Tan Haojun: Profitable To Mobilize Social Capital

The national development and Reform Commission held a news conference to introduce the State Council's Guiding Opinions on innovation and investment mechanism in key areas to encourage social investment. The responsible person of the NDRC said that we should implement the the third Plenary Session of the 18th CPC Central Committee decision to make the market play a decisive role in the allocation of resources and better play the role of the government. We must adhere to the principle of "social capital" and "marketization" as the main principle, so that social capital can play an important role.

Over the past few years, if the government has been able to insist on market-oriented orientation, better play the decisive role of the market in resource allocation and introduce more social investment, the liabilities of governments at all levels will not be able to rise at such a rapid pace, and the social public sphere will not be a short board.

The problem is that under the influence of the concept of political achievements, governments at all levels have always regarded investment as the main means to stimulate economic growth and create political achievements. Investment right Social capital, resulting in two backlogs. One is the continuous backlog of government debts and the continuous accumulation of funds. One is the backlog of social capital, which can only be precipitated in underground finance and market speculation, and also makes it difficult to guarantee the input in social undertakings and public sectors.

Only by giving full play to the role of social capital and allowing social capital to participate in key areas can we effectively resolve the contradiction between financing difficulties and insufficient investment power, so as to ensure the smooth implementation of social undertakings, public facilities and key projects.

Due to the loss of the best time for investment, coupled with the heavy debt of local governments, the power to guide and coordinate social capital has been greatly reduced. Whether social capital is willing to enter the key areas is also a matter to be seriously studied and solved. For social capital, whether we can make money is profitable or the most important consideration.

No matter what field, no matter what project, when making project plan and project bidding plan, the government must first make sure that there is no money making as the most important consideration index, and put forward feasible measures and measures to determine a reasonable rate of return on investment.

Those are better for themselves. Profitability Undoubtedly, the field should be opened to social capital first so as to stimulate the confidence of social capital. For social welfare and infrastructure projects with no return or low return rate, we should set up a special fund for project or service repurchase through public finance, profit from profit projects and equity transfer income, so as to ensure that social capital investment can have a certain return, so as to ease the capital pressure of key projects and reduce government liabilities.

transfer social capital Participation in key areas, key projects, public service facilities and social undertakings is a direction, but if there is no profit, social capital is unlikely to enter. The government must have a clear profit expectation and profit goal, which can be seen and touched by social capital, otherwise, it will be difficult to achieve its goal.