{
  "title": "'Soft' Infrastructure Is Crucial for Stable and Balanced Growth in China",
  "publication": "IMF Blog, March 2, 2017",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2017/03/02/soft-infrastructure-is-crucial-for-stable-and-balanced-growth-in-china",
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  "summary": "China built an \"astonishing network\" of \"hard\" infrastructure (roads, power stations, communication networks) that supported its remarkable economic growth.",
  "sections": [
    {
      "heading": "Context and case for change",
      "content": "- China built an \"astonishing network\" of \"hard\" infrastructure (roads, power stations, communication networks) that supported its remarkable economic growth.\n- China is the second largest economy and contributes one-third of the world’s growth.\n- China needs to move toward a new stage of reforms to help rebalance its economy from investment-led to more sustainable, consumption- and services-led growth.\n- Date of publication: March 2, 2017."
    },
    {
      "heading": "Definition and components of \"soft\" infrastructure",
      "content": "- Soft infrastructure covers a broad range of fiscal, monetary, financial policies and statistics.\n- It relates to governance and financing of state-owned enterprises and local governments.\n- It is the collection of institutional frameworks that support sustained economic and social progress.\n- Examples and elements cited:\n  - Fiscal policies that make it easier to manage the economy and avoid the build-up of excessive risks.\n  - A fair tax system.\n  - A financial system that channels peoples’ savings to productive uses.\n  - Corporate governance that protects consumers and workers.\n- Soft infrastructure is built on a foundation of open markets."
    },
    {
      "heading": "Key issues highlighted",
      "content": "- Concerns about debt buildup in the state enterprise sector, where many companies exist as “zombie” entities.\n- The current role of government in directing and owning resources needs to shift toward being a facilitator and regulator of private initiative, enterprise, and innovation."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Move away from directing and owning resources; adopt a new role as facilitator and regulator of private initiative, enterprise, and innovation.\n- Strengthen fiscal, monetary, and financial policy frameworks to better manage macroeconomic risks.\n- Reform governance and financing arrangements for state-owned enterprises and local governments to address debt build-up and \"zombie\" firms.\n- Improve tax fairness, financial intermediation, and corporate governance to support a rebalancing toward consumption, services, and environmentally friendly growth."
    },
    {
      "heading": "Expected benefits and goals",
      "content": "- Help shift the economy toward consumption, services, and environmentally friendly growth.\n- Better manage the challenges of a constantly changing world.\n- Support sustained, stable, and balanced growth that contributes to global prosperity.\n\nSource: iMFdirect article \"‘Soft’ Infrastructure Is Crucial for Stable and Balanced Growth in China\", March 2, 2017.\n\n---\n\n Content in this bundle\n\n- “软”基础设施对中国稳定、均衡增长至关重要; 2017年3月2日; IMF博客\n  - “软”基础设施对中国稳定、均衡增长至关重要; 2017年3月2日; IMF博客 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - “软”基础设施对中国稳定、均衡增长至关重要; 2017年3月2日; IMF博客 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- http://www.elibrary.imf.org/view/IMF071/23209-9781513539942/23209-9781513539942/23209-9781513539942.xml\n- Modernizing China: Investing in Soft Infrastructure\n\nSource: https://www.imf.org/en/blogs/articles/2017/03/02/soft-infrastructure-is-crucial-for-stable-and-balanced-growth-in-china"
    }
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    "Authors: iMFdirect",
    "Published: March 2, 2017",
    "China built an \"astonishing network\" of \"hard\" infrastructure (roads, power stations, communication networks) that supported its remarkable economic growth.",
    "China is the second largest economy and contributes one-third of the world’s growth.",
    "China needs to move toward a new stage of reforms to help rebalance its economy from investment-led to more sustainable, consumption- and services-led growth.",
    "Date of publication: March 2, 2017.",
    "Soft infrastructure covers a broad range of fiscal, monetary, financial policies and statistics.",
    "It relates to governance and financing of state-owned enterprises and local governments.",
    "It is the collection of institutional frameworks that support sustained economic and social progress.",
    "Examples and elements cited:",
    "Soft infrastructure is built on a foundation of open markets.",
    "Concerns about debt buildup in the state enterprise sector, where many companies exist as “zombie” entities.",
    "The current role of government in directing and owning resources needs to shift toward being a facilitator and regulator of private initiative, enterprise, and innovation.",
    "Move away from directing and owning resources; adopt a new role as facilitator and regulator of private initiative, enterprise, and innovation.",
    "Strengthen fiscal, monetary, and financial policy frameworks to better manage macroeconomic risks.",
    "Reform governance and financing arrangements for state-owned enterprises and local governments to address debt build-up and \"zombie\" firms.",
    "Improve tax fairness, financial intermediation, and corporate governance to support a rebalancing toward consumption, services, and environmentally friendly growth.",
    "Help shift the economy toward consumption, services, and environmentally friendly growth.",
    "Better manage the challenges of a constantly changing world.",
    "Support sustained, stable, and balanced growth that contributes to global prosperity.",
    "**“软”基础设施对中国稳定、均衡增长至关重要; 2017年3月2日; IMF博客**",
    "[http://www.elibrary.imf.org/view/IMF071/23209-9781513539942/23209-9781513539942/23209-9781513539942.xml](http://www.elibrary.imf.org/view/IMF071/23209-9781513539942/23209-9781513539942/23209-9781513539942.xml)",
    "[Modernizing China: Investing in Soft Infrastructure](http://www.elibrary.imf.org/page/modernizing-china)"
  ],
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      "title": "“软”基础设施对中国稳定、均衡增长至关重要; 2017年3月2日; IMF博客",
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