Study On The Function Of China's State-owned Economy

The function of the state-owned economy means that, as an important part of the national economy, and through different forms of realization, the state-owned economy have the favorable influence on social economic development.This was stated in both eastern and western economic theories. Marxism of state-owned economic functions is discussed based on national ownership as a starting point. In Marx's view, the influence brought from state-owned economy has never been ignored in national economic development, he believes that co-production in large scale should be taken in, which is called "state owned, co-operation." Marx also believed that the state-owned economy is the protection of the ruling class and the benefit-based relationships, the state's social functions should be achieved through state-owned economy. At the same time in the country's economic transition, state-owned economy should be the most important tool in transformation of the society. On the basis of Marxism, and drawing on the experience and lessons from Germany nationalization, Lenin drew the strategic thinking that the state-owned economy should be obtained the control of the economic highest ground, which means that he state-owned economy should control the states'economic lifeline. Later on, based on a comprehensive nationalization of Soviet Union socialism, when the state ownership is equivalent to social ownership, Stalin believed that the Soviet Union achieved the social ownership on achieving the state ownership, which means a success in function transfer from socio-economic to state-owned economy.In the practice of socialism in China, based on socialist economic theory of Marxism, Mao Zedong gradually reasoned out a point that new democracy should be adhered to the leadership of state-owned economy in the transition of socialism; Then on the continuation and development of Maoism, Deng Xiaoping changed the state-owned economy's "leadership position" into the publicly-owned economy's"dominant position", like other economic sectors the state-owned economy achieve the leading role in social development through market competition.In the western economics theoretical framework, the function of state-owned economy is mainly about whether market economy needs the state's regulation. Along with the crisis of capitalist economy, Keynes's effective demand theory supplied a strong theoretical basis on expanding public investment, as a result, social public business investment and the avoidance on external side has been strengthened. As the important method of economy regulation, state-owned economy has played an indispensable role in correcting market failures, ensuring social equity and promoting economic development.There are lots of definite viewpoint about functions of the state economy on important documents since Chinese economic reform. The sixteenth National Congress report noted that state-owned economy has the key role as "control the economic lifeline, play the superiority of the socialist system, enhance China's economic strength, national defense capabilities and national cohesion". China's socialist economic functions has its specific content, it is the objective requirement of development of productive forces, it can reflect the nature of the socialist state ownership, it is the objective requirements in achieving common prosperity and harmonious social development. State owned economy has the feature of an economic model, as well as a public nature. Throughout the development and changes of state economic functions, it is invariant and irreplaceable; also it has the characteristics keeping up with the times. In summary, the function of state owned economy performs in two aspects both in general and special:First, the general function of the state-owned economy is conducive to safeguarding the rule of the ruling class, able to provide the necessary economic basis for the State, while undertaking the management functions of society, safeguarding national economic security.Second, the socialist state-owned economy has the special functions to ensure social equity. We say social justice is the special feature of the socialist state-owned economy, this does not mean that capitalism state-owned economy is not fair. Capitalistic system of ownership is based on that private capital holding the dominant position, resulting the inequality in the possession of production and thus determine the disparity of the distribution, so it is really difficult to be social equity.The special features of capitalistic state-owned economy is to coordinate the operation of the economy, the reason is because socialistic social ownership or state ownership of its preparation stage is built in a capitalist society based on mass production. Socialist state ownership surely can organize the smooth operation of national economy, therefore, the coordination function for economy running is the main function of state-owned economy.The decisive factor which constraints the state-owned economy is the level of development of social productive forces, besides, the size, layout, structure and efficiency of state-owned economy also restricts the state-owned economic functions. The reasonable size of the state-owned economy is the precondition and realistic basis to fulfill all its functions. While state-owned economy to fully realize its function, it requires the reasonable structure of the rational distribution and its own operating efficiency.During different historical periods in China, state-owned economy has is special function. In feudal society, China's state-owned system has a special function to maintain the "universal" in the centralized monarchy rule. Modern China is a semi-feudal society, the bourgeois liberals represented by Sun Yes-men brought up many ideas and policies such as nationalization of land and capital, and these reflect the function of coordinating the economic operation. The Qing Westernization state monopoly capital and post-Legend of the National Government's bureaucratic monopoly capital exposed the true face of attempting to maintain the dictatorial rule of government. With the deepening of the reform of China's socialist market economy, function of the state economy correctly positioned to control the lifeline of the national, play to the superiority of the socialist system, enhance China's economic strength, national defense strength and national cohesiveness.Western countries experienced two waves of nationalization, which provided us with experiences and lessons in the development of state-owned economy. All the failures, such as American state-owned-civilian-run, Japanese government-led, Germany balance of powers, French high degree of national control and Russian privatization, have brought us a deep thought. The existence and development of state-owned economy and its function of playing is still the subject of the world. How to improve the state economy, not only the difficult problem China has to face, it's also worldwide. There is a significant difference between Chinese and Western economy in the way of generation and development. This difference reflected in the different development trajectories of state-owned economy formed in different social and historical environment and theoretical. Developed Western countries'state-owned economy developed in the condition of modern industry and high-grade market-oriented economy, while Chinese state-owned economy in the highly centralized system, using Marxist theory of public ownership and Mao's new democratic economic programs as a guide. Thus, Chinese state-owned economy has played an extremely important role in the national economy since its generation.At the same time of seeing the differences, we also should pay attention to their common characters under the background of market economy. State-owned economy, who has a higher self-conscious under economic society, will consequentially make the effort to act as the lead force of all the economic components. From the strategic of developing national economic and enhancing overall national strength, it primarily play a regulatory role to national economy and market economy, especially in some basic, security, guiding and public-service aspects. Western countries have some experience and lessons for us to learn. In a market economy, the state-owned economy realizes social justice and balanced development by controlling the national economy's lifeblood. With the increase of quantity and quality, the state-owned economy status won't be affected even its proportion in national economy decreases.There's no doubt that state-owned economy is indispensable to social economy, wherever in the East or in the West, in the developing countries or in the developed ones. Many economic developments need state-owned economy's participation. Experiences and lessons of economic crisis tells us that once the economy falls into turmoil, the states will use the state economy as a means of regulation to promote the resumption of normal economic life.Thanks to efforts of several generations, China's economic reform of state-owned has achieved gratifying results in all aspects. According to the chief architect's idea of reform, State-owned economy has basically been able to adapt to the needs of socialist market economy. State economic has controlled the national economy's lifeline and the industries with important international and domestic impact, and played a leading role in national economy. Deepening the reform of state-owned enterprises has effectively promoted the development of state-owned economy, making its function displayed preferably.At the mean time, we also should face the problems in state-owned economy's development calmly. With the deepening of reform, those problems, whether antiquated or new, might be difficult to resolve. In the next step, we should further promote market-oriented reform of state-owned economy and deepen its layout and structural adjustment. At the micro level, we should unswervingly push forward the reform of state-owned enterprises into stock companies, improve the governance structure, accelerate the reform of monopolies, establish the management and budget system make the reform decisions more scientific and improve the coordination of reform measures.The global economic crisis in 2008 has brought unprecedented opportunities and challenges to our state's economic development. We should play the state-owned economy's role fully, as a starting point, and seize the current favorable opportunity to speed up the perfection of the socialist market economic system, further implement the scientific concept of development, promote sustainable economic development and realize the great rejuvenation of our nation.