Government And The Market: Theory, Practice And China's Choice

In a variety of countries the re1ationship between the government andthe market has been, for a 1ong time, a hot topic in both po1itica1 scienceand economics. Being the two basic and mutua11y dependent e1ements in themodern economy, the government and the market have different effects inpromoting economic growth and social deve1opment.A1ong with the deve1opment and flourishing of the market economy indeveloped Euro-American countries, the re1ationship between thegovernment and the market have gradua11y evolved into the market-1eadingpattern. After the World War II some east Asian countries took a total1ydifferent approach, they created the East Asia Miracle by fo11owing thegovernment-l eading pattern. However, the Asian Financia1 Crisis revea1edsome prob1ems of this pattern.At present, China is in a pivota1 stage of changing from traditionalp1aning economy to socia1ist market economy. It is important to draw1essons from the experience of those two representative patterns andconstruct the government-market relationship suitab1e for thecircumstances of our country. This issue is a1so crucia1, both in theoryand in practice, for improving our economy and social life.Based on theoretica1 and practica1 ana1yses, this artic1e tries torevea1 the re1ationship between the government and the market frompolitica1 and economic point of view. Throughout this artic1e, thediscussions on government-market re1ationship of China in this migratingperiod is rooted on the comparison of the Euro-American pattern and EastAsia pattern. From the consideration of politics, this article reaches aconc1usion that reforming the government is the rationa1 resolution basedon ana1ysis of the government-market relationship.