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Wenzhou Mode --Special pattern of Chinese economy 2009-4-30

The Light of the century  --The sculpture symbolizes the spirit of Wenzhou People.
Special pattern of Chinese economy:Wenzhou Mode

      Wenzhou Mode means a kind of regional economy development mode formed by the leading of demands and the reform of bold lead partial economic system during the progress of economic system reform and economic development of China. The core of Wenzhou Mode lies in fully esteeming and developing common people's pioneer spirit and merging economic system reform and economic development into one organic whole, making reform and development become a development process of mutual promotion in regional economy and social reform. Wenzhou Mode is a typical regional economy development mode employing markets and the operation by the local people to enhance industrialization and urbanization. So, the basic intension of Wenzhou Mode can be summarized simple words: utilizing the operation by the local people and the markets to push forward industrialization and urbanization. The main characteristic of Wenzhou Mode is that having utilized the pre-empt advantages of the reform outside system and having promoted the process of the operation by local people and the markets by being the 1st, from this, which caused a drop height of regional economy system, and then depended on this power pushing forward industrialization and urbanization and forming a regional economy development mode with the characteristics of multi-ownership economy and constructions of small towns.

      During the course of the creation and development of Wenzhou Mode, there were several tidal waves of studying Wenzhou Mode in domestic economic circles and academic circles, which thoroughly studied Wenzhou Mode from each point of view and various aspects. After China's economic system reform and development entering into21st, the studies on Wenzhou Mode of academic circles still keep high zeal. Wenzhou Mode is also the hotspot concerned by the mediums at home and aboard yet. When the approach of new economy, under a new around of China's reformation and opening, the inner vitality of Wenzhou Mode is of vital importance to the development of Wenzhou mode in future.

      In new century, the economic developments of Wenzhou and Zhejiang will face same questions about stage changing: how to transform from elementary market economy to modern market economy; how to transform from industrialization middle stage to industrialization later stage and basically realize the modernization of regional economy. If the economy of Wenzhou need smoothly finish the above-mentioned transformation of reformation and development, the following four aspects have to be done: Transforming traditional enterprise organization to modern enterprise organization, based on a lot of private or family enterprises, growing up some modern corporation enterprises or groups; changing traditional backward market organization form and market transaction manner to modern market organization form and market transaction manner; making the industrial structure that mainly depended on labor-intensive, low process degree and low added value upgraded the industrial structure of capital and technology intensive, high process degree and high added value; changing the urbanization progress with the feature of extending small towns and speeding up the constructions of big and medium sized cities, and enhancing the cohesion and radiation of center city.

      At the new stage of reformation and opening and economic development, if Wenzhou's reform and development can quickly make further progress and make a breakthrough in the above-mentioned four aspects, which will prove the mighty vitality of Wenzhou Mode again. Although some domestic scholars brought up the question about "how much does Wenzhou's power have on earth? ", more domestic scholars think that the current Wenzhou Mode has not been the Wenzhou mode of 1980s but it is a new Wenzhou mode. "New Wenzhou Mode" has broken through the limit of families alliances of traditional Wenzhou Mode and developed to stock cooperation and enterprise group, and has adjusted the management manner simply leaded by markets and has been on a comprehensive development road of assets management and capital management, and has changed the management manner that simply depended on small towns, and has gone toward network management and multi-national management. Wenzhou Mode has drawn close to modern market economy from regional economy and has begun acting on international convention.

      Wenzhou Mode was mainly based on developing privacy economy. It is a kind of market mode or a kind of spontaneous development mode and automatic organization mode. Among which, the function of government is important, but it only gives play to the function of promotion, assistance and guidance, it is not the function of economic management. In another words, in Wenzhou, the market gives play to the function of automatic organization, but the government gives play to the function of promotion and assistance, So, Wenzhou Mode can extend, which is the inner vitality of Wenzhou Mode.

      Of course, whether Wenzhou Mode can really become a kind of mode of "expanded order", which not only is decided by the development of Wenzhou Mode self, Wenzhou's local economy and social development and Wenzhou's modernization, but also it is more important to deep whole country's economic system reform and push ahead political system reform.

      (Authors: Shi Jinchuan, who is the president of Zhejiang Province Economic Association, Zhu Kang, who is a professor of Zhejiang University and vice professor of the Party School of Wenzhou)