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Stop waste of public funds

China Daily | Updated: 2013-09-03 09:31

Some local governments are still holding extravagant business breakfast, which can cost up to 1,000 ($163.4) yuan per person, and/or exhibitions in the name of investment promotion in the country as well as overseas. But local governments should know that luxury events don't attract investments, and that they could be harming their image by wasting public money, says an article in People's Daily. Excerpts:

As the central government fights against the waste of public money, some local governments continue to hold unnecessarily costly events to attract investment both at home and abroad. This is nothing but an excuse for splurging on luxury.

The central government's austerity drive covers domestic and foreign affairs alike. But some local officials feel that potential investors will not be convinced of their strength and sincerity if they do not organize extravagant shows or hold expensive feasts in luxurious hotels. What they forget is that real strength comes from efficient administration, and entrepreneurs look for good opportunities, not superficial display of extravagance, to put their money in a project.

The aim of attracting investment from overseas is mainly to promote the image of a place and create a platform for cooperation. A simple promotional event could convince potential investors of officials' honesty and sincerity, and help attract a lot more investment than pompous and superficial shows.

Officials at investment promotions should make it clear that public money would not be wasted and management would be improved to ensure that investment projects succeed in their aims. Also, local governments at all levels should carefully calculate the costs of holding events at home and abroad, and try their best to save public funds.

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