Local Government's Role in Promoting the Development of Modern Service Industry: An Example of Ningxia

At present, the total GDP in the world in service industry has exceeded 60 percent. In some developed countries, the service industry output in GDP has reached the proportion of 70 percent. Service industry has surpassed agriculture and industry to become the major creators of wealth. Compared with large consumption of land and energy in manufacturing industry, service industry, with high technological content, low energy consumption and less environmental pollution, is becoming one of the important features of the modem economy, and a key trend of economic and social development. With the development of IT, modem service industry has become the fastest-growing part in the service sector and has been gained more and more focus from both academic and economic. "modern service industry" as a specific reference to China, began in September 1997. The essence of it is technology, information and knowledge-intensive modem production relative of the service sector. As one of the best ways to improve the current situation of "high input, high consumption, and high pollution, low-level and low-effectiveness", reduce dependence on natural resources and the destruction of the natural environment and achieve the sustainable development of economy, vigorous expansion of modem service industry has been put on the important work schedule of local government. This research, listed Ningxia as an example, focus on the current situation and problems of service industry development. Then the ways will be presented to help local government to promote the development of modem service industry to keep the economic developing sustainable.