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Theory of socialist market economy in our country

Author: WangQiang
Tutor: DongDeGang
School: The Central Party School
Course: The philosophy of Marxism
Keywords: planned economy socialist market economy socialism market economy
CLC: D61
Type: PhD thesis
Year: 2012
Downloads: 3588
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Socialist market economy came out in the process of reforming the traditionalplanned economy of china. The traditional planned economy is the fixed historicpremise of socialist market economy, it has the systematic characteristics that it baseson the sole public sector of the economy especially the state—owned sector (stateoperated economy); economy is subject to politics, enterprises are attached togovernment; it rejects the market, and planning become the basic mode of resourceallocation; mandatory growing; it’s nominal distribution according to work but equaldistribution actually; shortage economy and closed system and the tendency to isolateitself. The traditional planned economy recovered in the china’s early days offoundation after the war, and it built up the independent and rounded industrialsystems in a short time, and it played a positive role in the historic process of nationaleconomic system. But due to the insurmountable essential defects of the problems ofthe information and encouragement, the developmental pattern of theplanned economy which put the economic construction underway depending onintensively deploying resources by administrative orders can hardly going on. As thesame as the other socialist states that carrying planned economy, before the reformand opening—up, the economic society of china was in hot water. The difficulties inthe socio—economic development force the people to reform the planned economicsystem. At the beginning, they try to reform the planned economic system within it,but failed. Practice has proved that to get rid of the difficulties in the development, wemust break frame of the old planned economy. Furthermore, from the angle of thenegative dialectics, history is logically developing process that numerous cyclemovements of “positive—negation—negation of negation” mutually combined andmove in cycles. At any period of history, history always shows the transformationfrom extremalizations of contradiction to the opposite side of every extreme, thus, thetwo sides of contradiction get a dialectical composition of developing process on ahigher level. Extreme and one—sided planned economy is the negative of the sameextreme and one—sided, free and laissez—faire market economy, and to get rid of theextremeness and one—sidedness, the dialectical composition of plan and market isunavoidable. Third Plenary Session of the11th Central Committee, reform and opening—upbegan in china. Through the process of the cautious and continuously striking andreflective experiments of reform, the goals of the reform of socialist market economygradually became clear and finally were set. The historical logic of dialecticalcomposition of plan and market realized through the establishment and developmentof socialist market economy of china. To resist to the old planned economic system,socialist market economy has the systematic characteristics as follows: an ownershipstructure embracing diverse economic sectors with the socialist public ownership asthe main body; separate government functions from economy and enterprisemanagement; under the state macro—control, market should play the basic role in theallocation of resources; distribution according to work is the dominant and variety ofmodes of distribution coexist; step out of shortage; all—round opening andcontinuous reform. Because it’s in keeping with the level of the productive forces andcoincide with the historical logic of dialectical composition of plan and market, afterthe establishment at a preliminary level of the socialist market economy, socio—economic development of china made a great progress that attracts. Just because it’spreliminarily established, the socialist market economy had defects as that the harmfuleffects of feudal remnants were still stubborn; the reform of planned economy wasincomplete and socialist market economy system was imperfect. Then, this set thehistoric task for development of next stage, namely, to improve the socialist marketeconomy.The historic transformation from the old planned economy to thesocialist market economy is not only an economic problem. Essentially speaking, suchtransformation is necessarily base on and it would certainly help the deeperrealizations that what is ‘socialism’, what is ‘market economy’ and what is‘socialist market economy’ of people. So, for the problems above, it’s very necessaryand possible to make theoretic self—examination on the basis of the practice of theestablishment at a preliminary level of the socialist market economy. Historicexperiences and facts show that there’s no uniform developmental pattern of thesocialism and it shows various patterns in the specific development process. Variouskinds of socialism could be generalized as this definition——it is an unity of theory,campaign and system that advocates to negate the capitalist private ownership and theanarchy of production gradually by some form and degree of public ownership of the means of production and planning control, and then dialectically negate the capitalism,promotes the human liberation to be realized constantly. Socialism with Chinesecharacteristics is a kind of state of society in the reform process that takes Marxism asthe guide, Soviet model as the prototype, leads by the Communist Party, takes thepublic ownership as the mainstay, the joint development of diverse forms ofownership and the socialist market economy as the basic features, competes, opposesand penetrates, learns from with the capitalism, pursues scientific development andsocial harmony, and then realizes the free and all—round human development. The‘market economy’ which allocates the resources by putting the market as the centerand guide promotes the socialization of production, and basing on this, it expands itsinfluences to the entire area of social life and makes great changes to the humansociety. But as the historic existence,‘market economy’ is still a contradictory entityof historic advancement and limitation. The combination of socialism and market isnecessary and possible, because the development of market economy can’t be steppedover; market economy is an economic system of allocating resources by the guidingof market, and it doesn’t have the nature of basic system of society, so it can be usedby either capitalism or socialism; public ownership can combine with marketeconomy. Their combination is interactive and co—adapted, we should take thedevelopment of the productivity and the humanity as their combining site to pursuethe combination of a ‘good socialism’ and ‘good market’.Scientific thought of development is a scientific development theory broughtabout to satisfy the new demands for development, that Chinese communist sums upexperience from the practice of development after the reform and opening—up, andlearns experience from foreign countries under the new historical conditions, and it isthe important guideline of china’s economic development and important strategicthinking that must persist and carry out for the development of the socialism withChinese characteristics. Improving the socialist market economy is one of the mostimportant topics of scientific thought. There’s very important directive significance ofthe scientific thought for improving the socialist market economy. To improve thesocialist market economy, it must take the scientific thought as the guide; sweep awaythe harmful influences of feudal remnants, get rid of the leftover problems of plannedeconomy, and adopt effective measures to deepen the reform of state—ownedeconomy, improve the modern marketing system and macro—economic control system, and overcome the inherent defects of market economy.

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