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 | Thursday, April 13, 2000, updated at 10:33(GMT+8) | ||||||||||||
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China Should Set up Fund for Developing Western RegionsChina should set up a fund to accelerate the development of China's western region, the China Economic Times has reported.Lack of funds has long been a bottleneck for economic development in the western China. The establishment of a fund should use both the governmental and regional finance. Other provinces should also provide financial aid to the best of their ability and solicit the support and help of international organizations and foreign governments in raising funds. These funds will also compensate transportation and environmental costs. The fund will concentrate on building infrastructure projects and other key enterprises such as agriculture, water conservancy and high-tech enterprises. In 1999, loans worth 1.57 trillion yuan were directed to the western region, 16.1 percent higher than the previous year, and the growth rate was 1.5 percentage points higher than other regions in the country. However, credit risk of loans is still high as compared to that of some developed regions. Commercial banks are encouraged to offer credit services in western regions. Due to the development of capital-intensive enterprises in the western region, the number of laid-off workers has increased dramatically each year. Thus funds will help subsidize labor costs according to job opportunities. Only when a surplus labor force decreases, will social stability be guaranteed. Subsidies will be provided by the government for companies that help people in poor areas in the western regions.
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