karleenchan 发表于 2013-12-29 12:17 
Well, it will take me hours to ans this question, so just brief shortly and list some key points o ...
a great idea, I agree with you.
However, in my opinion, there are some potential conflicts or limitation.
Basically, compared with developed country like USA and EU, Chinese infrastructure is quite poor. As a result, the government will rely on the urbanization as this is a good way to increase the efficiency of the whole country. There is no doubt that the urbanization process will be dominated by the government instead of private capital. Nevertheless, currently, the central government wants to control the local government debt.
So, how can the local government get enough money without issuing debt and selling land at high prices? Reallocating tax? transferring the state-owned enterprises to local governments?
What's more, the consumption level may depend on the gap between the rich and the poor. However, currently, I cannot find any obvious and realistic policy or economic model to deal these problems.