Market Freedom And Independence

Reform and opening-up constitute the most salient feature of China today. It promotes the economic transition from a planned economy to a socialist market economy. At the same time in thirty years of reform and opening-up we learn from, draw reference from, digest and draw on the theory and practice of western market economy. In this sense the gains and losses of reform and opening-up are closely linked to how we understand the theory and practice of western market economy. At present, the so-called domestic mainstream economics tend to study the market economy in following way: inverting causes and results about the development of the western market economy; not taking into account the history, politics and ideology in market economy theory; reverting the means and ends, giving supremacy to the market; Simply copying the market economic theory, and policy measures of the developed countries in Europe and America. To sum up, the fundamental reason behind all these tendencies is that the Western market economy theory and reality haven't been digested completely and that China's national conditions haven't been studied in depth. The immature theory often leads to deviation, error, or even wrong in specific practice of reform.Based on the above understanding, this paper chooses materialist dialectics and historical materialism as the fundamental research methods. It focuses on linking theory with practice and historical study. This paper studies the market and economic relations in view of the development and changes of contradictions and the mutual relationship of things. The aim of paying attention to the results of the study is to explore the answer to solve practical problems, not to produce a concept system from concept to concept. On this basis, this paper also uses several specific research methods: comparative analysis, empirical analysis and normative analysis, experience induction and logical deduction.The major point of this paper is that the market looks like neither a pure white angel, nor a repulsive devil. It is the mechanism that adjusts, evaluates, compares, chooses and protects the people's benefits. It is nothing more than a technical tool. So long as there are still countries in this world and the whole world has not become a single community, this kind of market function will continue to exist. The freedom of market endues everybody with freedom of choice. But this kind of freedom may be operated by the formidable market forces or the developed countries. This paper makes a systematic study in market independence. The market independence claims to develop national industry and to protect the domestic market, which is incompatible with the mighty tide of globalization. However, this kind of phenomenon of market independence is in objective existence. There was the phenomenon in the past, and more now in developed countries. The developing nations needed it in the past, and more need it now. In conditions of economical globalization, only the market independence, the real standardized freedom of market, which embodies effectively the economic security and the national independence, can be achieved. The government is not such which some people describe "evil". It is the indispensable "existence" by which market economy produces and operates continually. Both the freedom of market and the independence of market are supported and safeguarded by the government.With respect to the structure and content arrangements, this paper analyzes the theoretical and practical market in a broader perspective with freedom and independence as the cut-in point, summarizes the basic experience of practicing market economy and maintaining independent market in developed countries, researches the interaction and relations between the market and the political and social factors, analyzes the situation, strategies and standpoints of developing countries like China when implementing the market economy in the conditions of market globalization.This paper is divided into introduction, body and conclusion. The body comprises five chapters. The main contents are as follows:Chapter I---"the general market"--- is the opening and theoretical background of the full text. It introduces the connotation and elements of market and the emergence of market economy, analyzes of the relationship between market and politics, expounds the spontaneousness and construction of market order and the nationalism and cosmopolitanism of market. This paper holds that the market doesn't equal the market economy. A market economy doesn't simply allocate resources according to price. In fact, the development of market economy is a process full of conflicts, contradictions, and constant selection. It is a highly political product. The market order is an organic unity of spontaneousness and construction. In era of economic globalization, the market is both nationalism and cosmopolitanism. The developed capitalist countries pay great attention to the worldwide market because they lead the world market with strong status in globalization tide. The developing countries or the up-and-coming countries should pay more attention to the nationalism or the independence of the market.Chapter II--- "the freedom of market"--- is the sub-theory. It elaborates the theory and practice of free market, outlines the historical background and the main viewpoints in various periods of market liberalism, dissects the boundary of market function, reveals the path of China to establish and improve the socialist market economy. This paper holds that the freedom implicates inherently in the market and reflects the fundamental value orientation of the market economy. Market liberalism as a whole theoretical system, first of all, is an important component of the capitalist ideology. It defends mainly the natural rationality of capitalism. However, some viewpoints and specific methods of the market liberalism can be absorbed and used for reference. The market freedom is not an end point. It is not the whole society either. The boundary of market function is limited. There are many failures in the free market. In practice, we should get rid of the belief of omnipotence of market. Essentially a history of China's economic reform is the " history of indrawing" and " history of molding " of a market mechanism. This is one road to the relative free market.Chapter III and Chapter IV are also the sub-theory. It elaborates comprehensively the theory and practice of market independence. Among them, chapter III—"market independence: theory and experience"—expounds the general theory and basic experience of the market independence. This paper holds that market independence is that the local enterprises control the domestic market absolutely or relatively. It is to obtain and occupy the domestic market by national industrial capital, to show the market share of the national industry, to embody the power mechanism of sustainable development in a country. The market independence is to pay close attention to integrate the national industry with the domestic market cultivation in the open market, to combine the wealth growth with the national competitive power, to answer the significance of the backward countries to develop the national industry and the domestic market linking with it, to point out how the up-and-coming countries catch up with advanced countries. The development practice of the Western major developed countries has proved that no country in the open market becomes a developed country under the policy which allows free access of foreign capital and goods. If market has dependent and powerful local enterprises and national industries have not been created it is impossible to step onto road of building a powerful nation. At the same time, this chapter reveals it is hypocritical and deceptive for the developed countries to advocate free competition and free trade. They deliberately conceal the history and facts of their long-term protection of the domestic market.Chapter IV "—market independence: the present situation and the realization path of China "—analyzes the reality that Chinese market independence is eroded and weakened. It puts forward a series of measures which help to realize and strengthen the market independence. This chapter holds that the key for China to realize the market independence is to deepen the understanding of the strategic status and significance of domestic market, to deal with correctly the relationship between local enterprises and foreign-funded enterprises, to place importance on the causes and structure of wealth in order to raise the national competitiveness.Chapter V—"a developed market and a strong government"—elaborates the signification of a developed markets as well as the relationship between a developed market and a strong government. This chapter holds that a developed markets and its economic form do not come down to market freedom. A developed market should integrate independence with opening-up, freedom with development, wealth growth with competitiveness enhancement, strong market with strong government. In view of both theory and practice, we should get rid of the idea that the government is opposite to the market. The more developed the market is, the more powerful the government is. The influence of governments of developed countries on the market is expanding, strengthening instead of narrowing and weakening. In view of the fact that the market failure coexists with the low growth of market and the economical marketability coexists with the market globalization in the developing nation, they need the strong leadership and the positive impetus of the government even much more.In short, this paper has made the new exploration diligently in perspective, main content, basic viewpoints. This paper selects "the market freedom and the market independence" as research perspective to highlight the organic unification the economic liberalism and the economic nationalism. It analyzes the relation between market and freedom, and reveals the essence of the market freedom in the context of economic globalization. The concept of "market independence" is proposed and interpreted for the first time. The market independence closely integrates the local industry with the cultivation of domestic market, and combines the "expansion of domestic demand" and the "independent innovation". This paper clarifies deeply the inherent elements of the developed markets, corrects the specious economic viewpoint of "big market, small government" and clearly points out the viewpoint of" developed market, strong government".