Market-oriented Economic Policy Research

Making a general survey of the market-oriented economy development, the relationship between government and market has experienced changes from the traditional laissez-faire to modern government interfering, from repelling one another to merging each other. Due to the market failure and government failure, the two hands, whether visible or invisible, must coordinate each other to reach the maximized efficiency.To properly arrange the relationship between government and market, we must solve the problem of the government under-interfering and over-interfering, establish a market-guided government, and make sure every policy be in line with the market requirements. However, less developed countries, owing to their specific conditions, should change their roles according to the market development stages.The economic policy will promote the economic development, if it follows the market principle, and coincides with the requirements of the market-oriented economy, which we call market-guided policy. This has been displayed by most western countries' practices, such as Germany, the United States, and Japan, etc.It is also true concerning Hunan Province. Entering the 21st century, Hunan must meet the challenges of economic globalization and knowledge economy. Therefore, Hunan should adjust its policy timely, and carry out market-guided policy.