Study On The Trade Association And Function Of It Under The Economic Law

Since the economically structural reforms, there have come out numerous trade associations from the organization system of social and economic fields in China. The role of trade associations in the social and economic life gets increasingly evident and important. How to recognize and bring into the effects of trade association in the market-oriented economy, under the mechanical system of socialist market-oriented economy? And how to bring the trade associations and their functions into the economic legal system, in the light of the aim and the spirit of the Economic Law? These are to be solved in the process of ameliorating Economic Law.In essence, Economic Law is the law to confirm and regulate the intervention by government. Market failure and government failure are the fundamental to the existence of Economic Law. It is shown by some contemporary economic research that to rectify the market failure, as the defect of market-oriented economy, firstly depends on the"visible hands"of state; and secondly relies on the self-discipline organizations. The former means to adopt intervention by government, and the later means to self-administrate. However, the government is not omnipotent, and the government failures do exist. Government failure is an occasion when the government cannot reach due goals during making public policy and providing public service, for its inner defect that can not be conquered the government itself. Trade association, as the third part, in some sense, can rectify market failure and conquer government failure. It can be known from the analysis of trade association's essence and effect, that trade association can partly conquer the market failure and avoid the government failure. Firstly, trade association can exercise the internally administrative function according to the laws, authorities by government and the constitution of the trade association, by way of making industry criteria and industry rules, to enhance the administration of the quality of the association's members, keep the fair competition, help the government to macro-adjust. So the fail competition can be established, and market failure will be conquered. On the other hand, trade association influences the process of public policy making by government, to protect the rights of the business entities and even the whole industry. Therefore, the government failure will be avoided. In the light of the important role of trade associations in the Economic Law, the accomplishment of duties of trade...