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For today's society, it has been completely capitalized, and all resources such as technology, labor, management, human resources, assets, markets, etc. can be changed by the capital means. Therefore, the increase in wealth in today’s society depends on the speed of capital turnover.
The water supply industry is a traditional industry. It is a traditional industry without marketization. It is subject to the government's administrative management, and the nature of the enterprise changes. The government, enterprises, and users have not formed a benign industrial ecological relationship. The business operation is difficult, the service is low, and the government's investment efficiency is Low, there is no solution to the death question.
The introduction of social funds, the introduction of a capital mechanism, and the adoption of capital markets can change the predicament of the current water industry. Capital can be as long as the market, because capital investment becomes an asset, assets are sold to sell products, as long as the product has a market, capital can enter.
Assume investor A, county water division B, government C. A only has capital. Of course, it also includes technology, talent, and management that it uses to acquire capital. Capital is derived from the capital market and is derived from investors' investment. In addition to the market, B has nothing, and there is no accumulation of talents, technology, management, and funds. The business environment is subject to both the government and the user. C does not have the correct supervision and guidance, but also creates adverse environmental conditions for enterprises, and there is no capital investment.
A assumes that the assets of B are zero, but there is a market just needed, all the funds are invested in a new set of water supply facilities, supplemented by scientific management, the formed assets should be benign assets, that is, the assets that operate in return, the assets are packaged and listed, exchanged back Capital, complete a capital cycle. At this time, the government is no longer facing the original water division, but is a listed company in the capital market. The government is no longer responsible for the Water Division, but is responsible to the shareholders. Ecological relations are clarified.
The benefits of doing so are as follows:
· Local government investment efficiency is very low. The investment of a listed company must be responsible to the shareholders and be open to the public. If the stock can be sold, the investment must be highly efficient.
· The water supply facilities are rapidly updated, water supply costs are reduced, prices are streamlined, and users purchase high-quality services at reasonable prices;
· National investment to change the status of facilities across the country;
· Investment stimulates demand and creates jobs;
· The state retreats from the private sector and inefficient state-owned assets exit the market.
The National People's Funding, the national employment of the people, the improvement of the nation's water supply facilities, and the improvement of drinking water security standards in the country are the true features of economic operations. In the past, government participation was artificially undermining social operating mechanisms. The fundamental advantage of PPP is to make up for the destruction of the government's social operating mechanism.
If the turnover of capital is fast, such as half a cycle. After a few years, the country’s facilities have all been raised to form excellent assets. Some people with good assets are willing to hold shares. This means that social funds participate in economic construction. Each capital cycle forms excellent assets, and the number of social assets, that is, the amount of social wealth will increase.
How does the social wealth grow out of thin air? Capital turnover is just a means, a method, a method of mobilizing the labor force of the society, the operation of the productive forces, and combining physical objects. Capital operation is the driving force of capital's social and economic development, just as the industrial division of labor is the driving force behind the development of industrial society. Division of labor and capital are just means of mobilizing social production. The simple and ideal mode of economic operation is: Everything is directed by a super-strong brain. Everyone is employed, works, earns money, eats, and lives in peace. There is no waste and inefficiency. That is the dream of a planned economy.
After the dream of the planned economy is shattered, we must look for ways to solve the problems in economic development. PPP is one of the methods.
PPP: The Dream after the Economic Disruption Plan
[China Instrument Network Industry Focus] The basic principle of Adam Smith's "The Wealth of Nations" is that division of labor produces efficiency. In short: complicated things are simplistic, simple things are repeated, and repeated things are efficient. The fundamental reason for the increase in the wealth of enterprises and societies is the increase in production efficiency.