Study On The Influence Of Foreign Loans On Economic Development In Jilin Province

The level of foreign capital utilizing shows a country's economic attraction and vigor. Foreign loan utilizing , as an important part of absorbing foreign capital ,is the key to promote economic development and international Eco & Tech .Cooperation ,as well as to enhance foreign relation . Jilin Province began to use foreign loans in the early 1980s , In twenty-five years time , a lot of foreign loan projects have been constructed , which effectively improved the development of infrastructure, culture and education, public health, environmental, energy, transportation, agriculture, industry and other areas in Jilin province. However, there does exist some problems and difficulties such as low utilizing efficiency, lagged management etc. With implementation of the strategy of revitalizing the old industrial bases in northeast China, many foreign loan institutions shift their loan area to Middle and west China .This provides a golden opportunity for Jilin province. Therefore, how to take the chance to enhance the scale and the quality of foreign loan in Jilin province is no doubt desirable study subject no matter in or in practice.Referring to the economy reform and the status of foreign capital utilizing in Jilin province ,applying the ralated theory such as Investment, International Finance ,Statistics , and Management, and through the deep investigation and evaluation, the paper analyze the status and the problems of Jilin province foreign loan using in the round, and study the countermeasures as well as the suggestions .This paper introduces the theory of foreign loans utilizing for economic development , first. Then , introduces the development economics theory on the basis of the basic concepts. But those views are controversial .And they can easily find a benefit based on their own experience, because there are a large number of facts that damaged the national economy or benefited the national economy. By analyzing the patterns of the World Bank's loan , introduces the controversial"Washington consensus"and"Beijing consensus". Using foreign loans to develop the economy can not fully in accordance with the policies of international financial conditions——the countries which borrowed the loans must correct their international balance of payments problem, forcing recipient countries to carry out a series of economic reforms of financial liberalization, according to requirements of the economic reform and policy adjustment .So, Jilin province should adhere to the principle of"principal, for me"policy guides.Then , this paper analyzes the process, model ,and relationship between economic development and foreign loans. There are three stages since using foreign loans——exploration period, development period, stability period. Along with the deepening of China economic system reform and the gradual formation of all-round opening-up pattern, Jilin province using foreign loans gradually increase , gradually improve the quality, familiar with the mode of the operation ,master foreign processing and management systems, gradually enrich experience .Generally speaking , the scale of using foreign loans is gradually expanding, the source of foreign is growing , the pattern of investment is becoming diverse, lending institutions are expanding , the direction of investment is becoming rational. The main source of funds come from the World bank, Asian Development Bank and the foreign governments ,the direction of using foreign loans will gradually extend from the capital cities to the other cities, the projects will gradually extend from industrial area to other areas ,including energy, environmental protection, traffic, and so on .The implementation of these projects will effectively promote the upgrading of the industrial structure ,have a good economic and social benefits. Especially for infrastructure construction and leading industry——has played a tremendous role in promoting the petrochemical industry. Emphasis on the development of theory and international experience to draw from, but do not copy; study hard, but do not obey; project design and implementation depend on us; we also should insist a domestic demand-oriented and self-absorbed as a guide, make full use of the international development assistance strategy. Analyze the debt risks from an international indicator system, including liquidity rate, debt ratio, debt service ratio,Analysis show that there is still plenty of room for debt. Foreign loans for economic development played seed role, model role and catalyst role in different time.Then, describes the idea of Jilin province using foreign loans and restructuring strategy. According to the practice of using foreign loans , sums up the relevant experience: focus on construction of urban infrastructure and environmental protection facilities, pay attention to the cause of social development , focus on the dominant industry, construct project group, improve project management, introduce the mechanism of international project management. According to the experience , some defects exist in the process of using foreign loans ,including :some facilities are not in place, individual industries have not been successful, focus on pre-construction but neglect later tracking and management. Studies the idea of using foreign loans for next period through analyzing the new situation: (1)be aware of the importance of using foreign loans ,speed up the pace of using foreign loans; (2) take priority over important projects, enhance scientific planning;(3) manage to achieve breakthroughs and innovations; (4) handle well the relationship between debt and preventing risks. In view of the above ideas made the following recommendations:(1) to highlight the projects, efforts to expand the size of using foreign loan ; (2) to strengthen the model role , actively guide the investment direction ;(4) to strengthen awareness of debt to avoid risk; (5) to strengthen policy support to soften the cost of foreign loans; (6) to determine the repayment mechanism in accordance with the characteristics of the project .Finally, draw a conclusion: using foreign loans must adhere to"principal, for me",change management mechanism to borrow foreign loans , enhance evaluation system after application.In accordance with the spirit of linking the theory with the practice, taking the production and operation of using foreign loans as examples , this paper studies the impact of foreign loans for economic development in Jilin province, in the first. It develops a set of new way of thinking with feasibility and reference for economic development of Jilin province.