The Choice Of The Combining Mode Of Market Principle And Government Control In China

Under the condition of the socialist market economy, on the hand, the market should fully function; on the other hand, the government should be completely involved in the adjustment of the macro-economy. Both the "Deficiency of Market" and the "Deficiency of Government" have sense in theory, that is ,either market or plan is not almighty. But the extreme conclusion derived from the two opposite views is one-sided. The "Deficiency of Market" holds the view that the market system is unreliable. The economic development of one country can be achieved only if it draws support from the interference and adjustment of government, in anther hand, government is more reliable than market .The "Deficiency of Government" holds the view that the control of government is unreliable. Only if market adjusts the distribution of resources, the efficient development of economy can be realized, in anther word, market is more reliable than government.In fact, the definite assessment to the function of market principle and government control is not acceptable. Whether they could push the economic development is mainly determined by their economic conditions of functioning is available. This logic contradiction is inevitable to every country and must be faced positively. In the essay, I take China as an example and try to find a proper way to deal with the contradiction .We should not only learn from foreign experiences, but also concern the factual development in China, in order to probe a combining mode of both market and government control for ourselves.The statement in this essay progresses according to the logic sequence from the general to the special. The whole essay is divided into four parts. Chapter One gives a brief introduction of the theory of market principle and government control. Chapter Two and Chapter Three start from the two theories' origin and development, then talk about economic thought and changes in each period. The combining mode in developed countries and developing countries are dealt separately here and gradually get the inspiration from above. Chapter Four is the body of the essay .It expounds the background and conditions of the combining mode of market principle and government control, and finally gets the particular combining mode for China's development.