The Chinese Market Economy, Underdeveloped Areas

Under the background of economic globalization and initial establishment of Socialist market Economy System in China, the economic market-orientation in China's less-developed region just has been starting, even at the superficial level, so, how to accelerate the reform of market-orientation in the less-developed region, to fully utilize the positive promotion function to economic development brought by market-orientation, to establish the economic system compatible with the requirements of market mechanism, to speed up the development of the less-developed region and to gradually bridge the regional gap, has been becoming the problem demanding prompt solution of theorists and professionals. This article mainly gives some views on the issue of market-orientation of less-developed region.This article includes three parts.The first part includes four chapters. Firstly, this part analyzed the less-developed region and economy market-orientation in general theory. Less-developed region mainly means the mid-west region of China, where possess common features of duality of economic structure, of low productivity, of high population growth rate, of low extent of market development and of dependence of economy, and so on. Those common features particularly possessed by less-developed region, where exists no-equilibrium in market-orientation in different area. Economic market-orientation means that the market will play a key role in all the different fields of reproduction process of production, distribution, exchange and consumption in the socio-economic activities. Specifically, the economic behavior of socio-economic activities subject should be led by the market and its existence and development completely depend on the evaluation of market; the object of economic activities should be tested by the market to decide whether its value has been fulfilled or not; the range of economic activities will utterly determined by the demand of market, not controlled by administrative rules and regulations; the operating way of economic activities is pluralistic, competitive, fulfilling a function by a series of market law, not single and monopolistic. The adjustment and control of economic activities is the optimized grouping of market and government. That is, the market-orientation is the market-orientation of social economic as a whole and the integration of degree of market-orientation in the all fields of economic activities. The basic features of market-orientation are independent, diversified, pluralistic, normative, contract-orientation and deregulation, etc. Its purpose is to establish the modern system of market-oriented economy. In china, it means to establish socialist market economy with Chinese characteristics.Secondly, this part expounded the theories relative to economic-orientation, such as market liberation, market function, theory of market failure, the theories of market of Marx and Deng Xiaoping, etc. the theories of market of Marx and Deng Xiaoping are the guide to carry on market-oriented reform in China. Only stick to the theories of market of Marx and Deng Xiaoping, can the reform in China be on the right way.Thirdly, this part studied the international experiences on the market-orientation in less-developed region. First, this part analyzed the market-orientation in less-developed region in United States, which represents a kind of adjustable market-oriented economy mode. And then it pointed out that the market-orientation in less-developed region in Japan stands for a government-dominating market-oriented mode. With this mode we could learn from Japanese experience how the government dominates. Finally, it indicates that the market-orientation in less-developed region in Brazil is one kind of mode of market-oriented economy of developing countries. By comparing those different modes, summing up their experiences and lessons will provide valuable experience for the market-orientation in less-developed region in China. The market-orientation in less-developed region in China not only promotes the economic development of less-developed region, more important, will support the sustainable development of economy in China and secure for the market-orientation in east developed region. The extent of the market-orientation in less-developed region is relatively low according to the measure of market-orientation.Although the extent of market-orientation has been deepening with China's open and reform policy more than 2 decades, it still could be understandable for the low extent of market-orientation due to the non-equilibrium of economic development and different inclination of policies. So, the market-orientation will greatly influence the less-developed region.The second part of this article includes chapter 5 and chapter 6. Firstly, this part investigated the background of the market-orientation in less-developed region in china. The market-orientation is pushed by the tendency of economic globalization, domestic reform of economic system and the backwardness of its own economy situation. International and domestic economic development environment combined with the development requirements of less-developed region make it be in a complicated environment. Generally, there have four stages of the market-orientation in less-developed region in china. The first stage lasted from 1949 to 1978, which is basically a planned economic system period and anti-market-oriented stage. Due to its drawbacks, the planned economy had been transformed into market-oriented system. The second one lasted from 1978 to 1984, which is the initial stage of market-orientation. The third one lasted from 1985 to 1992, which is the development stage of market-orientation. The fourth one lasted from 1993 to nowadays, which is the deepening stage of market-orientation. In the process of market-orientation there still have some limitations that restricts the development of reform. Those limitations embody in lack of market subject, imperfect market system, less functioning of market mechanism, direct interference in economy from government, inconsistence between the government management and market development, which finally results in the enlarging gap of economic development between east and west region. The reasons of slow course of market-orientation in less-developed region embody in old thoughts, natural geographic district advantage, backward infrastructure, unwieldy government organ, deep-rooted all kinds of traditional institution---formal and informal, short-term conflict between the market-orientation reform and economic behavior subject, etc. Among those reasons, the root one is that market-oriented construction has been directed by the means of planned economy. In general, the market-orientation in less-developed region in China falls behind, and internally is non-equilibrium. For example, the difference of the course of market-orientation still exists between city and countryside, middle and west, small town with convenient transport in countryside and outlaying district.The third part of this article includes Chapter 7 and chapter 8, which mainly presented counter-measures of market-orientation in less-developed region in China based on the analysis above. In strategic goal, we should carry out a development radial strategy focusing on market-orientation. In the course of economic market-orientation, we should exercise regional innovation and learn from the experiences of market-orientation of developed region to avoid the traditional mode and to fulfill leaping development. In market subject, the construction of market system and the adjustment of market mechanism, we also should exercise innovation, not just theoretical and technologic innovation, but also the institution innovation. In the course of economic market-orientation in less-developed region, to enable the market-oriented system suitable for the development of economy in the region, we must implement regionizational reform of economic market-oriented, which means to put into effect the different measures of market-oriented reform in different region, for instance, plain, pastoral area, inner-land, border area. Although in the course of economic market-orientation the key measures performed in different regions differentiated in the order of priority, we set out only one goal that is to establish modern system of market-orientation. Because the development of market-oriented economy couldn't do without governmental macro-control, the modern system of market-orientation that we are going to establish is a system of dual optimization grouping of market and government. Therefore, while bringing the functions of market mechanism into full play, we should attach importance to the function of governmental macro-control. Because China is still a developing country, its central government possesses vivid features of planned economy. So the functions of central government are quite different from the western government that is in the matured market economy. For central government, it should mainly set forth macroeconomic policies, give impetus to the market-oriented reform, cultivate market, establish market institution, create favorable legality environment for market to play a fundamental role, give consideration to both efficiency and equality, realize the regionally coordinated development, implement sustainable development strategy, etc. For local government, its role is quite different from central government and it is a sub-market subject. Therefore, the local government should act as main force in the course of market-orientation in less-developed region, that is, it should play a key role in implementing and carrying out policies of central government, separating the government and enterprise, government and society, government and institution, break up regionally administrative monopoly, organize the orderly fluid of productive factors, for example, labor force, etc. Just like market is not omnipotent, government is not too as its activities have been restricted by all kinds of factors. The over-functioning of government will cause government failure and impose negative influence on economic market-orientation, so it's necessary to correct the governmental activities by employing the measures of streamlining the administrative structure, raising the efficiency of administrative organs, strengthening the supervision and restraint of society.