of the “Belt and Road” construction. An important global significance of the "Belt and Road" construction is that w88 live casino helps overcome the failure of the world market.
The existence of world market failure restricts world economic development
Marxist economics has long pointed out the contradictions of laissez-faire market economy. A laissez-faire market economy will inevitably lead to monopoly, which will destroy the function of the market mechanism and reduce efficiency; in the process of pursuing maximization of profits, private individuals are unwilling to invest in public goods and public services, making the supply of public goods unable to meet demand; capitalists pursue profits without restraint, madly plunder resources, and damage the environment. A laissez-faire market economy will inevitably lead to the polarization of rich and poor, fail to achieve social fairness, reduce the overall level of social welfare, and intensify social conflicts. The contradiction between the organized production of individual enterprises and the anarchy of social production as a whole, and the contradiction between the trend of unlimited expansion of production and the relative lack of demand for payment are intensified, which will inevitably trigger periodic economic crises and make the national economy exhibit the characteristics of cyclical fluctuations, making w88 live casino impossible to achieve sustained and stable development. The great economic crisis from 1929 to 1933 prompted Western capitalist countries to reflect on the shortcomings of the laissez-faire market economy and admit the existence of "market failure." That is, the laissez-faire market economy had deficiencies in efficiency, fairness, stability, etc., and the spontaneous action of the market mechanism alone could not make up for this flaw.
Contemporary Marxist economics has developed the theory of market failure, which believes that there is market failure not only in the spontaneous allocation of resources by the internal market mechanism of a country, but also in the world market. Many problems cannot be solved or cannot be solved well by relying solely on the spontaneous action of the world market mechanism. The contradiction between economic globalization and the spontaneous effects of the world market has always existed, and its main manifestations are as follows:
The world market mechanism is not perfect. The continuous development of economic globalization has closely linked the economies of various countries, and the markets of various countries have become an integral part of the world market. However, the differentiated and intricate systems and policies of various countries in the fields of w88 in goods, w88 in services, investment, intellectual property protection, environmental protection, labor standards, foreign exchange transfers and capital flows hinder the function of the world market in allocating resources; countries have cultural differences and different values. If there is a lack of effective communication and exchange, it will also hinder the functioning of the world market mechanism, restrict international economic cooperation, and reduce the efficiency of resource allocation in the world market.
Multinational corporations monopolize the world market. In the world market, financial oligarchs and multinational companies have advantages in technology and capital scale, and control international pricing power. World market prices cannot sensitively reflect changes in supply and demand. The existence of financial oligarchs and multinational corporations has become an obstacle for other companies to enter the market. They also have high exit costs, and companies cannot freely enter and exit the international market. Therefore, the world market is a market of imperfect competition. The monopoly position of financial oligarchs and multinational corporations hinders the world's economic and technological progress, affects the efficiency of global resource allocation, and reduces global welfare levels.
The supply of public goods in the world market cannot meet demand. Multinational corporations dominate economic globalization but cannot provide adequate public goods. The consumption of public goods is not exclusive, charging is difficult, and normal returns cannot be obtained from the provision of public goods, which is inconsistent with the goal of multinational companies to maximize investment returns around the world. Therefore, when developed countries strive to help their multinational companies expand into international markets, their focus is not on providing public goods to other countries. If the host country's own economic strength is weak and the country cannot provide sufficient public goods, then the supply of public goods will not be able to meet demand, which will restrict its economic and social development.
There are more and more externality problems. The development of economic globalization has caused mankind to face more and more common problems, such as global climate and environmental issues, resource issues, terrorism issues, network security issues, etc. Whether w88 live casino is environmental and resource issues, terrorism or network security issues, they all have externalities, that is, high costs must be paid to solve these problems, but the beneficiaries are all countries. In the world market, a few companies profit from pollution and environmental damage, but the consequences are borne by all mankind; predatory development of resources can yield high profits, but threatens the sustainable use of resources. Relying on the spontaneous allocation of resources through market mechanisms cannot solve these external problems.
The world market cannot spontaneously achieve fair and stable development. Developed countries not only have an absolute advantage economically, but also occupy a dominant position in the formulation of international economic and w88 rules. Although the existing international economic order and international economic and w88 rules system take into account the interests and requirements of developing countries to a certain extent, its main purpose is still to safeguard the fundamental interests of developed countries. The competition among countries in the world market is essentially unequal competition. The result is a huge gap between the North and the South and even polarization, making it difficult to achieve world fairness. In addition, in the world market, developed countries and their financial oligarchs control the global financial market and export "toxic" financial products to the world. Their domestic financial crises and economic crises soon evolved into global crises, exacerbating global economic fluctuations and impacting the stability of the world economy. Countries cannot stand alone and find it difficult to sustain and develop stably.
“One Belt, One Road” construction helps overcome world market failures
To resolve the contradiction between economic globalization and the failure of the world market and to make up for the shortcomings of the world market, w88 live casino is necessary to coordinate the role of the "invisible hand" of the world market and the "visible hand" of various governments. w88 live casino is necessary to make the world market play a decisive role in resource allocation, reduce the government's direct allocation of world resources, and leave economic activities that can be effectively regulated by market mechanisms to the market; w88 live casino is also necessary to better play the role of governments to make up for the shortcomings of the world market and overcome world market failures, rather than blindly emphasizing the liberalization of the world market. Only by forming a pattern in which the role of the world market and the role of national governments are organically unified, complementary, coordinated and mutually reinforcing can we better promote the sustained and healthy development of the world economy. my country advocates the construction of the "One Belt and One Road", which aims to strengthen cooperation with relevant countries in the world based on the concepts of sharing, mutual benefit, inclusiveness, and openness, assume more international responsibilities, let the world share the dividends of China's reform, opening up, and development, improve the functions of the world market, solve the monopoly problem of the world market, promote the economic opening and development of backward countries, narrow the development gap between countries, and contribute China's strength to overcome the failure of the world market.
w88 live casino will help alleviate the monopoly problem in the world market. The first is to break the financial monopoly in the international market. The establishment and development of the Asian Infrastructure Investment Bank and the Silk Road Fund will help make up for existing financial market deficiencies and alleviate the contradiction that international financial institutions are controlled by a few developed countries and cannot meet the huge financial needs of developing countries for infrastructure construction and economic and social development. Countries along the “One Belt and One Road” use more local currencies as settlement currencies, which not only has the advantages of high efficiency, safety, and cost savings, but also helps developing countries get rid of the interference and influence of developed countries’ monetary policies and reduce the risk of severe exchange rate fluctuations. The second is to break the technology monopoly in the world market. International production capacity cooperation is an important part of the “Belt and Road” construction. Over the past 30 years of reform and opening up, China has accumulated a large amount of high-quality production capacity. More Chinese enterprises "go out" and transfer advanced production technologies to developing countries to drive their technological progress and enhance their own "hematopoietic function" and endogenous economic development capabilities, which will effectively alleviate the monopoly of internationally advanced technologies by European and American developed countries.
It will help improve the world market mechanism. The "Belt and Road" construction emphasizes the interconnection of economic and w88 rules, advocates an open and inclusive attitude to consider the claims and demands of all countries, and uses a flexible and pragmatic approach to take into account the interests of all countries and resolve conflicts between countries. Through the coordination of w88 and investment policies and the reform of rules and regulations, it promotes the facilitation of w88 in goods, service w88, investment, logistics, etc., which is conducive to improving the world market mechanism, reducing transaction costs, improving world market efficiency, and stimulating the economic growth of relevant countries. In addition, the “Belt and Road” construction emphasizes strengthening people-to-people and cultural exchanges and achieving “interconnectivity” of people-to-people exchanges. Extensive people-to-people exchanges and cooperation can enhance the mutual recognition of the cultures of various countries, enhance mutual trust between countries, eliminate artificial obstacles to international economic cooperation and artificial segmentation of markets caused by barriers, and promote the healthy development of the world market.
It will help increase the supply of international public goods. Infrastructure interconnection is an important part of the “Belt and Road” construction. Utilizing financing channels such as loans from financial institutions such as the AIIB and the PPP model, we can build, maintain, and update high-quality transportation infrastructure such as roads, railways, and high-speed rails, promote the construction of maritime infrastructure, improve the efficiency and safety of aviation connectivity, improve power facilities, increase energy supply, strengthen information sharing, improve communication technology, and narrow the digital divide. Cooperation among countries along the “Belt and Road” in the field of infrastructure construction can increase the supply of public goods such as infrastructure, alleviate the insufficient supply of public goods, open up international w88 channels, eliminate facility congestion, and enhance the w88 capabilities of countries along the route.
Helps to solve externality problems. The "Belt and Road" construction is committed to establishing an international cooperation mechanism to deal with non-traditional security issues in the region, carrying out cooperation in non-traditional security fields such as disaster prevention and reduction, disease prevention and treatment, and responding to climate change, and solving externality problems. For example, we are committed to promoting the establishment of a fair, reasonable, cooperative and win-win global climate governance system, and organically integrating the implementation of the 2030 Sustainable Development Agenda with the development strategies of countries along the “Belt and Road”. China will provide support and assistance within its capacity to developing countries in implementing the 2030 Agenda for Sustainable Development and promote common development.
It will help narrow the gap between the rich and the poor in the world. The "Belt and Road" construction emphasizes the common development and mutual benefit of relevant countries, and drives the development and common progress of developing countries through open cooperation. By strengthening infrastructure construction, we will help developing countries lay a solid foundation for economic development and enhance their profitability in participating in economic globalization; by establishing new international multilateral financial institutions, we will improve the international financial order and provide a financing platform for developing countries to develop their economies; and through international production capacity cooperation, we will combine the advantages accumulated since China's reform and opening up. Transfer high-quality production capacity and advanced production technology to other countries along the "Belt and Road"; generate new demand by increasing effective supply and achieve rebalancing of the world economy; provide more jobs for countries along the route by expanding bilateral w88 and investment cooperation, improve national income and welfare levels, help them boost their economies, and then narrow the economic and social development gap with developed countries.
(The author of this article is the Dean of the Institute of International Economics, w88 casino)
Original link: http://paper.people.com.cn/rmrb/html/2016-09/07/nw.D110000renmrb_20160907_1-07.htm
