The Research About The Formation And The Transition Of China's Planned Economy System

This article is a research about China's economic system transition. In the process of China's economic system evolution happened in 20th century, the choice and transition of planned economy system is the most crucial part beyond doubt. The formation and the transition of planned economy system is the study object of this thesis, in order to make a panoramic probe for the formation, transition and transformation of planned economy system, thereby finding the inherent law of economic system transition since the founding of The People's Republic of China in the past 60 years. The article takes the theory of Institution Change Institutional Economics, in light of the two core concepts country(government) and cost, around two logical connection problems how the planned economical system form and change, through theoretical analysis and historical evidence, reaching a series of new viewpoints. This article is composed of 9 parts, except the preamble and the conclusion; the main contents are in 7 chapters. The key points in each chapter are as follows:Chapter 1:The Planned economy system from the theoretical model to the realistic system.It mainly discussed the features of planned economy system, which assumed by Marx and Engels, being a theoretical model and a realistic system respectively and the theoretical headstream of realistic planned economy system. Realistic planned economy system is a national leading economic extreme mode in fact, it explicit and the main theoretical basis is from Marx and Engel'Planned Economy Thinking. While State Interventionism advocated by Liszt also has important influence on realistic planned economy system, it can be said as a recessive theoretical source to planned economy system.Chapter 2:Country (The ruler) and cost, The analysis framework of planned economy system formation and transition. In this chapter, the theory of institutional change of Chinese new institutional economics is elaborated. first. Analyze and explain the framework of planned economy system formation and transition by using theory of institutional change. The main point of it is:The formation of planned economy system is result from State promotes institutional change mandatory in undeveloped market. In an era of resources globalization, the strong external pressure from international violence competition strengthens the position of government in underdeveloped countries in social and economic life. Under the external pressure, Country (The ruler) takes the powerful nation as the prior considering value goal (the priority of utility) naturally. The national leading economic extreme mode--the realistic planned economy system is the most effective institutional arrangement in realizing the priority of utility. The tradition of powerful government and the undeveloped market economy makes the industrial backward countries, like Russia and China; the cost of building the planned economy system is relatively cheap and low. This is also the root of planned economy system forming in undeveloped countries. When this system is built, the operating costs and maintenance costs of system occur, with the costs increased,the demand of institutional change will appear.Because the maintenance costs of planned economy system is overtop, so reforming planned economy system, choosing market economy system to replace planned economy system would possibly bring net profit to system maker and system receiver. Therefore, there is a possibility for system transformation.Chapter 3:The formation of Chinese planned economy system.At beginning, analyzing the external pressure to modern Chinese economic and political elites' economic thought; next, making an analysis of the evolution road of modern Chinese economic system and the process of planned economic system formation. The main view in this chapter is:the international competitive pressure from resources globalization and the relatively low cost of building planned economic system in China affect modern Chinese economic and political elites in thinking Chinese economic system, leading to favorable ideological atmosphere for planned economic system formation. In the process of modern Chinese economic system evolution, the position of country (State) is strengthened gradually, which leads to the conditions of constructing planned economic system completing little by little. The rural cooperative movement and capitalist industry and commerce of the socialist movement after the founding of New China, eventually become the property basis of planned economy system, planned economic system of China is preliminarily established.Chapter 4:The establishment of planned economy control system.In this chapter, it is mainly analyzed and introduced the three control system under Chinese planned economic system---people's commune system, unit system, and binary system of household registration system. The basic point in this chapter is, the establishment of production material of public property forms the property basis of planned economic system, completes State's control of production materials. After the founding of New China, the new Regime create the communes system in rural areas, create unit system in city, realizing the organization and control for urban residents; finally the dual urban-rural division by the household registration system combine labourer with production materials. The establishment of people's commune system, unit system, and binary system of household registration system makes the Chinese planned economic system a operating system.Chapter 5:The operation cost and efficiency of planned economy system.The changes of the operation cost and efficiency of planned economy system is discussed in this chapter. The point is when planned economy system operates, the operation cost of planned economy system appears, but for the affection of planned economy system operation conditions, the operation cost of planned economy system shows low to high tendency. The operation cost of planned economy system decides the efficiency of planned economy system.The efficiency of Chinese planned economy system presents short-term efficient and long-term inefficiency tendency for affecting by the change trend of operation cost.Chapter 6:The appearance of change requirements and early transition of planned economy system.Discrete problem of planned economy system and State's maintenances and adjustments for solving this problem is probed in this chapter. The main argument is planned economy system is a result of State motivating institutional change compulsively. Its purpose is through states mandatory configuration the surplus to heavy industry and defense industry sector which need priority development to build a strong nation as soon as possible. The receiver of the system is determined by its utility orientation of the Planned economical system--- Public utility can not achieve good. Once the planned economic system established, people have the demand of reforming planned economy system. It also determines the planned economy system is a kind of unbalanced system. People's demand of reforming planned economy system can not drive the institutional transformation at once,however, it obliges government to make some adjustments for planned economy system. These adjustments make some unlined factors existing under Chinese planned economy system.Chapter 7:Planned economy system transformation.In this chapter, the proposal and conditions of planned economy system transformation are discussed, its orientation and contents are analyzed.and concluding the features of it transformation.The main point is when the heavy industry and national defense industry are founded in China, the ruler's prior utility--the wish to establish powerful country is basically realized;while utility originally in sub prime status get the people's approval become the ruler's new prior utility in utility levels. Therefore, State provides new institution arrangements to realize the motivation of new prior utility, State's demand for planned economy system transformation arise.Yet the arrival of the new stage of globalization has changed China international environment, reduces the external pressure. The changes of internal and external conditions increase the operation cost of planned economic system on one hand, on the other hand decrease the operation cost of market economic system, thus providing opportunity to planned economic system transformation.Chapter 8:Through a comprehensive view of the above, we may come to the final conclusion:the formation and transformation of planned economic system in China embody the "two inevitable "On one hand, planned economy system,as a historical choice and existence,is an inevitable choice of historical conditions; on the other hand, planned economy system transition and transformation is also an inevitable requirement of Chinese social productivity development and international environment change.