Study On The Inclusive Growth Based On The Economic Power Structure

Since the financial crisis in2007, there still exists uncertainty of U.S economic recovery. In addition, the European countries are stepping to the verge of Domino effect of sovereign debt crisis instead of struggling out of the shadow of slow economic growth. The public protest symbolized by "Occupy Wall Street" event spread over the entire Western world. As the world economic structure gradually characterizes its integrity, meanwhile, the existing orders of various nations and countries are facing the unprecedented challenges, which resulted in people’s serious reflections on issues like the increased gap between the wealthy and poor caused by the traditional economic growth model; the short-term behavior of addressing more on economic growth while neglecting the true essence of growth, which has great impact on the social and economic development of the whole world; and reflections on neoliberalism that ever since it was introduced and largely adopted by the stateeconomic power over the past30years, it has become on one hand the mainstream Western economic thought by which the degree of liberalization of various countries is measured, and on the other a "scalpel" at its ultimate form of the"Washington Consensus "giving solutions to privatization, marketization, and democratization of non free economies. However, what so-called the order of free competition advocated for by those developed capitalist countries has finally offered to the world economy a tremendous social disaster rather than a social and prosperous development.The market economy has been proved the most effective way of allocating social resources. Its distinctive factors such as productive force, fair trading system, free competition and technical innovation have embodied both the actual possibilities in economic growth and the positive expectations of social development. However, the gap between the wealthy and poor and the cyclical economic crisis are doomed to the evils of market economic system. It has been proved by the historical development of market economy in many countries as well as by their difficult economic situations currently. Different from the notion of traditional economic growth which addresses more on process and less on result, and more on quantity and less on quality, the economic notion of inclusive growth is that it gives considerations to both equal opportunities and just result, and to the balance between the development of mankind and eco-environment protection. Its people-centered attribute determines that this new economic growth notion does not indulge in empty talks about social fairness and justice principles outside of market economic system, rather it will, in the form of national will, put this principle to reality in market economic behaviors, which requires that the mode of economic growth will be a revolutionary shift from instrumental rationality to value rationality.This dissertation, by using the theoretical achievements from historical materialism and dialectical materialism, integrates the research topic of economic growth into the value rationality analysis framework of social mode of production. Based on the position, viewpoint and methods of Marxism, and by elaborating social justice as the start-off of analyzing the value rationality of economic growth, it sticks to the economic power structure—the core prerequisite of inclusive growth—as the mainline of dissertation. It attempts, by taking the instrumental rationality to analyze the traditional growth as a breakthrough, to make a systematic analysis of and research on the economic power structure formed market power and statepower in the context of different historical periods, different law systems, and in different countries. Based on such analysis, it further expounds it is both necessary as well as possible for social justice principle required by inclusive growth to be fully embodied in the market economy system. It has been proved by history that under the mode of traditional economic growth, it is impossible that only by utilizing and maximizing the market power or state power to find a basic route for the economic growth embodied by the principle of social justice and realized with market economic conditions. Thus, it is only through the equilibrium function mechanism of market power and state power—the ongoing innovation of economic power structure, that it is possible to seek the support which conforms with the objective law of social mode of production to realize inclusive growth. The main purpose and the value pursuit of this dissertation therefore is to provide a vision and conclusion with certain theoretical significance for the establishment of research mode in this field on the basis of fully utilizing the academic achievements made by scholars both in China and abroad, and by making ongoing research on inclusive growth with further breadth and depth. The dissertation is consisted of seven chapters.Chapter1:Introduction. A brief introduction to the realistic and theoretical background under which the topic is selected. First, from the perspective of realistic and theoretical background, it is to sort out the causes of failure of the traditional economic growth mode, Second, explanations are made as to research methods, main contents, and innovation, which lays an analytic and research foundation for the topic.Chapter2:Research of Growth and Inclusive Growth. It is to compare the differences between the abstract, static, and instrumental rationality based assumption of "economic man" based on Western mainstream economics utilitarianism and idealism, and the summary made of "social man" based on historical materialism and dialectical materialism of Marxist political economics. It is addressed that the methodology foundation of inclusive growth should be established from the analysis on the subject behavior of human essence originally belonging to human beings to the mode of social production analysis. Chapter3:Economic Power Structure and Inclusive Growth. This part focuses on expounding that economic power is the cut-through to research on inclusive growth, in that it is only by forming a value judgment of social significance towards power integration of social production and social life, that a rational analysis and understanding can be attained as to the positions and functions of market power and state power in economic practices of inclusive growth. The fundamental difference between the mode of power analysis by traditional economic growth and inclusive growth lies in the analysis of effective integration of economic right and economic power, and factors of production and factors of economic power. and on the position, viewpoint and methods of Marxism. In addition, the classification of general market, frozen market and external market mode elaborates that the external market mode is the right selection for providing inclusive growth with economic operation carrier.Chapter4:Ideology and Inclusive Growth.The analysis is made on the historical background of market justice theory and its main contents, which emphasizes the importance of ideology to inclusive growth. Its starting point and ultimate goal is to maintain social justice, and based on such the basic principle is defined regarding the recreation of inclusive growth ideology.Chapter5:Ivolution and Pricipel of power structure innovation. It analyzes market power involution caused by the maximization of production factors, and suggests in what manner should the market mode which conforms with the social cost control exist. Meanwhile, and subsequently defines the basic principle of economic power structure innovation required by inclusive growth.Chapter6:International Economic Power Structure and Inclusive Growth. It elaborates in this part that the so-called free economic order is just the tool made use of by imperialist hegemonists, while the economics theories and practices of nationalism go opposite from free order preaching. In addition, it elaborates the international economic power structure constraints to the economic growth in developing countries, and based on such it defines the basic principle of state power mechanism required by inclusive growth, from the perspective of externality equilibrium, the entry mechanism of state economic power and its functions in the process of market economy operations. Chapter7:Socailism of Chinese Characteristics Inclusive Growth.by the analysis on Marxism’s state theory and the historical development of socialist practices, make it clear the aim of Socailism of Chinese Characteristics Inclusive Growth. and Meanwhile,summarizes the economic power structure corresponding with Chinese Characteristics Inclusive Growth.