Labor is China's "comparative advantage"

In fact, changing the reference to the mode of economic growth in the previous five-year plan had a few mentioned, but did not achieve the desired results due to the lack of a corresponding system to ensure, in particular the "price mechanism" This magic weapon of a market.

It appears in Lin Yifu, China by the end of 1978 from the beginning of the reform is gradual, the meantime, there are still resources, price distortions, especially in financial and land prices are also artificially low. Under this system, the rich can also be used to low-cost financial capital, the economy relies on the rapid growth of investment-led, but the efficiency is not high, do not generate sufficient employment.

Lin said that the abundant labor force in our country with a large population is the "comparative advantage." He demonstrated the advantage of relying on the development of the ideal picture: the advantages of relying on the labor force, "China's economy in the domestic and international markets will have the greatest competitive edge can be the most rapid development. Only with the labor of poor people, including surplus labor in rural areas , they will have full employment. "

At the same time, Lin also pointed out that in this process, the gap between urban and rural areas as rural labor to non-agricultural industries and to narrow the transfer; a large number of economic activities should not be in remote mountain areas and grassland farmers, herdsmen will transfer out, to reduce environmental pressure.