| China has paid great attention to its economic development pattern since reformand opening-up. The 17th National Congress clearly set out the general requirementsof implementing the Scientific Outlook on Development, changing the pattern ofeconomic development and improving the socialist market economic system. Thekeynote of accelerating transformation of the economic development pattern andfollowing a new path of industrialization with Chinese characteristics lies intransformation from relying mainly on investment and exports to relying on awell-coordinated combination of consumption, investment and exports,transformation from secondary industry serving as the major driving force to primary,secondary and tertiary industries jointly driving economic growth, and transformationfrom relying heavily on increased consumption of material resources to relyingmainly on advances in science and technology, improvement in the quality of theworkforce and innovation in management. One major task of China's economic workin 2009 is to speed up the transformation of development pattern and push forward thestrategic readjustment of economic structure. Specific tasks include adjusting incomedistribution pattern with focus on improving people's income levels and expandingconsumer demand, optimizing the industrial structure with focus on enhancingindependent innovation capacity and the coordination of three industries, improvingthe urban and rural structure with focus on promoting urbanization and balanceddevelopment in both economic and social sectors in urban and rural areas, conductingregional restructuring with focus on narrowing the gap among different regions andoptimizing the distribution of productive forces, and pushing ahead with key energyefficiency projects and ecological and environmental protection projects with focus onsaving energy, water, land and materials and the comprehensive utilization ofresources.In recent years, China has gained a better understanding of its economic development pattern, but the irrational economic structure and poor quality of economic growth has had a negative impact on the transformation of economic development pattern. Shortage of resources, environmental pollution, and ecological imbalance poses serious constraints to China's industrialization and modernization. It also leads to problems like ill coordination between consumption, investment and exports, unreasonable distribution of income, and enlarging income gaps. China is in the process of industrialization presently. To transform from an extensive and speedy type of economic growth to an intensive one focusing on economic returns, the government should, in view of international competition and the long-term interests of national economic development, develop relevant macroeconomic policies in due time to boost this transformation. Among the macroeconomic policies formulated, fiscal and tax policies are playing an increasingly important role and having a greater impact on a country's economic development. Therefore, it is a major task of theoretical and practical significance for the government and the academic community to explore the main problems in this transformation process, to seek the main path and to draw up fiscal and tax policies to push forward this transformation.In this thesis, combining Marx's dialectical and historical materialism, applying classical as well as modern economic growth theory and the Scientific Outlook on Development, using a research methodology of empirical analysis and normative analysis combined, quantitative analysis and qualitative analysis combined, the author has conducted a systematic study on the economic growth theory, economic development theory, major factors influencing the transformation of China's economic development pattern and major path to push forward the transformation, and has explored fiscal and tax policies that boost this transformation. The main research content and results are as follows:1. Theoretical analysis of transforming the economic development pattern. This section first analyzes the theoretical foundation of changing the economic growth mode, including classical growth theory, Harrod-Domar growth theory, neo-classical growth theory and new economic growth theory, then expounds upon the theoretical basis of changing the economic development patter, i.e. the Scientific Outlook on Development, and illustrates the evolution process from changing the economic growth mode to changing the economic development pattern, explores the rationale and the evolution of growth pattern in developed countries and its implications, and focuses on an analysis of the relationship between the two: economic growth is the primary factor and necessary condition to boost economic development and there would be no economic development without economic growth; however, economic growth is different from economic development in that economic growth alone may lead to the occurring of "no development at all". The significance of transforming from "growth" to "development" is threefold. First, changing the economic development pattern is a better reflection of the Scientific Outlook on Development. Economic growth mode is mainly viewed in terms of input and output of economic growth whereas economic development pattern has more and richer connotations. Second, changing the economic development pattern better reflects the requirements of developing the socialist market economy. With focus on "development" instead of "growth", it will help distinguish between the role of government and of market. In the socialist market economy, we should let market fully play its basic role of resources allocation whereas the government will actively assume a guiding role and take domestic demand expansion, economic structure readjustment and optimization, and independent innovation capacity enhancement as the starting point for drawing up plans, formulating policies, arranging government investments, carrying out macro-control and deepening reform so as to promote sound and fast economic development. Third, changing the economic development pattern better reflects the requirements to resolve the principal contradiction and outstanding problems. Changing the growth mode only will not achieve the desired results. We must start from the origin the readjustment of industrial structure and demand structure, enhance self-innovation capacity and constantly strengthen the role of consumer demand, service industry development as well as scientific and technological progress in driving economic growth. Finally, the objective of transforming China's economic development pattern is then set in this section.2. Main problems existing in the transformation process. This section analyzes that some conflicts and problems arise amid the rapid growth of China's economy, which is having certain impact on the transformation of its development pattern. The major problems include: too large energy consumption and extensive economic growth which is not conducive to the adjustment and optimization of industrial structure; serious environmental pollution resulted from inadequate attention to environmental protection during the rapid growth process; insufficient consumption and uncoordinated development between investment and consumption due to heavy reliance on investment and exports as the main driving force of economic growth; irrational industrial structure which is still dominated by traditional industries, with low proportion of high-tech industry, weak agricultural infrastructure, poor industrial quality and backward development of service industry; imbalanced development between urban and rural areas and among regions and enlarging income gaps among citizens; inadequate human capital because of low proportion of investment in education, R&D; inadequate independent innovation capacity and few self-owned brands; amounting difficulties for enterprises to invest overseas; and etc.3. Main path to push forward the transformation of China's economic development pattern. This section first points out that China's economic development pattern could be changed in many ways, starting with a variety of policy measures, the most important of which are to conduct industrial restructuring, enhance self-innovation capacity, adjust energy strategy, implement the strategy for businesses to "go global", develop circular economy, and build a conservation-minded government. Then, the author goes on to elaborate, the specific measures to change China's economic development pattern. Finally, the thesis conducts an empirical analysis of the relationship between environmental protection, energy consumption and economic development in Shanghai. In application of the Environmental Kuznets Curve theory, using data in changes in emission levels of major pollutants in Shanghai, development trends of urban environmental infrastructure and environmental quality indicators, it analyzes the relationship between environmental protection and economic growth in Shanghai and comes to the preliminary conclusion that after 1992, Shanghai's economy and industry experienced steady and rapid development, with significant reduction in major pollutants emissions, greatly strengthened environmental infrastructure, and notable improvement in environmental quality. Shanghai has passed the inflection point of environmental Kuznets curve in 1993-2001 with per capita GDP between 2000 and 5000 U.S. dollars, and achieved a coordinated development in both environment and economy. This section also conducts a theoretical analysis of the relationship between energy and economic growth. Using historical data in energy consumption and GDP in 1978-2004 in Shanghai, this paper conducts a verification of the theory, the results of which are in line with the inference. Then using a model, the paper has a forecast of energy consumption and economic growth in Shanghai during the "Eleventh Five-Year" period (2006-2010), with the results being that energy consumption in Shanghai will continue to increase rapidly during this period, reaching 100 million tons of standard coal in 2010.4. International experience of fiscal and tax policy options for changing the economic development pattern. This section first has an in-depth analysis of fiscal and tax policy measures taken in environment, energy, circular economy and self-innovation in the United States, Japan, Germany, Korea and other OECD countries as well as India, Brazil and other developing countries, and then obtains some implications for making fiscal and tax policies regarding energy and environment in China, which are: the government should give high priority to fiscal and tax policies on energy; fiscal and tax policies on energy should be formed to provide guarantee for China's energy strategy; relative laws and regulations should be established to encourage improvement in energy efficiency; special funds should be established to provide funding for improving energy efficiency; subsidies which undermine environmental protection should be removed and relevant social problems should be addressed through other policy measures; the exploitation of natural resources should be better priced, and the subsequent social and distribution problems should be resolved through other policy approaches.5. China's fiscal and tax policy options under the current economic development pattern. This section first elaborates that the continued economic slowdown triggered by the global financial crisis has become the principal contradiction to the overall situation in China. Some industries are having surplus production capacity, some enterprises are experiencing difficulties in their business operation, employment situation continues to worsen, more and more factors are contributing to decreased fiscal revenue and increased fiscal spending, and it has been made more and more difficult to achieve steady development of agriculture and continuous increase in peasants' income. Meanwhile, systematic and structural contradictions constraining the healthy development of China's economy still exist, insufficient consumption remains a big problem, tertiary industry is still lagged behind, self-innovation capacity is still weak, large energy and resource consumption is still accompanied by serious environmental pollution and the gap between urban and rural areas and among regions is still enlarging. The thesis therefore proposes that, in order to address the global financial crisis and promote transformation of China's economic development pattern under the current economic development pattern, the government should adopt a series of fiscal and tax policy measures to stimulate the economy, strengthen self-innovation, promote the optimization and upgrading of industrial structure, promote the efficient use of resources, support and encourage energy conservation, promote balanced economic development between urban and rural areas and among regions, narrow the income gap, adjust the income level, improve the policies for businesses to "go global" and build a conservation-minded government.
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