The Government Functions Transformation In Socialism Market Economy System

It is always the important substance of China's economy system reform to change the government economy functions. It has the important theoretical and practical meaning for understanding the location of government economy function, holding the government economy functions comprehensively but with focal point under socialism market economy system, and treating the relation between government and market correctly to analyzethe difference between China's and the developed counrties' government economy functions and to search the condition and the law of government economy functions therefrom.This thesis consists of four parts.The first part of the thesis expatiates the theory of the evolution of government economic functions.First, the analyze for the logical stipulate of the government economy function evolution including market failure and government failure has been made. The market economy system, with natural and ordered characteristics could improve the personal welfare and social welfare, but cause the market failure as it departures from the actual economy seriously. Government failure is the opposite concept with market failure. In order to decrease the government failure, the government action in economy must be reduced and the factors which could induce a premium on government failure must be deracinated. Market failure demands government to participate in economy directly or intervening economy, while government failure demands the government to decrease its action. Thus, the government economy function fluctuates with the mutual alternation of market failure and government failure.Second, the evolution of government economy functions adjusts economy with the market together. The government should decrease the intervention to economy and provide the pure commonality goods when the productivity is in a lower level. With the increase of finance income of government and people's income, the government should provide the commonality goods in technique and capital.In the second part of the thesis, the comparison of the evolution of government economy functions of China with the West countries is presented.First, the evolution course of development of economy and the government economy functions of the West countries has been analyzed. In the early days of industry civilization in the West, the economy was adjusted by market basically and the government's intervening was few. But market economy system brought many problems, so that an enlarged government economy function was required. Mercantile system insisted that the government economy functions should comprise two aspects, one was building and protecting market economy order in the country, another was protecting homeland profit and enlarging overseas market to carry out favourable balance. Liberalism insisted to restrict the government's intervening. Keynes brought forward that the government intervened economy was necessary after the economy crisis in the West in 1929-1933. After the 20 century seventies, the phenomena government failure always took place and the new liberalism economy thought which demanded the government's intervening was accepted gradually.Second, the evolution process of latter-day China government economy functions was analyzed.After the Opium War, China adopted the industry-commercial policies in which the industry and commerce of government-managed and businessman- managed with government control were developed whereas the restricted capitalism industry and commerce were restricted. For the government economy functions, a policy with part-reform and entirety-fixed were adopted. The disastrous failure of the Jiawu War made the idea and policy of somebody, namely making the Chinese learning as the body and making the Western learning as the employ, coming to naught. This fact revealed that the first thing for the transform of government economy function was to encourage the development of individual, as well as private, industry and commerce and restricted the power of government to intervene economy. After Xinhai Revo...